Dedicated to our community.  Dedicated to our clients.

ph: 512.459.1110 | * for more information contact us

Dedicated to our community.  Dedicated to our clients.

3009 North Lamar, Austin, Texas 78705

ph: 512.459.1110 | * for more information contact us

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TREC Contract Changes Effective June 1st


Did you know that on June 1st, TREC Contract changes are going to require your buyer decide at the time of signing the contract, if they want the survey endorsement for their title policy?

At its regular meeting on April 28, the Texas Real Estate Commission (TREC) adopted changes to several of their promulgated contract forms. The language in the title section has been changed to include a check box to elect to purchase the additional survey coverage as well as determine which party will pay.

For example, in the One to Four Family Residential Contract (Resale), Section 6.A.(8), now reads:

The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements: ❑ (i) will not be amended or deleted from the title policy; ❑ (ii) will be amended to read, "shortages in area" at the expense of ❑ Buyer ❑ Seller.

When should you recommend that your buyer get the survey endorsement?

While we always recommend you consult with an attorney to discuss the specific risks and issues of your individual transaction, we would suggest that at a minimum, your buyer give serious consideration to purchasing the survey endorsement whenever an old survey is being used on the transaction. The reason? If there is anything wrong with the survey, the buyer has no legal rights to hold the old surveyor accountable for the error, since the survey was purchased by and prepared for someone else.

Who should pay for the endorsement?

While all items are negotiable on the contract, a buyer’s agent could claim that, since the seller is saving money by using an old survey, that savings should be used to protect the buyer in the event the survey is flawed. This also protects the seller since, without the endorsement, if the problem is significant enough, the buyer may elect to sue the seller over the flawed old survey that the seller provided. Given the current market dynamics with seller power however, the buyer may not be able to effectively negotiate the seller to pay for it.


Organizations supported by Midtown

  • AIDS Services of Austin
  • Austin Children's Shelter
  • Austin Community Foundation
  • Austin Council of the Blind
  • Austin History Museum
  • Austin Museum of Art
  • Caritas of Austin
  • Emancipet
  • Equality Texas
  • Hill Country Ride for AIDS
  • March of Dimes Foundation
  • Octopus Club
  • Out Youth
  • Polari (formerly aGLIFF)
  • Project Transitions
  • Susan G. Komen Foundation
  • Ronald McDonald House
  • Waterloo Counseling Center


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