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Texas legislative session results in potential TREC form changes

​AUSTIN – The Texas Real Estate Commission’s Broker-Lawyer Committee (BLC) met earlier this month to discuss potential contract forms changes needed because of the 88th Texas Legislative Session.

Seller’s Disclosure Notice
HB 697 updates the Seller’s Disclosure Notice required under section 5.008, Texas Property Code. The bill adds language to the Seller’s Disclosure Notice requiring a seller to disclose the type of gas fuel piping used in a home.

The BLC recommended the Commission adopt the changes to the Commission’s Seller’s Disclosure Notice (TREC OP-H). If adopted on an emergency basis, the notice would become effective Sept. 1.

Notices by water districts
HB 2816 replaces several different disclosure notices under Chapter 49, Texas Water Code, related to tax assessments made by water districts, with one single notice. The bill provides the language required for the notice and requires water districts to post their own notice online, if required by Tax Code to have a website. 

The BLC will review and discuss a draft notice form at its next meeting.

Ownership of underground resources
SB 785 states that landowners own any underground geothermal energy and associated resources.

Because of this legislation, the BLC will consider the addition of the term “geothermal” to the list of examples in the Natural Resource Lease section of the contracts (Paragraph 4).

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