Relating to the content of certain Texas Real Estate Commission contract forms for the sale of residential property.
The introduction of SB 1387 is expected to enhance transparency in the residential real estate market in Texas. By requiring buyers to disclose their intentions clearly, the bill aims to address potential issues associated with property flipping and market speculation. This change is anticipated to provide sellers with valuable insight into the buyer's motivations, which could lead to more informed decision-making during the sale process.
Senate Bill 1387 seeks to update the requirements regarding the content of Texas Real Estate Commission contract forms utilized for the sale of residential property. Specifically, it mandates that contract forms for single-family homes and small multifamily properties (duplexes, triplexes, and fourplexes) must include a disclosure by the buyer regarding their intentions for the property. This includes whether the buyer plans to market the contract and assign it to another buyer, or if they intend to sell the property immediately upon closing to another individual in a concurrent transaction.
While the bill is largely aimed at fostering clear communication between buyers and sellers, it has drawn some attention regarding its implications for the real estate market. Supporters argue that such disclosures can protect home sellers from unqualified investors seeking to quickly re-sell properties without appropriate oversight. Conversely, concerns have been raised about whether these requirements might discourage legitimate buyers who may fear their transactions will be subjected to excessive scrutiny.
In terms of implementation, the Texas Real Estate Commission is tasked with devising the updated contract form by December 1, 2019. The bill is set to take effect on September 1, 2019, providing a timeline for the Commission to prepare for these changes in contract requirements.