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Frequently Asked Questions

What happens if a license holder is convicted of a crime?

If a license holder is convicted of a felony or a criminal offense involving fraud it is a violation of section 1101.652(a)(1) of the License Act. This section gives the Commission authority to suspend or revoke a license holder that has entered a plea of guilty or nolo contendere or has been convicted of a felony or any criminal offense that involves fraud (including misdemeanors). The Commission does not have the authority to revoke or suspend a license holder that has been only charged or accused of committing a felony or criminal offense that involves fraud. A license holder is required to notify the Commission not later than the 30th day after the final conviction or the entry of a plea of guilty or nolo contendere. Failing to timely notify may result in more severe or further disciplinary action. All license holders’ criminal backgrounds are rechecked upon renewal, however, this does not excuse a license holder from notifying the Commission not later than the 30^th day after the final conviction.

Is a starter course tab that is not sealed material, deficient and a required reporting item per TREC?

We assume you are referring to composition shingle roofing. Section 535.228(c)(3) of the Standards of Practice do require inspectors to report as a deficiency a starter course tab that is not sealed material. However, it is important to keep in mind that fastening of shingles is required to be checked by random sampling, so this condition is only required to be reported as identified though such sampling.

Does TREC require the use of a “contract” for inspections which would outline the responsibilities of the parties to the contract or have a form inspectors can use?

No. TREC does not require a pre-inspection or employment contract to be signed by the parties to the inspection. Inspectors are free to use or not use a contract. You may want to have a private attorney create a contract for you, or you may check with some of the inspector trade associations to see if they provide templates of pre-inspection contracts.

I am licensed as a real estate sales agent and as a professional home inspector. Can my broker's real estate office offer my inspection services to their clients?

Under Section 1102.303 of the Texas Occupations Code, an inspector may not act in a transaction in the dual capacity of inspector and either (1) broker or sales agent or (2) an undisclosed principal. Therefore, it would violate Section 1102.303 for you to inspect any property your broker has listed or where you were personally involved. Under Rule 535.156, a real estate license holder has a duty to disclose to a client any relationship the license holder has with an inspector performing an inspection on property that is the subject of a transaction involving the license holder. If you were to perform an inspection in connection with a transaction in which your broker was involved, your broker would need to disclose your relationship (as the broker’s sponsored agent), and if you were paid or received compensation or anything of value from anyone in your office in connection with the inspection, you would also need to disclose this fact and obtain the client’s prior permission.

If a licensed professional inspector is conducting a commercial inspection, is he or she required to use the inspection report form promulgated by TREC? Do the Standards of Practice apply?

A licensed TREC inspector is not required to use the promulgated form or the Standards of Practice when inspecting property other than one to four family residential. A TREC licensed inspector may perform inspections on commercial property, as long as no other laws prohibit the inspector from doing so (please check with the Texas Board of Professional Engineering to determine when a Professional Engineer license is required). All inspections would be subject to §1102.301 et seq. of the License Act (Subchapter G, Prohibited Acts), as well as 22 TAC § 535.220, Professional Conduct and Ethics.

Is a water heater covered by an insulation cover deficient and a required reporting item?

No.

Is the inspector required to inspect a water metering device to determine if a leak may exist? Is the inspector required to perform any inspection of the meter?

Pursuant to Section 535.227(b)(3)(A)(vi) of the Standards of Practice, an inspector is not required to inspect or test metering devices.

Is the inspector required to inspect to trade or industry association standards? For example, ASTM, UL or ARMA?

Inspectors are not required to inspect to trade or industry association standards. However, an inspector who advertises or represents that he or she will inspect to a higher standard could be subject to disciplinary action for failure to do so.

Are gas ranges, built-in wall ovens, or clothes dryers considered to be large, heavy, fragile objects which could be damaged or cause damage while being moved, and an undue hazard and risk to the inspector?

Pursuant to Section 535.227(a)(1) of the Standards of Practice, inspectors are not required to move appliances in order to inspect behind them. However, it is often possible to locate gas shut-off valves either behind or near appliances (such as in the cabinet next to the range). If a gas shut-off valve cannot be located, this should be reported. As the question suggests, it is sometimes also possible to use a digital camera to “see” in areas that are not otherwise accessible and there are multiple means of detection of gas leaks in existence, such as through the use of hand held detectors (however, these would be considered specialized tools and are not required to be used in performing inspections).

Are inspectors required to inspect underground drainage systems or to test gutters or downspouts?

Inspectors are not required to inspect anything buried, hidden, latent, or concealed. Accordingly, the requirement that inspectors report deficiencies in installed gutter and downspout systems applies only to visible deficiencies in above-ground gutter and downspout systems and not to underground drain piping, cisterns, or other buried components. Furthermore, there is no requirement that inspectors test gutters or downspouts (by pouring water into them or through other means).

Are inspectors required to mark and or comment as deficient the absence of tamper resistant receptacles?

No. The Standards of Practice do not address tamper-resistant receptacles.

As a licensed inspector I would like to advertise that my company performs wood destroying insect inspections. Neither I nor anyone in my company is a licensed wood destroying insect inspector, but we recommend or provide one if requested by the client.

Under inspector advertising Rule 535.221, an inspector may not engage in false or misleading advertising. Including such information in your advertisement could be construed to be misleading in that a consumer may believe that you or members of your company are licensed to inspect for wood-destroying insects. Additionally, such advertising may also be in violation of the Structural Pest Control Service advertising rules.

As a licensed inspector in the State of Texas, am I supposed to charge a sales tax on the amount of my inspection fee?

TREC only handles the licensing and discipline of real estate inspectors, you would need to contact the state agency in charge of collecting state sales tax which is the Texas Comptroller of Public Accounts. The website for that agency is www.comptroller.texas.gov and their toll free number is 800.252.5555.

As an inspector, when do I have to show proof of E&O insurance?

A Certificate of Insurance form (promulgated by TREC), signed by the insurance agent, must be filed with TREC at the time the license is issued and with each renewal of the license. In addition, an inspector must retain sufficient records of professional liability insurance coverage, or any other insurance that provides coverage for violations of Subchapter G of Chapter 1102, to document to the commission continuous coverage for the preceding two year license period.

Can I perform mold inspections under my TREC inspector license?

No. The Texas Department of State Health Services regulates mold inspections. You can contact them at www.dshs.texas.gov/mold for information on the requirements to obtain a license to inspect for mold.

Can a licensed inspector perform a hydrostatic test?

No, only a licensed plumber may perform a hydrostatic test on a system within a home.

Do I have any recourse against the inspector for failing to note on his report that there was a gas leak outside the home due to a corroded gas line?

Probably not. TREC licensed inspectors are required to follow Standards of Practice when inspecting property. These may be found on our website about Rules Governing Inspectors. The Standards of Practice do not require an inspector to dig up gas lines in order to determine their condition. They are only required to conduct a visual inspection of the property, and buried gas lines are not required to be inspected.

Do the Standards of Practice require inspectors to comment on the way a gas pipe enters a crawl space?

The Standards of Practice require only that the pipe entry be reported as deficient when the gas piping is concealed in a duct, plenum, or chase. See Section 535.230(d)(4).

Do the Standards of Practice require inspectors to determine the headroom clearance on stairs or to report inadequate clearance as a deficiency?

Inspectors are not required to measure the headroom clearance of every flight of stairs. The Standards of Practice do not establish a minimum headroom clearance height. Whether to report inadequate headroom clearance as a deficiency is up to the reasonable judgment of the inspector.

Do the Standards of Practice require inspectors to determine the headroom clearance on stairs or to report inadequate clearance as a deficiency?

Do the Standards of Practice require inspectors to report as deficient a gas log fireplace with a damper that has not been blocked open? If so, what is the minimum distance the damper should be open?

The lack of a damper clamp is required to be reported as a deficiency when a gas appliance or artificial gas logs (but not merely a log lighter pipe) is present. The Standards of Practice do not establish a minimum distance that the clamp should hold the damper open.

Do the Standards of Practice require inspectors to report as deficient a plumbing fixture that does not fully drain, retaining a slight amount (such as a few cups) of residual water?

A properly constructed and properly functioning bathtub or shower should drain virtually all water (with the exception of minimal amounts that remain due to the surface tension of the water). Amounts beyond this that remain due to indentations or improper slope in the tub or shower (including shelves, ledges, etc.) constitute deficiencies and should be reported as such.

Do the Standards of Practice require inspectors to report as deficient evidence of a past attic fire?

Evidence of a past fire is not, in itself, a deficiency. Accordingly, inspectors are not required to report mere evidence of a past fire or the presence of paint in the attic. If there are any deficiencies due to fire or other causes, those deficiencies must be reported.

Do the Standards of Practice require inspectors to report as deficient the absence of weep holes along the bottom course of brick and above steel lintels?

Lack of weep holes is only required to be reported as a deficiency when there is visible evidence of water penetration or a structural issue that may be related to the lack of weep holes.

Do the Standards of Practice require inspectors to report as deficient the lack of a dishwasher power receptacle in an adjacent cabinet (for example, under a kitchen sink)?

No.

Do the Standards of Practice require inspectors to report as deficient the presence of a commingled water heater drain pan drain line and a temperature/pressure relief drain line?

While this configuration does not comport with current codes, the Standards of Practice do not require inspectors to inspect to today’s code. A single drain line for a temperature/pressure relief valve and the pan is not required to be reported as a deficiency.

Do the Standards of Practice require inspectors to report as deficient the presence of a transite pipe to be reported?

Inspectors are not required to report the presence of transite pipe as a deficiency.

Do the Standards of Practice require inspectors to report copper gas lines as deficient?

Inspectors are not required to determine utility sources or to research codes and ordinances related to this issue. As copper gas line material is only a concern in areas where there may be corrosive additives in the gas supply, the presence of copper gas line material is not required to be reported as deficient.

Do the Standards of Practice require inspectors to report double-tapped neutral wires on a panel box terminal as deficient?

Yes, double-tapped grounded conductors (neutrals) are a deficiency and must be reported as such, unless otherwise approved and listed by the manufacturer.

Does TREC consider a roof with roofing felt ending short of the drip edge and the rake not overlapped over the drip edge a required reporting deficiency? If yes, is the inspector required to inspect 100% of the materials under the edge of the roof?

Section 535.228(c)(3)(D) of the Standards of Practice requires inspectors to report as deficient deficiencies in flashing details. Drip and rake edge flashing materials are recommended by most shingle manufacturers but are not required. If installed and if visible, the installation described in your question is required to be reported as a deficiency. However, the inspector is not required to inspect every inch of the material under the roof and may “spot check” for this condition.

How do I change my business physical address?

Log on to your My License Services account.

From the Start Menu page, click on the to change your business physical address. If you prefer, you can also submit the Change of Main Address form by email.

Log on to your My License Services account.
From the Start Menu page, click on the dropdown menu under the "Change your license information and manage relationships" category.
Click "Change/Verify Contact Information" and click "Select".
Read the information on the "Change/Verify Contact Information" introduction page and click “Next”.
Update contact information and “Place of Business” (business physical) address on the Contact Information page and click "Next".
Verify contact information on the Application Summary page and click “Submit”.
On the Statement of Applicant page, select "Yes" to certify the address information is accurate and correct, and click "Next" to process the request.

How shall an inspector ascertain with any degree of accuracy if the fire separation between a residence and its attached garage is in place?

The Standards of Practice require inspectors to perform a visual inspection. If it is not visibly apparent whether proper fire separation is present, the inspector must make clear to the client that he or she was not able to ascertain whether proper fire separation was in place.

I am a licensed professional inspector. I am also a licensed real estate sales agent. May I both inspect the home for and sell to the same person?

No. The Texas Occupations Code, Real Estate Inspectors, Chapter 1102, §1102.303 specifically prohibits an inspector from acting in the capacity of an inspector and real estate agent in the same transaction.

I am not currently performing inspections, but I'd like to maintain my license. Is there a way for me to do that without going to the expense of obtaining insurance?

An inspector may request inactive status in writing at any time. An inspector who meets all other renewal requirements but does not show proof of insurance will receive an inactive license (which does not permit the inspector to perform inspections). To become active, a professional inspector would need to send in the Return to Active Status form (or, for apprentice or real estate inspectors, the sponsorship form) along with the applicable fee and the required proof of insurance.

I recently purchased an older home that was inspected before the purchase. After living in the home a few weeks, the dishwasher started leaking and had to be replaced. Shouldn’t the inspector have told me this unit was about to fail?

Mechanical components like dishwashers can and will break down. A home inspection tells you the condition of the component at the time of the home inspection. The inspector is not required to determine life expectancy of any system or component. [Rule 535.227(b)(3)(C)(i)]

I think my inspector was negligent in performing the inspection. My brother-in-law says I might be able to recover a judgment. Do I have to file a complaint first?

Disciplinary action by TREC is not a prerequisite for pursuing a lawsuit against a license holder. Your rights against the license holder may be subject to a two-year statute of limitations. You should consult with a private attorney to determine whether you have a claim and what deadlines may apply to your claim.

If a homeowner wanted to hire a consultant to perform a cursory, major defect visual inspection, including the foundation, roof, plumbing, electrical, and major appliances, would TREC require any written report?

If the inspection you are proposing relates to a purchase or sale transaction, then TREC's Standards of Practice would apply, and a written report would be required. If the inspection you are proposing is not in anticipation of a purchase or sale, then TREC's requirements would not apply, and the parameters of the inspection would be governed by the agreement between the inspector and his or her client. For further information, please see Sections 1102.001 and 1102.002 of the Texas Occupations Code and Rule 535.223.

Is a TREC inspector required to report the presence of CSST as a deficiency? Is the TREC inspector required to inform the client of the CSST litigation history?

The mere presence of corrugated stainless steel tubing (CSST) is not, in itself, required to be reported as a deficiency, nor are inspectors required to notify the client of the litigation history or the risks associated with CSST.

Is a corroded bathroom fixture that remains operable a defect and required reporting item per TREC?

Purely cosmetic corrosion is not required to be reported as a deficiency.

Is a hand rail that is not continuously deficient a required reporting item per TREC?

Section 535.228(h)(1)(B) of the Standards of Practice requires inspectors to report deficiencies in steps, stairways, landings, guardrails, and handrails as deficient. In some circumstances, a break in a handrail would be considered a deficiency; however, this would depend on the specific design of a particular set of stairs (e.g., a landing in the middle of a flight of stairs would not be considered deficient simply because it lacked a continuous handrail).

Is a keyed deadbolt on the interior of an exterior egress door deficient and a required reporting item per TREC?

The Standards of Practice do not require double-cylinder deadbolts to be reported as deficient unless such a deadbolt would impede functional emergency escape from a sleeping room.

Is a receptacle on a garage ceiling that is not GFCI protected deficient and a required reporting item per TREC?

Pursuant to Section 535.229(b)(3)(A)(ii), a garage receptacle that does not have GFCI protection is deficient and must be reported as such. Note, however, that the Inspector Committee may consider a change to the Standards to create an exception for garage ceiling receptacles serving garage door openers.

Is an egress window with a sill greater than 44 inches from the floor a required reporting item and deficient? Will advising the client to place a climbable object (such as the chest) supersede the need to identify the item as deficient?

The answer to the first question is “No”. The standards of practice are not based on a specific requirement such as those promulgated by model building codes. The requirements for emergency escape and rescue openings in sleeping rooms and the sill heights and sizes of the emergency escape openings in sleeping rooms have varied through the years. The inspector must use “reasonable judgment” in determining if the emergency escape and rescue openings are sufficient for the intended purpose of the openings for the inspector’s client. In response to the 2nd question, an inspector must keep in mind that his role is primarily to document the condition of the home at the time of the inspection per §535.227(b)(1). An inspector is not required to recommend “fixes”.

Is an inspector required to determine if a light fixture is approved for its location over a bathtub or shower?

The Standards of Practice do not require inspectors to determine if light fixtures are approved for wet locations or to report such installations as a deficiency.

Is an inspector required to report as deficient an electronic sensor in a garage door that is more than six inches above the garage floor even though the general limitations section states that an inspector is not required to inspect a photoelectric sens

Yes. The specific requirement to report the deficiency takes precedence over the general limitation against inspecting an photoelectric sensor.

Is it true that home inspectors licensed in Texas, cannot inspect plumbing in a home nor report plumbing deficiencies in the TREC inspection report? Can the inspector advertise that he inspects plumbing?

It depends. Under the Standards of Practice found in Rules 535.227 - 535.233, a home inspector is required to perform a visual check of plumbing fixtures and associated items and report as in need of repair deficiencies in the type and condition of all accessible and visible water supply and waste-water and vent pipes, as well as others listed in Rule 535.231. Please see the Texas State Board of Plumbing Examiners (TSBPE) website to determine whether any of your activities may be in violation of their statutes or rules governing plumbers, such as advertising that you specifically inspect aspects of plumbing systems that may require a license from the TSBPE. Also, please review the advertising rule for inspectors found at Rule 535.221.

Is observance of gas shut-off valves and connections with a digital camera placed behind or under appliances considered a reasonable method for discovering deficiencies in inaccessible areas?

Is olfactory detection of methane/natural gas odorant the only reasonable method of discovering gas leaks when the connectors are not accessible?

Is removal of the blanket required by TREC for inspection reasons?

No.

Is the absence of a dirt or drip leg, 1. a deficiency? 2. a required reporting item? 3. unsafe?

No. The SOP does not address the absence of a “trap” in a gas line. Please note that an inspector is not required to designate a condition as safe.

Is the absence of an anti-entrapment cover in a spa deficient and a required reporting item per TREC? 2. Is the presence of a single drain or suction opening in a pool spa deficient and a required reporting item per TREC?

The absence of an anti-entrapment cover in a spa is not a required reporting item. Section 535.233(2)(B)(i), however, requires an inspector to report as deficient the presence of a single blockable main drain.

Is the absence of combustion air in the bottom of the closet a required reporting deficiency? Is a screen combustion air opening a required reporting deficiency? Is the proximity of the return to the gas fired appliances a required reporting deficiency?

Section 535.230(2)(J)(vi)(I)of the Standards of Practice requires inspectors to report as deficient, in gas HVAC units, deficiencies in combustion, and dilution air. None of the issues you listed would necessarily be required to be reported as deficiencies; this determination depends on several factors, such as the design of the system.

Is the absence of gutters a defect and required reporting item per TREC?

No. Unless specifically indicated otherwise, the Standards of Practice only address items that are present at the time of the inspection. If gutters are present, they are required to be inspected under §535.228(b)(1)(C).

Is the absence of weather-strip on the door a required reporting deficiency?

Yes, Section 535.228(f)(2)(E)(i) requires inspectors to report deficiencies in weather stripping.

Is the definition of accessible, as applied to gas appliance connections, left to the reasonable judgment of the inspector?

Is the inspector required by the SoP to be knowledgeable of local requirements?

Pursuant to Section 535.227(b)(3)(C)(i), inspectors are not required to determine code compliance, utility sources, or regulatory requirements except as specifically required by the standards.

Is the inspector required by the Standards to state or explain a condition as a hazard to the consumer?

It is up to the “reasonable judgment” of the inspector to determine if the situation encountered during the inspection is or is not a hazard for the inspector’s client.

Is the inspector required to be report the mere presence of an FPE panel as deficient? 2. Is the inspector required to warn or advise of the alleged risks if TREC determines the panel is not required to be reported as deficient?

No. The standards of practice do not address this condition.

Is the inspector required to comment on or report as deficient those gas appliance shut-off valves and connectors not visible or accessible without moving the gas appliances?

Is the inspector required to determine the presence of Chinese drywall? Is the inspector required to report the symptoms of Chinese drywall? Is the inspector required to warn of the risk of Chinese drywall?

Pursuant to the general limitations in the Standards of Practice, inspectors are not required to determine the presence of “Chinese drywall” or to report its symptoms or risks. As an example, if corrosion to copper tubing lines or copper wires were found, that could in the opinion of the inspector constitute a deficiency, the inspector is not required to determine or report the cause of the corrosion, such as from “Chinese drywall."

Is the inspector required to inspect to manufacturer requirements, specifications or instructions?

Pursuant to Section 535.227(b)(3)(C)(i) of the Standards of Practice, inspectors are not required to report manufacturer requirements except as specifically required by the Standards. Section 535.227(b)(3)(H) further provides that inspectors are not required to review installation instructions.

Is the inspector required to report water heaters that are covered with an insulation blanket as obstructed if they did not remove the blanket?

Yes. The Standards of Practice do not address insulating covers or blankets on water heaters. Inspectors are not required to remove water heater covers to inspect the water heater. However, if the cover is not removed, and its presence interferes with the inspection of any part of the water heater, the inspector must advise the client and report the resulting limitations of the inspection in accordance with the departure provision, Section 535.227(b)(5).

Is the presence of a gas shut off valve that requires a tool to turn off deficient?

Question is not clear. Some gas shut off valves are safety or emergency shut off devices and some are not. As the type of valve in question is not defined, no answer can be provided.

Is the presence of carpet on an attached garage floor deficient and a required reporting item per TREC?

The presence of carpet in a garage is not required to be reported as a deficiency.

Is wrinkled loose carpet a defect and required reporting item per TREC? 2. Presuming an upstairs floor or the ceiling below does not exhibit obvious evidence of failure, is a squeaky floor a defect and required reporting item per TREC?

Section 535.228(e)(3)(A) of the Standards of Practice states that inspectors are not required to report cosmetic damage or the condition of floor, wall, or ceiling coverings. Neither loose carpet nor floor squeaks, without further evidence of deficient conditions, is required to be reported as deficient.

It appears that the inspector who inspected my home before my purchase missed major termite infestation. The damage from the termites has cost me thousands of dollars to repair. Shouldn’t the inspector have noted this problem on his report?

In Texas, any person who reports on wood destroying insects in a home must be licensed by the state as a wood destroying insect inspector. These licenses are issued by the Texas Structural Pest Control Service of the Texas Department of Agriculture at www.texasagriculture.gov. Some TREC licensed home inspectors are also licensed wood destroying insect inspectors, and therefore, may inspect a home for termites, etc. if hired for that purpose. However, under the home inspector license issued by TREC, the inspector MAY NOT comment on whether termite infestations exist. They should comment on visible damage regardless of the underlying cause and note it as a deficiency on their report, but may not assess that the damage was specifically caused by wood destroying insects.

On my inspection report, the inspector reported certain things in the house as “safety hazards” or “code violations”. Can TREC give me information about what codes the inspector is referring to?

There are many different codes that can figure into the construction of a house, depending on when it was built and local amendments. TREC does not require inspectors to inspect to any of the various building codes and cannot assist you in determining what code provisions were applied in a particular situation. Instead, TREC has established Standards of Practice for inspectors to follow. [Rule 535.227-535.233] However, an inspector is free to inspect to a higher standard (such as to various codes or based on recognized safety hazards), as long as they do so competently. If you have questions about your inspection report, you should ask your inspector for the basis of his statement. You may also wish to contact your local code enforcement authority for more information about relevant codes.

Online Services is not accepting my temporary password. What do I do?

Copy the temporary password from the email message you received when you registered. Paste it into the “Online Services – Login and Registration” web page when you log in. You will be prompted to create a new password of your own. Once you create your password, you must save it to have future access to your online account.

The Standards of Practice require inspectors to inspect attic ventilators and report deficiencies but do not require that they be operated. How should an inspector identify deficiencies in the power ventilators without operating them?

In inspecting an attic with a powered ventilator, which is not required to be operated, the inspector should perform a visual inspection and consider the totality of the ventilation system.

The Standards of Practice require inspectors to report as deficient the lack of a 1-3/8” solid wood or fire-rated door between a house and garage. How should an inspector positively identify fire-rated doors when the markings are covered by paint?

Information regarding fire ratings of doors is often obscured by paint. In that case, inspectors are required to do their best to determine whether the door is fire-rated and to report accordingly. In some instances, the inspector will only be able to report that he or she was not able to determine whether the door was fire-rated or that the door appeared to be (or did not appear to be) fire-rated.

The Standards of Practice require inspectors to report as deficient the lack of exhaust ventilators in required areas. What are the required areas for exhaust ventilators?

At a minimum, bathrooms and water closets that that do not have an operative window must be reported as deficient if they lack an exhaust fan that vents to outside air.

What are inspectors required to report regarding AFCI’s?

Section 535.229(a)(1)(G)(vii) requires an inspector to report a deficiency in the operation of an installed ground-fault or arc-fault circuit interrupter device. Section 535.229(a)(2)(B) states that an inspector is not required to test an arc-fault circuit interrupter device when the property is occupied or when damage to personal property may result, in the inspector’s reasonable judgment.

What are inspectors required to report regarding gas supply lines?

Section 535.231(a)(2)(E)(ix) requires inspectors to report deficiencies in the condition of the gas distribution system. Section 535.231(a)(3)(D)(iii) does not require inspectors to inspect inaccessible gas supply system components for leaks. Section 535.231(a)(3)(A) states that inspectors are not required to operate any main, branch, or shut-off valves.

What is the definition of an “accepted industry practice”?

The definition of “accepted industry practice” is situation-specific and may depend on the context in which the question is being asked. We are unable to provide a general definition.

What level of precision is expected for the “approximation” of average insulation depth?

Section 535.228(d)(1)(B) requires an inspector to report “approximate average depth of attic insulation.” We are unable to prescribe a certain "level of precision” that would satisfy this requirement; any of the examples you presented would satisfy the requirement to report the depth of insulation, as long as they accurately reflect the conditions.

What requirements does TREC impose on inspectors/consultants who perform maintenance consultations?

TREC's jurisdiction over real estate inspections is limited to inspections performed for a buyer or seller of real property in connection with a transaction.

Do partnerships need to be licensed if real estate brokerage activity is performed under the partnership name?

Yes. All business entities engaged in real estate brokerage activity, including partnerships, need to be licensed. [TRELA §1101.002] Further to receive or maintain a license, a business entity must designate an individual holding an active Texas real estate broker license, in good standing, who is an officer, manager, or general partner of the entity to act for it. [TRELA §1101.355 and Rules 535.50(5) and 535.53]

Does the designated broker own 10% or more of a licensed business entity if the designated broker owns 10% or more of another business entity that owns 100% of the licensed business entity?

Yes because the designated broker own 10% or more of the licensed business entity through the broker's ownership of the other entity.

How can I start a real estate brokerage referral business or Limited Function Referral Office (LFRO)?

The real estate brokerage referral business, commonly called a Limited Function Referral Office (LFRO), must have a business entity brokerage license because the business is assisting in procuring property or clients to effect the sale, exchange, or lease of real estate [TRELA §§1101.001(A)(viii) and (ix)]. Only an active licensed sales agent sponsored by a licensed business entity may make a referral on behalf of the brokerage, and any referral fee must be paid to the sponsoring broker. A key distinction between a limited function referral office and another brokerage is the agreement between the agent and the broker to limit the agent’s actions to generating referrals. We do not provide advice on how to run or set up a referral-based brokerage business (or LFRO).

I am an attorney who is interested in becoming a real estate broker. What are my requirements?

An attorney who wants to become licensed as a broker must first apply and meet requirements to become licensed as a real estate sales agent. After becoming licensed as a sales agent, the attorney can review the education and experience requirements for becoming a real estate broker.

I have a license in another state. Can I be exempt from taking the National portion of the exam?

You can be exempt from taking the National portion of the exam if you hold an active license in a state that participates in the National exam accreditation with ARELLO. Submit a license history from the state in which you are licensed when you file your application so we can determine if you are exempt.

My business entity is a series LLC. What documents are required to be submitted with the Franchise Tax Account Status page?

If the business entity is a series LLC, you must include a copy of the Certificate of Filing from the Secretary of State's Office with the Franchise Tax Account Status page. The Certificate of Filing must show that the business entity is a registered series of the business entity listed on the Franchise Tax Account Status page.

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