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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
Examinations
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:

The proposed amendments were withdrawn at the August 12, 2019, Commission meeting.

Original Summary:

The proposed amendments allow the two part licensure examination to be taken at two separate times.   The proposed amendment also clarifies that for an individual licensed in another state who has already passed the national examination, the coursework and examination portion associated with the national portion are not required for licensure in Texas.  The proposed amendment also specifies what courses must be retaken if an applicant thrice fails either the national or state portion of the examination.  

Education and Experience Requirements for a License
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:

The proposed new rule was withdrawn at the August 12, 2019, Commission meeting.

Original Summary:

The proposed new rule significantly streamlines the pre-licensing requirement for inspectors.

Education and Experience Requirements for a License
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:

The proposed repeal was withdrawn at the August 12, 2019, Commission meeting.

Original Summary:

The proposed repeal is recommended by the Texas Real Estate Inspector Committee.  The Committee is recommending new §535.212 to streamline inspector pre-licensing education requirements pursuant to the recent Sunset Advisory Commission recommendations to ensure the rules are “meaningful, efficient, and not unnecessarily burdensome.”  The repeal was necessary due to the significant changes proposed.

Qualifying Real Estate Inspector Courses
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:

The proposed new rule was withdrawn at the August 12, 2019, Commission meeting.

Original Summary:

The proposed new rule details the new required coursework for licensure.

Qualifying Real Estate Inspector Courses
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:

The proposed repeal was withdrawn at the August 12, 2019, Commission meeting.

Original Summary:

The proposed repeal is recommended by the Texas Real Estate Inspector Committee.  The Committee is recommending new §535.213 to streamline inspector pre-licensing education requirements pursuant to the recent Sunset Advisory Commission recommendations to ensure the rules are “meaningful, efficient, and not unnecessarily burdensome.”  The repeal was necessary due to the significant changes proposed.

Competency
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments clarify the definition of competency to conform with recent changes to §535.2, Broker Responsibility, which requires brokers to ensure their sponsored agents have geographic and property type competence

Education Standards Advisory Committee
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendment extends the existence of the Education Standards Advisory Committee to 2025 to mirror the next sunset review of TREC.

Approval of Providers of Qualifying Courses
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments add clarifying terms or timeframes for greater understanding and compliance. The amendments also provides that a provider cannot enroll students in a course 60 days before the expiration of the provider’s approval, unless they have submitted an application for a subsequent approval at least 60 days prior to the expiration of the current approval. 

Approval of Instructors of Qualifying Courses
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments are made in direct response to the Sunset Advisory Commission Report, which directs the elimination of TREC's authority to approve real estate and inspector instructors but retains the ability to set qualifications and standards of instructors for TREC approved courses.

Responsibilities and Operations of Providers of Qualifying Courses
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments add that a provider must provide a hyperlink or URL to the TREC website when displaying exam passage rates in any advertisement. In addition, amendments eliminate the waiting period before retesting for students who fail a course exam, leaving the decision as to remedial course work before the retest to the providers. Finally, §535.65 was updated to reflect the changes made to §535.63 due to the Sunset Advisory Commission Report directive that instructors of courses be approved by providers and not licensed by the Commission, but retains the ability of the Commission to set qualifications and standards of instructors for TREC approved courses.

Approval of Continuing Education Instructors
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments are made in direct response to the Sunset Advisory Commission Report which directs the elimination of TREC's authority to approve real estate and inspector instructors but retains the ability to maintain qualifications and standards of instructors and TREC approved courses.

Responsibilities and Operations of Continuing Education Providers
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments reflect the changes made to §535.74 based on the Sunset Advisory Commission Report which directs the elimination of TREC's authority to approve real estate and inspector instructors but retains the ability to set qualifications and standards of instructors for TREC approved courses.

Receiving an Undisclosed Commission or Rebate
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments provide clarity about consumer protection issues when paying or receiving funds to/from other settlement service providers.

The Texas Real Estate Inspector Committee
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments reinstate term limits for Texas Real Estate Inspector Committee members, align term expiration dates with other advisory committees for the Commission, change the meeting month in which officers are elected from February to January to better align with the committee's meeting schedule, and update the Sunset date to match the new Sunset date for the Commission.

Continuing Education Required for Renewal
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments set out the continuing education topics required for inspectors to renew their licenses that are currently cross referenced to §535.213, which is proposed for repeal. 

Professional Conduct and Ethics
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments add additional settlement providers to the list of those prohibited from paying or receiving valuable consideration to an inspector in connection with a real estate transaction. The additions update the rule to parallel the revision made to 22 TAC §535.148 dealing with preserving settlement provider independence in real estate transactions.

Inspection Reports
Proposed Date
05/06/2019
Adopted Date
08/12/2019
Effective Date:
09/02/2019

The amendments clarify that the inspector does not have to deliver the report until after receipt of payment for the report and reduces the delivery time after payment from three days to two.


Recently Proposed Rules

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

The language proposed for repeal is also proposed 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

The proposed 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

The proposed 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

The proposed 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

The proposed 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

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

The proposed 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

The proposed 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

The proposed 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

The proposed 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

The proposed 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

The proposed 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

The proposed 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

The proposed 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

The proposed 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

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

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

The proposed 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

The proposed 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

The proposed 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.

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

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.

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

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.

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

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 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 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.

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

The proposed 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

The proposed 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

The proposed 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

The proposed 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.

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

See Summary under §537.28, Standard Contract Form TREC No. 20-14.

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

The changes listed below apply to all contract forms unless specified otherwise. Paragraph numbers referenced are from the One to Four Family Residential Contract (Resale).

Paragraph 2 is amended to remove quotes and add a parenthetical around the word “Property.”

The language of Paragraph 4 was moved to the end of Paragraph 8, which is retitled “License Holders.”

Language was added to Paragraph 4 to address leases to which the Seller is a party, and requires the Seller to acknowledge that Buyer has received a copy of all Leases or will receive a copy within 3 days after the Effective Date.  The Buyer may terminate the contract after receipt of the Leases within a period of days set in the contract.  Paragraph 4 also prohibits the Seller from executing any new lease or amending any Lease without Buyer’s written consent after the effective date of the contract.

Paragraph 10.B is amended to remove redundancies found in Paragraph 4 by striking all language except “After the Effective Date, Seller may not convey any interest in the Property without Buyer’s written consent.”

Language was deleted from the Broker Information page of all forms except the Farm and Ranch Contract form: “Listing Broker has agreed to pay Other Broker ___ of the total sales price when the Listing Broker’s fee is received.  Escrow agent is authorized and directed to pay Other Broker from Listing Broker’s fee at closing.”

Language was added to the Incomplete Construction Contract to mirror the language in the Complete Construction Contract Paragraph 7.I. regarding Residential Service Contracts.  The language was added to the Incomplete Construction Contract as Paragraph 7.J.

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

See Summary under §537.28, Standard Contract Form TREC No. 20-14.

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

See Summary under §537.28, Standard Contract Form TREC No. 20-14.

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

See Summary under §537.28, Standard Contract Form TREC No. 20-14.

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

See Summary under §537.28, Standard Contract Form TREC No. 20-14.

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

The Addendum for Property Subject to Mandatory Membership in a Property Owners Association adopted by reference in §537.43 is amended to add deposits and reserves to the list of payments the Buyer will make in association with the transfer of the property.

Attachment(s)
Standard Contract Form TREC No. 40-8 (Third Party Financing Addendum)
Proposed Date
08/12/2019
Adopted Date
11/19/2019

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

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)
Complaints
Proposed Date
08/12/2019
Adopted Date
11/19/2019

The proposed 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

The proposed 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

The proposed 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.