What rule does TREC's Broker-Lawyer Committee use to determine if an issue warrants a form update or a new form?

The 5% Rule is utilized by TREC's Broker-Lawyer Committee to assess whether a particular issue necessitates an update to an existing form or the creation of a new form. This rule specifically dictates that if the changes or updates to the legal requirements or practice guidelines affect more than 5% of the content or elements of a form, it is deemed significant enough to warrant either an update to the current form or the introduction of a new one.

This approach ensures that forms remain current and relevant while also providing a systematic method for evaluating necessary changes. By using a quantifiable measure, the Committee can maintain the integrity and usability of legal forms used in real estate transactions, thereby promoting clarity and uniformity across the board.

Other options, such as the 10% Rule, Major Change Rule, or Compliance Rule, do not align with the specific percentages or thresholds set by TREC's rules for form revisions, thus not being applied in the same way as the 5% Rule.