First, present the offer to your seller and tell him that it’s on an outdated form that may not reflect recent changes to the law. Next, inform the other broker that the form was outdated and that the other broker is obligated under TREC rules to use a current form. If your seller intends to counter the offer, draft the counteroffer on a current form. If your seller wants to accept the offer on the older form and not move the sale to a current form, urge him to seek the advice of counsel before doing so.
I received an offer on one of my listings, but it was drafted on an outdated form. Should I present the offer to the seller or require the buyer's broker to resubmit the offer on a current form first?
I received an offer on one of my listings, but included in the offer were forms drafted using outdated versions of the form. How should I handle this?
With respect to a TREC form, TREC’s rules obligate license holders to use the most current forms that are approved for mandatory use by TREC. With respect to TAR forms, such as the Commercial Contract-Improved Property form (TAR 1801), such forms are authorized to be made available for transactions for which there is no mandatory TREC form to be used. Outdated TAR forms are removed from the blank forms section on 102236.com and from the websites of any form vendors licensed to offer TAR forms. Once the forms are removed, TAR no longer authorizes them for use and doing so would be a violation of TREC rules governing the use of forms promulgated by a trade association.
If you receive an offer on your listing on an outdated TREC or TAR contract form, present the offer to your seller and tell him that it’s on an outdated form. Next, inform the other broker that the contract form used was outdated. If your seller intends to counter the offer, draft the counteroffer on a current form. If your seller wants to accept the offer on the older form and not move the sale to a current form, urge him to seek the advice of counsel before doing so.