Which statement is true regarding redlined versions of TREC contract forms?

The statement that redlined versions of TREC contract forms highlight the changes made to the forms is true. Redlined documents are specifically designed to show modifications, revisions, or updates compared to previous versions. This visual representation allows users to easily identify what alterations have been made, whether they pertain to legal language, terms, or conditions.

Redlined versions serve a critical purpose in ensuring transparency and clarity, especially in transactional environments where understanding the specifics of contract changes is essential for all parties involved. This can help real estate professionals and their clients to discuss amendments and understand the implications of those changes effectively.

While redlined versions of contracts give a clear view of revisions, they are not binding legal documents themselves; instead, they are tools for comparison and analysis. They do not contain all prior contract forms, and while they can aid in client review, their primary function is to delineate changes rather than serve as a final version for signing or formal approval.