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Radius Cheat Sheet: Texas TXR Forms Updates
Radius Cheat Sheet: Texas TXR Forms Updates

Your guide to the newly released and newly revised TXR Forms

Updated over 4 months ago

This cheat sheet is your guide to effortlessly navigating the vital Texas TXR Forms. Our goal is to make understanding these new forms a breeze by providing clear summaries of their importance and purpose. With this knowledge, you can confidently transact in this new environment!

Please note: We will continue to update this form as additional forms become available.

Forms Updates Announcements

2024

June 2024 Releases

New Releases:

TXR 2701 Amendment to Representation Agreement

When To Use: Temporary-use form for listings, pending deals, and active buyer clients that signed the previous version of a representation agreement (prior to June 24, 2024).

Radius Requirement Status: You will be asked to provide this form as a requirement if your representation agreement predates June 24th.

TXR 2406 Addendum Regarding Brokers’ Fees

When To Use: Can be used for any transaction where the Seller or Seller’s Broker is compensating the Buyer’s Broker (exception: If the only fee the buyer’s broker receives is from the listing broker, you can insert the amount on Page 10 of the sales contract and would not need to use the Addendum Regarding Brokers’ Fees (TXR 2406).

Radius Requirement Status: If Applicable

TXR 1507 Residential Buyer/Tenant Representation Agreement - Short Form

When To Use: You are able to use this prior to first property tour; if buyer/tenant chooses to submit an offer the TXR 1501 (long form) is required to be signed and uploaded for broker review

Revised Forms:

TXR 1412 Sellers Authorization to Disclose and Advertise Certain Information

When To Use: If you plan to advertise or disclose the sellers willingness to contribute to the Buyer’s Broker compensation (not on the MLS) this form must be signed.

TXR 1417 Representation Disclosure

When To Use: When speaking to an unrepresented buyer about a home in which you are the listing agent, you should clearly disclose your agency relationship to ensure transparency and compliance with real estate regulations.

TXR 1501 Residential Buyer/Tenant Representation Agreement - Long Form

When To Use: Residential Buyer/Tenant Representation Agreement - Long Form (“BRA”): must be included in all buyer/tenant transactions

TXR 2402 Compensation Agreement Between Brokers

When To Use: Have this form signed prior to submitting an offer.

  • TXR 1101 Residential Real Estate Listing Agreement, Exclusive Right to Sell

  • TXR 1102 Residential Real Estate Listing Agreement, Exclusive Right to Lease

  • TXR 1201 Farm and Ranch Real Estate Listing Agreement, Exclusive Right to Sell

  • TXR 1402 Named Exclusions Addendum to Listing

  • TXR 1403 Exclusive Agency Addendum to Listing

  • TXR 1404 Amendment to Listing

  • TXR 1505 Amendment to Buyer/Tenant Representation Agreement

  • TXR 1506 General Information and Notice to Buyers and Sellers

  • TXR 2401 Compensation Agreement Between Broker and Owner

  • TXR 2405 Referral Agreement Between Brokers


Resources

June 2024 Releases


Compensation Forms: Scenario Guide

Which forms to use…

If the seller and the buyer will pay their own brokers:

  • No additional compensation agreements are required other than the listing agreement and buyer representation agreement.

  • The representation agreements authorize the title company to pay broker fees.

If the listing broker agrees to pay the buyer’s broker:

  • Compensation Agreement Between Brokers (TX 2402). Executed by the listing broker and buyer’s broker before the offer is presented.

  • Addendum Regarding Brokers’ Fees (TX 2406). Executed by the seller and the buyer and can be included as part of an offer package delivered to a seller. It may also be executed later in the transaction.

  • Check box D(1) and insert the agreed upon amount.

    • Note: Paragraph D(1) serves the same function as the compensation disclosure located at the bottom of Page 10 of the One to Four Family Residential Contract. It notifies the title company of the broker-to-broker compensation agreement. If the only fee the buyer’s broker receives is from the listing broker, you can insert the amount on Page 10 of the sales contract and would not need to use Addendum Regarding Brokers’ Fees (TXR 2406).

If the seller agrees to pay the buyer’s broker using a separate compensation agreement:

  • Compensation Agreement Between Broker and Owner (TXR 2401). Executed by the seller and buyer’s broker.

  • Addendum Regarding Brokers’ Fees (TXR 2406). Executed by the seller and the buyer and can be included as part of an offer package delivered to a seller. It may also be executed later in the transaction. Check box D(2) and box D(2)(a) and insert the agreed upon amount.

If the seller agrees to pay the buyer’s broker as part of the sales contract:

  • Addendum Regarding Brokers’ Fees (TXR 2406). Executed by the seller and the buyer and can be included as part of an offer package delivered to a seller. It may also be executed later in the transaction. Check box D(2) and box D(2)(b) and insert the agreed upon amount.

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