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Our license holders are governed by the Texas Real Estate License Act, the Inspector Act, the Residential Service Company Act, and the Timeshare Act. These Acts establish the makeup of the Commission and its advisory committees and outline procedures by which a person can become real estate license holders in Texas. The Acts also describe TREC’s jurisdiction over license holders and registrants.

TREC has the authority to adopt administrative rules to provide specificity to provisions of the Acts. TREC may also adopt rules to establish policy regarding certain practices. Both the Acts and TREC rules are a great resource for helping consumers know what to expect from a real estate service provider.

TREC Rules

The tables below show all of our recently proposed and adopted rules. Written comments on proposed rules are accepted for 30 days after publication in the Texas Register. After that period, comments can be made in person at the next Commission meeting. Please send written comments to TREC's general.counsel@trec.texas.gov. For the complete version of our current rules go to:

Emergency Adopted Rules

Rule Number
Rule Name
Renewal of a Real Estate License
Proposed Date
08/12/2019
Effective Date
08/13/2019

The amendments are adopted on an emergency basis to implement statutory changes enacted by the 86th Legislature in SB 37, which took immediate effect upon signing by the Governor, and remove consideration of a student loan default when deciding whether to grant an occupational license.

Renewal of Registration
Proposed Date
08/12/2019
Effective Date
08/13/2019

The amendments are adopted on an emergency basis to implement statutory changes enacted by the 86th Legislature in SB 37, which took immediate effect upon signing by the Governor, and remove consideration of a student loan default when deciding whether to grant an occupational license.     

Schedule of Administrative Penalties
Proposed Date
08/12/2019
Effective Date
09/01/2019

The amendments are adopted on an emergency basis to implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and take effect on September 1, 2019, and apply to complaints filed on or after that date. The amendments conform the statutory references in this section to those changes.

Schedule of Administrative Penalties
Proposed Date
08/12/2019
Effective Date
09/01/2019

The amendments are adopted on an emergency basis to implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and take effect on September 1, 2019, and apply to complaints filed on or after that date. The amendments conform the statutory references in this section to those changes.

Recently Adopted Rules

Rule Number
Rule Name
Processing Fees for Dishonored Payments
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The repealed language is adopted to be added to §535.101 and §535.210 related to fees, with modifications, for purposes of simplification.

Procedures
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.41 implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process to clarify the Commission’s policy for allowing public comment at regular quarterly meetings.

General Requirements for a Real Estate License
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.51 eliminates the Texas residency requirement for real estate license eligibility pursuant to statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process.

Moral Character Requirements for Individual Applicant
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.52 implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and change the language in the caption and throughout the rule from “moral character” to “fitness.”

Examinations
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendment to §535.57 removes instructors from the list of those who can be disciplined for prohibited conduct during an examination. 

License for Military Service Members, Veterans, or Military Spouses
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

New §535.58 establishes limited reciprocity pursuant to  statutory changes enacted by the 86th Legislature in SB 1200, which authorizes a spouse of an active member of the military to practice in Texas without a Texas license if they are currently licensed in good standing by another jurisdiction that has licensing requirements substantially equivalent to the requirements in Texas.

Definitions
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.60 changes the definition of “Instructor” to conform to statutory changes.

Approval of Providers of Qualifying Courses
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.61 change “subsequent approval” to “renewal” and authorize the Commission to deny an application for renewal as an approved provider if the provider is in violation of a Commission order.

Approval of Qualifying Courses
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.62 authorize the Commission to deny an application for renewal of a qualifying course approval if a provider is in violation of a Commission order.

Qualifying Education: Compliance and Enforcement
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.67 eliminates the requirement of providers to use instructors approved by the Commission as required by SB 624.

Definitions
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.70 changes the definition of “CE Instructor” to conform to statutory changes.

Approval of CE Providers
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.71 change “subsequent approval” to “renewal” and authorize the Commission to deny an application for renewal if a continuing education provider is in violation of a Commission order.

Approval of Non-Elective Continuing Education Courses
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendment to §535.72 eliminates the requirement of continuing education providers to use instructors approved or certified by the Commission as required by SB 624.

Approval of Elective Continuing Education Courses
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.73 reorganize this section and clarify the process for renewing the approval of an elective continuing education course.

Renewal of a Real Estate License
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments remove consideration of a student loan default when deciding whether to grant an occupational license and authorize the Commission to deny a license renewal if the license holder is in violation of the terms of a Commission order.

Fees
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments eliminate fees to license holders to implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and the Sunset Advisory Commission’s management directives to limit fund growth and provide straightforward fee setting.

Branch Office
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The repeal implements statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process to eliminate the branch office license.

Consumer Complaint Processing
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and direct the Commission to dismiss a complaint if the complaint is inappropriate or without merit and to protect the complainant’s identity by excluding identifying information from a complaint notice sent to a respondent.

Schedule of Administrative Penalties
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and conform the statutory references in this section to those changes.

Application for a License
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.208 removes the Texas residency requirement for inspectors to receive a license.  It also eliminates provisions relating to applicants who are military service members, military veterans, and military spouses to consolidate those provisions in a new rule before the Commission for proposal that addresses the topic for all license holders regulated by the Commission.

Fees
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments eliminate fees to license holders to implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and the Sunset Advisory Commission’s management directives to limit fund growth and provide straightforward fee setting.

Schedule of Administrative Penalties
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendment to §535.219 changes a statutory reference to the inspector penalty matrix to address statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process.

Registration of Easement or Right-of-Way Agents
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.400 implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and remove the residency requirement for becoming registered as an easement or right-of-way agent.

Complaints, Disciplinary Actions and Appeals
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.402 change the time frame to respond to a Commission request for information from 10 working days to 14 days to align this section with other Commission rules and provide greater clarity to respondents.

Renewal of Registration
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §535.403 implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and authorize the Commission to deny a license renewal if the license holder is in violation of the terms of a Commission order.

Complaints
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §539.150 change the time frame to respond to a Commission request for information from 10 working days to 14 days to align this section with other Commission rules and provide greater clarity to respondents.

Violations
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §543.5 change the time frame to respond to a Commission request for information from 10 working days to 14 days to align this section with other Commission rules and provide greater clarity to respondents.

Renewal of Registration
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
12/11/2019

The amendments to §543.12 implement statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process and authorize the Commission to deny a license renewal if the license holder is in violation of the terms of a Commission order.

Standard Contract Form TREC No. 40-8 (Third Party Financing Addendum)
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
03/01/2020

The Third Party Financing Addendum adopted by reference in §537.47 is amended to clarify that the three-day notice requirement in 2.B does not apply to Paragraph 4 and the “time is of the essence” language was moved to the body of Paragraph 2 for clarity.

Attachment(s)
Standard Contract Form TREC No. 48-0 (Addendum for Authorizing Hydrostatic Testing)
Proposed Date
08/12/2019
Adopted Date
11/19/2019
Effective Date:
03/01/2020

The Addendum for Authorizing Hydrostatic Testing adopted by reference in §537.55 is amended to include a reference to the scope of hydrostatic testing in the top sentence.

Attachment(s)


Recently Proposed Rules

Rule Number
Rule Name
Consumer Information
Proposed Date
11/19/2019
Adopted Date
02/10/2020

The proposed amendment to the Consumer Protection Notice adds a statement to alert consumers that inspectors licensed by TREC are required to maintain errors and omissions insurance to cover losses arising from the performance of a real estate inspection in a negligent or incompetent manner.

Registration and Use of Alternate, Team and Assumed Business Names Used in Advertisements
Proposed Date
11/19/2019
Adopted Date
02/10/2020

The proposed amendment to §535.154 removes an unnecessary word that was inadvertently left in the text during the last substantive change to the rule.

Renewal of License
Proposed Date
11/19/2019
Adopted Date
02/10/2020

The proposed amendments implement statutory changes enacted by the 86th Legislature in SB 37 eliminating consideration of student loan defaults when deciding whether to grant an occupational license and SB 624 authorizing the Commission to deny license renewal if a license holder is in violation of a Commission order. The proposed amendments also reorganize this section to improve readability and increase transparency for license holders and members of the public.

Criminal Offense Guidelines
Proposed Date
11/19/2019
Adopted Date
02/10/2020

The proposed amendment to §541.1 implements statutory changes enacted by the 86th Legislature in HB 1342 regarding the requirements for evaluating the criminal history of licensed applicants and license holders.

Examinations
Proposed Date
08/12/2019
Adopted Date
11/19/2019

The Commission took no action on §535.209 at the November 19, 2019 Commission Meeting.

The proposed amendments to §535.209 creates an expiration date of April 30, 2020 to rule provisions sections (c) through (g) and establishes new examination eligibility requirements to applicants who take the examination on or after May 1, 2020.

Education and Experience Requirements for a License
Proposed Date
08/12/2019
Adopted Date
11/19/2019

The Commission took no action on §535.212 at the November 19, 2019 Commission Meeting.

The proposed amendments to §535.212 limits the rules applicability for education started before May 1, 2020 and completed and submitted in conjunction with an application filed by July 31, 2020.

Qualifying Real Estate Inspector Courses
Proposed Date
08/12/2019
Adopted Date
11/19/2019

The Commission took no action on §535.213 at the November 19, 2019 Commission Meeting.

The proposed amendments to §535.213 strikes a reference to the requirement for instructors to be approved because of the elimination of instructor approval by the Commission pursuant to statutory changes enacted by the 86th Legislature in SB 624 as part of the Sunset Review process.

Education and Experience Requirements for a License
Proposed Date
08/12/2019
Adopted Date
11/19/2019

The Commission took no action on §535.214 at the November 19, 2019 Commission Meeting.

The proposed new rule §535.214 takes effect May 1, 2020 to replace the education requirements in §535.212 and significantly streamlines the pre-licensing requirement for inspectors.

Standard Contract Form TREC No. 9-13 (Unimproved Property Contract)
Proposed Date
08/12/2019
Adopted Date
11/19/2019

§537.20 was withdrawn at the November 19, 2019 Commission Meeting.

Attachment(s)
Standard Contract Form TREC No. 20-14 (One to Four Family Residential Contract (Resale))
Proposed Date
08/12/2019
Adopted Date
11/19/2019

§537.28 was withdrawn at the November 19, 2019 Commission Meeting.

Attachment(s)
Standard Contract Form TREC No. 23-15 (New Home Contract (Incomplete Construction))
Proposed Date
08/12/2019
Adopted Date
11/19/2019

§537.30 was withdrawn at the November 19, 2019 Commission Meeting.

Attachment(s)
Standard Contract Form TREC No. 24-15 (New Home Contract (Completed Construction))
Proposed Date
08/12/2019
Adopted Date
11/19/2019

§537.31 was withdrawn at the November 19, 2019 Commission Meeting.

Attachment(s)
Standard Contract Form TREC No. 25-12 (Farm and Ranch Contract)
Proposed Date
08/12/2019
Adopted Date
11/19/2019

§537.32 was withdrawn at the November 19, 2019 Commission Meeting.

Attachment(s)
Standard Contract Form TREC No. 30-13 (Residential Condominium Contract (Resale))
Proposed Date
08/12/2019
Adopted Date
11/19/2019

§537.37 was withdrawn at the November 19, 2019 Commission Meeting.

Attachment(s)
Standard Contract Form TREC No. 36-8 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association)
Proposed Date
08/12/2019
Adopted Date
11/19/2019

§537.43 was withdrawn at the November 19, 2019 Commission Meeting.

Attachment(s)