I am using a TAR contract. The TREC contracts provide a place to insert the executed date of those contracts. There is no similar place for the brokers or the parties to insert such a date in the commercial contract so how do I mark the effective date?

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  • I am using a TAR contract. The TREC contracts provide a place to insert the executed date of those contracts. There is no similar place for the brokers or the parties to insert such a date in the commercial contract so how do I mark the effective date?

The TAR commercial contracts address the matter of the effective date in paragraph 24. According to the Texas Realtors Association, the task force working on these TAR contracts felt that because of the way that many commercial contracts are negotiated it would be appropriate to provide that the time for performance of the parties should not begin until the escrow agent receipts the contract after all parties have signed. This was done to allow for delays often experienced in commercial transactions in getting the contract to the escrow agent and to allow the parties to not have to begin performance obligations until the contract was escrowed. Unlike TREC contracts, this makes TAR contracts have an effective date of the day that the title company receipts the contract. This is an important distinction and real estate agents should be careful to make sure they know the rules for the contract they are using.

Source: TNT

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