TREC Disclosure of Relationship with Residential Service Company

What Is TREC Disclosure Of Relationship With Residential Service Company

Understanding is essential for parties involved in real estate transactions, particularly within Texas. The Texas Real Estate Commission (TREC) requires this form when a real estate licensee has a business or personal relationship with a residential service company (also known as a home warranty company) that could influence the licensee's recommendations to their clients. This requirement ensures transparency and maintains trust between real estate professionals and their clients.

When to Use TREC Disclosure Of Relationship With Residential Service Company

The TREC Disclosure of Relationship with a Residential Service Company must be utilized in a handful of specific scenarios to maintain integrity and compliance:

• Whenever a real estate agent recommends a particular during the purchase or sale of a home.
• If the real estate professional holds any form of economic interest in the residential service company, they recommend it directly or indirectly.
• When an agent provides a referral or recommendation with which they have a personal or business relationship. This covers situations outside the scope of just home warranties and may include other residential services under the umbrella of home transactions.

How To Fill Out TREC Disclosure Of Relationship With Residential Service Company

Personal and License Information:

Enter the real estate licensee's full name and professional license number.

Disclosure Details:

Specify the nature of the relationship with the residential service company. This may include any affiliations or beneficial interests the licensee has with the company.

Company Identification:

Provide the complete name and, if applicable, the license number of the residential service company involved.

Description of Relationship:

Offer a descriptive explanation of the relationship, including the nature and extent of any remunerative benefits received or the potential for such benefits.

Client Acknowledgment:

The final section of the form requires the parties involved (buyers or sellers) to acknowledge that they have read and understood the disclosure. They must then date and sign the document.