What is the Texas Real Estate Commission real estate purchase agreement called?
 Show If you are a newly licensed real estate professional or investigating real estate as a career path in Texas, you won’t get very far down the road without bumping into a slew of terms that you’ve probably not seen before. TR v TRECTwo that come immediately to mind are TREC and TR — easy-to-remember acronyms for a pair of key organizations whose names are as cumbersome as they are important. TREC = Texas Real Estate Commission, a state-government regulatory body TR = Texas Realtors®, a state-level association of real estate licensees What Exactly Do TREC and TR Do?If you’re wondering what these organizations do and how they differ, according to a January 2016 TREC survey, you’re not the only one. Just over eight out of 10 licensees responded with “no answer/refused” when asked to respond to the statement, “I fully understand the difference between the Association of REALTORS® and the Real Estate Commission.” It’s our goal to take some of the mystery out of that statement, so, without further ado, let’s take a peek behind the TREC and TR curtains to better understand their purposes, goals, and objectives, and how they interact and overlap. TRECThe Texas Real Estate Commission (TREC) was established in 1949 by the Texas legislature as a protection for consumers engaged in all matters related to real property transactions and valuation services. The Commission is composed of six broker members and three non-licensed members (with no financial interest in real estate), all appointed by the governor for six-year terms. TREC’s primary functions include:
Speaking of industry professionals, TREC regulates the following individuals:
Want to know more about TREC? Easy enough — check out their About the Commission webpage. Now that you know a little bit more about the primary government entity overseeing the real estate industry in Texas, let’s turn our attention to the private sector’s leading real estate industry authority figure in the state, the Texas Association of Realtors®. TRTexas Realtors® (formerly known as the Texas Association of Realtors®) was established in 1920 as a state-level affiliate of the National Association of Realtors® (NAR). Over 130,000 members strong, TR describes themselves as an advocate organization for realtors® and private property rights. More than 80% of all real estate licensees in the state are Texas Realtors®. TR provides an array of resources to support its members, including:
You can find out more about TR’s programs and organizations on its website. United in PurposeBecause TREC and TR serve many of the same constituents, it’s not surprising that they would also have common purposes and goals, two being of primary importance: education and ethics. EducationThrough their Education and Examination Services division, TREC approves and regulates education providers, courses, and instructors, and they mandate course content for pre-licensing and continuing education. TR supports those same efforts, providing links to TREC-approved education providers (like AceableAgent) with whom TR has also partnered. Additionally, TR makes available to their members a host of courses and educational programs through which they can earn designations and certifications to further their career goals. EthicsTREC has its Cannon of Professional Ethics and Conduct that promotes fidelity, integrity, and competency — all in the interest of serving the consumer. All Texas licensees are held to this standard. Similarly, members of TR are expected to uphold the Code of Ethics, published by the National Association of Realtors®. New TR members must complete an orientation program on the code in their first year, while established members complete a Code of Ethics course once every two years. (TREC’s Legal Update II course fulfills this requirement.) RECAP:TREC is a government body. TR is an industry association. Both serve to promote industry competency through education and ethical behavior through a commitment to a professional standard. And, generally speaking, if you uphold the tenets required of TR membership, you’ll find yourself in good standing with TREC. What is a purchase and sale agreement in Texas?A Texas residential purchase and sale agreement outlines the terms and conditions of an offer to purchase real estate. The document informs the seller of the amount the buyer is willing to pay and specifies various terms the seller must satisfy if the buyer is to agree to the sale.
What is the most commonly used listing agreement in Texas?The "Exclusive Right to Sell" is the most common, but there is the "open listing," the "exclusive agency listing," and the "one-time show." The "open listing" is mostly used by people trying to sell their home by owner who are also willing to work with real estate agents.
What is the most common sales contract addendum in Texas?Each addendum is as much a part of the contract as the contract itself. The most common addendum is the Third Party Financing Addendum.
What is the difference between a TREC approved form and a TREC promulgated form?What is the difference between a "TREC-approved" form and a "TREC-promulgated" form? promulgated forms must be used, while approved forms may be used. The Texas Real Estate Commission regulates licensed real estate brokers and sales agents in the state.
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