Last updated: March 7, 2026.
Fast Answer: What Are Texas Promulgated Forms?
Promulgated forms are standardized real estate contract forms that Texas license holders are required by law to use in most residential transactions. The Texas Real Estate Commission (TREC) mandates their use under the Texas Occupations Code, Chapter 1101. The Broker-Lawyer Committee (BLC) -- a joint committee of TREC-appointed brokers and Texas Real Estate Research Center-appointed attorneys -- develops, revises, and recommends these forms.
The critical distinction: license holders in Texas cannot practice law. You cannot draft your own contracts, modify legal language, or add clauses. You may only fill in the blanks on TREC-promulgated forms. Violating this rule constitutes the unauthorized practice of law and is grounds for license suspension or revocation.
The 6 TREC Promulgated Contract Forms
Texas has exactly six promulgated contract forms that cover the vast majority of residential transactions:
| # | Form Name | Use Case |
|---|---|---|
| 1 | One to Four Family Residential Contract (Resale) | Existing homes with 1-4 units -- the most commonly used form |
| 2 | New Home Contract (Incomplete Construction) | Home still being built; buyer purchases before completion |
| 3 | New Home Contract (Complete Construction) | Newly built home that has never been occupied |
| 4 | Farm and Ranch Contract | Rural property with agricultural use, livestock, or crops |
| 5 | Residential Condominium Contract (Resale) | Condominium unit resale with HOA provisions |
| 6 | Unimproved Property Contract | Vacant land with no structures |
One to Four Family Residential Contract (Resale) -- Deep Dive
This is the workhorse form you will encounter most often. Its key sections include:
- Parties -- Buyer and seller identification
- Property -- Legal description, address, and what is included/excluded
- Sales Price -- Purchase price, earnest money, and financing terms
- License Holder Disclosure -- Required disclosure of agent relationships
- Earnest Money -- Amount, form of payment, escrow agent, and deposit deadline
- Title Policy and Survey -- Who pays for title policy, existing survey acceptance
- Property Condition -- Seller's disclosure, inspections, option period
- Broker's Fees -- Commission arrangements
- Closing -- Closing date, costs, prorations, and possession
- Special Provisions -- Blank space for factual statements and business details (NOT legal advice)
Farm and Ranch Contract -- Key Differences
The Farm and Ranch Contract includes provisions not found in the standard 1-4 Family form:
- Reservations of mineral rights, water rights, and timber rights
- Farm and Ranch Improvements -- fencing, pens, blinds, feeders
- Crops -- growing crops and who retains them
- Livestock -- whether livestock convey with the property
- Surface Leases -- oil/gas leases, wind leases, pipeline easements
Condominium Contract -- Key Differences
- Resale Certificate required from the HOA
- Condo Association assessments and rules disclosure
- Common elements vs. limited common elements addressed
Promulgated vs. Approved vs. Exempt Forms
This distinction is one of the most tested concepts on the Texas real estate exam:
| Category | Requirement | Examples |
|---|---|---|
| Promulgated | MUST use -- mandatory for applicable transactions | The 6 contracts above, plus standard addenda |
| Approved | MAY use -- optional, but if you use a form for this purpose, use TREC's version | Seller's Disclosure Notice, Consumer Information Form, Condominium Resale Certificate |
| Exempt | Not required to use TREC forms | Transactions involving government agencies (HUD, VA), court-ordered sales, new home builders (using their own contracts), transactions where all parties are represented by attorneys |
When Are TREC Forms NOT Required? (Exempt Transactions)
License holders do not have to use promulgated forms when:
- The transaction involves a government entity (HUD, VA, Fannie Mae foreclosures)
- A licensed attorney prepares the contract for a client
- The buyer or seller is a builder using their own contract for new construction
- The sale is court-ordered (foreclosures, probate, bankruptcy)
- Both parties have their own attorneys draft the agreement
Key Addenda and Amendments
TREC also promulgates standard addenda that attach to the main contract:
| Addendum | Purpose |
|---|---|
| Third Party Financing Addendum | Specifies loan type (conventional, FHA, VA, USDA), loan amount, interest rate, and financing contingency deadlines |
| Seller Financing Addendum | Terms when the seller carries the note (down payment, interest rate, term, balloon provisions) |
| Addendum for Property Subject to Mandatory Membership in a Property Owners Association | HOA disclosure requirements, assessment details, resale certificate |
| Addendum for Back-Up Contract | Makes a contract a secondary offer contingent on the first contract falling through |
| Addendum for Sale of Other Property by Buyer | Buyer must sell existing property before closing; includes waiver/termination deadlines |
| Addendum for Coastal Area Property | Required for properties in coastal areas; includes TCEQ disclosure |
| Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum | Environmental concerns for rural/unimproved property |
| Short Sale Addendum | When seller's lender must approve sale at less than outstanding loan balance |
Amendment vs. Addendum
- Addendum -- attached at the time of contract execution to add terms
- Amendment -- used after execution to change existing contract terms (requires mutual agreement)
The Special Provisions Paragraph
The Special Provisions section is where many license holders get into trouble. Here is what you need to know:
You CAN write:
- Factual statements ("Seller will leave the refrigerator")
- Business details ("Closing will occur at ABC Title Company")
- Items already addressed elsewhere in the form as a fill-in-the-blank
You CANNOT write:
- Legal clauses or contingencies
- Modifications to existing contract language
- Anything that constitutes the practice of law
Exam trap: If a question asks what a license holder should do when a buyer wants a special legal clause added, the correct answer is refer the buyer to an attorney -- never draft the language yourself.
The Option Period
The option period is a Texas-specific concept that is heavily tested:
- Buyer pays the seller a negotiated option fee (separate from earnest money)
- Gives the buyer an unrestricted right to terminate the contract during the option period
- Option period is typically 7-10 days (negotiable)
- Option fee is delivered to the seller (or seller's agent) within 3 days of the effective date
- If the buyer terminates during the option period, the buyer forfeits the option fee but gets earnest money back
- Option fee is credited to the sales price at closing if the buyer proceeds
Earnest Money Rules
Earnest money is another high-frequency exam topic:
- Must be deposited with the escrow agent within the time specified in the contract
- Default is delivery within 3 days after execution of the contract
- If the buyer defaults, the seller may be entitled to earnest money as liquidated damages
- If the seller defaults, the buyer can seek specific performance or earnest money return
- The escrow agent holds earnest money -- not the listing agent or buyer's agent
- Title company usually acts as the escrow agent in Texas
Promulgated Forms and the TREC Licensing Course
The Promulgated Contract Forms course is one of six mandatory 30-hour courses in the 180-hour Texas pre-licensing education:
| Course | Hours |
|---|---|
| Principles of Real Estate I | 30 |
| Principles of Real Estate II | 30 |
| Law of Agency | 30 |
| Law of Contracts | 30 |
| Promulgated Contract Forms | 30 |
| Real Estate Finance | 30 |
| Total | 180 |
This course covers every form in detail and is one of the most heavily weighted topics on the state portion of the licensing exam.
Common Texas Exam Traps on Promulgated Forms
- "The agent can modify the contract to add a legal contingency" -- WRONG. Only attorneys can draft legal language. Agents fill in blanks only.
- Confusing promulgated vs. approved -- Promulgated = MUST use. Approved = MAY use. If the exam says "which forms must a license holder use," the answer is promulgated.
- Who develops the forms? -- The Broker-Lawyer Committee (BLC), not TREC itself. TREC adopts and promulgates them.
- Option fee vs. earnest money -- They are separate. Option fee goes to the seller directly and buys the right to terminate. Earnest money goes to the escrow agent and shows good faith.
- Special Provisions overreach -- Writing legal clauses in Special Provisions = unauthorized practice of law. The correct advice is always "consult an attorney."
- Exempt transactions -- Builders and government agencies can use their own contracts. Do not assume every transaction requires TREC forms.
- Amendment vs. Addendum -- An addendum is added at execution; an amendment changes terms after execution. Both require signatures from all parties.
Practice With These Concepts
Ready to test your knowledge of Texas promulgated forms?
Understanding promulgated forms is essential for passing the Texas state exam portion. Focus on the distinction between promulgated, approved, and exempt forms; memorize the six contract types; and know the rules around option period, earnest money, and Special Provisions.