In the world of Texas real estate transactions, contract forms and required documents are critical to ensuring smooth and legally compliant closings. Among these documents, the T-47 Residential Real Property Affidavit (TXR 1907) has been an essential tool for confirming the accuracy of existing property surveys. However, recent changes from the Texas Department of Insurance and the Texas Real Estate Commission (TREC) have introduced a new option—the T-47.1 Declaration—bringing more flexibility to the transaction process.
This updated blog, to The Importance of the T-47 Residential Real Property Affidavit in Texas Real Estate Transactions, will guide you through these changes, explain the distinctions between the T-47 Affidavit and T-47.1 Declaration, and highlight best practices for navigating these requirements in real estate transactions.
The Adopted TREC Contract Changes: What’s Different?
Recent changes to the TREC contract forms reflect updates adopted by the Texas Department of Insurance, designed to provide sellers and buyers with more flexibility when dealing with surveys and affidavits.
- Option to Use the T-47.1 Declaration
To be consistent with a recently updated Texas Department of Insurance procedural rule, Paragraph 6C(1) has been amended to include the option of providing the T-47.1 Declaration (which does not need to be notarized)—in lieu of the T-47 Affidavit—when the Seller furnishes the Buyer with an existing survey. - Revised Paragraph 6C(2)
The “no survey required” option has been removed, and Paragraph 6C(2) has been amended to state: “Buyer may obtain a new survey” instead of “Buyer shall obtain a new survey.” Furthermore, if the Buyer ultimately fails to obtain the survey, they do not have the right to terminate the contract under Paragraph 2B of the Third Party Financing Addendum because the survey was not obtained.
These changes became effective November 1, 2024 and are designed to streamline the process while providing more clarity for buyers and sellers.
T-47 Affidavit vs. T-47.1 Declaration: Key Differences
Understanding the distinctions between these two options is critical for ensuring compliance with TREC contracts and avoiding delays in your transactions.
Sellers and agents should weigh the benefits of each option and choose based on the specific needs of their transaction.
Why the Updates Matter for Sellers and Buyers
These changes impact both sellers and buyers, emphasizing the need for accurate documentation and timely delivery:
- For Sellers:
The option to use the T-47.1 Declaration simplifies the process, especially in situations where notarization might be challenging. However, sellers must still ensure that no material changes have been made to the property since the existing survey, as inaccuracies could lead to delays or disputes. - For Buyers:
Buyers now have more flexibility in deciding whether to commission a new survey. However, the responsibility of verifying the accuracy of the provided documents remains crucial to avoid surprises during the closing process.
Steps to Navigate the Updated TREC Contract Requirements
To ensure compliance with the updated TREC contract forms, follow these steps:
- Clarify Survey Requirements Early:
During the listing appointment, confirm whether the seller has an existing survey and decide whether to use the T-47 Affidavit or T-47.1 Declaration. If no survey exists, select Paragraph 6C(2) in the contract, giving the buyer the option to obtain one. - Review the Survey for Accuracy:
Sellers should review the existing survey to confirm that it accurately reflects the current property condition. If changes have been made (e.g., new structures or boundary adjustments), they must be disclosed in the affidavit or declaration. - Choose the Appropriate Form:
Decide whether to use the T-47 Affidavit or the T-47.1 Declaration based on the seller’s ability to provide notarized documents and the buyer’s preferences. - Deliver Documents On Time:
Ensure that the existing survey and either the affidavit or declaration are delivered at contract execution to avoid delays and ensure compliance with Paragraph 6C.
Conclusion
The Texas Department of Insurance’s adoption of the T-47.1 Declaration and the Texas Real Estate Commission’s contract amendments represent significant updates to the real estate transaction process in Texas. These changes provide sellers and buyers with greater flexibility, simplify documentation requirements, and streamline transactions.
At Capital City Coordination, we stay ahead of industry changes to support our clients through every step of the transaction process. Contact us today to learn how we can help make your next real estate deal as smooth and stress-free as possible.
Disclaimer: Capital City Coordination does not offer legal advice. Coordinators and Realtors® cannot complete the T-47 or provide advice on how to complete the T-47. Sellers should consult an attorney for any legal advice. This blog is intended for informational purposes only and reflects industry-required updates.
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