Paragraph 4 is known as the License Disclosure “section” (which replaced the Finance paragraph prior to January 1st, 2016). This was always a requirement but was not in the contract. Instead, agents were adding to Special Provisions.
Texas Law requires that a license holder who is a party to a transaction, or acting on behalf of any of the following, disclose that information:
This information must be disclosed to the other party in writing before entering the contract, through an email or the like instead. If the seller or buyer is not a license holder, it is N/A.
This article about Paragraph 4 of TREC’s One to Four Family Residential Contract is intended for reference only, and should not be considered a substitute for legal or title underwriter advice that is based on specific facts of a transaction.
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Stephen Etzel
Owner of Stephen Etzel Consulting
For over 22 years, he has helped clients in the real estate industry with continuing their education and enhancing their businesses. Teaching is his passion, which is why he enjoys assisting agents and brokers with learning new subjects. He also loves sharing ideas and knowledge to help businesses thrive.
Certifications: GRI, SRES, ABR, CDEI