TLTA Continues to Monitor TREC's Option Fee Changes - NEW FAQs on Timeline and Implementation

We continue to monitor closely TREC's adoption and implementation of the proposed changes to the termination option and option fee language included in TREC contract form, and the Texas Realtors recently published these FAQs on the timeline and implementation of the revised forms:

What changes are being made to delivery of the option fee?

TREC recently adopted changes to their residential contract forms with respect to the delivery of option fees. Under the revised forms, which become mandatory April 1, 2021, a buyer is required to deliver the option fee to the title company, not to the seller.

When am I required to use the updated versions of the TREC residential forms?

The updated versions may be used on a voluntary basis a few days after Feb. 16, 2021, when TREC meets to finalize two of the forms that were previously omitted. All the updated forms are mandatory April 1, 2021. UPDATE: Due to inclement weather the TREC meeting was postponed to Feb. 19.
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