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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
Broker Responsibility
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to §535.2 were recommended by the Commission appointed Broker Responsibility Working Group. The amendments require a broker to designate anyone who leads, supervises or directs a team in the brokerage to be a delegated supervisor. This will require that person to take a six hour broker responsibility course as part of their required continuing education for each renewal. The timeframe when a license holder must be delegated as a supervisor was shortened from six months to three consecutive months. A reference to a recently adopted advertising rule was added. The term "work files" was deleted and replace with more specific items. A phrase was added to clarify the broker must ensure that a sponsored sales agent has geographic competence in the market area being served. A minimum criteria for training sales agents engaging in a brokerage activity for the first time was added. And, in recognition of digital communications, the time frames for responding to clients, agents, other brokers, and the Commission were reduced to two and three days respectively.

Definitions
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter E are made as a result of the Commission's quadrennial rule review. The proposed changes delete or revise outdated or misplaced definitions and correct references to the Commission's Real Estate Recovery Trust Accounts and subchapter references.

Business Entity; Designated Broker
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter E are made as a result of the Commission's quadrennial rule review. The proposed changes delete or revise outdated or misplaced definitions and correct references to the Commission's Real Estate Recovery Trust Accounts and subchapter references.

Education and Experience Requirements for a Sales Agent License
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter E are made as a result of the Commission's quadrennial rule review. The proposed changes delete or revise outdated or misplaced definitions and correct references to the Commission's Real Estate Recovery Trust Accounts and subchapter references.

Definitions
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter F are made as a result of the Commission's quadrennial rule review. The proposed amendments to §535.60 delete unnecessary or outdated definitions and add or clarify definitions applicable to this Subchapter.

Approval of Qualifying Courses
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter F are made as a result of the Commission's quadrennial rule review. The proposed amendments to §535.62 set out the requirements for course approval in greater detail for better understanding and compliance.

Responsibilities and Operations of Providers of Qualifying Courses
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter F are made as a result of the Commission's quadrennial rule review. The proposed amendments to §535.65 rearrange and clarify some of the items of responsibilities of providers to increase comprehension and compliance.

Definitions
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter G are made as a result of the Commission's quadrennial rule review. The proposed amendments delete unnecessary or outdated definitions and add or clarify definitions applicable to this Subchapter. In addition, the term "subsequent provider" was changed to "secondary provider" to align the term with the one used more regularly in the education industry. The proposed amendments also add clarifying terms and corrects a subchapter reference.

Approval of Non-Elective Continuing Education Courses
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter G are made as a result of the Commission's quadrennial rule review. The proposed amendments delete unnecessary or outdated definitions and add or clarify definitions applicable to this Subchapter. In addition, the term "subsequent provider" was changed to "secondary provider" to align the term with the one used more regularly in the education industry. The proposed amendments also add clarifying terms and corrects a subchapter reference.

Responsibilities and Operations of Continuing Education Providers
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter G are made as a result of the Commission's quadrennial rule review. The proposed amendments delete unnecessary or outdated definitions and add or clarify definitions applicable to this Subchapter. In addition, the term "subsequent provider" was changed to "secondary provider" to align the term with the one used more regularly in the education industry. The proposed amendments also add clarifying terms and corrects a subchapter reference.

Schedule of Administrative Penalties
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to §535.191 are made as a result of the Commission's quadrennial rule review. The amendments move several violations to a lower tier of penalties and add several violations that are new or were missing from the penalty matrix.

Standard Inspection Report Form
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
12/09/2018

The amendments to Subchapter R reorganize and clarify the qualifying education, continuing education, and experience requirements for inspectors; remove unused provisions; allow inspectors to receive continuing education credit for courses applicable to inspectors that are taken to satisfy continuing education requirements for an occupational license issued by another Texas governmental body; and would allow inspectors to remove the TREC logo or substitute an inspector's logo in place of the TREC logo on the standard inspection report form. The proposed amendments are recommended by the Texas Real Estate Inspector Committee.

Fees
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
03/01/2019

The amendment to §535.101 reduces the fee paid by a broker or sales agent from $20 to $10 each time a sales agent establishes or changes sponsorship. This change is recommended by the Commission as part of its FY2019 budget approval. Each year that revenues exceed expenses, after projecting the next year's revenues and expenses and meeting the requirements for fiscally responsible operational reserves, the agency has a standing policy of considering whether a reduction in fees is appropriate. As it has done in prior years, the Commission has determined that it is fiscally sound to lower this fee to reduce one cost of doing business for license holders.

Standard Contract Form TREC No. 38-6
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
03/01/2019

The revisions to the Notice of Buyer's Termination of Contract adds a requirement to include lender's written notice setting forth the reasons Property Approval was not obtained when terminating the contract for that reason. A new and an existing item that grant buyer termination rights under the contracts or addenda, and new notice language were also added.

Attachment(s)
Standard Contract Form TREC No. 40-8
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
03/01/2019

The Broker-Lawyer Committee recommended a few clarifying revisions to the Third Party Financing Addendum and reformatted it so that it was consistent with other Commission promulgated addenda and changed the last sentence of Paragraph 5B so that it states "...brokers and sales agents provided under Broker Information."

Attachment(s)
Standard Contract Form TREC No. 49-1
Proposed Date
08/13/2018
Adopted Date
11/15/2018
Effective Date:
03/01/2019

The Broker-Lawyer Committee revised the Addendum Concerning Right to Terminate Due to Lender's Appraisal to improve understanding and use of the form after receiving comments that it was hard to understand.

Attachment(s)

Recently Proposed Rules

Rule Number
Rule Name
Approval of Providers of Qualifying Courses
Proposed Date
08/13/2018
Adopted Date

This amendment was withdrawn at the November 15, 2018 meeting.

Application for a License
Proposed Date
11/15/2018
Adopted Date
02/11/2019

The proposed amendments to §535.208, Application for a License, update an incorrect cite. These proposed amendments are recommended by the Texas Real Estate Inspector Committee.

Education and Experience Requirements for a License
Proposed Date
11/15/2018
Adopted Date
02/11/2019

The proposed amendments to §535.212, Education and Experience Requirements for a License, and §535.213, Qualifying Real Estate Inspector Instructors and Courses, reorganizes and clarifies the qualifying education, continuing education, and experience requirements for inspectors, including decreasing the ride along class size from 10 to 2; and removes unused provisions.  The proposed amendments are recommended by the Texas Real Estate Inspector Committee.

Qualifying Real Estate Inspector Instructors and Courses
Proposed Date
11/15/2018
Adopted Date
02/11/2019

The proposed amendments to §535.212, Education and Experience Requirements for a License, and §535.213, Qualifying Real Estate Inspector Instructors and Courses, reorganizes and clarifies the qualifying education, continuing education, and experience requirements for inspectors, including decreasing the ride along class size from 10 to 2; and removes unused provisions.  The proposed amendments are recommended by the Texas Real Estate Inspector Committee.

Continuing Education Required for Renewal
Proposed Date
11/15/2018
Adopted Date
02/11/2019

The proposed amendments to §535.218, Continuing Education Required for Renewal, allows inspectors to receive continuing education credit for courses applicable to inspectors that are taken to satisfy continuing education requirements for an occupational license issued by another Texas governmental body. The proposed amendments are recommended by the Texas Real Estate Inspector Committee.

Schedule of Administrative Penalties
Proposed Date
11/15/2018
Adopted Date
02/11/2019

The proposed amendments to §535.219, Schedule of Administrative Penalties, adds a statutory violation that was inadvertently omitted. These proposed amendments are recommended by the Texas Real Estate Inspector Committee.

Professional Conduct and Ethics
Proposed Date
11/15/2018
Adopted Date
02/11/2019

The proposed amendments to §535.220, Professional Conduct and Ethics, ties the section back to the parallel requirements of §531.18, which was recently updated to provide more flexibility for license holders.  These proposed amendments are recommended by the Texas Real Estate Inspector Committee.