Disclosure

TXR 2513 — Disclosure of Relationship with Contract Provider or Administrator

This TREC-promulgated form (RSC-4) requires brokers and sales agents to disclose to buyers and sellers whether they receive compensation from a residential service contract provider or administrator. It informs consumers that residential service contracts are optional, that they may choose any provi

Source: TXR
Form Number: 2513
Category: Disclosure
Revised: May 16, 2023

Used For

Residential Sales

Form Outline

The TXR 2513 form is organized into the following sections:

  1. Explanation of Residential Service Contracts
    Provides consumer education about residential service contracts: what they are, that providers are regulated by TDLR, that coverage and costs vary among providers, and that the buyer should compare options and may choose any provider.
  2. Notice That Purchase Is Optional
    Emphasizes that purchasing a residential service contract is optional, that TREC contracts allow negotiation of seller reimbursement, that the buyer chooses the provider and coverage, and that no party may condition the sale on purchasing a service contract.
  3. Broker Compensation Disclosure
    Each broker (listing and other/buyer's) must disclose whether they receive compensation from a residential service contract provider. Four checkboxes cover the combinations: no compensation (for each broker) or compensation received from a named provider for described services.
  4. Compensation Non-Contingency and RESPA Compliance
    Clarifies that broker compensation from a provider is not contingent on any party purchasing a service contract. Per RESPA and HUD Regulation X, all fees must be limited to the reasonable value of services actually rendered.
  5. Broker and Party Signatures
    Both the other broker and listing broker sign with their names and license numbers. Buyers and sellers sign to acknowledge receipt of the disclosure notice.

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