Changes to Practice Notes
Chapter 1Ethics and Professional Conduct
§ 1.1Introduction
The discussion and URL for the Texas Disciplinary Rules of Professional Conduct were updated to reflect the October 2024 amendments.
§ 1.4:3Refusing Representation
The citation to the Texas Disciplinary Rules of Professional Conduct was updated.
§ 1.5:1Disclosure of Conflicts
The citations to the Texas Disciplinary Rules of Professional Conduct were updated.
§ 1.5:3Legal Fees
The citations to the Texas Disciplinary Rules of Professional Conduct were updated.
§ 1.6:2Confidentiality
The citations to the Texas Disciplinary Rules of Professional Conduct were updated.
§ 1.6:3Business Interests with Clients
This section was substantially revised to reflect the amendment of Tex. Disciplinary Rules Prof’l Conduct R. 1.08(a) and its comments.
§ 1.6:4Duty to Clarify Nonrepresentation
The discussion was revised to reflect the standard in Tex. Disciplinary Rules Prof’l Conduct R. 4.03.
§ 1.8:1Termination by Parties
The citations to the Texas Disciplinary Rules of Professional Conduct were updated.
§ 1.13Corporate Transparency Act
This section was substantially revised to reflect FinCEN’s 2025 interim final rule narrowing the beneficial ownership information reporting requirements under the Corporate Transparency Act.
Chapter 2Laws Affecting Real Estate
§ 2.5Ad Valorem Taxes
The discussion of property tax lender licensing was revised.
§ 2.10Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA)
This section was substantially revised.
§ 2.17Annexation
The sentence addressing the 2019 revision of Tex. Loc. Gov’t Code ch. 43 was deleted.
§ 2.20Arbitration
The discussion was revised to reflect that a provision requiring out-of-state arbitration of a Texas construction dispute is void.
§ 2.35Business Organizations Code
The discussion was revised to address 2025 amendments to the Texas Business Organizations Code.
§ 2.43Choice of Law
A paragraph was added addressing choice-of-law and venue provisions in Texas construction contracts.
§ 2.54Construction Contracts
The discussion of indemnity and choice-of-law provisions in construction contracts was revised.
§ 2.60Corporate Transparency Act
This section was substantially revised to reflect FinCEN’s 2025 interim final rule narrowing the beneficial ownership information reporting requirements under the Corporate Transparency Act.
§ 2.71Disclosures and Notices
The discussion of public improvement district notices was revised.
The discussion of residential lease flood notices was revised.
§ 2.113Foreign Ownership of Real Property
A paragraph was added addressing restrictions on the acquisition of Texas real property by certain foreign persons and entities under Tex. Prop. Code §§ 5.251 through 5.254.
§ 2.186North American Free Trade Agreement (NAFTA)
The discussion was updated to note the scheduled 2026 review of the United States–Mexico–Canada Agreement.
§ 2.188Notaries Public
The discussion was revised to address 2025 legislation concerning notary education, record retention, criminal penalties, and rulemaking.
§ 2.195Partition
The discussion of partition of heirs’ property under Tex. Prop. Code ch. 23A was revised and consolidated.
§ 2.205Property Owners’ Associations
The discussion was substantially revised to address resale certificates, online access to dedicatory instruments, and management certificates for subdivision and condominium property owners’ associations.
§ 2.212Real Estate Settlement Procedures Act (RESPA)
A citation to the Texas title-insurance provisions governing rebates and discounts was added.
§ 2.220Reporting of Transactions
The discussion was substantially revised to update the effective date and current status of FinCEN’s residential real estate reporting rule.
The citation to Flowers Title Co. v. Bessent was added.
§ 2.223Residential Rental Locators
The discussion was revised to address written representation agreements and applicant-screening requirements.
§ 2.237Sewer Service
This section was substantially revised to update the regulatory framework for retail and wholesale sewer service.
§ 2.249Subdivisions
The discussion of conveyances based on pending, unrecorded subdivision plats was revised.
A paragraph was added addressing limitations on municipal regulation of certain residential subdivisions.
§ 2.257Taxes
The discussion was revised to reflect the extension and expanded transparency requirements of the Property Redevelopment and Tax Abatement Act.
§ 2.288Venue
A paragraph was added addressing 2025 changes to the jurisdiction and venue of the Texas business courts.
§ 2.289Vested Land Use Rights
A paragraph was added addressing an exemption from certain building-permit requirements for large counties.
§ 2.294Water
This section was substantially revised to update the discussions of surface water, groundwater, water districts, and priority groundwater management areas.
The citation to South Texas Water Co. v. Bieri and two groundwater-district resources were added.
§ 2.295Watercourse Forming County Boundary
The discussion of concurrent county-court jurisdiction over boundary watercourses was revised.
§ 2.296Water Service
This section was revised to address regulation of retail and wholesale water service.
§ 2.297Water Wells
This section was substantially revised to update the discussion of regulation of water wells, drillers, and pump installers.
§ 2.303Zoning
Two paragraphs were added addressing limitations on municipal zoning and land-use regulation.
Chapter 4Sales Contracts and Transaction Guide
§ 4.1Letter of Intent
This section was substantially revised, and a discussion of form 4-33 was added.
§ 4.8Representations
The discussion was revised to address disclosures concerning groundwater and surface-water rights.
§ 4.13:3Exhibits
A discussion was added addressing the effect of seller financing on third-party financing and subordination.
§ 4.15:1Transactions Involving Foreign Persons
This section was substantially revised to address restrictions and reporting requirements affecting acquisitions of Texas real property by certain foreign persons and entities.
§ 4.16Additional Resources
A resource addressing acquisition of real property by certain foreign persons was added.
Chapter 5Deeds, Bills of Sale, and Other Transfers
§ 5.11Transfer on Death Deed
The discussion was revised to add a statutory citation and the URL for the Texas Transfer Toolkit.
§ 5.12:8Assumption of Liability Agreements for VA-Guaranteed Loans
The URL for the Department of Veterans Affairs resource was updated.
Chapter 6Promissory Notes
§ 6.3:3Annual Interest Rate
The discussion was revised to refer to the applicable annually adjusted Regulation Z threshold.
§ 6.4:10Fair Credit Reporting Act
The statutory and regulatory citations were updated.
Chapter 7Letters of Credit
§ 7.9:3Transferable
A citation was corrected.
§ 7.9:5Expiration Date
The citation to UCP 600 was updated.
§ 7.12Additional Resources
A 2025 resource concerning letters of credit was added.
Chapter 8Deeds of Trust
§ 8.10:5Appraisals
The regulatory citations were updated.
Chapter 9Security Agreements
§ 9.3:3Collateral Categories
This section was substantially revised to add a discussion of virtual currencies and update the discussion of controllable electronic records.
§ 9.4:6Control
The discussion was revised to address control of virtual currencies.
§ 9.5:3Perfection by Filing
The discussion was revised to address perfection of security interests in virtual currencies and update the effective date for mandatory electronic filing.
The “Bogus Filings” discussion was substantially revised to reflect the amendment of Tex. Bus. & Com. Code § 9.5185.
§ 9.5:5Perfection by Control
The discussion was revised to address perfection of security interests in virtual currencies.
Chapter 10Ancillary Loan Documents
§ 10.2General Considerations for Release of Lien and Partial Release of Lien
A statutory citation and cross-reference concerning liens securing home loans were added.
§ 10.14:2High-Cost Home Loans
The discussion was revised to refer to the applicable annually adjusted Regulation Z threshold.
§ 10.20Other Loan Documents
References to forms concerning powers of attorney, trust certifications, and other authority documentation were added.
§ 10.21Additional Resources
Three resources concerning guaranties were added.
Chapter 11Home Equity Loan Documents
§ 11.45Title Insurance Considerations
The discussion of applicable provisions of the T-43 endorsement was revised.
§ 11.47Federal Home Equity Conversion Mortgage (HECM) Loan Program
This section was substantially revised to replace obsolete HUD guidance with current HECM regulations and resources.
Chapter 12Federal Consumer Disclosure Documents
§ 12.11:3Consumer Disclosures
The citations governing the form, content, and timing of the loan estimate were updated.
Chapter 13Residential Contracts for Deed
§ 13.1Removal from Manual; Use of Contracts for Deed in Texas
The discussion of the family-relationship exception was revised to reflect Tex. Prop. Code § 5.062(c) and (d).
Chapter 14Foreclosure Documents
§ 14.2:5Entity as Trustee
This subsection was added, including the citation to In re AMRCO, Inc. Subsequent subsections were renumbered accordingly.
§ 14.2:14Federal Interests
This subsection was substantially revised to address federal tax liens and non-IRS federal liens.
The citations to United States v. Brosnan and Show Me State Premium Homes, LLC v. McDonnell were added.
Chapter 15Easements
This chapter was added to address the creation, interpretation, use, enforcement, and drafting of easements.
Chapter 16Water Rights Conveyancing Documents
§ 16.1Introduction
The information and resources concerning groundwater conservation districts were updated.
§ 16.3:2GCD Permitting
The definition of “operating permit” was revised.
§ 16.21:1Review of Title Commitment
The discussion of title-insurance bulletins was updated.
§ 16.29:3Preparation of Closing Documents
The discussion of settlement statements was updated.
§ 16.29:4Funding
The discussion of good funds was revised.
§ 16.49:1Review of Title Commitment
The discussion of title-insurance bulletins was updated.
§ 16.57:3Preparation of Closing Documents
The discussion of settlement statements was updated.
§ 16.57:4Funding
The discussion of good funds was revised.
§ 16.70Title
The discussion of title-insurance bulletins was updated.
§ 16.78:3Closing Documents
The discussion of settlement statements was updated.
§ 16.78:4Funding
The discussion of good funds was revised.
Chapter 17Risk Allocation: Indemnity, Waiver, and Insurance
§ 17.4:3Specialized Coverages
The current extension date for the National Flood Insurance Program was updated.
§ 17.4:5Amount of Proceeds
The fixed dollar amount for additional debris-removal coverage was deleted.
§ 17.5:9Umbrella or Excess Liability
This subsection was substantially revised to address insurance towers and potential coverage gaps.
The citation to Martin Resource Management Corp. v. AXIS Insurance Co. was added.
§ 17.10:1ACORD 25 “Certificate of Liability Insurance”
The discussion was revised to reflect the current edition of the ACORD 25 certificate.
§ 17.11Examples of Insurance Requirements
A cross-reference to chapter 15 was added.
§ 17.12Additional Resources
Additional resources were added.
Chapter 18Residential Construction Contract Documents
§ 18.2:2Texas Residential Construction Liability Act
The discussion of claims excluded from the RCLA dispute-resolution process was revised.
§ 18.3:4Owner Liability to Mechanic’s Lien Claimants and Owner Retainage or Reservation
The statutory citations concerning owner retainage or reservation were updated.
§ 18.3:5Other Considerations
Citations to the federal home-insulation disclosure regulations were added.
Chapter 19Commercial Construction Contract Documents
§ 19.4:4Construction Trust Fund Statute
The discussion was revised to clarify the construction trust-fund and construction-account requirements.
§ 19.4:5Owner Liability to Mechanic’s Lien Claimants and Owner Retainage or Reservation
The statutory citations concerning owner withholding and retainage or reservation were updated.
§ 19.4:8Completion
The discussion of remedies for unexcused delay was revised.
Chapter 20Contractual Mechanic’s Lien Documents
§ 20.1:4Other Consumer Protection Laws
The citations to Regulations Z and X were updated.
§ 20.2:1First Lien to Third-Party Lender to Secure Interim and Permanent Financing
The Regulation Z citation was updated.
§ 20.2:3Second Lien to Third-Party Lender to Secure Interim and Permanent Financing
The Regulation Z citation and reference to the commissioner of insurance were updated.
§ 20.7Required Signatures
The Equal Credit Opportunity Act regulation citation was updated.
Chapter 21Involuntary Mechanic’s Lien Documents
§ 21.5:6Requests for Information
The cross-reference to section 21.8 was updated.
§ 21.6Time Limits for Contractual Retainage Claims
The discussion was revised to clarify which claimants must give notice under Tex. Prop. Code § 53.056.
§ 21.9:1Nonresidential Projects (Tex. Prop. Code § 53.056)
The table note addressing the deadline to claim a lien on reserved funds was revised.
§ 21.9:2Residential Projects (Tex. Prop. Code §§ 53.052, 53.252)
The table note addressing the deadline to claim a lien on reserved funds was revised.
Chapter 23Restrictive Covenants and Property Owners’ Associations
§ 23.1:3Limitations of Covenants and Restrictions
The discussion of property owners’ association regulation of security measures and fencing was revised to reflect the amendment of Tex. Prop. Code § 202.023.
§ 23.2:1Governance of Property Owners’ Associations
The discussion of voting methods was substantially revised.
The citation to Rockwall Ranch Property Owners Ass’n v. Gonzales was added.
§ 23.3:6Architectural Control Committee
The discussion of architectural control committee eligibility, notice, appointment, and vacancy requirements was substantially revised.
§ 23.3:14Enforcement and Fine Policy
The discussion was revised to reflect statutory amendments governing fines, including restrictions during residential watering restrictions.
§ 23.4Management Agreement, Management Certificates, and Online Subdivision Information
The section heading was revised.
The discussion of management certificates and online subdivision information was moved to this section and updated.
Chapter 24Condominium Documents
§ 24.3:6Voting Rights
The discussion was expanded to address voting by multiple unit owners, proxies, electronic voting, and the prohibition on cumulative voting.
§ 24.5General Considerations for Rules
A paragraph was added addressing restrictions on fines for landscaping violations during residential watering restrictions.
§ 24.6:2Management Certificates and Online Association Information Required
The subsection heading was revised.
This subsection was substantially revised to update the discussion of management certificates and online access to association information.
§ 24.6:4Record of Unit
The discussion was revised to address access to association records and records production and copying policies.
Chapter 25Leases
§ 25.5:3Notice for Dwelling Located in Floodplain
The discussion of residential lease flood notices was revised.
§ 25.11:7Lease by Individuals and Entities Connected to Designated Countries
This subsection was added to address restrictions on leasehold interests involving individuals and entities connected to designated countries.
§ 25.12:9Asbestos Disclosure
A regulatory citation was corrected.
Changes to Forms
Chapter 1Ethics and Professional Conduct
Form 1-4Letter Disclosing and Requesting Waiver of Potential Conflict with Former Client
This form was revised to update the reference to rule 1.09 of the Texas Disciplinary Rules of Professional Conduct.
Form 1-5Letter Disclosing Potential Risks and Requesting Consent of Individual [Partners/Members] to Representation of [Partnership/Limited Liability Company]
This form was revised to update the reference to rule 1.13 of the Texas Disciplinary Rules of Professional Conduct.
Form 1-11Letter Requesting Client’s Consent to Business Relationship with Attorney
This form was revised to update the explanation of rule 1.08(a) and the advice concerning independent counsel.
Form 1-14Letter for Completion of Attorney-Client Relationship
This form was revised to update the reference to rule 1.15 of the Texas Disciplinary Rules of Professional Conduct.
Chapter 4Sales Contracts and Transaction Guide
Form 4-33Letter of Intent
This form was revised to expand the nonbinding-effect language in section 1, providing that the letter creates no binding or enforceable obligations between the parties except for the confidentiality provision and that it summarizes preliminary proposed nonbinding deal points that are not intended to be relied on.
Chapter 5Deeds, Bills of Sale, and Other Transfers
Form 5-25Revocable Transfer on Death Deed
The prefatory note was revised to remove the discussion of the Texas Supreme Court’s promulgation of transfer on death deed forms and to add references to Tex. Gov’t Code § 22.020(b)(2–a) and to the Texas Transfer Toolkit published by the Texas Access to Justice Commission.
Form 5-26Revocation of Transfer on Death Deed
The prefatory note was revised to remove the discussion of the Texas Supreme Court’s promulgation of transfer on death deed forms and to add references to Tex. Gov’t Code § 22.020(b)(2–a) and to the Texas Transfer Toolkit published by the Texas Access to Justice Commission.
Form 5-27Partial Revocation of Transfer on Death Deed
The prefatory note was revised to remove the discussion of the Texas Supreme Court’s promulgation of transfer on death deed forms and to add references to Tex. Gov’t Code § 22.020(b)(2–a) and to the Texas Transfer Toolkit published by the Texas Access to Justice Commission.
Chapter 6Promissory Notes
Form 6-6Additional Clauses for Promissory Notes
Clause 6-6-22, “Application of Payments,” setting out the order in which payments received by the lender are applied, was added with an accompanying instruction noting that the order of the listed items is subject to negotiation.
Chapter 15Easements
Form 15-1Easement Appurtenant
This form was added.
Form 15-2Easement in Gross
This form was added.
Form 15-3Consent and Subordination by Lienholder
This form was added.
Form 15-4Consent and Subordination by Tenant
This form was added.
Chapter 17Risk Allocation: Indemnity, Waiver, and Insurance
Form 17-1ACORD 25 Certificate of Liability Insurance
This form was replaced with the current version of the promulgated form.
Form 17-2ACORD 28 Evidence of Commercial Property Insurance
This form was replaced with the current version of the promulgated form.
Form 17-3ACORD 45 Additional Interest Schedule
This form was replaced with the current version of the promulgated form.
Chapter 19Commercial Construction Contract Documents
Form 19-2Commercial Construction Contract [Stipulated Sum]
This form was revised to delete the definitions of “Contractor’s Contingency” and “Owner’s Contingency” and to renumber the remaining definitions in section A accordingly.
Chapter 23Restrictive Covenants and Property Owners’ Associations
Form 23-6Enforcement and Fine Policy for [name of subdivision] Property Owners’ Association
The paragraph prohibiting fines for vegetation violations during a residential water restriction was revised to add a citation to Tex. Prop. Code § 202.008 and to conform the capitalization of defined terms.
Chapter 24Condominium Documents
Form 24-5Management Certificate
This form was revised to conform to Tex. Prop. Code § 82.116. The association was redesignated a condominium association, and the declaration recording data was revised to include any amendment.
The designation of the management company was added, together with entries for its telephone number and email address, for the website address of any Internet website on which the association’s dedicatory instruments are available, and for the amount and description of any fee charged by the association in connection with a property transfer.
Chapter 26Miscellaneous Documents
Form 26-22Easement Agreement for Access
A cross-reference to new chapter 15 was added to the headnote of this form.
Form 26-23Easement Agreement for Reciprocal Access
A cross-reference to new chapter 15 was added to the headnote of this form.
Form 26-24Easement Agreement for Utilities
A cross-reference to new chapter 15 was added to the headnote of this form.
Form 26-25Easement in Gross Agreement
A cross-reference to new chapter 15 was added to the headnote of this form.
Form 26-45Appointment of Agent and Delegation of Duties by Trustee
This form was added. The powers set out in the form are those listed in Tex. Prop. Code § 113.018(c).