Is my Realtor an Attorney?

I ask the question because this is something you need to know. In Texas, unlike many other states, real estate agents are filling out contracts for clients to purchase or sell real estate. For many of you who have purchased a home outside of Texas you remember having your own attorney in addition to your agent. In many states the agent's job is to show you the home and once you find a home and want to make an offer you sit down with an attorney who puts that offer on paper and presents the offer to the seller's attorney. Most residential real estate is not sold that way in Texas.

Real estate agents in Texas have been given contracts and forms to be used that are created by the Texas Real Estate Commission. These forms were developed by teams of attorneys and are the only forms that Texas real estate agents are allowed to use. These forms and contracts get updated periodically to reflect changes in law or to better clarify intent. Contract promulgated by TREC are the only forms that real estate agents in Texas are allowed to use in the purchase and sale of real property. The contract is fill in the blank and if anything is not covered in it than there is usually an addendum that was created to address it.

Why is this important?

Real estate agents are prohibited to practice law. When a TREC Texas Real Estate Commission contract is modified, items are crossed out or verbiage is added an agent can be accused of practicing law.

There are several reasons why agents modify contracts.

1. They don't know that there is an addendum for what they wish to do.

There is a special provisions part of the purchase contract that is used for many incorrect purposes. Instead of finding the appropriate form agents write in their intentions here.

2. They don't understand the contract.

I cannot count the times I receive a contract where the agent either didn't know that the contract already said what they wrote in the special provisions section. Many of these agents do not understand the contract verbiage or feel the need to dumb it down so that they are sure it is understood.

3. They think repetition will help.

I have called agents who use this tactic and asked "why did you write on the contract that the house must appraise for contract price when you included a finance addendum that says the same thing?" Their answer is usually "just to make sure"

4. Willful practice of law.

This is not as rare as you might think. Most agents know that they can lose their license if they get caught doing this. Unfortunately agents don't get turned in for this until something blows up and real damage is done to a client. That is the time where contracts are examined and blame is placed.

The Texas Real Estate Commission establishes clear guidelines on what can and can not be done in regards to our promulgated forms. http://www.trec.state.tx.us/pdf/rules/trecrules.pdf see page 85

Why does this matter to you?

I would love to think that this matters to everyone but honestly as a consumer this is probably not one of the criteria you use to pick a Realtor. It is important that your Realtor has experience with contracts and can explain to you the meaning behind the forms. Whether you are a potential buyer or seller having an experienced Realtor is essential to a successful transaction.

Having negotiated several hundred real estate contracts in North Texas I would love to help you navigate successfully through the process. Call me today to get started. There is no better time.

Wayne Warshawsky Broker Associate RE/MAX Four Corners 214-718-3096

www.365thingsincollincounty.com