To the Texas Wholesalers using the TREC One2017 to Four Family Contract,
With the new laws that went into effect on Sept 1st, 2017, how have you amended your TREC Contract to abide by the new laws requiring the Disclosure of the nature of the equitable interest to any potential buyer?
New Section 1101.0045
“(a) A person may acquire an option or an interest in a contract to purchase real property and then sell or offer to sell the option or assign or offer to assign the contract without holding a license issued under this chapter IF THE PERSON:
“(1) Does not use the option or contract to purchase to engage in REAL ESTATE BROKERAGE; AND
“(2) Discloses the nature of the equitable interest to any potential buyer.
“(b) A person selling or offering to sell an option or assigning or offering to assign an interest in a contract to purchase real property without disclosing the nature of that interest to a potential buyer IS ENGAGING IN REAL ESTATE BROKERAGE.”1
New Section 5.086 to Texas Property Code
“EQUITABLE INTEREST DISCLOSURE”
“Before entering into a contract, a person selling an option or assigning an interest in a contract to purchase real property must disclose to any potential buyer that the person is selling only an option or assigning an interest in a contract and that the person does not have legal title to the real property.”
Thank you all for any insight and answers!
Your disclosure is to the buyer not the seller so no revision is needed to the contract language. Your disclosure to the assignee should be made in writing though.