Because a realtor is prohibited from practicing law, a standardized form is required in all real estate transactions executed without an attorney. A promulgated contract is simply a blank form the Texas Real Estate Commission approved to be used by licensed brokers and agents when representing clients in the purchase and sale of real property and an attorney is not drafting the documents. A promulgated form is intended to be a one-size fits all agreement which is equally fair, or unfair, to both sides of a transaction. Entities such as the San Antonio Board of Realtors and the Texas Association of Realtors have created more specific forms for various transactions. Many realtor organizations prohibit their members from making any changes to these forms. While even less recommended than a form created specifically for application in Texas, many people believe they can save money by searching the internet for the appropriate form.
Whether purchasing property or entering into a long-term lease, executing a real estate contract is generally an important transaction with unique concerns to the individual parties. A promulgated form, by its very definition, cannot address these concerns. Having a custom document designed to address your specific concerns will obviously incur upfront costs; however, the long-term savings and protections generally outweigh the initial investment. Experienced real estate attorneys often identify potential risks which clients do not know they should protect against.
Every real estate transaction is unique—the players, the financing, and the use. Relying on a promulgated form ignores the personalized attention each individual aspect deserves and the problems each individual aspect can cause.