Starting February 1, 2021, Texas Real Estate Agents have the option, but not the requirement, to use the new TREC 20-15 1-4 Family Residential Contract (Resale), which contains new provisions for the Title Insurance Agent to receipt and disburse the Option Fee. This contract form becomes mandatory for use by all Texas Real Estate Agents after April 1, 2021.
Changes from the prior 20-14 form contained in the new 20-15 contract form include –
Deleting paragraph 23 dealing with the Option Fee and combining Option Fee provisions into paragraph 5 with the Earnest Money Provisions.
Both the Option Fee and the Earnest Money are to be delivered to the Title Insurance Agent, referred to as escrow agent in the Contract form.
The Option Fee and Earnest Money can be delivered in a single check, rather than in separate checks as required previously.
The new Contract form now provides for a separate receipt of the Option Fee and the Earnest Money, with the receipt of the Option Fee being subtly changed from being signed by the Seller’s Broker to requiring the signature of the escrow agent. Make sure yo
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