EzContract not in compliance with TREC rules

Over the last several months, a few TAR members received e-mail solicitations about a relatively new form-fill product known as EzContract. Several members have contacted the Texas Association of REALTORS® and asked if the product was licensed to include TAR and TREC forms in its library. To date, TAR has not entered into an agreement to license its copyrighted forms to be included in the product’s library.

After reviewing form samples (TREC contract forms) produced by the software, the TAR Legal Department asked TREC’s general counsel if the product complied with TREC rules, as there was a concern that the product did not produce forms in the manner required under TREC rules. TREC sent a letter to the operators of the software notifying the operators that currently the forms produced by EzContract do not comply with TREC rules in several areas. TREC informed the operators of the specific noncompliance issues. TREC has requested that the operators not market the forms to TREC licensees until the forms comply with TREC rules.

TREC licensees who use a product that is in violation of TREC rules might have to address potential disciplinary action. If the operators of EzContract are able to remedy the noncompliance issues, Texas licensees could consider purchasing the product.

Revisions to commercial forms adopted
The Texas Association of REALTORS® adopted revisions to the following forms:

• 1502 - Commercial Buyer/Tenant Representation Agreement
• 1301 - Commercial Listing - Exclusive Right to Sell
• 1302 - Commercial Listing - Exclusive Right to Lease
• 1303 - Commercial Listing - Exclusive Right to Sublease

Form-fill vendors will update their libraries within 45 days. Blank forms are available now in the Forms section of TexasRealtors.com.

New form proposed
In October 2005, the Residential Lease Forms Task Force revised a number of residential lease forms and discussed the possibility of developing a form that a property manager could use to notify tenants that management of the property had changed. Please note that Paragraph 4C(2) of TAR’s Residential Property Management Agreement anticipates that the property manager will provide such a notice to the tenant when the property-management agreement ends. Therefore, the task force suggests that TAR adopt the following form in its library:

2210 - Notice to Tenant of Change in Management and Accountability for Security Deposit

Review the proposed form by selecting the "Forms under revision" link in the Forms section of TexasRealtors.com