What is true if a licensee decides to draft their own contract instead of using a TREC-promulgated form?

If a licensee decides to draft their own contract rather than using a Texas Real Estate Commission (TREC) promulgated form, they indeed have the right to draft their own contract. The Texas law allows real estate licensees the flexibility to create custom contracts to meet the specific needs of their clients or transactions, provided they comply with all relevant legal requirements and contractual principles.

This ability to draft custom contracts is significant because it empowers licensees to tailor agreements that may better suit unique circumstances, negotiating terms that reflect the specific intentions of the parties involved. However, it is crucial that the licensee ensures that their custom contract adheres to state laws governing contracts and contains all essential elements to ensure enforceability.

While other options suggest limitations or requirements, such as needing standard forms or special permission, the law clearly provides licensees the autonomy to create their own legal documents, as long as they remain within the legal framework established by Texas law. This underscores the importance of legal knowledge and skill in drafting documents properly to protect all parties involved in a transaction.