Attention *Brokers *Real Estate Agents *Title Company Persons
–our “Real Estate Professionals”.
Just a reminder of some big changes that happened effective April 1, 2021. TREC adopted changes to the Contract and approved some new Addendums.
You can find the updated Contracts and Addendums and Notices HERE.
Here were a few bigger points:
1) Paragraph 4 (Leases) is brand-new.
2) Paragraph 5 (Earnest Money and Termination Option)has changed in a big way. Here are a couple things to pay attention to:
- The earnest money and option fee are now both payable to escrow agent (either combined or in separate check)
- The escrow agent will apply amounts received first to the option fee; then to the earnest money.
- The buyer authorizes the escrow agent to release the option fee to the seller at any time.
Excited to see you thrive –
~ The Allen Firm Team | Your Legal Guides
PS. We asked Sierra Barstow, Attorney in the Business Legal Group “What is a Title Commitment?” In case you missed it, you can find it HERE. It is a good resource to send your clients.