As of now, the only way a license holder can receive compensation through a business entity is by obtaining a business entity real estate broker license. Effective January 2024, license holders will have the option to register LLCs and S-Corporations (S-Corps) with TREC for the sole purpose of receiving compensation, as long as those entities meet certain requirements.

The Texas Real Estate Broker-Lawyer Committee (BLC) met October 13 and continued discussing possible revisions to contract forms and recommended one new form for proposal.

Voluntary Notice to Purchaser of Special Taxing or Assessment District Form

Under Texas law, if a seller’s property is located in a water district, like a municipal utility district (MUD), the seller must provide a notice that includes certain specific information to the buyer prior to execution of the contract.

Starting October 1, active license holders whose licenses expire will be set to inactive status as of the expiration date, and any license relationships to sales agents and/or brokers will be terminated.

If you late renew—up to six months after your expiration date—your license will be renewed on inactive status.

These changes were adopted during the May TREC Meeting.

Legislation passed by the 88th Texas Legislature requires the Texas Real Estate Commission to update two frequently used forms: the Consumer Protection Notice and the Seller’s Disclosure Notice.

Consumer Protection Notice

What changed? It no longer references the real estate inspection recovery fund, which was repealed this session.

A bill passed by the 88th Texas Legislature requires all licensing agencies, including the Texas Real Estate Commission, to remove or redact certain details about applicants and current and past license holders in publicly available information, such as the TREC website license holder search or via public information requests.

A new rule effective earlier this summer sets a timeline of two calendar days to respond to parties to a real estate transaction you’re involved in. Here’s what you need to know.

What Is the Rule?

535.157, Obligation to Respond Timely

When Did it Go into Effect?

June 11, 2023

During the August 2023 TREC Meeting, the Commission adopted TREC Rule 535.46, Broker Responsibility Advisory Committee, establishing a new committee to advise the Commission on issues relating to broker responsibility. The Commission is seeking to appoint nine members to begin service on January 1, 2024.

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.

The Texas Real Estate Commission's Education Standards Advisory Committee (ESAC) is accepting applications to fill two education member positions by real estate instructors or owners of real estate schools, accredited by the Commission, that provide qualifying or continuing education.