TREC Commercial Contract: What Texas Agents Need to Know

The Texas Real Estate Commission (TREC) promulgates a specific, limited set of contracts: the Unimproved Property Contract (vacant land), the One to Four Family Residential Contract (Resale), the New Home Contract in both incomplete- and completed-construction versions, the Farm and Ranch Contract, and the Residential Condominium Contract (Resale). Every one of them is a residential-sales or vacant-land form. TREC does not promulgate a commercial sale contract.

For commercial transactions, Texas agents instead use forms published by Texas REALTORS® (TXR): the Commercial Contract - Improved Property (TXR 1801) and the Commercial Contract - Unimproved Property (TXR 1802). They aren't TREC forms, but they are the standard forms commercial practitioners across the state rely on, and they're built around the realities of income-producing and business-use property rather than a home sale.

Commercial deals bring up issues that rarely surface in a residential transaction — tenant leases already in place, environmental assessments, zoning compliance, and due diligence periods where a buyer investigates the property before the contract becomes fully binding. Agents who only work residential deals often find the vocabulary, timelines, and negotiation points genuinely different when they first move into commercial work.

Texas REALTORS®' commercial contracts come in two forms, and choosing the right one matters. TXR 1802, Commercial Contract - Unimproved Property, covers raw land with no significant structures. TXR 1801, Commercial Contract - Improved Property, applies to developed commercial property — office buildings, retail centers, warehouses, and similar income-producing assets. Both forms carry a current revision date of 2022-07-08.

It's worth being precise about what isn't commercial. TREC's Unimproved Property Contract (TREC 9-18) — reprinted as TXR 1607 — is a residential-category form for vacant land, not the commercial land contract. Likewise, TREC's Farm and Ranch Contract (TREC 25-17, reprinted as TXR 1701) is its own residential-category promulgated form built around agricultural use, mineral rights, and water rights. Neither is a commercial form, even though the names can look similar at a glance.

The two commercial contracts also have their own companion addenda — forms like the Commercial Contract Special Provisions Addendum (TXR 1940), the Commercial Contract Financing Addendum (TXR 1931), and the Commercial Contract Condominium Addendum (TXR 1930) — and agents need to know which ones apply to a given deal. Getting the wrong base form, or missing an addendum that should have been attached, can create ambiguity that's expensive to resolve later.

The most immediate difference agents notice is the due diligence period. Commercial contracts typically build in time for the buyer to review leases, financials, environmental reports, surveys, and title commitments before the deal becomes fully binding. Residential contracts have inspection periods too, but commercial due diligence tends to be broader and more document-heavy.

Financing contingencies also look different. Commercial buyers are often working with commercial lenders, and underwriting can hinge on the property's income history rather than just the buyer's personal credit. Contract timelines need to account for that realistically.

Finally, commercial deals frequently involve entities — LLCs, partnerships, corporations — rather than individual buyers and sellers. That changes how the contract identifies parties, how it's signed, and who has authority to bind the entity. Agents should be comfortable confirming that whoever signs actually has the authority to do so.

Commercial real estate can be a meaningful line of business for agents who want to diversify beyond residential sales, but it requires real study. A commercial-contract course through an approved continuing education provider is a sensible starting point, and many agents also pursue additional commercial-specific designations before actively marketing themselves in the space.

Whatever forms you're working with, having a broker who's responsive when a contract question comes up matters. RaiderX provides dedicated broker support and transaction and compliance management for every sponsored agent, whether the deal in front of you is a single-family listing or a commercial contract with unfamiliar addenda. You keep 100% of your commission under a flat monthly fee, and you're not left guessing on paperwork questions when it counts.

This guide is general information, not legal advice. Contract language, form selection, and addenda requirements can vary by deal and should be reviewed with your broker or a qualified real estate attorney before you rely on them.

If you're a licensed Texas agent weighing where to hang your license, it's worth comparing how different sponsorship models handle situations like commercial contracts — some brokerages offer minimal support beyond the split they take; others invest in tools and guidance that actually help you close deals correctly.

RaiderX sponsors agents individually or as teams, with plans built around flat monthly fees instead of commission splits: $99/month for individual agents, or $119/month per agent for teams, where the team leader chooses how the split works internally. E&O insurance is included on both plans. Onboarding is paperwork-light — apply online, sign your Independent Contractor Agreement (ICA) and W-9 by e-signature, and RaiderX handles your license transfer, typically getting you onboarded within about a week.