Texas · TREC 20-19Texas real estate contract changes 2026: TREC 20-19 vs 20-18
TREC's One to Four Family Residential Contract (Resale) 20-19 replaced 20-18 on July 1, 2026. The main changes: brokerage compensation now has its own paragraph ("not set by law and is fully negotiable"), a new Seller's Water Disclosure about groundwater and surface water rights, "Legal Holiday" is defined for the earnest money and option fee deadline, notices can go to a party or their agent (by mail, hand delivery, overnight courier or electronic transmission), and the parties must give escrow what governmental reporting requires.
What changed, paragraph by paragraph
¶5 – earnest money and option fee
The 3-day deadline is the same; "Legal Holiday" is now defined by reference to Texas Government Code §662.003. "Option fee" is written in lower case (it is not a defined term).
¶7I – Seller's Water Disclosure (new)
A disclosure about groundwater and surface water rights. Delivered after the contract, the buyer may terminate within 7 days after receiving it or before closing, unless the exemption box applies.
¶12 – expenses and brokerage compensation
Brokerage fees are no longer listed as seller or buyer expenses. A new BROKERAGE COMPENSATION part: compensation is not set by law and is fully negotiable; each party pays its own broker under separate written agreements; optional contributions – the seller toward the buyer's broker (12B(1)) or the buyer toward the seller's broker (12B(2)). The seller's contribution to other buyer expenses excludes brokerage compensation.
¶17 – attorney's fees
"Listing Broker, Other Broker" became "Seller's broker, Buyer's broker".
¶20 – governmental requirements
Renamed from "Federal requirements". Seller and buyer must promptly give escrow the statements, documents and information it requests for governmental reporting requirements (for example, reporting to the U.S. Treasury).
¶21 – notices
Notices may come from a party or their agent and are effective when mailed, hand-delivered, sent by overnight courier or transmitted electronically to the other party or their agent. Fax is no longer listed; the contact block includes both agents.
¶22 – addenda and notices
The checklist is grouped (financial, leases, additional tests and reports, statutory disclosures and notices) and lists district notices given or attached.
Broker information
Restructured into broker contact information for each side, including the licensed supervisor and team name.
What TCs should update
- Use 20-19 for contracts from July 1, 2026; keep 20-18 deals on their own terms.
- Add the Seller's Water Disclosure to the document checklist and track its 7-day window if delivered late.
- Check ¶12B for any brokerage contribution and make sure title has it.
- Collect agent emails and phones for ¶21 notices.
- Expect escrow requests for governmental reporting and answer them promptly.
- Use the amendment 39-11, also effective July 1, 2026.
Questions about the 2026 Texas contract changes
When did TREC 20-19 take effect?
July 1, 2026. It replaces TREC 20-18 (11-04-2024) for the One to Four Family Residential Contract (Resale).
Did the option period or earnest money deadline change?
No – earnest money and the option fee are still due within 3 days, and option notices by 5:00 p.m.; "Legal Holiday" is now defined for the weekend and holiday rule.
What is the new Seller's Water Disclosure?
A disclosure about groundwater and surface water rights in ¶7I; delivered late, it gives the buyer 7 days to terminate.
How is brokerage compensation handled in the new contract?
In its own paragraph: it is not set by law and is fully negotiable, each party pays its own broker under separate agreements, and either side may contribute toward the other side's broker.
Can notices go to the agent?
Yes – under ¶21 notices may come from a party or their agent and are effective when delivered to the other party or their agent.
Texas deadlines
ClosingCode reads TREC 20-19 contracts and builds their deadlines – and keeps your Texas files current when the forms change.
Start free trialSource: Texas Real Estate Commission, TREC No. 20-18 (11-04-2024) and TREC No. 20-19 (05-04-2026, effective July 1, 2026), compared word by word. Paragraph numbers as in 20-19.
General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage, and it is not affiliated with TREC.