Disclosure

TREC RSC-4 — Disclosure of Relationship with Contract Provider or Administrator

This form discloses any financial relationship between a real estate broker or sales agent and a residential service contract provider (home warranty company). It informs the buyer and seller that purchasing a residential service contract is optional, that neither a broker nor seller may condition t

Source: TREC
Form Number: RSC-4
Category: Disclosure
Revised: May 16, 2023

Used For

Residential Sales

Form Outline

The TREC RSC-4 form is organized into the following sections:

  1. Residential Service Contracts Overview
    Defines residential service contracts (home warranties), explains they are regulated by TDLR, and advises buyers to compare coverage and costs across multiple providers before purchasing.
  2. Optional Purchase Notice
    Emphasizes that purchasing a home warranty is entirely optional, the buyer controls provider and coverage selection, and conditioning the sale on a warranty purchase is prohibited.
  3. Other Broker/Sales Agent Compensation Disclosure
    Requires the buyer's broker to disclose whether they receive compensation from a residential service contract provider and, if so, to identify the provider and describe the services rendered.
  4. Listing Broker/Sales Agent Compensation Disclosure
    Requires the listing broker to disclose whether they receive compensation from a residential service contract provider and, if so, to identify the provider and describe the services rendered.
  5. Compensation Terms and RESPA Compliance
    Confirms that broker compensation from providers is not contingent on transaction parties purchasing a contract, and must be limited to reasonable value of services per federal RESPA requirements.
  6. Broker and Party Signatures
    Provides signature lines for both brokers with license numbers, and acknowledgment signatures for up to two buyers and two sellers.

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