I received an offer on one of my listings, but included in the offer were forms drafted using outdated versions of the form. How should I handle this?
With respect to a TREC form, TREC’s rules obligate license holders to use the most current forms that are approved for mandatory use by TREC. With respect to TAR forms, such as the Commercial Contract-Improved Property form (TAR 1801), such forms are authorized to be made available for transactions for which there is no mandatory TREC form to be used. Outdated TAR forms are removed from the blank forms section on texasrealestate.com and from the websites of any form vendors licensed to offer TAR forms. Once the forms are removed, TAR no longer authorizes them for use and doing so would be a violation of TREC rules governing the use of forms promulgated by a trade association.
If you receive an offer on your listing on an outdated TREC or TAR contract form, present the offer to your seller and tell him that it’s on an outdated form. Next, inform the other broker that the contract form used was outdated. If your seller intends to counter the offer, draft the counteroffer on a current form. If your seller wants to accept the offer on the older form and not move the sale to a current form, urge him to seek the advice of counsel before doing so.
If the selling party wants to accept the offer on the older form and not move the sale to a current for, then the final decision should come from the closing title company’s attorney.
I go ahead and proceed to present the offer but make sure it gets put not he correct updated form. Title Company or their attorney has nothing to do with Contracts. As a Licensed REALTOR® we are bound by our Code of Ethics to make sure everything is correct and that means using correct forms and protecting our clients. You can submit offer but again, put on correct form as quickly as possible making sure the terms of the offer remains the same.
I have received offers on TREC contracts when I know these Realtors are members of TAR. Should they be using TAR forms?
Seller or buyer can use language or a form drafted by an attorney
In regards to leasing, it’s absolutely amazing how many agents are using outdated TAR lease applications. Even getting some from 2 versions ago!