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Meeting Details

08/08/2022 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 
ACTION: Commissioner Miller, seconded by Commissioner Woodroof, moved to excuse the absence of Commissioner Wilkinson.  The motion was adopted by unanimous vote.

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

Agenda Item 4 Appointment of a selection committee to review applicants for Education Standards Advisory Committee
ACTION: Chair Kesner appointed Commissioners Russell, Williams and Wilkinson to review applicants for ESAC.

Agenda Item 5 Appointment of a selection committee to review applicants for The Texas Real Estate Inspector Committee
ACTION: Chair Kesner appointed Commissioners Miller, Peña, and himself to review applicants for TREIC.

Agenda Item 6 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
Steve Rapp, Director of Information Technology
Ranada Williams, Chief Financial Officer
Summer Mandell, Director of Government and Strategic Communications

Agenda Item 7 Report by the Executive Committee 
Report given by Chair Kesner

Agenda Item 8 Report by the Audit Committee
Report given by Commissioner Peña, Chair

Agenda Item 9 Report by the Budget Committee
Report given by Commissioner Williams, Chair

Agenda Item 10 Report by the Unauthorized Practice of Law Working Group
Report given by General Counsel Burgess

Agenda Item 11 Report by the Texas Real Estate Broker-Lawyer Committee
Report given by General Counsel Burgess

Agenda Item 12 Report by the Education Standards Advisory Committee 
Report given by Director Wheeler

Agenda Item 13 Report by the Broker Responsibility Working Group 
Report given by General Counsel Burgess

Agenda Item 14 Report by The Texas Real Estate Inspector Committee 
Report given by Scott Regan, Vice Chair

Agenda Item 15 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 16 Consideration and possible action regarding proposal for decision in the matter of 
a. SOAH Docket No. 329-22-0611.REC; Emily Ann Shepherd v. TREC
b. SOAH Docket No. 329-22-1506.REC; Rachel Olivarez v. TREC
c. SOAH Docket No. 329-22-1799.REC; TREC v. David Reinoso Varela
ACTION on 16.a. Commissioner Woodroof, seconded by Commissioner Williams, moved to adopt the PFD as written to deny the application for inactive real estate sales agent license filed by Emily Ann Shepherd.  The motion was adopted by unanimous vote.
ACTION on 16.b. Commissioner Miller, seconded by Commissioner Hartgraves, moved to adopt the PFD as written to deny the application for inactive real estate sales agent license filed by Rachel Olivarez. The motion was adopted by unanimous vote.
ACTION on 16.c. Commissioner Lerner, seconded by Commissioner Woodroof, moved to adopt the PFD as written to deny the application for inactive real estate sales agent license filed by David Reinoso Varela. The motion was adopted by unanimous vote.

Agenda Item 17 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 11:51 a.m.
Chair Kesner reconvened the meeting at 1:06 p.m.

Agenda Item 18 Discussion and possible action to authorize settlement of recovery fund claims or take other action on
a. RF 21010; Michael Rotan, et al. v. Gilbert Quinones and Gilbert Quinones d/b/a RE/MAX Platinum Real Estate
b. RF 22002; Christian Quintanilla v. Cassandra D. Guidry (Sessions) a/k/a “Queen”
c. RF 22007; International United Technology Group, LLC v. Tusk Realty Services, LLC
ACTION on 18.a. Commissioner Russell, seconded by Commissioner Woodroof, moved that the Commission authorize a settlement payment of $91,449.27. The motion was adopted by unanimous vote.
ACTION on 18.b. Commissioner Russell, seconded by Commissioner Williams, moved that the Commission authorize a settlement payment of $2,069, plus 5% post-judgment interest on the eligible amounts awarded in the judgment. The motion was adopted by unanimous vote.
ACTION on 18.c. Commissioner Lerner, seconded by Commissioner Miller, moved that the Commission authorize a settlement payment of $21,323.58. The motion was adopted by unanimous vote.

Agenda Item 19 Report regarding denial of recovery fund claims as follows:
a. RF 22005; Ryan Chance Neel and Amanda Neel v. LT Equity Investments, LLC, and Lisa D. Turnbow
Report given by Deputy General Counsel Lee

Agenda Item 20 Discussion and possible action to adopt 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 Miller, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit for adoption, the repeal and new rules to 22 TAC Chapter 543, 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 21 Discussion and possible action to adopt amendments to 22 TAC Chapter 537 as follows:
a. §537.21, Standard Contract Form TREC No. 10-6 (Addendum for Sale of Other Property by Buyer)
b. §537.22, Standard Contract Form TREC No. 11-7 (Addendum for "Back-Up" Contract)
c. §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)
d. §537.35, Standard Contract Form TREC No. 28-2 (Environmental Assessment, Threatened of Endangered Species, and Wetlands Addendum)
e. §537.39, Standard Contract Form TREC No. 32-4 (Condominium Resale Certificate)
f. §537.40, Standard Contract Form TREC No. 33-2 (Addendum for Coastal Area Property)
g. §537.41, Standard Contract Form TREC No. 34-4 (Addendum for Property Located Seaward of the Gulf Intercoastal Waterway)
h. §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)
i. §537.45, Standard Contract Form TREC No. 38-7 (Notice of Buyer's Termination of Contract)
j. §537.52, Standard Contract Form TREC No. 45-2 (Short Sale Addendum)
k. §537.54, Standard Contract Form TREC No. 47-0 (Addendum for Property in a Propane Gas System Service Area)
l. §537.55, Standard Contract Form TREC No. 48-1 (Addendum for Authorizing Hydrostatic Testing)
m. §537.56, Standard Contract Form TREC No. 49-1 (Addendum Concerning Right to Terminate Due to Lender's Appraisal)
n. §537.57, Standard Contract Form TREC No. 50-0 (Notice of Seller's Termination of Contract)
o. §537.60, Standard Contract Form TREC No. 53-0 (Addendum Containing Notice of Obligation to Pay Improvement District Assessment)
p. §537.62, Standard Contract Form TREC No. OP-H, Seller’s Disclosure Notice (NEW)
q. §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)
r. §537.64, Standard Contract Form TREC No. OP-M, Non-Realty Items Addendum (NEW)
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments and new rules along with the forms adopted by reference, to 22 TAC Chapter 537, 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 22 Discussion and possible action to adopt 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 Williams, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments and new rule, to 22 TAC Chapter 537, as presented, along with the forms adopted by reference, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The Landlord's Floodplain and Flood Notice are adopted for voluntary use and the two residential lease forms are adopted for voluntary use until September 1, 2022, at which time their use will become mandatory. The motion was adopted by unanimous vote.

Agenda Item 23 Discussion and possible action to adopt amendments to 22 TAC Chapter 537 as follows: 
a. §537.20, Standard Contract Form TREC No. 9-15 (Unimproved Property Contract)
b. §537.28, Standard Contract Form TREC No. 20-16 (One to Four Family Residential Contract (Resale))
c. §537.30, Standard Contract Form TREC No. 23-17 (New Home Contract (Incomplete Construction))
d. §537.31, Standard Contract Form TREC No. 24-17 (New Home Contract (Completed Construction))
e. §537.32, Standard Contract Form TREC No. 25-14 (Farm and Ranch Contract)
f. §537.33, Standard Contract Form TREC No. 26-7 (Seller Financing Addendum)
g. §537.37, Standard Contract Form TREC No. 30-15 (Residential Condominium Contract (Resale))
h. §537.43, Standard Contract Form TREC No. 36-9 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association)
i. §537.46, Standard Contract Form TREC No. 39-8 (Amendment to Contract)
j. §537.47, Standard Contract Form TREC No. 40-9 (Third Party Financing Addendum)
k. §537.48, Standard Contract Form TREC No. 41-2 (Loan Assumption Addendum)
l. §537.51, Standard Contract Form TREC No. 44-2 (Addendum for Reservation of Oil, Gas and Other Minerals)
m. §537.58, Standard Contract Form TREC No. 51-0 (Addendum Regarding Residential Leases)
n. §537.59, Standard Contract Form TREC No. 52-0 (Addendum Regarding Fixture Leases)
o. §537.65, Standard Contract Form TREC No. OP-C, Notice to Prospective Buyer (NEW)
ACTION: Commissioner Peña, seconded by Commissioner Miller, moved to authorize staff on behalf of the Commission to withdraw the proposed amendments and new rule to 22 TAC Chapter 537 from the Texas Register.  The motion was adopted by unanimous vote.

Agenda Item 24 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. §537.28, Standard Contract Form TREC No. 20-16 (One to Four Family Residential Contract (Resale))
c. §537.30, Standard Contract Form TREC No. 23-17 (New Home Contract (Incomplete Construction))
d. §537.31, Standard Contract Form TREC No. 24-17 (New Home Contract (Completed Construction))
e. §537.32, Standard Contract Form TREC No. 25-14 (Farm and Ranch Contract)
f. §537.33, Standard Contract Form TREC No. 26-7 (Seller Financing Addendum)
g. §537.37, Standard Contract Form TREC No. 30-15 (Residential Condominium Contract (Resale))
h. §537.43, Standard Contract Form TREC No. 36-9 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association)
i. §537.46, Standard Contract Form TREC No. 39-8 (Amendment to Contract)
j. §537.47, Standard Contract Form TREC No. 40-9 (Third Party Financing Addendum)
k. §537.48, Standard Contract Form TREC No. 41-2 (Loan Assumption Addendum)
l. §537.51, Standard Contract Form TREC No. 44-2 (Addendum for Reservation of Oil, Gas and Other Minerals)
m. §537.58, Standard Contract Form TREC No. 51-0 (Addendum Regarding Residential Leases)
n. §537.59, Standard Contract Form TREC No. 52-0 (Addendum Regarding Fixture Leases)
o. §537.65, Standard Contract Form TREC No. 57-0, Notice to Prospective Buyer (NEW)
ACTION: Commissioner Miller, seconded by Commissioner Russell, 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.

Note: No action was taken on Agenda Items 25 through 28.

Agenda Item 25 Discussion and possible action to propose amendments to 22 TAC Chapter 535 as follows:
a. §535.1, Definitions
b. §535.3, Compensation to or Paid by a Salesperson
c. §535.4, License Required
d. §535.5, License Not Required
e. §535.20, Referrals from Unlicensed Persons
f. §535.31, Attorneys at Law
g. §535.33, Public Officials
h. §535.34, Salespersons Employed by an Owner of Land and Structures Erected by the Owner
i. §535.43, Education Standards Advisory Committee
j. §535.45, Certain Uses of Seal, Logo, or Name Prohibited
k. §535.50, Definitions
l. §535.51, General Requirements for a Real Estate License
m. §535.52, Fitness Requirements for Individual Applicant
n. §535.53, Business Entity; Designated Broker
o. §535.55, Education and Sponsorship Requirements for a Sales Agent License
p. §535.56, Education and Experience Requirements for a Broker License
q. §535.57, Examinations
r. §535.58, License for Military Service Members, Veterans, or Military Spouses
s. §535.60, Definitions
t. §535.61, Approval of Providers of Qualifying Courses
u. §535.63, Qualifications for Instructors of Qualifying Courses
v. §535.64, Content Requirements for Qualifying Real Estate Courses
w. §535.65, Responsibilities and Operations of Providers for Qualifying Courses
x. §535.66, Credit for Courses Offered by Accredited Colleges or Universities
y. §535.67, Qualifying Education: Compliance and Enforcement
z. §535.71, Approval of CE Providers
aa. §535.72, Approval of Non-elective Continuing Education Courses
bb. §535.74, Qualifications for Continuing Education Instructors
cc. §535.75, Responsibilities and Operations of Continuing Education Providers
dd. §535.82, Proration of Payments from the Recovery Trust Account
ee. §535.91, Renewal of a Real Estate License
ff. §535.92, Continuing Education Requirements
gg. §535.101, Fees
hh. §535.120, Prohibited Activity While on Inactive License Status (NEW)
ii. §535.121, Inactive Salesperson License
jj. §535.122, Reactivation of Salesperson License
kk. §535.132, Eligibility for Licensure
ll. §535.133, Consent To Be Sued, Exceptions to Requirements
mm.§535.141, Initiation of Investigation; Order Requirements
nn. §535.147, Splitting Fee with Unlicensed Person
oo. §535.148, Receiving an Undisclosed Commission or Rebate
pp. §535.208, Application for a License
qq. §535.209, Examinations
rr. §535.210, Fees
ss. §535.212, Education and Experience Requirements for a License (Repeal)
tt. §535.213, Qualifying Real Estate Inspector Instructors and Courses
uu. §535.214, Education and Experience Requirements for a License
vv. §535.218, Continuing Education Required for Renewal
ww. §535.219, Schedule of Administrative Penalties
xx. §535.220, Professional Conduct and Ethics
yy. §535.224 Practice and Procedure
zz. §535.400, Registration of Easement or Right-of-Way Agents
aaa. §535.401, Required Notices
bbb. §535.402, Complaints, Disciplinary Action and Appeals
ccc. §535.403, Renewal of Registration
ddd. §535.404, Fees
eee. §535.405, Employee of Owner or Purchaser

Agenda Item 26 Discussion and possible action to propose amendments to 22 TAC §535.2, Broker Responsibility

Agenda Item 27 Discussion and possible action to propose 22 TAC §535.157, Obligation to Respond Timely (NEW)

Agenda Item 28 Discussion and possible action to propose amendments to 22 TAC §535.222, Inspection Reports

Agenda Item 29 Discussion and possible action to conclude the review of 22 TAC as follows:
a. Chapter 537, Professional Agreements and Standard Contracts
b. Chapter 543, Rules Relating to the Provisions of the Texas Timeshare Act
ACTION: Commissioner Peña, seconded by Commission Woodroof, moved to close the review of Chapters 537 and 543, as presented.  The motion was adopted by unanimous vote.

Agenda Item 30 Discussion and possible action regarding FY2023 budget, FY2023 Budget and Final Administration Policy, and FY 2023 Investment Policy
ACTION: Commissioner Williams, seconded by Commissioner Russell moved to approve the 2nd draft of the FY2023 budget as presented.  Commissioner Williams, seconded by Commissioner Peña, amended his motion to include the 2nd draft of the FY2023 budget along with the FY2023 Budget and Final Administration Policy and FY2023 Investment Policy, as presented.  The amended motion was adopted by unanimous vote.

Agenda Item 31 Discussion and possible action regarding delegation of Regulatory Applications Modernization Project contract approval and signature authority to the Executive Director
ACTION: Commissioner Lerner, seconded by Commissioner Miller, moved to delegate contract approval and signature authority of the Regulatory Applications Modernization Project to the Executive Director. The motion was adopted by unanimous vote.

Agenda Item 32 Discussion and possible action regarding approval of Internal Audit Plan for FY2023
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to authorize approval of the Internal Audit Plan for FY2023 to the Audit Committee.  The motion was adopted by unanimous vote.

Agenda Item 33 Discussion and possible action to approve Broker Responsibility Course for 2023-2024
ACTION: Commissioner Miller, seconded by Commissioner Russell, moved to approve the Broker Bresponsibility Course for 2023-2024 along with any technical or non-substantive changes.  The motion was adopted by uanimous vote.

Agenda Item 34 Discussion and possible action regarding topics for November workshop
ACTION: Staff to send out survey to Commissioners about future meeting days, times, and requested topics for the November workshop.

Agenda Item 35 Discussion and possible action regarding future agenda items 
No items were requested.

Agenda Item 36 Discussion and possible action to schedule future meetings
Future meeting dates:
Monday, November 7, 2022 Meeting
Tuesday, November 8, 2022 Workshop
Monday, February 13, 2023 Meeting
Tuesday, February 14, 2023 Annual Workshop
ACTION: The next meeting is schedued for November 7, 2022, and the next workshop is scheduled for November 8, 2022.

Agenda Item 37 Adjourn
ACTION: Commissioner Miller, seconded by Commissioner Woodroof, moved to adjourn the meeting.  The  motion was adopted by uanimous vote and the meeting adjourned at 2:01 p.m.