TREC - Texas Real Estate Commission Practice Test

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When studying for the Texas real estate exam, one of the most frequently tested concepts is understanding which documents qualify as official TREC promulgated contracts and which do not. The question stem "all of the following are contracts promulgated by TREC except" appears regularly on licensing exams, and getting it wrong can cost you valuable points. TREC, the Texas Real Estate Commission, mandates that licensed agents use specific state-approved contract forms in most residential transactions, but several important documents fall outside that mandate entirely.

When studying for the Texas real estate exam, one of the most frequently tested concepts is understanding which documents qualify as official TREC promulgated contracts and which do not. The question stem "all of the following are contracts promulgated by TREC except" appears regularly on licensing exams, and getting it wrong can cost you valuable points. TREC, the Texas Real Estate Commission, mandates that licensed agents use specific state-approved contract forms in most residential transactions, but several important documents fall outside that mandate entirely.

Understanding the distinction between promulgated forms and non-promulgated forms is not just an exam strategy โ€” it is a foundational competency every Texas real estate agent must possess before stepping into their first transaction. TREC promulgated contracts are forms that the commission has officially approved and, in most cases, required agents to use. These forms carry the weight of regulatory authority, meaning that an agent who uses an unapproved substitute could face disciplinary action, license suspension, or even legal liability for their clients.

The Texas Real Estate Commission has been promulgating contract forms since the 1970s, and today maintains a carefully curated library of mandatory and optional forms. The most commonly used promulgated contracts include the One to Four Family Residential Contract (Resale), the New Home Contract (Incomplete Construction), the New Home Contract (Completed Construction), the Farm and Ranch Contract, and the Unimproved Property Contract. Each of these forms was designed by TREC attorneys and commissioners to protect both buyers and sellers in standard Texas real estate transactions.

However, not every document used in a real estate transaction is a TREC promulgated form. Notably, the Texas Association of Realtors (TAR) produces its own suite of contracts and addenda that are widely used but are NOT promulgated by TREC. Additionally, addenda created by title companies, lenders, or attorneys fall outside the TREC promulgated umbrella. Understanding this boundary is critical because exam questions frequently try to trick students by listing TAR forms or third-party addenda alongside genuine TREC promulgated contracts.

You can review the complete library of official trec promulgated contracts on our dedicated study guide, which breaks down every form by category, required usage scenarios, and key provisions. Knowing which forms belong on that list โ€” and which do not โ€” is one of the fastest ways to improve your exam score in the contracts and forms domain, which typically accounts for 15 to 25 percent of total exam questions depending on the state licensing exam version you take.

This study guide will walk you through every major TREC promulgated contract form, explain the legal basis for promulgation, clarify common exam traps involving non-promulgated documents, and give you the strategic knowledge to answer any variation of the "all of the following are contracts promulgated by TREC except" question with confidence. We will also cover the rules governing when agents may deviate from promulgated forms, what happens when an approved addendum is needed, and how TREC's promulgation authority intersects with the Texas Occupations Code.

Whether you are preparing for your salesperson exam, your broker upgrade, or simply refreshing your knowledge for continuing education, this guide provides the depth and precision you need. Real estate contracts in Texas are legally binding instruments, and your ability to identify, use, and explain promulgated forms correctly is both a regulatory requirement and a professional obligation to every client you represent.

TREC Promulgated Contracts by the Numbers

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8+
Promulgated Contract Forms
๐Ÿ“Š
15-25%
Exam Weight
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1970s
Promulgation Origin
โฑ๏ธ
180 Days
Standard Option Period Max
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100%
Mandatory Usage Rate
Test Your Knowledge: All Contracts Promulgated by TREC Practice Questions

The Official TREC Promulgated Contract Forms

๐Ÿ  One to Four Family Residential Contract (Resale)

The most commonly used TREC promulgated form, covering the sale of existing residential properties with one to four units. Agents are required to use this form for standard resale transactions unless a specific exception applies under TREC rules.

๐Ÿ—๏ธ New Home Contract (Incomplete Construction)

Used when a buyer is purchasing a home that has not yet been completed by the builder. This promulgated form addresses construction timelines, warranties, and the buyer's rights if construction is delayed or fails to meet specifications agreed upon.

๐Ÿก New Home Contract (Completed Construction)

Covers transactions where a builder sells a newly completed home that has never been occupied. Distinct from the resale contract, this form includes builder-specific provisions and warranty disclosures that differ from standard resale transaction requirements.

๐ŸŒพ Farm and Ranch Contract

The promulgated form for agricultural and rural property sales. It includes provisions for water rights, mineral rights, crops, and livestock that are not addressed in the residential contract, making it essential for Texas rural property transactions.

๐Ÿ“ Unimproved Property Contract

Used for the sale of vacant land without any structures. This TREC promulgated form addresses issues unique to raw land, including survey requirements, utility access, zoning considerations, and environmental disclosure obligations under Texas law.

Understanding what makes a contract "promulgated" by TREC requires a clear grasp of the commission's statutory authority. Under the Texas Occupations Code, specifically Chapter 1101, TREC is granted the power to establish rules governing the conduct of real estate license holders. One of the most significant exercises of this authority is the commission's power to approve and require the use of specific contract forms in real estate transactions involving licensed agents. When TREC formally adopts a form through its rule-making process, that form becomes promulgated.

The promulgation process is not simply an administrative rubber-stamp. TREC's Broker-Lawyer Committee, a joint body of real estate brokers and attorneys appointed by the State Bar of Texas and TREC itself, drafts and reviews all proposed promulgated forms. The committee considers consumer protection, legal enforceability, clarity of language, and alignment with current Texas property law. After the committee approves a draft, it goes through a public comment period before TREC commissioners vote on final adoption. This rigorous process is why promulgated forms carry significant legal authority.

Once a form is promulgated, Texas real estate license holders are generally required to use it for the transaction types it covers. The key word is "generally" โ€” TREC rules do allow exceptions in specific circumstances. An agent may use a contract form prepared by an attorney who is representing one of the parties in the transaction.

An agent may also use forms prepared by the property owner who is a party to the transaction. In some cases, forms prepared by a governmental entity may substitute for TREC promulgated contracts. These exceptions are narrow and should not be confused with general permission to use non-standard contracts.

The Texas Association of Realtors produces its own contract forms, and these are a frequent source of confusion on licensing exams. TAR forms are developed by the association's legal team and reviewed by real estate attorneys, but they are NOT promulgated by TREC. TAR forms are approved for use by TAR members and can be excellent tools in practice, but they occupy a different legal category from TREC promulgated forms. When an exam question asks which contract is NOT promulgated by TREC, a TAR commercial contract or TAR residential lease is almost always a correct answer choice.

Another critical distinction involves addenda. TREC promulgates not only contracts but also approved addenda that agents may attach to promulgated contracts. These include the Addendum for Sale of Other Property by Buyer, the Addendum for Back-Up Contract, the Short Sale Addendum, and the Addendum Concerning Right to Terminate Due to Lender's Appraisal.

Each of these addenda has been through the same approval process as the primary contracts and carries mandatory-use status in applicable situations. Adding a non-approved addendum drafted by a title company or lender to a promulgated contract is a violation of TREC rules and can expose the agent to disciplinary action.

It is also worth noting that TREC regularly updates its promulgated forms to reflect changes in Texas law, market conditions, and consumer protection standards. Agents have an obligation to use the most current version of each promulgated form. Using an outdated version โ€” even one that was previously valid โ€” can result in a defective contract and regulatory consequences. TREC publishes effective dates on all forms, and the current versions are always available on the TREC website. Staying current with form revisions is part of every Texas agent's ongoing professional responsibility.

For exam purposes, memorizing the exact names of all TREC promulgated contracts is essential. Examiners will use precise official titles in answer choices, and selecting a TAR form or a non-promulgated document when the question asks for promulgated contracts is a common mistake. Study each form's official name, its transaction type, and its key distinguishing provisions to build the pattern recognition you need under exam pressure.

Free TREC Consumer Protection Questions and Answers
Practice consumer protection rules that govern how agents must handle TREC promulgated contracts
Free TREC Education Questions and Answers
Test your knowledge of TREC education requirements including contract law and promulgated form rules

Promulgated vs. Non-Promulgated Forms: Key Differences

๐Ÿ“‹ TREC Promulgated Contracts

TREC promulgated contracts are forms that have been formally adopted by the Texas Real Estate Commission through its rule-making process. These forms are mandatory for licensed agents in covered transaction types. They include the One to Four Family Residential Contract, Farm and Ranch Contract, Unimproved Property Contract, and both New Home contracts. Using an approved promulgated form protects both the agent and their client by ensuring the document meets all current legal standards established by Texas property law.

Every TREC promulgated contract is drafted by the Broker-Lawyer Committee, reviewed through a public comment process, and adopted by TREC commissioners before it takes effect. The forms are updated periodically to reflect legal changes, and agents must use the most current version available. Failure to use a required promulgated form when one exists for the transaction type is a violation of TREC rules and can result in disciplinary action ranging from a formal reprimand to license suspension, depending on the severity and frequency of the infraction.

๐Ÿ“‹ TAR Forms (Non-Promulgated)

Texas Association of Realtors forms are professionally drafted, attorney-reviewed documents widely used in Texas real estate, but they carry a fundamentally different legal status from TREC promulgated forms. TAR forms are not adopted through TREC's rule-making process and are therefore non-promulgated. Common TAR forms that appear on exam questions include the TAR Commercial Contract, TAR Residential Lease, TAR Buyer Representation Agreement, and various TAR property management forms. These documents are permissible for use in transactions where no TREC promulgated form covers the situation.

Because TAR forms are available only to National Association of Realtors members, not every Texas licensee has access to them. When a licensed agent who is not a Realtor member needs a contract form for a transaction type not covered by a TREC promulgated form โ€” such as a commercial lease or property management agreement โ€” they must use a form prepared by an attorney representing a party, or fall back on a form the property owner provides. Knowing this limitation helps you answer exam questions that test your understanding of when and by whom non-promulgated forms may be used.

๐Ÿ“‹ When Exceptions Apply

TREC rules allow agents to use non-promulgated contracts in three primary situations: when the contract form is prepared by an attorney who represents one of the parties, when the form is prepared by the property owner who is a party to the transaction, or when the form is issued by a governmental entity such as HUD or a municipality. These exceptions are narrow by design. The moment a licensed agent steps in to prepare or modify a non-promulgated form without attorney involvement, they risk unauthorized practice of law and TREC rule violations simultaneously.

In practice, the governmental entity exception most commonly applies to HUD sales, VA foreclosures, and transactions involving municipal land banks. In each of these cases, the agency provides its own contract documentation and the TREC promulgated form is set aside. Agents working on these transactions should still understand the TREC promulgated forms thoroughly, because the governmental forms often address the same issues and comparing the documents helps agents advise clients more effectively. Exam questions about these exceptions focus heavily on who prepared the form and whether that preparer is authorized under the exception.

Using TREC Promulgated Contracts: Advantages and Limitations

Pros

  • Provides standardized consumer protection vetted by Texas attorneys and commissioners
  • Reduces agent liability by using state-approved language that meets current legal requirements
  • Simplifies transactions because all parties and title companies are familiar with standard forms
  • Updated regularly by TREC to reflect changes in Texas property law and market practices
  • Mandatory use requirement removes ambiguity about which form to use in covered transaction types
  • Public availability on TREC website ensures transparency and accessibility for all parties

Cons

  • Forms may not address every unique situation or property type, requiring attorney-drafted addenda
  • Agents must track form updates and cannot use outdated versions, requiring ongoing vigilance
  • Rigid standardized language cannot be customized by agents even when a specific clause would better serve clients
  • Some promulgated forms are not available for commercial transactions, limiting their scope significantly
  • Non-Realtor agents lack access to TAR supplemental forms and must involve attorneys for non-covered transactions
  • Misidentifying a TAR form as a TREC promulgated form is a common and costly error on licensing exams
Free TREC Licensing Questions and Answers
Practice licensing rules including when agents must use TREC promulgated contract forms
Free TREC Regulation Questions and Answers
Test your understanding of TREC regulatory requirements surrounding promulgated and non-promulgated forms

TREC Promulgated Contracts Exam Prep Checklist

Memorize the official names of all eight TREC promulgated contracts and their covered transaction types
Distinguish between TREC promulgated forms and TAR forms โ€” know TAR forms are NOT promulgated by TREC
Understand the three exceptions that allow use of non-promulgated contracts in covered transaction types
Know that the Broker-Lawyer Committee drafts all promulgated forms before TREC commissioner approval
Identify all TREC promulgated addenda including the Back-Up Contract Addendum and Short Sale Addendum
Recognize that agents must always use the most current version of every TREC promulgated form
Understand that adding non-approved addenda to a promulgated contract violates TREC rules
Know that the governmental entity exception applies to HUD, VA, and municipal land bank transactions
Be able to identify which form to use for vacant land, farm property, new construction, and resale homes
Practice answering "all of the following are contracts promulgated by TREC except" question formats with timed drills
The TAR Commercial Contract Is Never a TREC Promulgated Form

The single most commonly missed exam question in the TREC contracts domain involves the Texas Association of Realtors Commercial Contract. Despite being widely used and professionally drafted, this form is NOT promulgated by TREC. Any time you see it listed alongside TREC promulgated forms in an exam question, it is the correct "except" answer. Memorizing this distinction alone can save you one or two points on the actual licensing exam.

One of the most important exam traps in the TREC contracts domain involves understanding what the word "promulgated" does NOT include. Many students assume that any form approved for use in Texas real estate transactions has been promulgated by TREC, but this assumption leads to wrong answers. Promulgation is a specific legal and regulatory process โ€” a form either has been formally adopted by TREC through its rule-making authority or it has not. There is no middle category of "partially promulgated" or "informally approved" forms.

The Texas Real Estate License Act and its successor, Chapter 1101 of the Texas Occupations Code, together define TREC's promulgation authority. TREC may promulgate contracts and addenda, but it does not promulgate leases for residential property โ€” that task falls under the purview of the Texas Property Code and is handled differently.

This distinction trips up many students who correctly know that agents help clients with leases but incorrectly assume TREC has promulgated standard lease forms. TREC has not promulgated a standard residential lease, and agents who need one typically use TAR's Texas Residential Lease form, which, again, is not a TREC promulgated document.

Another nuanced exam trap involves the TREC promulgated listing agreements. TREC does NOT promulgate listing agreements. Listing agreements โ€” whether exclusive right to sell, exclusive agency, or open listing โ€” are not standardized by TREC. Agents typically use TAR listing agreement forms or broker-specific templates. Because listing agreements are not promulgated, an exam question asking which of the following is a TREC promulgated contract will never have a listing agreement as a correct answer. Students who confuse listing agreements with sales contracts frequently miss these questions.

Buyer representation agreements are similarly non-promulgated. TREC does not have an approved buyer representation agreement form. These agreements, which became significantly more important following the National Association of Realtors settlement regarding buyer agent compensation in 2024, are governed by TAR forms and broker policies โ€” not TREC promulgated standards. The regulatory landscape around buyer representation agreements continues to evolve, but the fundamental point for exam purposes remains unchanged: buyer representation agreements are not TREC promulgated contracts.

The Addendum for Property Subject to Mandatory Membership in a Property Owners Association is one of the TREC promulgated addenda that frequently appears in exam questions. This addendum is required whenever a property being sold is subject to a homeowners association, and failure to include it when applicable can make the contract voidable. Unlike non-promulgated TAR addenda, this document has been officially adopted through TREC's rule-making process and carries mandatory-use requirements in HOA transactions. Knowing which addenda are promulgated versus which are TAR-created is an advanced-level exam skill worth developing.

Property condition disclosures represent another area where students confuse required documents with promulgated contracts. The Seller's Disclosure of Property Condition form is a TREC-approved document that sellers must provide, but it is classified as a disclosure, not a contract. It does not carry the same promulgated status as the One to Four Family Residential Contract. The distinction matters because exam questions sometimes list the Seller's Disclosure alongside actual contracts and ask which is a promulgated contract โ€” the disclosure is not, and marking it as one is a mistake.

Finally, consider the Residential Buyer/Tenant Representation Agreement and the Intermediary Relationship Notice. Both are important documents in Texas real estate practice, and TREC has made some of them available in standard form. However, their regulatory status differs from promulgated contracts. The Intermediary Relationship Notice, for example, is a required disclosure under Texas law but is not the same as a promulgated contract form subject to mandatory use in the same way. Understanding these nuanced distinctions requires careful study and repeated practice with exam-style questions that test your ability to categorize documents correctly under time pressure.

When agents need to add terms to a promulgated contract that go beyond what the standard form addresses, they have two lawful options: use a TREC-approved addendum designed for that purpose, or have an attorney for one of the parties draft a custom addendum. What agents may not do is draft their own addenda, fill in blank addendum forms with substantive legal terms, or modify the body of a promulgated contract. Crossing that line constitutes unauthorized practice of law under Texas Penal Code Section 38.123 and is simultaneously a TREC rule violation that can result in license action.

TREC's library of promulgated addenda is extensive and covers many common situations that arise in Texas real estate transactions. The Addendum for Sale of Other Property by Buyer protects a buyer who needs to sell their existing home before closing on the new purchase. The Addendum for Back-Up Contract allows a secondary buyer to queue up behind an existing contract in the event the primary contract falls through. The Short Sale Addendum clarifies the lender approval contingency in distressed property sales. Each of these addenda is as legally authoritative as the primary contract and must be used in applicable situations.

One of the more complex areas involving promulgated contracts is the treatment of mineral rights and surface rights in Texas property transactions. The Farm and Ranch Contract includes specific provisions for these issues that the residential contract does not address in the same depth. Texas is a mineral-rights-rich state, and the severance of surface and mineral estates is a common transaction complication. Agents working rural or energy-sector transactions must understand how the Farm and Ranch Contract's mineral rights provisions work, including the default rule that mineral rights do not transfer unless specifically addressed in the contract.

The Unimproved Property Contract is another frequently tested form because vacant land transactions raise issues that differ substantially from improved property sales. Utility availability, soil conditions, floodplain status, and access rights are all matters that this promulgated form addresses more directly than the residential contract. Agents who attempt to use a residential resale contract for a vacant land transaction are using the wrong promulgated form and violating TREC rules. The exam tests this specific mistake because it occurs in practice among agents who are not fully versed in which form applies to which transaction type.

For licensing exam preparation, it helps to group promulgated contracts by the property type they cover: residential resale, new construction (two separate forms based on completion status), agricultural and rural, and vacant land. If the property has an existing structure and previous occupants, use the One to Four Family Residential Contract.

If the structure is brand new and never occupied, choose between the two New Home contracts based on construction status. If the property has no structure, use the Unimproved Property Contract. If it has agricultural use, livestock, or substantial acreage, use the Farm and Ranch Contract. This decision tree simplifies one of the most practically important skills tested on the Texas real estate exam.

Beyond the contracts themselves, the exam also tests your knowledge of TREC's authority to promulgate. The commission's rule-making power derives from the Texas Occupations Code and is subject to the Texas Administrative Procedure Act, which requires public notice and comment before rules take effect.

This means that agents and the public have an opportunity to weigh in on proposed form changes before they become binding. The practical implication for exam takers is that TREC forms represent a deliberate, transparent regulatory process โ€” not arbitrary administrative decisions โ€” and understanding that process helps you answer questions about why promulgated forms carry the authority they do.

As you finalize your exam preparation, remember that the contracts domain rewards precision. Knowing the general concept of promulgation is not enough โ€” you must know exact form names, know which documents fall outside the promulgated category, and know the narrow exceptions that permit non-promulgated forms. Review the complete guide to trec promulgated contracts to reinforce your understanding with additional examples and practice scenarios that mirror actual exam question formats.

Practice TREC Education Questions Including Promulgated Forms Rules

Building mastery over TREC promulgated contracts for the licensing exam requires a strategic study approach that goes beyond reading and memorizing lists. The most effective preparation combines active recall, timed practice questions, and error analysis. Each time you miss a question involving promulgated contracts, ask yourself three things: did you confuse a TAR form with a TREC form, did you apply the wrong form to the property type, or did you misidentify a disclosure or listing agreement as a promulgated contract? Each error type points to a different gap in your knowledge and a different remediation strategy.

One high-yield study technique is to create a comparison table with two columns: TREC Promulgated and Non-Promulgated. In the TREC column, list every promulgated contract and promulgated addendum you can recall. In the Non-Promulgated column, list TAR forms, attorney-drafted forms, listing agreements, buyer representation agreements, and residential leases. Drilling this table daily in the two weeks before your exam will build the pattern recognition that exam questions demand. Many students find that after ten or fifteen practice sessions with this format, they can identify the "except" answer within seconds.

Pay particular attention to the official names of promulgated contracts because exam questions use exact titles. "One to Four Family Residential Contract (Resale)" is the official name โ€” not "standard purchase agreement" or "home sale contract." "Farm and Ranch Contract" is specific โ€” not "rural property contract" or "agricultural sales agreement." These naming conventions are intentional, and exam writers sometimes use near-miss titles in wrong answer choices to test whether you truly know the official TREC names versus a reasonable-sounding substitute that has no regulatory basis.

Another productive study approach involves working through full practice exams that weight the contracts domain heavily. The Texas real estate licensing exam typically allocates substantial question share to contracts, agency, and disclosures. Within the contracts domain, promulgated forms questions often appear in clusters โ€” you might see three or four contract-related questions in sequence. Building stamina and accuracy in this domain through repeated full-length practice exams is one of the most reliable predictors of exam success.

Consider also studying the TREC rules that govern promulgated forms directly, specifically Texas Administrative Code Title 22, Part 23, Chapter 537. This section contains the actual TREC rules about when promulgated forms must be used and what exceptions apply. Reading the primary source, even briefly, gives you authoritative knowledge that no study guide can fully replicate. When an exam question describes a scenario and asks whether the agent must use a promulgated form, your answer will be more confident and accurate if you have read the rule itself rather than relying entirely on secondhand summaries.

Time management during the actual exam is also a relevant preparation consideration. Contract-related questions are often longer and more scenario-based than definition questions in other domains. An agent is presented with a factual situation โ€” a specific property type, a specific buyer situation, a specific transaction complication โ€” and you must identify which promulgated form applies or whether a promulgated form exists at all.

These questions require careful reading and methodical elimination of wrong answers. Practicing this reading approach on realistic scenario questions before exam day will save you time and reduce anxiety when you face similar questions under real testing conditions.

Finally, do not underestimate the value of reviewing your state-specific TREC rules alongside general contract law principles. Questions about the legal effect of promulgated contracts โ€” whether they constitute offers, when they become binding, how the option period interacts with earnest money, and what happens when a party defaults โ€” are all tested alongside the form identification questions. A holistic understanding of how TREC promulgated contracts function in actual Texas real estate practice will serve you better on the exam and in your career than rote memorization alone can achieve.

TREC Agency Relationships and Disclosure
Practice agency and disclosure questions closely related to proper use of TREC promulgated contract forms
TREC Agency Relationships and Disclosure 2
Advanced agency and disclosure practice covering intermediary rules and promulgated form obligations

TREC Questions and Answers

What does it mean for a contract to be promulgated by TREC?

A promulgated contract is one that has been formally adopted by the Texas Real Estate Commission through its rule-making process under the Texas Occupations Code. These forms are drafted by the Broker-Lawyer Committee, reviewed through a public comment period, and approved by TREC commissioners. Once promulgated, licensed agents are generally required to use these forms in the covered transaction types rather than substituting unapproved alternatives.

Which contracts are promulgated by TREC?

TREC currently promulgates the One to Four Family Residential Contract (Resale), New Home Contract (Incomplete Construction), New Home Contract (Completed Construction), Farm and Ranch Contract, and Unimproved Property Contract. TREC also promulgates numerous addenda such as the Back-Up Contract Addendum, Short Sale Addendum, and the Addendum for Property Subject to Mandatory Membership in a Property Owners Association.

Are TAR contracts promulgated by TREC?

No. Texas Association of Realtors forms, including the TAR Commercial Contract, TAR Residential Lease, and TAR Buyer Representation Agreement, are NOT promulgated by TREC. TAR forms are drafted and maintained by the Texas Association of Realtors and are available only to NAR member Realtors. While they are professionally prepared and widely used, they carry a fundamentally different legal status from forms officially adopted through TREC's rule-making process.

When can a Texas agent use a non-promulgated contract form?

TREC rules allow agents to use non-promulgated forms in three specific situations: when the form is prepared by an attorney who represents one of the parties in the transaction, when the form is prepared by the property owner who is a party to the transaction, or when the form is issued by a governmental entity such as HUD or a municipality. These exceptions are narrow, and agents should not interpret them as general permission to substitute preferred non-standard forms.

Does TREC promulgate a standard residential lease?

No, TREC does not promulgate a standard residential lease. Agents who assist clients with residential leases typically use the TAR Texas Residential Lease form or broker-specific templates. Because no TREC promulgated residential lease exists, this document type is a common correct answer to exam questions that ask which document is NOT promulgated by TREC. Agents must be careful not to confuse the existence of TAR leases with TREC promulgation.

Is the Seller's Disclosure of Property Condition a TREC promulgated contract?

No. The Seller's Disclosure of Property Condition is a required TREC-approved disclosure form, but it is not a promulgated contract. Disclosures and contracts serve different functions and carry different regulatory classifications. A contract creates binding obligations between buyer and seller; a disclosure communicates the seller's known property condition to the buyer. Classifying the Seller's Disclosure as a promulgated contract is a common mistake on the Texas real estate licensing exam.

What happens if a TREC agent uses an outdated promulgated form?

Using a superseded version of a TREC promulgated form is a violation of TREC rules and can result in disciplinary action ranging from a formal reprimand to license suspension or revocation. Beyond the regulatory consequences, using outdated language may expose the transaction to legal challenges if the form does not comply with current Texas property law. Agents must always verify the effective date on any promulgated form before using it in a real transaction.

Can an agent add their own clauses to a TREC promulgated contract?

No. Licensed agents in Texas are prohibited from adding their own clauses or modifying the body of a promulgated contract. Doing so constitutes unauthorized practice of law. If additional terms are needed, agents must use a TREC-approved addendum designed for that purpose or have an attorney who represents one of the parties draft a custom addendum. The blank addenda in promulgated contracts may be completed with factual details but may not be used to draft new legal obligations.

Which form should be used for a vacant lot transaction in Texas?

The TREC Unimproved Property Contract is the correct promulgated form for vacant land transactions. This form addresses issues specific to raw land that the residential resale contract does not cover, including utility access, soil conditions, floodplain status, and survey requirements. Using the One to Four Family Residential Contract for a vacant lot transaction would be using the wrong promulgated form, which violates TREC rules regardless of whether both parties agree to use it.

Does TREC promulgate buyer representation agreements?

No. TREC does not promulgate a standard buyer representation agreement. These agreements are typically handled through TAR forms available to Realtor members or through broker-specific templates. Following the 2024 NAR settlement changes affecting buyer agent compensation disclosure requirements, buyer representation agreements gained increased importance in Texas real estate practice, but their non-promulgated status under TREC rules has not changed. Agents should not confuse required use of a BRA with TREC promulgation of one.
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