During the August 2023 TREC Meeting, commissioners considered rule changes up for adoption, new proposed changes, and conducted emergency rulemaking resulting from the 88th Texas Legislature. Read on for what happened.

Outgoing Volunteers Recognized

Three Broker-Lawyer Committee members were recognized for their service:

• Bo Blackburn, attorney
• Charlie Still, broker
• Greg Glenn, broker

Appointments to Advisory Committees

The Commission also made appointments to two advisory committees.

Texas Real Estate Broker-Lawyer Committee

• Melissa Hailey, broker
• Christie Tatum Jansen, broker
• Tim Garrett, broker alternate
• Jonathan Lindley, broker alternate

Texas Real Estate Inspector Committee

• Rhondalyn Riley, inspector
• Randy Bayer, inspector
• Stephenie Cochran, inspector
• Michael Marlow, inspector alternate
• Teresa Benavides, public member
• Yolanda Castro, public member
• Edward Muth, public member alternate

Adopted Rules

These rules are effective 20 days after the date on which they are filed with Secretary of State.

More Options to Earn CE at TREC Meetings

The change to 535.92, Continuing Education Requirements, allows a license holder to earn up to four hours of Continuing Education (CE) elective credit per two-year renewal cycle by attending any single Commission meeting in person. A license holder must sign in and out of the meeting. CE is calculated based on the length of the meeting and attendance for the entirety of the meeting. For example, a two-hour-long TREC Meeting would result in two hours of CE credit. A license holder cannot earn partial credit across multiple meetings.

A license holder appearing as a party to a contested case before the Commission is not be eligible to receive CE credit.

The November 6 TREC Meeting is the first opportunity for license holders to earn CE under this new rule.

Previously, a license holder could only earn CE elective credit by attending the February Commission meeting in person.

New Broker Responsibility Advisory Committee

New TREC Rule 535.46, Broker Responsibility Advisory Committee, establishes the Broker Responsibility Advisory Committee (BRAC) to advise the Commission on issues relating to broker responsibility. Like other Commission advisory committees, BRAC could make recommendations for rule changes or legislative changes associated with broker responsibility that affect the real estate industry and consumers. If you are interested in serving on this new committee, apply by August 29, 2023.

Rules Adopted on an Emergency Basis

The amendments to these rules are to implement statutory changes enacted from the 2023 Texas Legislative Session. These changes are effective September 1, as required by the bills that passed.

Real Estate Inspection Recovery Fund Repealed

House Bill 1363 eliminates the real estate inspection recovery fund. The changes to TREC Rule 535.210 reflect that inspectors who submit their applications on or after September 1, 2023, will not be required to pay a $10 fee after they pass their exam. This change was recommended by the Texas Real Estate Inspector Committee (TREIC), since the fund was underutilized, and inspectors are required to carry E&O insurance.

New Fuel Gas Piping Disclosure Added to the Seller’s Disclosure Notice

House Bill 697 adds language to the Seller's Disclosure Notice requiring a seller to disclose the type of piping used for gas supply lines—black iron pipe, copper, or corrugated stainless steel tubing (CSST). The updated notice will be available on the website prior to September 1, but is intended to be used for a contract executed on or after September 1, 2023.

Revision to the Consumer Protection Notice

Real estate brokers, sales agents, inspectors, and easement or right-of-way (ERW) agents must provide the Consumer Protection Notice by posting it online and at their place of business. The notice will be updated to remove the reference to the real estate inspection recovery fund. If you link to the form on TREC’s website, you will not have to update your online notice. If you do not link to the form on our website (e.g., you have a PDF version or host the form on your own website), you will have to ensure it is updated September 1.

Proposed Rules Related to the 88th Texas Legislative Session

New Disclosure Requirements for Wholesaling

Wholesaling is a model in which an individual enters into a contract to buy real estate and then sells their contractual interest in the property to a third party prior to closing. A license is not necessary as long as the wholesaler discloses the nature of their interest to potential buyers and does not otherwise engage in real estate brokerage activity without a license. A bill passed during the legislative session and effective January 1, 2024, requires wholesalers to disclose their interest in the property in writing to both buyers and sellers.

Business Entity License Exemption

Currently, business entities that receive compensation on behalf of a license holder are required to be licensed as a broker by TREC. Effective January 1, 2024, certain types will not require licensure but will be required to register with the Commission.

Legislation that passed this session exempts from licensure LLCs and S Corporations established for the sole purpose of receiving compensation earned by a license holder while engaged in real estate brokerage and is at least 51% owned by the license holder on whose behalf the entity receives compensation. The business entity must register with TREC. A license is still required for this type of business if it is engaged in any other brokerage activity.

Where to Find Meeting Materials

Download the agenda and meeting materials.

The next TREC Meeting is Monday, November 6, 2023, in Austin.