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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:

Recently Adopted Rules

Rule Number
Rule Name
Standard Contract form TREC No. 9‐13 (Unimproved Property Contract)
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

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.”

Paragraph 2.C is amended security systems and “Controls” as Accessories and defines “Controls.”

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.  The Buyer may terminate the contract after receipt of the Leases within a period of days set in the contract.

Paragraph 4 is also amended to include language regarding disclosure of existing leases and prohibits, without Buyer’s consent, any new leases, amendments to exiting leases, or conveyance of interest in the property.  Language also requires disclosure of Residential Leases, Fixture leases, or Natural Resources Leases within 3 days after the effective date.   

Paragraph 5 is amended is authorize payment of option fee to escrow agent separately or combined with earnest money in single payment.  Clarifies order application of funds to be credited first to Option Fee and then to earnest money. Authorizes release of option money without further consent from Buyer.  Paragraph 5 also now incorporates language previously found in Paragraph 23 relating to remedy for failure to timely deliver Option Fee and earnest money.

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.”

Paragraph 10.C is amended to include definition of Smart Device and require delivery of access codes to Buyer and removal of seller access points.

Paragraph 18.A is amended to allow escrow agent to require any disbursement made under the contract to be made in good funds.

Paragraph 18.B is amended to further define expenses that an escrow agent may deduct.

Paragraph 23 is deleted in its entirety.  

Paragraph 24 is renumbered to Paragraph 23.

The Option Fee Receipt is amended to strike reference to Seller/Broker and replace with Escrow Agent.

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 for informational purposes to disclose there is a separate commission agreement between the Listing Broker and Other Broker.

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.

In the Residential Condominium Contract, all references to a survey were removed from Paragraph 6.

Attachment(s)
Standard Contract form TREC No. 20‐14 (One to Four Family Residential Contract (Resale))
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

See description of changes above under §537.20.

Attachment(s)
Standard Contract form TREC No. 23‐15 (New Home Contract (Incomplete Construction))
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

See description of changes above under §537.20.

Attachment(s)
Standard Contract form TREC No. 24‐15 (New Home Contract (Completed Construction))
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

See description of changes above under §537.20.

Attachment(s)
Standard Contract form TREC No. 25‐12 (Farm and Ranch Contract)
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

See description of changes above under §537.20.

Attachment(s)
Standard Contract form TREC No. 30‐13 (Residential Condominium Contract (Resale)
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

See description of changes above under §537.20.

Attachment(s)
Standard Contract form TREC No. 36‐8 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association)
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

The Addendum for Property Subject to Mandatory Membership in a Property Owners Association 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. 51‐0 (Addendum Regarding Residential Leases)
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

The Addendum Regarding Residential Leases is a new form that supplements changes made to Paragraph 4 regarding required consent to enter into any new leases, amendments to existing leases, or conveyance of interest in the property.

Attachment(s)
Standard Contract form TREC No. 52‐0 (Addendum Regarding Fixture Leases)
Proposed Date
08/10/2020
Adopted Date
11/10/2020
Effective Date:
04/01/2021

The Addendum for Disclosure of Fixture Leases is a new form protects the parties regarding fixture leases in place on the property at the time of contract execution.

Attachment(s)
Standard Contract Form TREC No. 38-6
Proposed Date
11/23/2020
Adopted Date
02/19/2021
Effective Date:
04/01/2021

The Notice of Buyer's Termination of Contract adopted by reference in §537.45 is amended to correct a reference in Paragraph 1. The reference to Paragraph 23 is replaced with a reference to Paragraph 5 to align with the previous changes made to the contract forms.

Attachment(s)
Standard Contract Form TREC No. 45-1
Proposed Date
11/23/2020
Adopted Date
02/19/2021
Effective Date:
04/01/2021

The Short Sale Addendum adopted by reference in §537.52 is amended to correct a reference in paragraph F. The reference to Paragraph 23 is replaced with a reference to Paragraph 5 to align with the previous changes made to the contract forms.

Attachment(s)
Petition for Adoption of Rules
Proposed Date
02/19/2021
Adopted Date
05/03/2021
Effective Date:
05/26/2021

New rule §533.50 implements a statutory requirement that state agencies must prescribe by rule the form for a petition for adoption of rules and the procedure for its submission, consideration, and disposition.


Recently Proposed Rules

Rule Number
Rule Name
Standard Inspection Report Form
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.223 and the form adopted by reference clarify the requirement when an inspector uses computer software or other means to produce an inspection report to ensure that in complies with established reporting requirements.

Attachment(s)
Comment
Standards of Practice: General Provisions
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.227 require an inspector to use all reasonable and appropriate tools necessary to comply with the requirements of Standards of Practice and specifies that if an inspector provides services beyond the scope of the Standards of Practice as part of a real estate inspection must be competent to provide those services.  Additionally, the proposed amendments to §535.227 clarify that an inspector cannot perform an inspection for a client until they have notified the client of any systems or components the inspector does not routinely inspect that are otherwise required by the Standards of Practice. Finally, the proposed amendments to §535.227 include a new definition for “gas distribution system” to conform to changes made by proposed amendments to §535.231, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

Comment
Standards of Practice: Minimum Inspection Requirements for Structural Systems
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.228 update requirements for garage doors to better reflect current building code requirements and clarify reporting requirements for gas fixtures and appliance listed under this section to conform to changes made by proposed amendments to §535.331, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

Comment
Standards of Practice: Minimum Inspection Requirements for Electrical Systems
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.229 update the requirements for electrical systems to better reflect current building code requirements.

Comment
Standards of Practice: Minimum Inspection Requirements for Heating, Ventilation, and Air Conditioning Systems
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.230 clarify what an inspector is required to do and report when determining if a HVAC system is functioning properly. The proposed amendments to §535.330 also clarify reporting requirements for gas fixtures and appliance listed under this section to conform to changes made by proposed amendments to §535.331, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

Comment
Standards of Practice: Minimum Inspection Requirements for Plumbing Systems
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.231 require an inspector to report the material used for water supply lines, water drain lines, and the gas distribution system, specify that certain items are required to be reported when only when visible, and require an inspector to report water pressure exceeding 80 PSI. The proposed amendments to §535.231 move the requirements related the inspection of a gas distribution system that are currently contained in various other sections of the Standards of Practice to a new subsection (d) of this section and clarify reporting requirements for gas fixtures and appliance listed under this section to conform to the new subsection (d).

Comment
Standards of Practice: Minimum Inspection Requirements for Appliances
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.232 move the general exception to the requirements of this section to the end of the rule to mirror other sections of the Standards of Practice. The proposed amendments to §535.232 also update the requirements for bathroom ventilation to better reflect current building code requirements, specify that certain items are required to be reported when only when visible, and clarify the reporting requirements for gas fixtures and appliance listed under this section to conform to changes made by proposed amendments to §535.231, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

Comment
Standards of Practice: Minimum Inspection Requirements for Optional Systems
Proposed Date
05/03/2021
Adopted Date
08/09/2021

The proposed amendments to §535.233 add an optional reporting requirement for built-in appliances, specify that an inspector is not required to report on the performance of an underground zone of a sprinkler system, and clarify that private sewage system is not limited to a septic system.

Comment
Professional Conduct and Ethics
Proposed Date
02/19/2021
Adopted Date
05/03/2021

The proposed amendment adds that the consent an inspector must receive from the inspector’s client to receive a fee or other valuable consideration for referring services that are not settlement services or other products to the client, must be in writing.

Comment