What is the name of the rule used by TREC's Broker-Lawyer Committee to determine if an issue necessitates a form update?

The 5% Rule is the guideline utilized by the Texas Real Estate Commission's Broker-Lawyer Committee to ascertain whether a specific issue warrants an update to a form. This rule states that if the change in real estate law, practice, or policy affects or could potentially affect 5% or more of the standard terms in a contract, it is deemed significant enough to consider a revision to the form. This delineation helps the committee focus on material changes that could impact a large number of transactions, ensuring that the forms they provide remain relevant and up-to-date in aligning with current legal and industry standards. Using a quantifiable metric like the 5% threshold allows the committee to systematically approach updates and maintain the integrity of legal documents in real estate transactions.