WE HAVE A NEW WINNER!

Each month the Texas Real Estate Commission will post their enforcement actions. Every now and then one just pops up and you have to ask "WHAT IN THE WORLD WERE THEY THINKING?"

This takes the cake for someone with nerves of steel and common sense of mush.

A contract was executed for a sale of a property where the Seller agreed to pay a maximum of $6,500 in closing cost. The actual amount of the closing cost was $5,327.67, a savings to the seller of $1,147.33.

At the closing the listing Broker gets their hands on the contract and inserts into the contract that the Seller would pay the listing Broker a "Bonus" of $1,147.33. Not a bonus of $1,000 or $1,100 but $1,147.33. The listing Broker then informed the Seller they could not close unless the "Bonus" was paid.

The Seller paid because they needed to close. The Seller filed a complaint and to say the least the Texas Real Estate Commission was not pleased. The listing Broker now has a blotch on their record and was required to give the money back to the seller. The Commission will be looking to hold Brokers and Agents accountable if they try similar schemes in the future.

New TREC Contracts Approved

The Texas Real Estate Commission has approved changes to the standard promulgated forms. There are several small changes and a new termination notice has been created. Form 38-2.

We have created a study guide form where many of the changes have been highlighted. Click here for a copy.

For a complete review and a copy of the new forms check the TREC web site at:

http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp

The new forms can be used now and become mandatory 9/1/2008.