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Under the TREC rules relating to contract forms, what must a licensee do? Inform the parties to a real estate transaction that the contract they are about to sign is legally binding on them. Now that you can recognize the different types of promulgated forms, its important that you know what each type is.
Promulgate means to make known publicly. When TREC promulgates a contract, that means theyve made it official, or law. In other words, they require that particular form to be used by all agents in any relevant transaction.
The cost to get a real estate license in Texas is between $1,000 and $1,500 and takes 4-6 months on average. This means you can begin your new career and be just as, if not more, financially successful without debt and with many years to spare.
Final answer: TREC promulgated forms are mandatory and created by TREC for standardized real estate transactions, while TREC approved forms meet TREC criteria but are optional and not regulated by TREC.
What is the difference between a TREC-approved form and a TREC-promulgated form? Promulgated forms are created specifically by the Texas Legislature, while approved forms are created by the Commission. Approved forms must be used, while promulgated forms may be used.
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