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Rule Changes and Proposals from the August TREC Meeting

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.

88th Texas Legislative Session Update, and the Impact on License Holders

The 88th Texas Legislature, Regular Session, began January 10, 2023, and ends May 29, 2023. This session opened with the Texas Real Estate Commission (TREC) and Texas Appraiser Licensing Board (TALCB) following 358 bills relevant to the administration of the agency.  A much smaller number will become law, one of relevance to Texas real estate license holders.

TREC's Houston Highlights: Changes to Broker Responsibility & Inspection Reports, 'Lookback Period' Soon to End, Comment Now on Proposed Changes

To reach more license holders, the Texas Real Estate Commission broke away from its Austin headquarters for the first time ever to meet in Houston on May 16. It was TREC’s second meeting of 2023. There were more than 80 attendees.

Welcoming New Commissioners, Thanking the Outgoing

TREC’s Chair, Scott Kesner, opened the meeting with a welcome to TREC’s newest Commissioners: Chance Brown, Renee Harvey Lowe, and Stuart Bernstein.

Broker Responsibility Working Group April meeting recap includes proposed rule changes

The Broker Responsibility Working Group (BRWG) met April 12. Members reviewed public comment submitted in response to a new proposed rule, 535.157 — Obligation to Respond Timely, and proposed changes to 535.2 — Broker Responsibility Rule. The group also continued discussion regarding the difference between a broker and a sponsoring broker, and whether there should be additional education requirements for sponsoring brokers.

New Process to Streamline Advertising Complaints

Around 1% of Texas Real Estate Commission license holders are the subject of a complaint, and in 2022, slightly more than 5% of all complaints received by TREC were related to advertising issues.

Many advertising-related complaints can be handled easily, from adding missing brokerage information on for sale signs to adding missing required links on a license holder’s website. Because of these simple remedies, TREC is launching the Advertising Compliance Program, which will streamline the processing of complaints that deal only with advertising violations.

What to Expect at the Next TREC Meeting

The Texas Real Estate Commission’s advisory committees and working groups have made several recommendations that the Commissioners will discuss and potentially propose or adopt during the TREC Meeting on February 13. Here are the highlights of what will be considered, including inspection report rule changes, proposed SAE requirements, and changes that affect broker responsibility and sales agent oversight of brokerage activity.

Unauthorized Practice of Law Working Group Recommends Dropping Rule Proposal Eliminating Use of Brokerage-Specific Forms Prepared by an Attorney

Based on recommendations from the Unauthorized Practice of Law Working Group, the Commission proposed at its November 2022 meeting a new rule—Section 537.1, Definitions—and amendments to Section 537.11, Use of Standard Contract Forms. The proposals were published in the Texas Register to allow for public comment.

Broker Responsibility Working Group: New and Revised Rules Up for Proposal, Recommendations for Identifying Brokerage Associations

The Broker Responsibility Working Group (BRWG) met January 11 and got updates from staff, discussed how to identify brokerage associations, and who should receive complaint notifications.

Revised Forms Available for Voluntary Use, Mandatory Use Begins February 1, 2023

The form revisions adopted by the Texas Real Estate Commission in early November are now available for voluntary use until February 1, 2023, when their use becomes mandatory. The only exception is the revised Notice to Prospective Buyer (TREC 57-0) form, which will remain a voluntary use form.