Compliance Update from Kristina - June 2018 - New Contracts & Sourcing Owner for Square Footage

June 15, 2018

As of May 15, the new contract forms are mandatory with the Texas Real Estate Commission.   Going forward, we will be rejecting all contracts that are submitted to Skyslope on the old forms.   So yes, that does mean your agents will have to police those offers/contracts that are being submitted on their listings by other agents representing buyers.  The Texas Real Estate Commission considers it practicing law if you use outdated contract forms that are promulgated.   In order to circumvent any difficult conversations with clients and other agents up front, please let your agents know now they they must immediately cease using all old forms.  Your Zipforms is updated with the new forms, anyway.  

 

Second, we've noticed a few agents sourcing "Owner" for the square footage on listings.  This is very dangerous, because with my years of experience I'll tell you when the rubber meets the road and things get hairy and money is involved, the sellers/buyers will ALWAYS say "I didn't say that."   It's not a reliable source anyway.   I think it needs to be better explained on the front end at a listing appointment that this is a big source of disagreements in transactions, and it's always best to pass that responsibility on to someone else, and not take that risk on as an owner.  That makes it very clear to the sellers that it IS a risk and it falls squarely on them, so that at least they'll try to find the real source of that square footage.  (appraisal, builder plan, tax records, etc.).  HOWEVER, if the agents are going to insist on using "owner" as the source, we will require them to use the attached form (TAR 2502) and have the owner sign it saying they are the source, and upload it to MLS along with the Seller's Disclosure Notice (because that's what it essentially is---a Seller's Disclosure).  That takes the "he said, she said" out of it, and takes the risk away from the office and places it squarely on the shoulders of the seller.  

 

TAR 2502 is also added in the Office Docs section of Skyslope. 

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