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Our license holders are governed by the The 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:

Recently Adopted Rules

Rule Number
Rule Name
Consumer Information
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
09/01/2023

The amendments to 22 TAC §531.18 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.

Attachment(s)
License for Military Service Members, Veterans, or Military Spouses
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
09/01/2023

The amendments, in part, 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 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.

Fees
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
09/01/2023

The amendments reflect statutory changes enacted by the 88th Legislature in HB 1363, which eliminated 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
Adopted Date
11/06/2023
Effective Date:
09/01/2023

The amendments reflect statutory changes enacted by the 88th Legislature in HB 1363, which eliminated 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
Adopted Date
11/06/2023
Effective Date:
09/01/2023

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.

Attachment(s)
Schedule of Administrative Penalties
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
11/29/2023

The amendments 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 changes to 535.191, a violation of §535.157 could result in an administrative penalty of $100 - $1,500 per violation per day.

License Required
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
01/01/2024

The amendments 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 rule changes reflect this statutory change.

License Not Required
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
01/01/2024

The amendments 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 rule changes reflect this statutory change.

Equitable Interests in Real Property
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
01/01/2024

The amendments 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
Effective Date:
01/01/2024

New §535.35 implements 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 new rule outlines the requirements these exempt business entities must follow to register the business entity with the Commission. The 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, 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.

Splitting Fee with Unlicensed Person
Proposed Date
08/07/2023
Adopted Date
11/06/2023
Effective Date:
01/01/2024

The amendments 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 rule changes reflect this statutory change.


Recently Proposed Rules

Rule Number
Rule Name
Standard Contract Form TREC No. 59-0, Notice to Purchaser of Special Taxing or Assessment District
Proposed Date
11/06/2023
Adopted Date
02/12/2024

The Texas Real Estate Broker-Lawyer Committee recommended the new rule, and form adopted by reference, to Chapter 537 as a result of statutory changes enacted by the 88th Legislature in HB 2815 and HB 2816. HB 2815 and 2816 replace the several different disclosure notices related to tax assessments made by water districts with a single notice and provides the language required for the notice. The bills also require the water districts to post their own notice online if they are required by the Tax Code to have a website.

El Comité de Abogados y Corredores de Bienes Raíces de Texas recomendó la nueva regla y formulario adoptados con referencia al Capítulo 537 como resultado de los cambios estatutarios promulgados por la Sesión Legislativa 88 en los Proyectos de Ley de la Cámara de Representantes 2815 y 2816. 
Los Proyectos de Ley de la Cámara de Representantes 2815 y 2816 reemplazan los diversos avisos de divulgación relacionados con las evaluaciones tributarias realizadas por los distritos de aguas por un solo aviso y proporciona el lenguaje requerido para el aviso. Los proyectos de ley también requieren que los distritos de aguas publiquen su propio aviso en línea si el Código Tributario les exige tener un sitio web.

Attachment(s)
Comment