Texas contracts

Texas contracts and TREC forms, the complete 9-item state-law area.

Learn the six contract types, the key addenda, the Statute of Frauds, seller disclosure, mandatory-use rules, and the line a license holder cannot cross into practicing law.

Quick answer

Contracts is a 9-item Texas state-law area. TREC promulgates standard contract forms drafted by the Broker-Lawyer Committee, and license holders must use the right one under 22 TAC Chapter 537. The area also tests the Statute of Frauds and seller disclosure. License holders complete authorized forms but do not draft legal rights or advise on legal effect.

Exam prep only. This explains how the Texas exam tests promulgated forms, not legal advice for a live transaction.

Official 2026 syllabus

All three Contracts rows, with one clear owner each.

Pearson assigns 9 scored state-law items to Contracts. It names these three rows but does not publish a question split between them, so prepare every row.

Subtopic A

Promulgated Contracts, Forms, and Addenda

Mandatory and voluntary use, Rule 537.11 exceptions, the current 2026 contracts, form selection, addenda, amendments, notices, informational items, and the legal-drafting boundary.

Study this subtopic
Subtopic B

Statute of Frauds

The writing and signature rule for a real estate sale and a lease longer than one year, including the person-to-be-charged test.

Study this subtopic
Subtopic C

Seller Disclosure Requirements

Section 5.008 coverage, exemptions, delivery timing, the seven-day late-delivery remedy, Form 55-1, and the separate Seller's Water Disclosure.

Study this subtopic
The six contract types

Match the property to the form.

The exam asks which promulgated contract fits a scenario. Learn the six by what they cover, not by their revision number.

Form 20
1-4 Family (Resale)

One to Four Family Residential Contract (Resale): the most common form, for existing homes.

Form 9
Unimproved Property

Unimproved Property Contract: for vacant land or lots without significant improvements.

Form 23
New Home (Incomplete)

New Home Contract (Incomplete Construction): when construction is not yet finished.

Form 24
New Home (Completed)

New Home Contract (Completed Construction): for a finished new home from a builder.

Form 25
Farm & Ranch

Farm and Ranch Contract: for agricultural and rural property with land and improvements.

Form 30
Condominium (Resale)

Residential Condominium Contract (Resale): for a resale condo, with condo-specific addendum requirements.

TREC's current contract set took effect July 1, 2026. It includes Form 20-19 for residential resale, 9-18 for unimproved property, 23-20 and 24-20 for new homes, 25-17 for farm and ranch, and 30-18 for condominium resale. The exam tests which form applies, not the revision suffix; always use the current version on TREC's website.

Addenda & notices

Key addenda and notices the exam names.

Addenda add contingencies and terms to the base contract; notices like a buyer's termination carry a contractual right. TREC lists the termination notice under Notices, not Addenda. These are the ones the exam most often names.

Form 40

Third Party Financing Addendum

Makes the contract contingent on the buyer obtaining a specified loan; states approval terms and deadlines.

Form 10

Sale of Other Property by Buyer

Makes the buyer's purchase contingent on the buyer selling another property.

Form 11

Addendum for Back-Up Contract

Used when a first contract already exists; makes this contract contingent on termination of the first.

Form 36

POA Mandatory Membership

Required when the property is subject to mandatory membership in a property owners association.

Form 15 / 16

Temporary Residential Lease

Seller's (15) or Buyer's (16) Temporary Residential Lease for short post-closing or pre-closing occupancy under 90 days.

Form 38

Notice of Buyer's Termination

Notice a buyer uses to terminate under the option period or another contractual right.

Form 61

Water Rights Disclosure Notice

Mandatory notice about known groundwater, wells, groundwater districts, and surface-water rights, effective July 1, 2026.

TREC promulgates more addenda the exam may name, including Seller Financing, Loan Assumption, Sale of Non-Realty Items, the federal Lead-Based Paint addendum, Environmental Assessment / Threatened or Endangered Species and Wetlands, Reservation of Oil, Gas, and Other Minerals, Fixture Leases, Coastal Area Property, and Property in a Certificated Service Area. Use the current version on TREC's site.

The rules

Promulgation, mandatory use, and the law line.

The most tested point: a license holder completes forms but does not practice law. Walk the rules.

Who must use the promulgated forms?

When negotiating a covered sale, exchange, option, or lease, a Texas license holder must use the TREC contract form approved for mandatory use for that transaction unless a Rule 537.11(a) exception applies.

Who writes the forms?

The Texas Real Estate Broker-Lawyer Committee drafts the contract forms, and TREC adopts them by rule. TREC periodically revises the forms, which is why each has a version suffix such as 20-19.

When may another form be used?

Rule 537.11(a) lists four paths: the holder acts solely as a principal; a U.S. government agency requires another form; the property owner prepares the form or requires an attorney-prepared form; or no mandatory TREC form exists and the holder uses one of the qualifying attorney, trade-association, or Broker-Lawyer Committee forms the rule permits.

What does TREC NOT promulgate?

TREC does not promulgate listing agreements, buyer representation agreements, property management contracts, commercial property forms, or residential leases other than the temporary residential leases used with a sale. For those, license holders use forms prepared by an attorney or a trade association such as Texas REALTORS.

Are all TREC forms mandatory to use?

No. Rule 537.1 distinguishes mandatory use from voluntary use. The Seller's Disclosure Notice is the classic distinction: Section 5.008 may require the seller to deliver a qualifying notice, while Rule 537.62 approves TREC Form 55-1 for voluntary use.

Can a license holder change the printed text?

Rule 537.11 permits informational items and explanations of informational choices that stop short of legal advice. It also permits a conspicuous addition or deletion specifically instructed in writing by a principal. The license holder may not invent or recommend language affecting rights, obligations, or remedies or advise on its legal effect.

What this area is worth

9 scored items. 12 misses allowed in the whole portion.

Percentages do not tell you what to do. Misses do. This area carries 9 scored questions, and you can miss only 12 scored Texas state law questions overall (28 correct out of 40).

9scored items in this area
12misses allowed across the Texas state law portion
3left for the other 31 items if this area goes badly wrong
Do not confuse these

6 pairs that decide most questions here.

Each pair gives the single test that separates them and the wording that tells you which side you are on.

Mandatory use

The license holder must use the form when its facts fit and no Rule 537.11 exception applies.

Voluntary use

The license holder may use the TREC-approved form but is not required to use that particular form.

What decides it

How does Chapter 537 classify the form?

Stem clue

A base contract or named mandatory addendum points left. Form 55-1 and other voluntary notices point right.

Addendum

Adds terms or required subject matter to the contract package, usually when the agreement is formed.

Amendment

Changes an existing contract by the parties' written agreement.

What decides it

Are the parties adding terms at formation or changing a deal already signed?

Stem clue

Financing or POA at formation signals addendum. A later price, repair, option, or closing-date change signals amendment.

Informational item

Completes a blank, discloses a fact, or provides an instruction the authorized form calls for.

Legal clause

Creates, changes, or interprets rights, obligations, remedies, contingencies, or title.

What decides it

Does the wording report a fact or create a legal outcome?

Stem clue

Names, dates, amounts, and form choices can be informational. Custom cancellation, appraisal, default, or remedy language is legal drafting.

Three-day delivery clock

The deadline to deliver earnest money and the option fee to the escrow agent under Paragraph 5A.

Negotiated option period

The separate number of days during which the buyer may terminate under Paragraph 5B.

What decides it

Is the question asking when money is delivered or when the termination right ends?

Stem clue

Payment to escrow signals three days. Written notice by 5:00 p.m. signals the option period.

Unenforceable under Section 26.01

The statute blocks enforcement when its writing and signature requirements are not met.

Void

A stronger conclusion that the agreement has no legal effect from the start.

What decides it

What result does the statute itself state?

Stem clue

Statute of Frauds points to not enforceable, not an automatic answer that the agreement is void.

Seller's Disclosure Notice, Form 55-1

The broad Section 5.008 property-condition notice approved for voluntary use.

Seller's Water Disclosure, Form 61-0

The separate mandatory-use disclosure about wells, groundwater, groundwater rights, and surface-water rights.

What decides it

Is the stem testing general property condition or water rights and water sources?

Stem clue

Defects, systems, floods, insurance, or exemptions point left. Wells, groundwater districts, severance, or surface-water permits point right.

Rule first, guidance second

Keep the tested rule clean.

Where newer practice guidance adds a separate obligation, it is kept out of the statutory rule on purpose.

The official three-row outline has no internal weight table

Pearson assigns 9 scored Texas state-law items to Contracts and lists promulgated contracts, forms, and addenda; Statute of Frauds; and seller disclosure requirements.

Authority: Pearson VUE #094401 rev. 01/2026, Texas Sales Agent State Law outline V

Exam cue

Prepare all three rows. Do not assign a made-up question count to forms, writing rules, or disclosure.

The committee drafts; TREC adopts; Rule 537.11 controls use

The Broker-Lawyer Committee drafts and revises standardizable contract forms. TREC adopts forms by rule. A license holder uses the mandatory form for the transaction unless one of Rule 537.11(a)'s four exception paths applies.

Authority: TRELA §§1101.155, 1101.254; 22 TAC §§537.1, 537.11(a)

Exam cue

First identify whether the form is mandatory, voluntary, or outside TREC's form set. Then test the exception.

Rule 537.11 is more precise than 'fill in the blanks only'

A license holder may add informational items and explain informational choices without legal advice. The holder may not draft or recommend language affecting rights, obligations, or remedies or give opinions about legal effect or title validity.

Authority: 22 TAC §537.11(b)-(d)

Exam cue

Facts, selections, and instructions can be informational. Custom cancellation, appraisal, escalation, contingency, default, or remedy language points to an attorney.

The current resale contract uses two different clocks

TREC No. 20-19 requires the earnest money and option fee to be delivered to the escrow agent within three days after the effective date. The option period ends at 5:00 p.m. local time on the separately negotiated final day.

Authority: 22 TAC §537.28; TREC No. 20-19 ¶5A-B

Exam cue

Do not use the three-day payment deadline as the option-period length. Read each clock separately.

The Statute of Frauds is an enforceability rule

A contract for the sale of real estate and a lease of real estate for a term longer than one year are not enforceable under Section 26.01 unless the agreement or memorandum is written and signed by the person to be charged or a lawfully authorized signer.

Authority: Texas Bus. & Com. Code §26.01(a), (b)(4)-(5)

Exam cue

Look for the agreement type, a writing, and the signature of the person against whom enforcement is sought.

The condition notice and water disclosure are separate

Section 5.008 generally requires a property-condition notice for covered residential property with not more than one dwelling unit and lists exempt transfers. Rule 537.62 approves Form 55-1 for voluntary use. Rule 537.68 separately adopts Form 61-0 for mandatory use as the Seller's Water Disclosure.

Authority: Texas Prop. Code §5.008; 22 TAC §§537.62, 537.68

Exam cue

For Form 55-1, test property scope, exemption, timing, and remedy. For wells, groundwater rights, or surface-water rights, identify the separate water disclosure.

Fact sorter

Which facts decide, and which are there to pull you off.

Application items rarely fail on the rule. They fail because a plausible detail looks decisive and is not.

A. Promulgated Contracts, Forms, and Addenda
Tests: 22 TAC §537.11(a)(3)

A seller requires every buyer to use a contract the seller's Texas attorney prepared. A mandatory TREC form would otherwise fit.

  • Decides
    The property owner requires the attorney-prepared form.That is the Rule 537.11(a)(3) exception.
  • Noise
    A mandatory TREC form would otherwise fit.The exception is why the other form may be used.
  • Noise
    The sales agent prefers the TREC form.Preference does not erase the owner's qualifying requirement.
Must the agent force the parties onto the TREC form?
Answer

No. The owner-required attorney-prepared form fits a stated exception.

Why

Rule 537.11(a)(3) expressly recognizes this owner-required form path.

The trap

Mandatory use still has the exceptions printed in the rule.

Read the governing lesson
A. Promulgated Contracts, Forms, and Addenda
Tests: 22 TAC §537.11(d)(2)

A buyer writes exact instructions directing the agent to strike one sentence from a contract. The agent makes the deletion with a visible strike-through and gives no opinion about its effect.

  • Decides
    The principal gave specific written instructions.The rule requires written direction from a principal.
  • Decides
    The deletion is conspicuous.A visible strike-through satisfies the form of the change.
  • Decides
    The agent gives no legal-effect opinion.The narrow permission does not create permission to advise.
Is the physical change itself unauthorized practice of law under Rule 537.11?
Answer

No, on these stated facts. The written-instruction and conspicuous-change provision applies.

Why

Subsection (d)(2) says this specific act is not the practice of law.

The trap

Do not turn the exception into authority for the agent to write or recommend the language.

Read the governing lesson
A. Promulgated Contracts, Forms, and Addenda
Tests: 22 TAC §537.28; TREC No. 20-19 ¶5A-B

A contract gives the buyer a ten-day option period. The buyer assumes that means the option fee may be delivered on day ten.

  • Decides
    The negotiated option period is ten days.That controls the termination window.
  • Decides
    Paragraph 5A uses a separate three-day delivery deadline.The fee-delivery clock does not expand with the option period.
  • Noise
    The buyer intends to inspect on day eight.Inspection timing does not change fee delivery.
May the buyer wait until day ten to deliver the option fee?
Answer

No. The fee-delivery deadline and option-period deadline are separate.

Why

Paragraph 5A controls delivery; Paragraph 5B controls exercise of the termination right.

The trap

One paragraph contains two clocks.

Read the governing lesson
B. Statute of Frauds
Tests: Texas Bus. & Com. Code §26.01(a), (b)(5)

A landlord and tenant orally agree to a two-year lease. Nothing is signed.

  • Decides
    The lease term is longer than one year.Section 26.01(b)(5) names that category.
  • Decides
    Nothing is written or signed.The subsection (a) requirements are missing.
  • Noise
    The tenant has excellent credit.Credit does not decide the Statute of Frauds issue.
What is the clean exam conclusion?
Answer

The two-year lease falls within the Statute of Frauds and needs the required written, signed agreement to be enforceable.

Why

The agreement type, duration, writing, and signature are the deciding facts.

The trap

Do not say fraud occurred. This is a writing-rule problem.

Read the governing lesson
C. Seller Disclosure Requirements
Tests: Texas Prop. Code §5.008(f)

The seller was required to provide the Section 5.008 notice but delivers it after the contract becomes effective. The purchaser acts five days after receipt.

  • Decides
    The notice was required.The late-delivery remedy applies only to a required notice.
  • Decides
    Delivery occurred after contract formation.That triggers subsection (f).
  • Decides
    The purchaser acts within seven days after receipt.The statutory window is still open.
May the purchaser terminate for any reason under Section 5.008(f)?
Answer

Yes. The purchaser is within seven days after receiving the late required notice.

Why

Subsection (f) supplies that specific remedy and clock.

The trap

Do not replace the statutory clock with the contract's option period.

Read the governing lesson
C. Seller Disclosure Requirements
Tests: Texas Prop. Code §5.008(d)-(e)

An investor sells a previously occupied single-family home. The investor never lived there and claims that non-occupancy alone removes the notice requirement.

  • Decides
    The property is a previously occupied single-family residence.It begins within the covered property type.
  • Noise
    The seller never occupied it.Non-occupancy affects knowledge but is not its own universal exemption.
  • Decides
    No listed transfer exemption is given.Subsection (e), not occupancy alone, controls exemption.
Is the seller automatically exempt?
Answer

No. The seller completes the notice to the best of the seller's belief and knowledge unless a listed exemption applies.

Why

Subsection (d) addresses knowledge and unknown answers. Subsection (e) supplies the exemptions.

The trap

Never occupied and new residence never previously occupied are different facts.

Read the governing lesson
Reading the question

What the wording is actually testing.

"TREC form exists"

Really askingIs this particular form mandatory, voluntary, or merely available?

Decide byCheck the adopting rule and then apply Rule 537.11.

"Owner requires attorney's contract"

Really askingDoes the owner-required form exception apply?

Decide byRule 537.11(a)(3), not the agent's form preference.

"No TREC form exists"

Really askingWhich outside form source may the license holder use?

Decide byApply the specific sources and content requirements in Rule 537.11(a)(4).

"Put this custom cancellation clause in Paragraph 11"

Really askingIs the request informational or legal drafting?

Decide byA new termination right affects rights and remedies, so use an authorized form or attorney.

"Principal instructed the deletion in writing"

Really askingDoes the narrow conspicuous-change provision apply?

Decide byConfirm specific written instruction, visible change, and no license-holder-created wording or legal advice.

"Ten-day option period"

Really askingIs the stem asking about termination or fee delivery?

Decide byParagraph 5B controls termination. Paragraph 5A separately controls the three-day delivery.

"Oral agreement to sell the home"

Really askingDoes Section 26.01 require a written, signed agreement?

Decide byA real estate sale is expressly named in Section 26.01(b)(4).

"Lease for exactly one year"

Really askingDoes the lease-duration clause of Section 26.01 apply?

Decide byThe statute says longer than one year.

"Signed by the party to be charged"

Really askingWhose signature matters for enforcement?

Decide byIdentify the person against whom the promise is being enforced.

"Seller never lived there"

Really askingIs non-occupancy a statutory exemption?

Decide byNo by itself. Test the listed transfers in Section 5.008(e).

"Notice delivered after effective date"

Really askingIs the seven-day late-delivery remedy open?

Decide byConfirm the notice was required and count from the purchaser's receipt.

"Well, groundwater district, or severed water rights"

Really askingIs the separate Seller's Water Disclosure involved?

Decide byIdentify Form 61-0 and Rule 537.68 rather than treating Form 55-1 as the only disclosure.

Prove it

Check yourself by subtopic, not by total.

15 questions across the 3 official subtopics. The result tells you which subtopic is weak and sends you to the one lesson that covers it.

Checkpoint

Can you hold all of Contracts?

15 questions across the 3 official subtopics. You get your score broken down by subtopic, so a weak spot points at one lesson instead of the whole area.

  • APromulgated Contracts, Forms, and Addenda
  • BStatute of Frauds
  • CSeller Disclosure Requirements

Checked July 29, 2026 against Pearson VUE Texas Real Estate Content Outlines #094401, revision 01/2026, effective January 1, 2026. The sales-agent state-law outline assigns 9 of 40 scored items to Contracts and lists three subtopics: A Promulgated Contracts, Forms, and Addenda; B Statute of Frauds; and C Seller Disclosure Requirements. Pearson does not publish an item split or cognitive allocation inside those three rows. Form-use rules were checked against Texas Occupations Code Sections 1101.155 and 1101.254 and current TREC Rules 537.1, 537.11, and 537.20 through 537.69. Writing rules were checked against Business and Commerce Code Section 26.01. Seller disclosure was checked against Property Code Section 5.008, TREC Form 55-1, Rule 537.62, TREC Form 61-0, and Rule 537.68. Current contract and amendment forms effective July 1, 2026 were checked against the forms themselves. Texas statutes, TREC rules, forms, and exam outlines can change, so verify current official sources before applying them outside exam study.

Drill Contracts questions

Go deeper

Study the complete contracts area.

Full Texas explainers: the promulgated forms overview, recognizing the right form, the 1-4 family contract line by line, addenda and the Statute of Frauds, the Texas Seller's Disclosure Notice, amendments, addenda, and notices, financing, option periods, and termination rights, and the unauthorized-practice-of-law line. See where forms diverge from national rules in the Texas vs. national comparison, continue to the Agency and Brokerage area or the Special Topics area, and review the whole state portion with the Texas state-law cheat sheet.

FAQ

Frequently asked questions

What does promulgated mean for TREC forms?+

Promulgated means TREC has officially adopted the form by rule and requires license holders to use it. The forms are drafted by the Texas Real Estate Broker-Lawyer Committee and adopted under the TREC Rules (22 TAC Chapter 537).

Which TREC form is used for a typical home resale?+

The One to Four Family Residential Contract (Resale), Form 20. The current version is 20-19, effective July 1, 2026. It is the most frequently used promulgated contract and covers existing single-family homes, duplexes, triplexes, and fourplexes.

Why do TREC forms have numbers like 20-19?+

The first number identifies the form (20 is the resale contract) and the second is the revision. TREC updates the forms periodically, so the suffix changes. Several revisions take effect in 2026. Always use the current version on TREC's website; the exam tests which form applies, not the suffix.

Can a real estate agent draft a contract clause in Texas?+

A license holder may add informational items, but may not invent or recommend language affecting rights, obligations, or remedies. Rule 537.11(d)(2) has a narrow provision for a conspicuous change made at a principal's specific written instruction. Legal wording and legal-effect advice belong with an attorney.

Where do promulgated forms appear on the Texas exam?+

In the Texas Contracts (Promulgated Forms) state-law area and in agency and standards-of-conduct questions. The Pass Texas app drills them across 1,377 Texas-specific questions for one $59.99 purchase.

Drill the forms

Know which form, and the line you cannot cross.

Pass Texas includes 1,377 Texas-specific questions with the full Trap Library and weak-area tracking for one $59.99 purchase. No subscription. No copied exam questions.

Primary sources: TREC promulgated contract forms and the TREC Rules (22 TAC Chapter 537), Business and Commerce Code Chapter 26, Property Code Chapter 5, and the official Pearson VUE content outline. Verified July 29, 2026. TREC revises forms periodically, so use the current version on TREC's site. For exam preparation, not legal advice.