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Meeting Details

05/02/2022 at 10:00 am
Stephen F. Austin Building, Room 170
1700 North Congress
Austin, TX 78701

Meeting Materials

Meeting Video

TREC Commission Meeting


The meeting agenda and any meeting materials can be found under 'Meeting Materials' on the right side of this page. These minutes set out the agenda item, the subject matter discussed, and any action taken on each item. To hear the full discussion on any agenda item, click on the link, and you will be taken directly to that section of the meeting video on the right side of the screen.

Note: While the written portion of the minutes below are published in agenda order, the items may have been presented in a different order.

Agenda Item 1 Call to order and pledges of allegiance
ACTION: Chair Kesner called the meeting to order at 10:00 a.m.

Agenda Item 2 Discussion and possible action to excuse Commissioner absence(s), if any
No action needed.

Agenda Item 3 Opening remarks and report from the Chair
Chair Kesner provided opening remarks.

Agenda Item 4 Director reports regarding agency operations, initiatives, and division updates
Reports given by the following:
Chelsea Buchholtz, Executive Director
Tony Slagle, Deputy Executive Director
Robert Hood, Director of Customer Relations Division
Jennifer Wheeler, Director of Education & Examinations Division
Denise Sample, Director of Licensing Division
Mike Molloy, Director of Enforcement Division
Ranada Williams, Chief Financial Officer
Steve Rapp, Director of Information Technology
Summer Mandell, Director of Government and Strategic Communications

The Commission took a break at 11:30 a.m.
Chair Kesner reconvened the meeting at 11:44 a.m.

Agenda Item 5 Report by the Executive Committee
Report given by Chair Kesner

Agenda Item 6 Report by the Audit Committee
Report given by Commissioner Peña, Chair

Agenda Item 7 Report by the Budget Committee
Report given by Commissioner Williams, Chair

Agenda Item 8 Report by the Unauthorized Practice of Law Working Group
Report given by General Counsel Burgess

Agenda Item 9 Report by the Texas Real Estate Broker-Lawyer Committee
Report given by General Counsel Burgess

Agenda Item 10 Report by the Education Standards Advisory Committee
Report given by Charles Porter, Chair

Agenda Item 11 Report by the Broker Responsibility Working Group
Report given by Chance Brown, Chair

Agenda Item 12 Report by The Texas Real Estate Inspector Committee
Report given by Shawn Emerick, Chair

Agenda Item 13 Members of the public have the opportunity to address the Commission concerning an agenda item or an issue of public interest that is not on the agenda. Anyone wishing to provide public comment on an issue of public interest that is not on the agenda may do so under this section.  Members of the public who wish to speak on a matter specifically listed on the agenda may do so at the time that agenda item is heard.

All individuals wishing to provide public comment of any sort should fill out a speaker request form with the agency’s designated agent.  
No comments were received.

Agenda Item 14 Consideration and possible action regarding proposal for decision in the matter of SOAH Docket No. 329-21-2291.REC; TREC v. Cody Dean Carr
ACTION: Commissioner Woodroof, seconded by Commissioner Hartgraves, moved to accept the PFD as written to deny the application for an inactive sales agent license filed by Cody Dean Carr. The motion was adopted by unanimous vote.

Agenda Item 15 Executive session to discuss pending litigation or obtain advice of legal counsel on agenda items pursuant to Texas Government Code §551.071
ACTION: The Commission went into Executive Session at 12:35 p.m.
Chair Kesner reconvened the meeting at 1:55 p.m.

Agenda Item 16 Discussion and possible action to adopt amendments to 22 TAC Chapter 531 as follows:
a. §531.1, Fidelity (Repeal)
b. §531.2, Integrity (Repeal)
c. §531.3, Competency (Repeal)
d. §531.1, Definitions (NEW)
e. §531.2, Fidelity (NEW)
f. §531.3, Integrity (NEW)
g. §531.4, Competency (NEW)
h. §531.18, Consumer Information
i. §531.19, Discriminatory Practices
j. §531.20, Information About Brokerage Services Form
ACTION: Commissioner Wilkinson, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC Chapter 531, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC Chapter 533 as follows:
a. §533.1, Definitions
b. §533.2, Purpose and Scope
c. §533.3, Filing and Notice
d. §533.4, Failure to Answer, Failure to Attend Hearing and Default
e. §533.5, Transcript Cost
f. §533.7, Final Decisions and Orders
g. §533.8, Motions for Rehearing
h. §533.21, Negotiated Settlement
i. §533.25, Informal Proceedings
j. §533.30, Staff Mediation
k. §533.32, Appointment of a Mediator
l. §533.33, Outside Mediation
m. §533.36, Agreements
n. §533.40, Negotiated Rulemaking
ACTION: Commissioner Miller, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC Chapter 533, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 18 Discussion and possible action to adopt amendments to 22 TAC Chapter 534 as follows:
a. §534.1, Charges for Copies of Public Information (Repeal)
b. §534.1, Definitions (NEW)
c. §534.2, Charges for Copies of Public Information (NEW)
d. §534.3, Employee Training and Education
e. §534.4, Historically Underutilized Businesses Program
f. §534.5, Bid Opening and Tabulation
g. §534.7, Vendor Protest Procedures
ACTION: Commissioner Miller, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC Chapter 534, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 19 Discussion and possible action to adopt amendments to 22 TAC Chapter 535 as follows:
a. §535.61, Approval of Providers of Qualifying Courses
b. §535.63, Qualifications for Instructors of Qualifying Courses
c. §535.65, Responsibilities and Operations of Providers of Qualifying Courses
d. §535.66, Credit for Courses Offered by Accredited Colleges or Universities
e. §535.68, Content Requirements for Easement or Right-of-Way Qualifying Courses (NEW)
f. §535.71, Approval of CE Providers
g. §535.73, Approval of Elective Continuing Education Courses
h. §535.75, Responsibilities and Operations of Continuing Education Providers
i. §535.400, Registration of Easement or Right-of-Way Agents
j. §535.403, Renewal of Registration
k. §535.406, Continuing Education Requirements (NEW)
ACTION: Commissioner Lerner, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC Chapter 535, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption with an effective date of September 1, 2022, with the exception of §535.406, which will have an effective date of January 1, 2023, to correspond with implementation of statutory requirements.  The motion was adopted by unanimous vote.

Agenda Item 20 Discussion and possible action to adopt amendments to 22 TAC Chapter 541 as follows:
a. §541.1, Criminal Offense Guidelines
b. §541.2, Criminal History Evaluation Letters
ACTION: Commissioner Lerner, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC Chapter 541, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 21 Discussion and possible action to propose amendments to 22 TAC Chapter 537 as follows:
a. §537.20, Standard Contract Form TREC No. 9-15 (Unimproved Property Contract)
b. §537.21, Standard Contract Form TREC No. 10-6 (Addendum for Sale of Other Property by Buyer)
c. §537.22, Standard Contract Form TREC No. 11-7 (Addendum for "Back-Up" Contract)
d. §537.23, Standard Contract Form TREC No. 12-3 (Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement)
e. §537.28, Standard Contract Form TREC No. 20-16 (One to Four Family Residential Contract (Resale))
f. §537.30, Standard Contract Form TREC No. 23-17 (New Home Contract (Incomplete Construction))
g. §537.31, Standard Contract Form TREC No. 24-17 (New Home Contract (Completed Construction))
h. §537.32, Standard Contract Form TREC No. 25-14 (Farm and Ranch Contract)
i. §537.33, Standard Contract Form TREC No. 26-7 (Seller Financing Addendum)
j. §537.35, Standard Contract Form TREC No. 28-2 (Environmental Assessment, Threatened of Endangered Species, and Wetlands Addendum)
k. §537.37, Standard Contract Form TREC No. 30-15 (Residential Condominium Contract (Resale))
l. §537.39, Standard Contract Form TREC No. 32-4 (Condominium Resale Certificate)
m. §537.40, Standard Contract Form TREC No. 33-2 (Addendum for Coastal Area Property)
n. §537.41, Standard Contract Form TREC No. 34-4 (Addendum for Property Located Seaward of the Gulf Intercoastal Waterway)
o. §537.43, Standard Contract Form TREC No. 36-9 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association)
p. §537.44, Standard Contract Form TREC No. 37-5 (Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association)
q. §537.45, Standard Contract Form TREC No. 38-7 (Notice of Buyer's Termination of Contract)
r. §537.46, Standard Contract Form TREC No. 39-8 (Amendment to Contract)
s. §537.47, Standard Contract Form TREC No. 40-9 (Third Party Financing Addendum)
t. §537.48, Standard Contract Form TREC No. 41-2 (Loan Assumption Addendum)
u. §537.51, Standard Contract Form TREC No. 44-2 (Addendum for Reservation of Oil, Gas and Other Minerals)
v. §537.52, Standard Contract Form TREC No. 45-2 (Short Sale Addendum)
w. §537.54, Standard Contract Form TREC No. 47-0 (Addendum for Property in a Propane Gas System Service Area)
x. §537.55, Standard Contract Form TREC No. 48-1 (Addendum for Authorizing Hydrostatic Testing)
y. §537.56, Standard Contract Form TREC No. 49-1 (Addendum Concerning Right to Terminate Due to Lender's Appraisal)
z. §537.57, Standard Contract Form TREC No. 50-0 (Notice of Seller's Termination of Contract)
aa. §537.58, Standard Contract Form TREC No. 51-0 (Addendum Regarding Residential Leases)
bb. §537.59, Standard Contract Form TREC No. 52-0 (Addendum Regarding Fixture Leases)
cc. §537.60, Standard Contract Form TREC No. 53-0 (Addendum Containing Notice of Obligation to Pay Improvement District Assessment)
dd. §537.62, Standard Contract Form TREC No. OP-H, Seller’s Disclosure Notice (NEW)
ee. §537.63, Standard Contract Form TREC No. OP-L, Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law (NEW)
ff. §537.64, Standard Contract Form TREC No. OP-M, Non-Realty Items Addendum (NEW)
gg. §537.65, Standard Contract Form TREC No. OP-C, Notice to Prospective Buyer (NEW)
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC Chapter 537, and the forms adopted by reference, as presented, along with any technical or non-substantive changes required for proposal, to the Texas Register, for publication and public comment.  The motion was adopted by unanimous vote.

Agenda Item 22 Discussion and possible action to propose amendments to 22 TAC Chapter 537 as follows:
a. §537.26, Standard Contract Form TREC No. 15-5 (Seller's Temporary Residential Lease)
b. §537.27, Standard Contract Form TREC No. 16-5 (Buyer's Temporary Residential Lease)
c. §537.61, Standard Contract Form TREC No. 54-0, Landlord’s Floodplain and Flood Notice (NEW)
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments and new rule to 22 TAC Chapter 537, and the forms adopted by reference, as presented, along with any technical or non-substantive changes required for proposal, to the Texas Register, for publication and public comment.  The motion was adopted by unanimous vote.

Agenda Item 23 Discussion and possible action to propose amendments to 22 TAC Chapter 543 as follows:
a. §543.1, Registration (Repeal)
b. §543.2, Amendments (Repeal)
c. §543.3, Fees (Repeal)
d. §543.4, Forms (Repeal)
e. §543.5, Violations (Repeal)
f. §543.6, Complaints and Disciplinary Proceedings (Repeal)
g. §543.7, Contract Requirements (Repeal)
h. §543.8, Disclosure Requirement (Repeal)
i. §543.9, Exemptions (Repeal)
j. §543.10, Escrow Requirements (Repeal)
k. §543.11, Maintenance of Registration (Repeal)
l. §543.12, Renewal of Registration (Repeal)
m. §543.13, Assumed Names (Repeal)
n. §543.1, Definitions (NEW)
o. §543.2, Registration (NEW)
p. §543.3, Amendments (NEW)
q. §543.4, Fees (NEW)
r. §543.5, Forms (NEW)
s. §543.6, Violations (NEW)
t. §543.7, Complaints and Disciplinary Proceedings (NEW)
u. §543.8, Contract Requirements (NEW)
v. §543.9, Disclosure Requirement (NEW)
w. §543.10, Exemptions (NEW)
x. §543.11, Escrow Requirements (NEW)
y. §543.12, Maintenance of Registration (NEW)
z. §543.13, Renewal of Registration (NEW)
aa. §543.14, Assumed Names (NEW)
ACTION: Commissioner Lerner, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC Chapter 543, as presented, along with any technical or non-substantive changes required for proposal, to the Texas Register, for publication and public comment.  The motion was adopted by unanimous vote.

Agenda Item 24 Discussion and possible action to propose the review of 22 TAC Chapter 535, General Provisions
ACTION: Commissioner Lerner, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit the review of 22 TAC Chapter 535, as presented, along with any technical or non‐substantive changes required for proposal, to the Texas Register, for publication and public comment. The motion was adopted by unanimous vote.

Agenda Item 25 Discussion and possible action to conclude the review of 22 TAC as follows:
a. Chapter 531, Canons of Professional Ethics and Conduct
b. Chapter 533, Practice and Procedure
c. Chapter 534, General Administration
d. Chapter 541, Rules Relating to the Provisions of Texas Occupations Code, Chapter 53
ACTION: Commissioner Lerner, seconded by Commissioner Wilkinson, moved to authorize staff, on behalf of the Commission, to close the review of 22 TAC Chapters 531, 533, 534, and 541, as presented. The motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action regarding FY2023 draft budget
Presented by Commissioner Williams.

Agenda Item 27 Report on Market Trends and Annual Report by Texas A&M University Real Estate Center
Presentation given by Gary Maler.

Agenda Item 28 Discussion and possible action regarding FY2023-2027 Strategic Plan
ACTION: Commissioner Woodroof, seconded by Commissioner Peña, moved to approve the FY2023-2027 Strategic Plan as presented and to delgate final approval of the plan to the Executive Committee in the event the Appraiser Licensing and Certification Board recommends any changes to sections of the plan that might impact both the Commission and the Appraiser Board. The motion was adopted by unanimous vote.

Agenda Item 29 Discussion and possible action regarding renewal of agency contract with Pearson VUE
ACTION: Commissioner Peña, seconded by Commissioner Williams, Exercise the first two-year renewal term on the agency's contract with Pearson VUE for License Examination Development and Administrative Services. The motion was adopted by unanimous vote.

Agenda Item 30 Discussion and possible action regarding future agenda items

Agenda Item 31 Discussion and possible action to schedule future meetings
Future meeting dates:
Monday, August 8, 2022 Meeting
Tuesday, August 9, 2022 Workshop
Monday, November 7, 2022 Meeting
Tuesday, November 8, 2022 Workshop
Monday, February 13, 2023 Meeting
Tuesday, February 14, 2023 Workshop

Agenda Item 32 Adjourn
ACTION: Commissioner Miller, seconded by Commissioner Peña, moved to adjourn the meeting.  The motion was adopted by unanimous vote and the meeting was adjourned at 2:25 p.m.