2026 TREC Form Updates: What Every Texas Agent Must Know

If you are a Texas real estate agent, 2026 brings important form changes. TREC and Texas REALTORS® have updated multiple standard contracts and addenda. These changes address new laws and modernize industry practices.

Many changes take effect July 1, 2026. Some are already mandatory. Using outdated forms puts you and your clients at risk.

Here is what you need to know.

Quick Summary: 2026 TREC Form Changes at a Glance

• Water rights disclosure is now required in all TREC contracts starting July 1, 2026
  
• New form TREC 61-0 — Seller's Disclosure About Groundwater and Surface Water Rights
  
• Broker compensation rules revised in Paragraph 12 of all contracts
  
• Amendment to Contract (TREC 39-11) updated for new compensation rules
  
• Generators added to property improvements list
  
• IABS 1-2 has been mandatory since January 1, 2026
  
• Broker Responsibility Course required for all brokers renewing on or after January 1, 2026

New Water Rights Disclosures (Effective July 1, 2026)

One of the biggest changes involves water rights. TREC has added water notices to all contracts.

Why this matters: Water determines land value in most of Texas. Yet most Texans are confused about water rights. In most real estate deals, water rights have not been disclosed in the past.

What changed: TREC added a water notice paragraph to its contracts. It includes a general water rights disclosure. It also gives three options for the buyer's receipt of the separate TREC 61-0 disclosure form.

The new form (TREC 61-0) is three pages. It starts with definitions. Then it covers disclosures about groundwater, wells, and surface water. Sellers only need to state what they know. If they don't know, they can say so.

What agents need to know: You are not allowed to interpret water laws. Only attorneys or engineers can do that. But under TREC rules, you must make clients aware of the disclosure requirement. You should also recommend they seek expert advice when needed.

Mandatory date: The revised forms are mandatory as of July 1, 2026.

Broker Compensation Changes in All Contracts

TREC revised Paragraph 12 of all contract forms. This is in response to changes in how broker compensation works.

What changed:

• Paragraph 12 has been reworded and reorganized
  
• New Paragraph 12B added for brokerage compensation
  
• Seller can contribute to buyer's broker compensation in 12B(1)
  
• Buyer can contribute to seller's broker compensation in 12B(2)
  
• Paragraph 8B removed
  
• Compensation disclosure on Page 10 removed to avoid confusion

Updated Forms and Addenda

Amendment to Contract (TREC 39-11) — MANDATORY

Updated to match the new broker compensation rules in Paragraph 12.

Seller's Disclosure Notice (TREC 55-1)

Additions to Paragraph 9 include new information about:

• Insurance
  
• Private roads the buyer would need to maintain
  
• Aboveground storage tanks
  
• Conservation easements

Back-Up Contract Addendum (TREC 11-9) — MANDATORY

Changes the effective date to when the seller delivers termination notice to the buyer, not when the buyer receives it.

POA Addendum (TREC 36-11) — MANDATORY

Clarifies that if the buyer gets subdivision information, they don't have to give it to the seller.

Lead-Based Paint Addendum (TREC 56-0)

Changed "Other Broker" to "Buyer's Broker" and "Listing Broker" to "Seller's Broker."

Contract Changes Across All Forms

These changes apply to all major TREC contract forms:

• Unimproved Property Contract (TREC 9-18)
  
• One to Four Family Residential Contract (TREC 20-19)
  
• New Home Contract (Incomplete Construction) (TREC 23-20)
  
• New Home Contract (Completed Construction) (TREC 24-20)
  
• Farm & Ranch Contract (TREC 25-17)
  
• Residential Condominium Contract (TREC 30-18)

Key changes across all forms:

Change	Details
Generators added	Now listed in Paragraph 2B (Improvements)
Legal Holiday defined	Added to Paragraph 5A(2)
Lowercase terms	"Option fee," "earnest money," and "contract" are now lowercase
Water rights paragraph	New Paragraph 7(I) added for groundwater and surface water disclosure
FinCEN compliance	Language added to Paragraph 20B for government reporting
Notices clarified	Paragraph 21 updated to clarify delivery methods
Addenda reorganized	All addenda reorganized in Paragraph 22

IABS Form: Already Updated (January 1, 2026)

IABS 1-2 became mandatory on January 1, 2026. If you are still using IABS 1-1, you are out of compliance.

What changed in IABS 1-2:

• Adds non-representation status
  
• Adds written agreement requirements
  
• Removes references to subagency
  
• Updates contact information terms

Source: Senate Bill 1968, effective January 1, 2026.

Broker Responsibility Course: New Requirement

Every broker applicant or broker renewing on or after January 1, 2026 must take the Broker Responsibility Course. This applies even if you do not sponsor agents.

What this means: Even if you don't manage other agents, you still need to complete this course before renewal.

Common Mistakes That Put Agents at Risk

Using old forms after the effective date. TREC forms have mandatory dates. Outdated forms can lead to disputes, E&O claims, and TREC disciplinary action.

Not providing the water rights disclosure. The new water notice is mandatory starting July 1, 2026. Failure to disclose water rights may create liability.

Forgetting IABS 1-2. The new IABS form has been required since January 1, 2026. The old form is now a violation.

Not understanding the new compensation rules. The revised Paragraph 12 and new Paragraph 12B change how broker compensation is documented. Misunderstanding these can create confusion at closing.

Staying Compliant in 2026

TREC has been working with the Broker-Lawyer Committee. They met in January 2026 to review TREC contract forms. More changes may be coming.

Best practices for agents:

• Download the latest forms from TREC or your association
• Review changes before using any form
  
• Complete your continuing education for 2026-2027
  
• For brokers, complete the Broker Responsibility Course before renewal
  
• Recommend clients seek expert advice on water rights

Frequently Asked Questions

When do the new TREC forms become mandatory?

Most forms are mandatory starting July 1, 2026. IABS 1-2 became mandatory on January 1, 2026.

What is TREC 61-0?

The new Seller's Disclosure About Groundwater and Surface Water Rights form.

Do I need to take the Broker Responsibility Course?

Yes, if you are applying for or renewing a broker license on or after January 1, 2026.

What changed about broker compensation?

TREC revised Paragraph 12 to add new options for buyer and seller contributions to broker compensation.

Is IABS 1-2 different from IABS 1-1?

Yes. IABS 1-2 removes subagency references, adds non-representation status, and includes written agreement requirements. The old form should not be used after December 31, 2025.

Stay Current with Time2Renew

TREC form changes happen every year. Staying current on rules and updates protects your clients and your career.

Time2Renew offers TREC-approved CE courses for the 2026-2027 cycle — including Legal Updates I and II, contract, and electives. All online and self-paced.

👉 Start your Texas real estate CE with Time2Renew

About Time2Renew: We help Texas real estate professionals complete CE requirements quickly and without stress. TREC-approved. Online, self-paced, and built for busy agents. Start today.