The amendments are adopted on an emergency basis to implement statutory changes enacted by the 88th Legislature in HB 1363, which becomes effective September 1, 2023, and which eliminates the real estate inspection recovery fund. As a result, references to that fund are removed from the Consumer Protection Notice form adopted by reference and the version number in the rule is updated.
Rules and Laws
Our license holders are governed by the Texas Real Estate License Act, the Inspector 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 a 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
License for Military Service Members, Veterans, or Military Spouses
Proposed Date
08/07/2023
Effective Date
09/01/2023
The amendments are adopted on an emergency basis, in part, to implement statutory changes enacted by the 88th Legislature in SB 422, becomes effective September 1, 2023, and which modifies the time period within which issuance of a license after certain conditions are satisfied, from “as soon as practicable” to no later than 30 days. The amendments reflect this statutory change.
Fees
Proposed Date
08/07/2023
Effective Date
09/01/2023
The amendments are adopted on an emergency basis to implement statutory changes enacted by the 88th Legislature in HB 1363, which becomes effective September 1, 2023, and which eliminates the real estate inspection recovery fund. The changes to 535.210 reflect the fact that for applications submitted as of September 1, 2023, the $10 fee will no longer be required.
Schedule of Administrative Penalties
Proposed Date
08/07/2023
Effective Date
09/01/2023
The amendments are adopted on an emergency basis to implement statutory changes enacted by the 88th Legislature in HB 1363, which becomes effective September 1, 2023, and which eliminates the real estate inspection recovery fund. The changes to §535.219 replace a repealed statutory section with a related rule—22 TAC §535.220(g) (although related, this rule is authorized by another statutory provision).
Standard Contract Form TREC No. OP-H, Seller's Disclosure Notice
Proposed Date
08/07/2023
Effective Date
09/01/2023
The Seller’s Disclosure Notice is updated to comply with the requirements of HB 697, which becomes effective September 1, 2023, and which add a disclosure related to fuel gas piping to the statutorily-required notice.
Recently Adopted Rules
Rule Number
Rule Name
Broker Responsibility Advisory Committee
Proposed Date
05/16/2023
Adopted Date
08/07/2023
Effective Date:
08/29/2023
The new rule establishes an advisory committee called the Broker Responsibility Advisory Committee, which is tasked with advising TREC as to issues surrounding broker responsibility issues within the real estate industry. This committee will also make recommendations to TREC regarding possible legislative and rule changes associated with broker responsibility issues impacting both the real estate industry and the consumer.
Continuing Education Requirements
Proposed Date
05/16/2023
Adopted Date
08/07/2023
Effective Date:
08/29/2023
The amendments to §535.92 include expand a real estate license holder’s opportunity to earn up to four hours of continuing education elective credit for attendance at a single Commission meeting and clarify that such credit may only be awarded for attendance at one Commission meeting per renewal cycle. The remainder of the changes are either updates to terminology or form for consistency throughout the chapter or are made to reflect updated processes.
Rule Number
Rule Name
Consumer Information
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments to 22 TAC §531.18 are proposed to reflect statutory changes enacted by the 88th Legislature in HB 1363, which eliminated the real estate inspection recovery fund. As a result, references to that fund are removed from the Consumer Protection Notice form adopted by reference and the version number in the rule is updated.
License Required
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are proposed to implement statutory changes enacted by the 88th Legislature in SB 1577, which become effective January 1, 2024. Currently, Chapter 1101, Occupations Code, requires business entities who receive compensation on behalf of a license holder to be licensed as a broker. SB 1577 allows certain entities—limited liability companies and s-corporations (as that term is defined by federal law)—to register with the Commission in lieu of obtaining a license. In order to be eligible for registration, these exempted entities must: (i) perform no acts of a broker, other than receiving said compensation on behalf of a license holder; and (ii) be at least 51 percent owned by the license holder on whose behalf the business entity receives compensation. The proposed rule changes reflect this statutory change.
License Not Required
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are proposed to implement statutory changes enacted by the 88th Legislature in SB 1577, which become effective January 1, 2024. Currently, Chapter 1101, Occupations Code, requires business entities who receive compensation on behalf of a license holder to be licensed as a broker. SB 1577 allows certain entities—limited liability companies and s-corporations (as that term is defined by federal law)—to register with the Commission in lieu of obtaining a license. In order to be eligible for registration, these exempted entities must: (i) perform no acts of a broker, other than receiving said compensation on behalf of a license holder; and (ii) be at least 51 percent owned by the license holder on whose behalf the business entity receives compensation. The proposed rule changes reflect this statutory change.
Equitable Interests in Real Property
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are proposed to implement statutory changes enacted by the 88th Legislature in SB 1577, which requires first, that disclosure also be made to the original seller, and second, that the disclosures be in writing. Subsection (c) is being removed to more closely align with the statutory language. Finally, a non-substantive change is made for consistency throughout the chapter.
Registration of Certain Business Entites
Proposed Date
08/07/2023
Adopted Date
11/06/2023
New §535.35 is proposed to implement statutory changes enacted by the 88th Legislature in SB 1577, which becomes effective January 1, 2024. Currently, §1101.355(c), Occupations Code, requires business entities who receive compensation on behalf of a license holder to be licensed as a broker. Licensure requires certain conditions be satisfied, including, for instance, that the entity have a designated broker and payment of an initial license application fee of $150 and a subsequent $72 application fee to renew. SB 1577 amends §1101.355 by allowing certain entities—limited liability companies and s-corporations (as that term is defined by federal law)—to register with the Commission in lieu of obtaining a license and requires the Commission to adopt rules providing for this registration. The proposed new rule outlines the requirements these exempt business entities must follow to register the business entity with the Commission. The proposed changes also provide a term for the registration once issued, as well as an obligation to certify continuing compliance. Additionally, SB 1577 also amends §1101.152, Occupations Code, which specifically directs the Commission to adopt a rule to charge and collect fees in amounts reasonable and necessary to cover the costs of registering a business entity. Therefore, the changes set forth the fee obligations for such registration and certification of continued compliance. Finally, under the proposal, a license holder must also notify the Commission in writing not later than the 10th day after the date the business entity no longer qualifies for the exemption.
License for Military Service Members, Veterans, or Military Spouses
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are proposed, in part, to implement statutory changes enacted by the 88th Legislature in SB 422, which first, expands out-of-state occupational license recognition to include military service members, as long as certain criteria are met. SB 422 also modifies the time period within which verification of good standing occurs, as well as issuance of a license after certain conditions are satisfied, from “as soon as practicable” to no later than 30 days. The bill also addresses the term of the license in situations of divorce or other events impacting the military spouse’s status. The proposed rule amendments reflect these statutory changes.
In addition, as a result of education requirements being added for easement and right-of-way agents (ERWs) during the 87th Legislative Session, language is added making clear that ERW applicants must otherwise comply with the requirements in 22 TAC §535.400, unless excepted by §535.58. Additionally, language is being struck from the rule to better reflect the statutory framework under Chapter 55, Occupations Code. Finally, a statement of purpose is being added to the rule to make clear that this rule addresses the requirements provided under Chapter 55, Occupations Code, and not federal law.
Splitting Fee with Unlicensed Person
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are proposed to implement statutory changes enacted by the 88th Legislature in SB 1577, which become effective January 1, 2024. Currently, Chapter 1101, Occupations Code, requires business entities who receive compensation on behalf of a license holder to be licensed as a broker. SB 1577 allows certain entities—limited liability companies and s-corporations (as that term is defined by federal law)—to register with the Commission in lieu of obtaining a license. In order to be eligible for registration, these exempted entities must: (i) perform no acts of a broker, other than receiving said compensation on behalf of a license holder; and (ii) be at least 51 percent owned by the license holder on whose behalf the business entity receives compensation. The proposed rule changes reflect this statutory change.
Schedule of Administrative Penalties
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are proposed to address a violation of 22 TAC §535.157 (relating to Obligation to Respond Timely), which was recently adopted by the Commission. Current rule 535.157 obligates a broker and sales agent to respond to his or her principal, a broker or sales agent representing another party to a real estate transaction, or an unrepresented party of a real estate transaction within two calendar days. Under the proposed changes to 535.191, a violation of §535.157 could result in an administrative penalty of $100 - $1,500 per violation per day.
Fees
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are being proposed to reflect statutory changes enacted by the 88th Legislature in HB 1363, which eliminated the real estate inspection recovery fund. The proposed changes to 535.210 reflect the fact that for applications submitted as of September 1, 2023, the $10 fee will no longer be required.
Schedule of Administrative Penalties
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The amendments are being proposed to reflect statutory changes enacted by the 88th Legislature in HB 1363, which eliminated the real estate inspection recovery fund. The proposed changes to §535.219 replace a repealed statutory section with a related rule—22 TAC §535.220(g) (although related, this rule is authorized by another statutory provision).
Standard Contract Form TREC No. OP-H, Seller's Disclosure Notice
Proposed Date
08/07/2023
Adopted Date
11/06/2023
The Seller’s Disclosure Notice is updated to comply with the requirements of HB 697, which add a disclosure related to fuel gas piping to the statutorily-required notice.
Customer Survey
Rules and Laws
Contract Forms