Whether you’re buying, selling or renting property, you’ve most likely dealt with a real estate form or contract. The Texas Real Estate Commission (TREC) has about 30 forms to conduct the business of real estate transactions in Texas.

TREC contract forms
As public record documents, the contract forms are available to anyone. Some of these forms are straight-forward, but others can be pretty complex. TREC does not provide legal advice about private contractual issues and cautions individuals against attempting to use the forms without a real estate agent. Failing to understand the nuances of a real estate contract can cause problems – awkward situations at the closing table, delayed closings, transaction failures – even a potential lawsuit.

The TREC forms are developed by the TREC Broker/Lawyer Committee, an advisory body consisting of six attorneys appointed by the president of the state bar and six real estate brokers appointed by TREC. Generally speaking, real estate agents are required to use the TREC forms to negotiate the sale of real property in Texas.

The Realtor difference
There are lots of real estate licensees in our state – in fact, there are currently over 150,000. Now, only about 60 percent of those agents are Realtors, who abide by a strict code of ethics and are held to higher professional standards.

Members of the Texas Association of Realtors have access to the TREC forms, but can also utilize a much larger, more complete collection of forms. In fact, Texas Realtors have exclusive use of nearly 70 additional forms. These extra forms cover everything from commercial leases and purchases to specialized forms concerning client representation, residential leases and property management. The forms in the Texas Realtors’ library are comprehensive – and agents who are not Texas Realtors cannot use them.

Details, details
Over the years, the forms available to Texas Realtors have been developed by attorneys and practicing Realtors. These experts have used real-world experience and years of accumulated knowledge to fine tune existing forms, repeal outdated ones, and adopt new ones. As needed, the association convenes a task force composed of real estate attorneys and Realtors with specialized experience in a particular area – commercial property management, for example.

These forms are written with carefully chosen words and provisions – and there’s a reason. The authors are addressing issues that have taken place in the past and are trying to prevent problems from arising in the future.

More to it than price
Another common problem, and not just with real estate, is the propagation of inaccurate information. Much like a well-intentioned friend giving misguided advice about auto repair, tax preparation, or plumbing issues, just because your neighbor says that a seller is contractually obliged to respond to an offer in 24 hours doesn’t make it so. Poor interpretations of contract language or general misinformation about the real estate process can cause anything from minor inconvenience to serious legal problems.

The point is that there’s substantially more to the details of a real estate transaction than just price. There are all sorts of business details. Make sure you understand what’s on the contract before you get into uncomfortable or financially painful circumstances.

If you’d like to have professional representation in your next real estate transaction, consider a Realtor. We have the expertise and resources to explain how to use a wide range of contracts and forms to your greatest benefit, so you can meet your goals. Visit the Collin County Association of Realtors’ “Find a Realtor link” on its Web site, www.ccar.net.