TREC Promulgated Contract Form Changes — Effective January 3, 2025

Exam: Real Estate Salesperson — Texas Chapter: Ch8 — Texas Promulgated Forms and Property Law Adopted: November 4, 2024 | Mandatory: January 3, 2025

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Overview

These changes are MANDATORY as of January 3, 2025. TREC adopted them November 4, 2024 and allowed a voluntary transition period before the hard effective date. Any agent using pre-January 2025 form language after January 3, 2025 is using an incorrect form.

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Change 1 — Survey Options: T-47 Affidavit vs. T-47.1 Declaration (Paragraph 6C(1))

Sellers who provide an existing survey now have two equally valid options:

| Form | Notary Required? | When to Use | |---|---|---| | T-47 Affidavit | Yes — requires notarization | Traditional option; still valid | | T-47.1 Declaration *(new)* | No — no notary required | Simpler alternative added January 3, 2025 |

• Both forms satisfy the seller's survey disclosure obligation under Paragraph 6C(1)
• The T-47.1 Declaration is a simplified version created to reduce administrative burden
• Exam tip: Know that sellers now have a choice — the Declaration is NOT required, it is an alternative

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Change 2 — Mold Remediation Disclosure (New Paragraph 6E[11])

A new affirmative disclosure obligation was added to the standard contract:

• What: Sellers must disclose any mold remediation certificate issued in the 5 years preceding the sale
• Applies to: ALL TREC contracts EXCEPT the Unimproved Property Contract
• Key details:
- This is a certificate disclosure — not merely knowledge of mold - The 5-year lookback is measured from the sale date - Applies even if the mold was fully remediated and the property is currently clean

> This is a NEW affirmative disclosure obligation. Sellers must proactively disclose — not just answer if asked.

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Change 3 — Third Party Financing Addendum: Two-Step Termination (Paragraph 2A)

Old rule: Buyer could terminate the contract by providing written notice if financing was denied.

New rule (January 3, 2025): Buyer must provide BOTH of the following to validly terminate: 1. Written notice to the seller 2. A copy of the lender's written determination of disapproval

• Sending notice alone is no longer sufficient — without the lender's written disapproval document, the termination is invalid
• The lender's written determination must accompany or precede the notice
• If buyer fails to provide both, the termination may not be valid and the buyer could be in default

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Change 4 — Condominium Resale Certificate (Form 32-5)

• The Condominium Resale Certificate form (32-5) was updated
• Voluntary use was allowed during the transition period before January 3, 2025
• As of January 3, 2025, the updated form is mandatory for condo transactions

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Exam Tips

> All four changes are testable on the TX state exam.

• Most frequently tested: The two-step termination process for the financing addendum (Change 3) and the new mold disclosure requirement (Change 2)
• Know that the T-47.1 Declaration is an alternative — not a replacement — for the T-47 Affidavit
• Know the 5-year lookback for mold remediation certificates
• Know that the Unimproved Property Contract is the only TREC contract form EXCLUDED from the mold disclosure requirement
• Brokers are responsible for ensuring their agents use the January 3, 2025 form versions — using outdated forms is a supervision failure

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Tags: #RealEstate #Texas #Ch8 #TRECForms #January2025 #T47Declaration #MoldDisclosure #ThirdPartyFinancingAddendum #CondoResale #FormChanges