TREC Rules

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Proposed Rules/Amendments

Rule #	Topic	Date Proposal Authorized	Earliest Possible Date of Adoption	Comments
22 TAC §535.53 Business Entities (proposed)	Subchapter E. Requirements for Licensure	2/27/2012	05/07/2012	TREC proposes amendments to §535.53, concerning Business Entities. The proposed amendments would clarify that a business entity obtaining or renewing a license or an entity changing its designated broker would need to provide proof that the new designated broker directly owns at least 10% of the business entity obtaining or renewing the license and that the new designated broker is an officer, manager, or general partner of the entity. If the new designated broker does not directly own at least 10% of the business entity, it would need to show proof that the entity maintains the appropriate errors and omissions insurance as required by the Act.
22 TAC §535.121 Inactive License(proposed)	Subchapter L. Termination of Salesperson’s Association with Sponsoring Broker	2/27/2012	05/07/2012	TREC proposes amendments to §535.121, concerning Inactive License. The amendments are proposed to implement the relevant provisions of Senate Bill (SB) 747, 82nd Texas Legislature, Regular Session (2011). In relevant part, SB 747 amends Texas Occupations Code, Chapter 1101 to require licensure as a broker for any business entity as defined in Section 1.002 of the Business Organizations Code. The amendments to §535.121 clarify that the section applies to all business entities as defined under the Act.
22 TAC §535.211. Professional Liability Insurance or Any Other Insurance that Provides Coverage for Violations of Subchapter G of Texas Occupations Code, Chapter 1102 (proposed)	R. Real Estate Inspectors	2/27/2012	05/07/2012	TREC proposes amendments to §535.211, concerning Professional Liability Insurance, or Any Other Insurance that Provides Coverage for Violations of Subchapter G of Texas Occupations Code, Chapter 1102. The proposed amendments delete the reference to a form number in the section, provide that the form to be used is approved by the commission, and authorize the commission to determine whether other documentation is acceptable as proof of insurance.
22 TAC §535.226. Sponsorship of Apprentice Inspectors and Real Estate Inspectors (proposed)	R. Real Estate Inspectors	02/27/2012	05/07/2012	TREC proposes an amendment to §535.226, concerning Sponsorship of Apprentices Inspectors and Real Estate Inspectors. The amendment allows a professional inspector to delegate the sponsorship of an apprentice or real estate inspector to another professional inspector who is qualified to sponsor, provided that the sponsoring professional inspector remains responsible for the conduct of the sponsored inspector. The amendment also corrects a typo in the title of the section.
22 TAC §§537.43. Standard Contract Form TREC No. 36-7[6]. (proposed)	Chapter 537, Professional Agreements and Standard Contracts	02/27/2012	05/07/2012	TREC proposes amendments to §537.43, concerning Standard Contract Form TREC No. 36-6 Addendum for Property Subject to Mandatory Membership in a Property Owners' Association. The amendments to §537.43 adopt by reference Standard Contract Form TREC No. 36-7. Paragraph A.1 is revised, new paragraph A.2 acknowledges recent statutory revisions which permit a buyer to obtain a resale certificate directly from a property owner's association, and paragraph A.3 (currently A.2) is unchanged. Paragraph C is revised to replace "resulting from" to "associated with" to track recent statutory changes to Chapter 207, Property Code. New paragraph E provides that the seller authorizes the association to release information such as the status of dues, special assessments, violations of covenants and restrictions, and a waiver of any right of first refusal if requested by the buyer, the title company, or any broker to the sale. Other amendments to the form change the main telephone number and website address for TREC located in the box at the bottom of the forms. A previous draft of the form was published for notice and comment on December 30, 2011. After reviewing numerous comments from the public, licensees, and representatives from the title industry, the Broker Lawyer Committee recommended additional revisions to the form to make it clear that a title company is authorized to obtain subdivision information from a property owners association only upon receipt of payment for the information from the party obligated to pay for the information under the contract.

Recently Adopted Rules

Emergency Adopted Rules

Rule # (click link to download)	Topic	Date of Commission Action	Effective Date	Expiration Date of Emergency Rule	Comments
22 TAC §535.17. Appraisals (adopted by emergency action)	Subchapter B. General Provisions Relating to the Requirements of Licensure	08/01/2011	09/01/2011	12/29/2011	TREC adopts on an emergency basis amendments to 22 TAC §535.17 regarding Appraisals. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Session, Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In relevant part, SB 747 amended Texas Occupations Code, §1101.002 to delete appraisals from the laundry list of activities that are considered real estate brokerage. In addition SB 747 added a new item to the list regarding broker price opinions. The amendments to §535.17 clarify that a real estate licensee must be licensed under Texas Occupations Code, Chapter 1103 to conduct real estate appraisals. Further the rule is amended to provide that if a broker or salesperson provides a broker price opinion under Chapter 1101, the opinion must provide a written disclosure as provided in the rule.
22 TAC §535.31. Attorneys at Law (adopted by emergency action)	Subchapter C. Exemptions from Licensure	08/01/2011	09/01/2011	12/29/2011	TREC adopts on an emergency basis amendments to 22 TAC §535.31 regarding Attorneys at Law. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In part, SB 747 amends Texas Occupations Code, §1101.005 regarding an exemption for attorneys. The amendment now exempts attorneys licensed in the State of Texas; it previously applied to attorneys licensed in any state.
22 TAC §535.50, §535.51 and §535.53 (adopted by emergency action)	Subchapter E. Exemptions from Licensure	08/01/2011	09/01/2011	12/29/2011	TREC adopts amendments to 22 TAC Subchapter E, §535.50 regarding Definitions, §535.51 regarding General Requirements and §535.53 regarding Corporations and Limited Liability Companies on an emergency basis. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In relevant part, SB 747 amends Texas Occupations Code, §1101.401 to expand from six months to one year the period of time in which an applicant may satisfy an examination requirement from the date the application is filed. In addition, the application and renewal requirements for business entities were changed in §§1101.355 and 1101.453 to require that business entities applying for and renewing a broker license must provide proof that the entity maintains errors and omissions insurance with a minimum annual limit of $1 Million if the designated broker owns less than 10 percent of the entity. Finally SB 747 amends Chapter 1101 to delete the exemption from licensing for partnerships in which a general partner is a broker and requires licensure as a broker for any business entity as defined in Section 1.002 of the Business Organizations Code Emergency action is necessary to amend §535.50, §535.51, and §535.53 to be consistent with SB 747.    The amendments to §535.50 amend the list of definitions to define a designated broker of a business entity and to clarify that the designated broker must be an officer of a corporation, a manager of a limited liability company or a general partner of a partnership. The amendments to §535.51 clarify that an applicant must meet education and experience requirements before the applicant may take a qualifying examination. The amendments to §535.53 change the title of the rule to apply to all business entities, not just corporations and limited liability companies, to add partnerships to the types of business entities that must be licensed, and to address the requirement that business entities must maintain errors and omissions insurance if the designated broker owns less than 10 percent of the entity.
22 TAC §535.93. Late Renewal Applications (adopted by emergency action)	Subchapter I Licenses	08/01/2011	09/01/2011	12/29/2011	TREC adopts on an emergency basis amendments to §535.93, regarding Late Renewal Applications. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In relevant part, SB 747 amended Texas Occupations Code, §1101.451 to change the maximum period of time in which a licensee can file a late renewal from one year to six months. The amendments to §535.93 change to six months any references to the one year period for filing a late renewal.
22 TAC §535.101. Fees (adopted by emergency action)	Subchapter J. Licenses	08/01/2011	09/01/2011	12/29/2011	TREC adopts on an emergency basis amendments to §535.101, regarding Fees. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In relevant part, SB 747 amended Texas Occupations Code, §1101.451 to change the maximum period of time in which a licensee can file a late renewal from one year to six months. The amendments to §535.101 change to six months the reference to the one year period for filing a late renewal in subsection (b)(11).
22 TAC §535.132. Eligibility for Licensure (adopted by emergency action)	Subchapter M. Nonresidents	08/01/2011	09/01/2011	12/29/2011	TREC adopts on an emergency basis amendments to §535.132, regarding Eligibility for Licensure. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In relevant part, SB 747 amends Texas Occupations Code, Chapter 1101 to delete the exemption from licensing for partnerships in which a general partner is a broker and requires licensure as a broker for any business entity as defined in §1.002 of the Business Organizations Code. Emergency action is necessary to amend §535.132 to be consistent with SB 747.   The amendment to §535.132 makes emergency conforming changes to be consistent with the statutory text amended by SB 747.
22 TAC §535.141. Initiation of Investigation. (adopted by emergency action)	Subchapter N. Suspension and Revocation of Licensure	08/01/2011	09/01/2011	12/29/2011	TREC adopts on an emergency basis amendments to §535.141, regarding Initiation of Investigation. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In relevant part, SB 747 amends Texas Occupations Code, Chapter 1101 to delete the exemption from licensing for partnerships in which a general partner is a broker and requires licensure as a broker for any business entity as defined in §1.002 of the Business Organizations Code. Emergency action is necessary to amend §535.141 to be consistent with SB 747.   The amendments to §535.141 clarify that the rule applies to all business entities that are required to have a broker license under Chapter 1101, and to make conforming changes to the rule to be consistent with other rules that have been adopted on an emergency basis due to the September 1, 2011 effective date of the relevant provisions of SB 747.

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