Can a Texas real estate agent draft their own contract?

No. Drafting contracts is the practice of law, which Texas real estate agents are not licensed to do. Agents must use TREC promulgated forms when a form exists for the transaction type, or TAR (Texas Realtors) forms / attorney-drafted contracts when no promulgated form applies. Filling in blanks on pre-drafted forms is permitted; writing original contract language is not.

What's the difference between TREC promulgated forms and TAR forms?

TREC promulgated forms are officially adopted by the Texas Real Estate Commission and are generally required for transactions where they exist. TAR (Texas Realtors) forms are drafted by the Texas Realtors trade association and are available to its members for situations where TREC has not promulgated a form (e.g., commercial transactions, some leases). Agents generally default to TREC promulgated forms for transaction types where TREC has adopted mandatory forms — that means residential resales, new construction, farm and ranch, condos, and unimproved property.

When is the Lead-Based Paint Addendum required?

The Lead-Based Paint Addendum is federally required for any residential property built before 1978. The federal Residential Lead-Based Paint Hazard Reduction Act mandates disclosure of any known lead-based paint, provision of an EPA pamphlet about lead hazards, and a 10-day period for the buyer to conduct lead-based paint inspections. The 1978 cutoff is the year the U.S. banned lead-based paint in residential construction, and this is one of the most heavily tested federal disclosure requirements on the TREC exam.

Can I write "time is of the essence" in Paragraph 11?

No. "Time is of the essence" is legal language that modifies how courts interpret contract deadlines, and writing it constitutes the unauthorized practice of law for a non-attorney real estate agent. Paragraph 11 (Special Provisions) is restricted to factual business details — what conveys with the property, specific business deadlines, descriptions of agreements between parties — but cannot include legal interpretive language. If a transaction needs "time is of the essence" or similar legal language, the parties must consult an attorney to draft a separate addendum.

What happens if an agent uses the wrong promulgated form?

Using the wrong form can create contract enforceability problems and may subject the agent to TREC discipline, including fines, education requirements, or license sanctions. For exam purposes, know that mismatched forms (e.g., using the New Home Contract for a resale, or skipping a required addendum like the Lead-Based Paint Addendum for a pre-1978 home) are violations. Always match the form to the transaction type and include all required addenda.

TREC Promulgated Forms — Texas Real Estate Exam Guide (2026)

TL;DR

TREC promulgated forms are pre-approved contract forms that Texas real estate agents are generally required to use when handling specific transaction types where TREC has established a standard form. Texas real estate agents are not licensed to draft contracts; they must use TREC promulgated forms (or TAR/Texas Realtors forms in some cases) for transactions where one applies. The most-tested forms on the TREC Sales Agent exam are the One to Four Family Residential Contract (Resale), the New Home Contract (Incomplete Construction) and (Completed Construction), the Farm and Ranch Contract, and the standard addenda (Third Party Financing, Seller's Temporary Residential Lease, Notice of Buyer's Termination, Property Code Notice, Lead-Based Paint, etc.). Knowing which form to use for which transaction, when each addendum is required, and the basic structure of each form is essential exam material. This article walks through the most-tested promulgated forms and explains when each one is mandatory.

What Are TREC Promulgated Forms?

A "promulgated form" is a contract or addendum that has been officially adopted by the Texas Real Estate Commission (TREC) for use in standard transactions. TREC's authority to promulgate forms comes from the Texas Real Estate License Act, and the Texas Broker-Lawyer Committee drafts and revises these forms.

Two key principles every Texas real estate license candidate must know:

Texas real estate agents cannot practice law. Drafting contracts is the practice of law. Agents fill in blanks on pre-drafted forms; they don't write their own contract language.
When a TREC promulgated form exists for a transaction type, agents are generally required to use it. This is the rule of mandatory use under TREC regulations. Real estate agents cannot independently draft substitute contracts for transaction types covered by promulgated forms.

If no promulgated form exists for a specific transaction (some commercial transactions, certain unusual property types), the parties may use attorney-drafted contracts or TAR (Texas Realtors) forms.

The Most Important TREC Promulgated Forms

1. One to Four Family Residential Contract (Resale)

The most commonly used form in Texas residential real estate. Used for the resale of existing homes where the property is a single-family home, duplex, triplex, or fourplex.

Required when: - Selling an existing single-family home, duplex, triplex, or fourplex - The property has been previously occupied (not new construction) - The transaction is a standard purchase, not a special category

Key sections every agent should know: - Paragraph 2 — Property: legal description and address - Paragraph 3 — Sales Price: total price, cash portion, and financing - Paragraph 5 — Earnest Money: amount and deposit deadline - Paragraph 6 — Title Policy and Survey: who pays, who selects - Paragraph 7 — Property Condition: seller disclosure, inspection rights - Paragraph 8 — Brokers' Fees: commission disclosure - Paragraph 9 — Closing: closing date and possession - Paragraph 11 — Special Provisions: one of the most heavily tested sections of the contract because of restrictions on what agents can write here (more below) - Paragraph 23 — Termination Option: buyer's right to terminate during the option period

2. New Home Contract (Incomplete Construction) and (Completed Construction)

Two separate forms for new construction transactions. The "Incomplete" version is used when the home is still under construction at the time of contract; the "Completed" version is used when construction is finished.

Required when: - The buyer is purchasing newly constructed property directly from a builder - Use the appropriate form based on construction status at signing

3. Farm and Ranch Contract

Used for sales of farm and ranch properties — generally larger acreage rural properties used for agricultural purposes.

Required when: - Selling rural property used for farming, ranching, or agricultural purposes - Acreage and agricultural use distinguish this from residential properties

4. Residential Condominium Contract (Resale)

Used for resale of residential condominiums.

Required when: - Selling a unit in a residential condominium association - The unit has been previously occupied (resale, not new construction from developer)

5. Unimproved Property Contract

Used for vacant land — lots and tracts without existing improvements.

Required when: - Selling raw land or improved-but-not-developed lots - The property has no existing residence or commercial structure

Critical Addenda (Heavily Tested)

Addenda modify or supplement the main contract. Several are required by federal or state law in specific transactions, and the TREC exam tests whether you know when each applies.

Third Party Financing Addendum

Used when the buyer is obtaining financing from a third party (most residential transactions). Specifies loan type (conventional, FHA, VA, USDA), loan amount, terms, and the buyer's financing contingency.

Required when: The buyer is using third-party financing. The addendum protects the buyer if financing falls through.

Seller's Temporary Residential Lease

Used when the seller will remain in the property for a short period after closing (sometimes called a "post-closing occupancy" or "rent-back"). Limited to 90 days or fewer. If the seller will stay longer than 90 days, a separate residential lease must be used.

Buyer's Temporary Residential Lease

The opposite — when the buyer wants to occupy the property before closing. Also limited to 90 days. Risky for the seller and not commonly used.

Lead-Based Paint Addendum (Federally Required)

Required by federal law for any residential property built before 1978. Both seller and listing agent must disclose any known lead-based paint. The buyer has 10 days to conduct lead-based paint inspections.

This is one of the most-tested items on the TREC exam. Memorize: 1978 cutoff, 10-day inspection right, federally required.

Property Code Notice

The Property Owners' Association ("HOA") notice — required when the property is in a mandatory homeowners' association. The seller must provide HOA documents and disclose dues, transfer fees, and HOA-related restrictions.

Notice of Buyer's Termination of Contract

Used when the buyer exercises the right to terminate during the option period or for another contractually permitted reason. Must specify the basis for termination.

Addendum for Sale of Other Property by Buyer

Used when the buyer's purchase is contingent on selling their own property first. Specifies the deadline for the buyer's existing property to sell.

Addendum for Reservation of Oil, Gas, and Other Minerals

Common in Texas due to mineral rights. Specifies what mineral rights are conveyed with the property and what (if any) the seller retains.

Subdivision Information / Condominium Resale Certificate

Required when buying into an HOA or condo association. The HOA/COA must provide governance documents, financial statements, and rules.

Paragraph 11 — Special Provisions (Critical Exam Topic)

Paragraph 11 of the One to Four Family Residential Contract is one of the most tested topics on the TREC Sales Agent exam, and one of the easiest places for new agents to violate license law.

The rule: Real estate agents may only insert factual statements and business details in Paragraph 11. They may NOT write language that:

Adds new contract terms or conditions
Modifies any existing contract paragraph
Creates legal obligations
Constitutes legal advice
Practices law

What agents CAN write in Paragraph 11: - "Refrigerator in kitchen conveys with property" - "Sale contingent on completion of repairs listed in Exhibit A" - "Closing must occur on or before [specific date]" - Factual descriptions of items, conditions, or business deadlines

What agents CANNOT write in Paragraph 11: - "Time is of the essence as to all dates and deadlines" (this modifies legal interpretation) - Indemnification clauses - Liquidated damages provisions - Any language that creates new legal rights or obligations

Why this matters: Improper drafting in Paragraph 11 is the unauthorized practice of law and can create regulatory and legal risk for the agent. If a transaction needs custom legal language beyond factual statements, the parties must consult an attorney to draft a separate addendum.

When Promulgated Forms Are NOT Required

Some transactions don't have promulgated forms, in which case agents may use TAR (Texas Realtors) forms or attorney-drafted contracts:

Commercial transactions — many commercial transactions use TAR forms or attorney-drafted contracts
Some specialty property types — large mixed-use, some industrial, etc.
Lease transactions — there are TREC residential lease forms but many leases use TAR forms
For Sale by Owner (FSBO) without agent involvement — agents aren't involved, so TREC rules don't apply

When in doubt, the rule is: if a TREC promulgated form exists for the transaction type, use it.

Common Exam Questions on Promulgated Forms

The TREC Sales Agent exam tests several recurring patterns on promulgated forms:

Pattern 1: Identifying the correct form for a scenario. "A buyer is purchasing a 30-year-old home from the current owner. Which promulgated form is required?" → One to Four Family Residential Contract (Resale).

Pattern 2: When an addendum is required. "A buyer is purchasing a home built in 1965. Which addendum is federally required?" → Lead-Based Paint Addendum (because of the pre-1978 build date).

Pattern 3: Time limits and deadlines. "How long can a Seller's Temporary Residential Lease last?" → No more than 90 days.

Pattern 4: Paragraph 11 restrictions. "Which of the following can a real estate agent write in Paragraph 11?" → Only factual business statements; not legal language modifying contract terms.

Pattern 5: Authority to draft contracts. "A real estate agent's client wants special contract language. What can the agent do?" → The agent cannot draft custom legal language; the client must consult an attorney for any provisions that go beyond filling in factual blanks on a promulgated form.

Where to Access TREC Promulgated Forms

All current promulgated forms are available free at trec.texas.gov under the "Forms" section. Agents should use the current approved version of any promulgated form — TREC periodically updates forms, and using an outdated version can create contract disputes. Most brokerages provide access to current forms through transaction management software (zipForm, dotloop, Skyslope, etc.).

Frequently Asked Questions

Can a Texas real estate agent draft their own contract?: No. Drafting contracts is the practice of law, which Texas real estate agents are not licensed to do. Agents must use TREC promulgated forms when a form exists for the transaction type, or TAR (Texas Realtors) forms / attorney-drafted contracts when no promulgated form applies. Filling in blanks on pre-drafted forms is permitted; writing original contract language is not.
What's the difference between TREC promulgated forms and TAR forms?: TREC promulgated forms are officially adopted by the Texas Real Estate Commission and are generally required for transactions where they exist. TAR (Texas Realtors) forms are drafted by the Texas Realtors trade association and are available to its members for situations where TREC has not promulgated a form (e.g., commercial transactions, some leases). Agents generally default to TREC promulgated forms for transaction types where TREC has adopted mandatory forms — that means residential resales, new construction, farm and ranch, condos, and unimproved property.
When is the Lead-Based Paint Addendum required?: The Lead-Based Paint Addendum is federally required for any residential property built before 1978. The federal Residential Lead-Based Paint Hazard Reduction Act mandates disclosure of any known lead-based paint, provision of an EPA pamphlet about lead hazards, and a 10-day period for the buyer to conduct lead-based paint inspections. The 1978 cutoff is the year the U.S. banned lead-based paint in residential construction, and this is one of the most heavily tested federal disclosure requirements on the TREC exam.
How long can a Seller's Temporary Residential Lease last?: The TREC Seller's Temporary Residential Lease addendum is limited to 90 days or fewer. If the seller needs to remain in the property longer than 90 days after closing, the parties must use a separate full residential lease — the temporary lease addendum is only for short post-closing occupancy. The same 90-day limit applies to the Buyer's Temporary Residential Lease (when the buyer wants to occupy before closing).
Can I write "time is of the essence" in Paragraph 11?: No. "Time is of the essence" is legal language that modifies how courts interpret contract deadlines, and writing it constitutes the unauthorized practice of law for a non-attorney real estate agent. Paragraph 11 (Special Provisions) is restricted to factual business details — what conveys with the property, specific business deadlines, descriptions of agreements between parties — but cannot include legal interpretive language. If a transaction needs "time is of the essence" or similar legal language, the parties must consult an attorney to draft a separate addendum.
What happens if an agent uses the wrong promulgated form?: Using the wrong form can create contract enforceability problems and may subject the agent to TREC discipline, including fines, education requirements, or license sanctions. For exam purposes, know that mismatched forms (e.g., using the New Home Contract for a resale, or skipping a required addendum like the Lead-Based Paint Addendum for a pre-1978 home) are violations. Always match the form to the transaction type and include all required addenda.

Bottom Line

TREC promulgated forms are mandatory contracts that Texas real estate agents must use for the transaction types where TREC has provided forms. The most-tested forms on the TREC Sales Agent exam are the One to Four Family Residential Contract (Resale), the New Home Contracts, the Farm and Ranch Contract, and the standard addenda — especially the federally-required Lead-Based Paint Addendum (for pre-1978 homes) and the temporary residential leases (90-day maximum). Paragraph 11 (Special Provisions) is heavily tested because of its restrictions: agents may write factual business details but never legal language. Knowing which form applies to which scenario, when each addendum is required, and the limits of agent authority on form drafting is essential TREC exam material. For more Texas exam preparation, see the Texas Real Estate Exam guide, our articles on commission calculations, exam passing scores, intermediary vs dual agency in Texas, and the Texas real estate exam blueprint.

Source: Texas Real Estate Commission (TREC) · TREC Forms Library · TREC Rules and Statutes · EPA Lead-Based Paint Disclosure (federal)