Compliance Update 4/12/2021
A few gentle reminders…
1. There have been some questions about paragraph 21 on the contracts and the absence of information in that paragraph.
TREC recommends that the client information be in paragraph 21 as the agent could have liability if the notice is not received by the client within the prescribed time.
Our broker will allow you to do any of the following:
Ask your client to create a new email just for this transaction and add it to line 21
Add the client email to the 1st email line and yours to the 2nd email line.
Add just your email to the 2nd email line.
If both of you are to receive the notices, this will help limit your liability.
Can we and should we ask the other agent to fill in paragraph 21 for their client?
Yes. License holders are required by TREC to fill all blanks in the contract.
If you have a contract that has been executed and you realize that the other agent has not filled out paragraph 21, the best practice is to call the other agent and ask them where their client would like written notices to be sent. When they tell you, state that you will write an amendment to fill in that paragraph of the contract.
2. The newest Seller’s Disclosure, Section 5, Page 3 asks multiple questions about flooding. If line 1, 3, 4, 5, or 7 are checked, then you must attach the TXR 1414 Information About Special Flood Hazard Areas.
If the TXR 1414 is not in the placeholder following the Seller’s Disclosure, your file will be returned.
Remember, we do not review the Seller’s Disclosure for correctness, only for completeness. It is rarely returned for corrections, but please review to make sure that it has been completed.
Remember, you assume liability if you assist the seller in completing the form. You can only explain what the form is asking for, not if the seller has that feature or not.
3. IF Box 6A2, Broker will not file…, is checked, you must have a signed Authorization to Exclude to HAR within 3 days. It is NOT JUST for those that will be temporarily excluded.
4. The MUD form must be signed by the buyer PRIOR to executing the contract. If not, he can terminate the contract at any time, even if you give it to him later.
5. Your client must initial the CMA. This applies to listings AND closings. It is your only proof that you have shared the information with them.
Continued Success! H Lorraine Bennink │Compliance Officer Keller Williams Premier Realty firstname.lastname@example.org