Recent changes in listing forms

What is different in the revised residential and farm and ranch forms.

by Ron Walker   In October 2003, TAR modified its residential listing forms (1101 and 1102) and its farm and ranch listing form (1201). This article summarizes the more significant changes to those forms.

As forms are revised, the font size in all TAR forms is increased from nine-point type to 11-point type. While the number of pages may increase, the total word-count in the forms is about the same. The increased font size should make the forms easier to read, especially when faxed or copied.

The increased font size necessitated a number of formatting changes in the forms. For example, the blanks in paragraph 1 (Parties) were significantly enlarged. There are now two blanks to identify the sellers. The "look and feel" of the new listing forms is slightly different. There were a number of grammatical changes made in every paragraph, which this article does not discuss.

Paragraph 2 (Property) was changed to more closely mirror the format used in paragraph 2 of the TREC forms. In the farm and ranch listing form, provisions addressing government programs and agricultural development districts were added to paragraph 2.

Two paragraphs under paragraph 5D (Other Fees), which previously separately addressed the payment of earnest money and damages if a buyer breached a contract, were merged into one paragraph. The substance and effect remains the same.

Paragraph 5D(3), previously entitled Transaction Fees, was renamed Transaction Fees or Reimbursable Expenses.

A provision was added in paragraph 7A that specifically authorizes the listing broker to duplicate keys to provide for convenient and efficient showings.

Paragraph 8 was revised to incorporate a change in the Code of Ethics (standard of practice 1-12) requiring the listing broker to disclose the amount of compensation the listing broker will offer to cooperating brokers.

Paragraph 9 was modified to more specifically address the ways in which firms move into the intermediary relationship. The title of paragraph 9 was changed from Agency Relationships to Intermediary. The number of check boxes was reduced under paragraph 9 but the alternative procedures are still addressed under paragraph 9.

A provision was added in paragraph 11 (Broker’s Authority) to address multiple offers. Specifically, the provision provides that the broker may disclose whether the seller is considering more than one offer, but the broker will not disclose terms and conditions of competing offers to competing buyers. Another provision in paragraph 11 was added to expressly permit the broker to advertise that the broker sold the property, after a sale.

A provision in paragraph 12 that previously asked how the seller learned of the broker’s firm was deleted.

The indemnity provision under paragraph 14C was amended to more precisely state that the seller’s duty to indemnify the broker arises only for acts that the seller caused or is responsible.

Minor changes in paragraph 19 (Addenda) more accurately describe the Chapter 49 Water Code Notice that may be applicable. Specifically, if the property lies in a municipal utility district, water district, or statutory tax district, the required notice may be required. Also, the form concerning the seller’s authorization to release and advertise certain information was identified under paragraph 19.

Paragraph 20 in the farm and ranch listing form was modified to mirror the environmental hazard disclosure provision contained in the TREC farm and ranch contract.

A notice was added in paragraph 21 to specifically notify the seller of the seller’s obligations under the Lead-Based Paint Hazards Reduction Act.

The blank requesting the seller’s social security number near the signature blanks was deleted.

Ron Walker is director of legal affairs for TAR.

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