As a broker, I wrote a reservation clause in special provisions in a contract form (either a TREC residential form or a TAR commercial form) because my seller said he wanted to retain the minerals. If a complaint is filed, will TREC initiate disciplinary action against me?

1 minuteread
  • Home
  • /
  • Knowledgebase
  • /
  • Contracts and Forms
  • /
  • As a broker, I wrote a reservation clause in special provisions in a contract form (either a TREC residential form or a TAR commercial form) because my seller said he wanted to retain the minerals. If a complaint is filed, will TREC initiate disciplinary action against me?

Maybe. The answer to the question depends on the specific facts that are determined by the investigation. TREC will likely look at whether the issue at hand was a complex matter. Additionally, TREC will likely look at the specific wording in the clause to see if it properly reflected the intent of the parties. Did the drafting of the clause contribute to any of the problems for which the complaint was filed? Of course, the broker’s defense will be that the clause was a “business detail” and did not constitute the unauthorized practice of law. But this will be a fact issue.

Source: TAR

X
Welcome to Realty Nation
wpChatIcon
Scroll to Top