QUICK ANSWER
On the Texas exam, function controls and timing supplies a clue. An addendum supplies supplemental terms and is usually included in the original contract package. An amendment changes or adds terms to an executed contract and requires the parties' agreement. In the termination context, a notice communicates one party's exercise of an existing right. TREC also uses “Notice” for disclosure and informational forms, so the title alone does not prove that a document terminates a contract.
EXAM PREP ONLY
This guide explains TREC form categories for the Texas sales agent exam. It is educational content, not legal advice. TREC revises its promulgated forms periodically, so verify the current version before you rely on any point. Confirm the primary sources below and work under your sponsoring broker.
This guide owns the amendment-versus-addendum-versus-notice distinction. For the full list of required contracts and addenda and the rules governing their use, start with the TREC promulgated contract forms guide.
What is an addendum?
An addendum is a promulgated form that adds supplemental terms to a contract. It is usually prepared and attached when the contract is formed, and it becomes part of the agreement the parties sign. Clear examples include the Third Party Financing Addendum, the Seller Financing Addendum, and the Addendum for Property Subject to Mandatory Membership in a Property Owners Association.
Think of an addendum as a bolt-on. The base contract cannot cover every situation, so TREC promulgates addenda that attach the extra terms a specific deal needs.
You reach for an addendum when a condition of the deal needs its own terms. A buyer using a third-party lender needs the Third Party Financing Addendum. A home in a mandatory homeowners association needs the property owners association addendum. Seller-provided financing uses the Seller Financing Addendum.
The key exam idea is timing and role. An addendum is normally part of the deal from the start and supplies supplemental terms. If the parties need to change or add terms after execution, TREC describes the Amendment as the form for that job.
What is an amendment?
An amendment changes or adds terms to a contract that is already executed. TREC uses that wording for Amendment, TREC No. 39-11, effective July 1, 2026 and adopted at 22 TAC Section 537.46. Both the buyer and the seller sign it, and it carries an execution block for the date of final acceptance, filled in by the broker.
An amendment is a mutual do-over of one or more terms. The parties already have a binding contract, and now they agree to change something in it.
The ten amendment boxes
The form is not open-ended. It offers ten numbered boxes, and knowing what they cover is more useful than a general definition, because an exam question describing a change usually maps onto one of them.
| Box | What it changes |
|---|---|
| (1) | The Sales Price in Paragraph 3, broken into the cash portion and the financed sum |
| (2) | Repairs and treatments the seller will complete, in addition to any the contract already requires |
| (3) | The date in Paragraph 9, meaning the closing date |
| (4) | The seller concession in Paragraph 12A(1)(b) toward the buyer's expenses |
| (5) | The brokerage compensation contributions in Paragraph 12B, by dollar amount or percentage |
| (6) | How the cost of lender-required repairs is split between seller and buyer |
| (7) | An additional option fee paid to extend the option period, to a new 5:00 p.m. deadline |
| (8) | The buyer waiving the unrestricted right to terminate that the option fee bought |
| (9) | The date for the buyer's Buyer Approval notice under the Third Party Financing Addendum |
| (10) | Other modifications, with a printed reminder that agents may not practice law |
The option-fee boxes
Two of those deserve a second look.
Box (7) is the one place the option fee credit is negotiable. It reads: "This additional option fee ☐ will ☐ will not be credited to the Sales Price." The original option fee under Paragraph 5A(4) of the contract is credited unconditionally, with no checkbox. Only a fee paid to buy more time gets that choice. If a question puts a will or will-not credit box on the option fee, it is describing an extension.
Box (8) is a waiver, not a new option period. The buyer gives up the remaining unrestricted termination right that the option fee supported. Box (8) does not extend or create an option period.
The classic trigger for an amendment is the inspection: during the option period the buyer inspects, asks for repairs or a price reduction, and the agreement goes on boxes (2) and (1). Another is extending the closing date on box (3) when a lender needs more time.
Want to test this by scenario instead of by definition? Run the free "Which TREC form applies?" trainer and see the amendment, addendum, and notice choices in context.
What is a termination notice?
In the termination context tested here, a notice is a one-party communication that exercises a right the party already holds under the contract or an addendum. A valid termination notice does not require the recipient's signature merely to make the notice effective. TREC promulgates a termination form for each side, and the pair is worth learning together because they are lopsided.
A notice is not a negotiation. It is one side telling the other that it is using a right the contract already gave it.
Do not turn that pattern into a universal definition. TREC also publishes the Notice to Prospective Buyer, the Notice to Purchaser of Special Taxing or Assessment District, and other disclosure or informational notices. Those forms do not necessarily exercise a termination right. Read the form's purpose, not only the word “Notice” in its title.
Buyer and seller termination notices compared
| Notice of Buyer's Termination, TREC No. 38-8 | Notice of Seller's Termination, TREC No. 50-0 | |
|---|---|---|
| Effective | April 1, 2025 | August 13, 2018 |
| Adopted at | 22 TAC Section 537.45 | 22 TAC Section 537.57 |
| Signed by | Buyer only | Seller only |
| Grounds listed | Seven specific boxes, plus Other | One specific box, plus Other |
The buyer's notice prints seven common specified termination grounds, plus an Other box: the unrestricted right under Paragraph 5, failure to obtain Buyer Approval, failure of Property Approval, the property owners association addendum, the seller's disclosure notice under Paragraph 7B(2), the lender's appraisal addendum, and uncured title objections under Paragraph 6D. Each specified box names the paragraph it comes from, which makes the form a useful map of where common termination rights live. The seven printed grounds are not presented as an exhaustive list of every possible contractual right.
The seller's notice has exactly one printed ground: the buyer failed to deliver the earnest money within the time required under Paragraph 5, and the seller is giving this notice before the buyer delivers it. The form also has an Other box that requires the applicable contract or addendum paragraph to be identified. The notice records the source of the asserted right; it does not create a new termination right.
For form recognition, remember the visible asymmetry: seven specified buyer grounds versus one specified seller ground. Do not turn that count into a claim that the printed boxes exhaust every right the parties may have under the contract.
What both notices say about remedies and legal advice
Both notices carry the same two lines at the bottom, and both are testable:
"This notice is not an election of remedies. Release of the earnest money is governed by the contract." A valid termination ends the contract, but the notice itself does not determine who is entitled to the earnest money. That question is governed by the contract and the facts producing the termination.
"CONSULT AN ATTORNEY BEFORE SIGNING: TREC rules prohibit real estate license holders from giving legal advice." The form itself tells the parties the agent cannot advise them on it.
That is the distinction students miss. An amendment needs both signatures because it changes the deal. A notice needs only the delivering party because it exercises an existing right.
Amendment vs addendum vs notice: the decision
Match the form to the job. Function controls, and timing is a clue. If you are supplying supplemental terms, usually in the original contract package, use the applicable addendum. If the parties are changing or adding terms after the contract is executed, use an amendment. If one party is exercising an existing termination right, deliver the applicable termination notice. Unlike an amendment or a contract addendum signed by the parties, a valid one-party termination notice does not need the recipient's signature to exercise the stated right.
| Question | Form | Signatures | Example |
|---|---|---|---|
| Adding terms to the deal? | Addendum | Both, as part of the contract | Third Party Financing Addendum |
| Changing a signed contract? | Amendment | Both parties sign | Move the closing date |
| Exercising an existing termination right? | Termination notice | Delivering party only | Notice of Buyer's Termination |
Start with function, then use timing to confirm the answer. Supplemental terms usually point to an addendum in the original contract package. A mutually agreed change to an executed contract points to an amendment. One party exercising an existing termination right points to a termination notice. Timing helps, but it is not the definition.
How the exam tests this
Exam questions describe a situation and ask which form is correct. The traps are using an amendment to add a financing condition that belongs in an addendum, using an addendum to change an executed contract that needs an amendment, and thinking a termination notice needs the seller's agreement when it does not.
Watch for these patterns.
- A buyer needs lender financing. That is a condition added at formation, so it is the Third Party Financing Addendum, not an amendment.
- The parties agree to lower the price after inspection. That changes an executed contract, so it is an Amendment.
- The buyer terminates during the option period. That exercises a right, so it is a Notice, and the seller's agreement is not required.
- The property is subject to mandatory homeowners association membership. That requires the applicable property owners association addendum.
Say the verbs to yourself. Supplement, revise, exercise. An addendum supplements the contract, an amendment revises an executed contract, and a termination notice exercises an existing right.
Who may fill out these forms?
A sales agent may complete TREC promulgated forms by filling in the blanks and attaching the correct addenda, working under a sponsoring broker. The limits come from TREC Rule 22 TAC Section 537.11, and the rule is more precise than the slogan "agents cannot write anything."
What Section 537.11 forbids a license holder from doing includes:
- practicing law, or directly or indirectly offering or attempting to give legal advice
- giving advice or opinions as to the legal effect of any contract form or other instrument affecting title
- drafting or recommending language to be included in a contract form defining or affecting the rights, obligations, or remedies of the principals, including escalation, appraisal, or contingency clauses
- adding informational items to a Commission form where the Commission has approved another form for mandatory use for that purpose
- discouraging any principal from employing an attorney
The exception candidates never learn
The same rule says what is not the practice of law, and one item surprises people:
if specifically instructed in writing by a principal, add language to or strike language from a contract form, as long as any change is made conspicuous, including underlining additions, striking through deletions, or employing some other method which clearly indicates the change being made.
So a license holder may add or strike language, on two conditions that both have to hold: the principal instructs it in writing, and the change is made conspicuous. What the license holder may never do is originate the language or recommend it. The principal decides; the license holder records the instruction visibly.
Section 537.11 also permits a license holder to explain to their own principals the meaning of informational items or choices in a form, provided that the explanation stops short of legal advice. A license holder may explain the choices and communicate or negotiate lawful business terms within the scope of representation. The license holder may not give an opinion about a choice's legal effect or draft or recommend custom rights-and-remedies language.
Two more duties from the same rule round it out. Where a transaction involves unusual matters that an attorney should review before an instrument is executed, or the instrument must be acknowledged and filed of record, the license holder shall advise the principals to consult an attorney. And the license holder shall advise the principals that the instrument they are about to execute is binding on them.
Frequently asked questions
Is an addendum the same as an amendment?
No. An addendum supplies supplemental terms, usually when the contract is formed, and becomes part of the agreement. An amendment changes or adds terms after the contract is executed. The practical distinction is therefore timing and function, not a rigid rule that only an addendum may ever “add” language.
Does a notice need both parties to sign?
No. A termination notice exercises a right one party already holds, so the other party does not sign merely to make a valid notice effective. Under Paragraph 21 of the current resale contract, a notice is effective when sent by an allowed method to the party or agent identified there. The seller does not have to agree to a valid buyer termination notice.
Which form changes the closing date on a signed contract?
The Amendment. Changing a term of an executed contract, such as the closing date or the price, is done with the TREC Amendment form, signed by both the buyer and the seller.
Is the Third Party Financing Addendum an addendum or an amendment?
It is an addendum. It supplies third-party financing terms and is usually included in the original contract package. It is not an amendment to an already executed contract.
Can a sales agent write a custom clause on an amendment?
Not of the agent's own making. TREC Rule 22 TAC Section 537.11 prohibits drafting or recommending language that defines or affects the principals' rights, obligations, or remedies, and names escalation, appraisal, and contingency clauses as examples. There is a narrow exception in the same rule: where a principal specifically instructs in writing, a license holder may add or strike language provided the change is made conspicuous, by underlining additions or striking through deletions. Originating the language is the attorney's job; recording a principal's written instruction visibly is not the practice of law.
Which form extends the option period?
The Amendment, TREC No. 39-11, at box (7). The buyer pays an additional option fee for an extension to a new 5:00 p.m. deadline, and that additional fee carries a will or will-not credited checkbox. The original option fee has no such checkbox: Paragraph 5A(4) of the contract credits it to the sales price outright.
Does the seller have a termination notice too?
Yes, the Notice of Seller's Termination of Contract, TREC No. 50-0. It prints exactly one ground, the buyer's failure to deliver the earnest money on time under Paragraph 5, given before the buyer delivers it. Everything else goes in the Other blank. The buyer's notice, TREC No. 38-8, prints seven.
Practice questions
1. The buyer and seller have an executed contract and now agree to move the closing date back one week. Which form do they use? A. Third Party Financing Addendum B. Amendment C. Notice of Buyer's Termination D. Addendum for Back-Up Contract
Answer: B. Changing a term of an already-executed contract is done with the Amendment, TREC No. 39-11, signed by both parties. The closing date specifically is box (3), which changes the date in Paragraph 9 of the contract. The addenda add terms, and a notice exercises a right.
2. A buyer will obtain a new loan from a lender as a condition of the purchase. What is attached to the contract? A. An Amendment B. A Notice C. The Third Party Financing Addendum D. The Seller's Temporary Residential Lease
Answer: C. A financing condition added at formation uses the Third Party Financing Addendum. It adds terms, so it is an addendum, not an amendment.
3. During the option period, the buyer decides to terminate. Which statement is correct? A. The buyer files an amendment that the seller must sign B. The buyer delivers a notice, and the seller's agreement is not required C. The buyer must attach a new addendum D. The buyer cannot terminate once the contract is executed
Answer: B. Option-period termination exercises a right the buyer already holds, so it is a notice: the Notice of Buyer's Termination of Contract, TREC No. 38-8, box (1), "The unrestricted right of Buyer to terminate the contract under Paragraph 5 of the contract." The seller does not have to agree. Note what the notice does not do: it prints "This notice is not an election of remedies," so it ends the contract without deciding who keeps the earnest money.
4. Which document normally needs the signatures of both the buyer and the seller to take effect? A. A notice of termination B. An amendment C. A seller's unilateral disclosure D. A buyer's option notice
Answer: B. An amendment changes the contract by mutual agreement, so both parties sign. A valid termination notice does not require the recipient's signature merely to take effect.
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Sources and methodology
This guide teaches exam-level form recognition, not legal advice. Every form is named by its TREC number and the rule that adopts it. The source set was reverified on September 1, 2026.
- The Amendment is TREC No. 39-11, effective July 1, 2026, adopted by reference at 22 TAC Section 537.46. Its ten boxes are read from the form itself, including box (7), the additional option fee with its will or will-not credited checkbox, and box (8), the buyer's waiver of the unrestricted right to terminate.
- The Notice of Buyer's Termination of Contract is TREC No. 38-8, effective April 1, 2025, adopted at 22 TAC Section 537.45, with seven printed grounds plus Other. The Notice of Seller's Termination of Contract is TREC No. 50-0, effective August 13, 2018, adopted at 22 TAC Section 537.57, with one printed ground plus Other.
- Both notices carry the statements that the notice is not an election of remedies, that release of the earnest money is governed by the contract, and that TREC rules prohibit license holders from giving legal advice.
- The Third Party Financing Addendum is TREC No. 40-11, adopted at 22 TAC Section 537.47.
- The prohibition on drafting language defining or affecting the principals' rights, obligations or remedies, the named examples of escalation, appraisal and contingency clauses, the written-instruction and conspicuous-change exception, the permission to explain informational items and choices, and the duties to advise consulting an attorney and that the instrument is binding, are all TREC Rule 22 TAC Section 537.11.
- Form versions change periodically through the TREC Broker-Lawyer Committee. Use the current promulgated version in practice.
Official source links
- TREC Contracts and promulgated forms
- TREC Amendment, No. 39-11
- TREC Contract Addenda
- TREC Notice of Buyer's Termination of Contract, No. 38-8
- TREC Notice of Seller's Termination of Contract, No. 50-0
- TREC Rule 537.11, Use of Standard Contract Forms
- TREC: extending or amending the One to Four Family Contract
- Pearson VUE Texas State Content Outlines (#094401)
This article is exam-prep education for the Texas real estate sales agent license. It is not legal advice. TREC promulgated forms and their proper use depend on current Texas law and the current form versions. Always confirm the current TREC forms and rules and work under the supervision of your sponsoring broker before acting.