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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
Continuing Education Requirements
Proposed Date
02/10/2020
Adopted Date
05/04/2020
Effective Date:
02/01/2021

The amendments to §535.92 require three hours of continuing education (CE) to real estate sales agents or broker license renewals, the subject matter of which must be real estate contracts. The proposed amendments additionally clarify which license holders must take the broker responsibility course and updates the professional designations available through CE credit.

Responsibilities and Operations of Providers of Qualifying Courses
Proposed Date
05/04/2020
Adopted Date
08/10/2020
Effective Date:
08/31/2020

The amendments correct a reference within the rule to include the appropriate subsection.

Application for a License
Proposed Date
05/04/2020
Adopted Date
08/10/2020
Effective Date:
08/31/2020

The amendments eliminate an obsolete requirement for an applicant for an apprentice inspector license to provide a photo to the Commission prior to issuance of a license and eliminate certain requirements and waivers for Military Service Members, Veterans, or Military Spouses that are now addressed under §535.58.

Examinations
Proposed Date
05/04/2020
Adopted Date
08/10/2020
Effective Date:
08/31/2020

The amendments move the one-year period for exam results to remain valid to a new subsection and create certain eligibility and course requirements for candidates in order to be able to take the state portion of the real estate inspector exam.

Education and Experience Requirements for a License
Proposed Date
05/04/2020
Adopted Date
08/10/2020
Effective Date:
08/31/2020

The amendments specify the timeframe for education submitted under this rule is valid.

Qualifying Real Estate Inspector Instructors and Courses
Proposed Date
05/04/2020
Adopted Date
08/10/2020
Effective Date:
08/31/2020

The amendments provide a transition period for which education completed under the current requirements will be accepted.

Education and Experience Requirements for a License
Proposed Date
05/04/2020
Adopted Date
08/10/2020
Effective Date:
08/31/2020

The new rule establishes the education and experience requirements for a real estate inspector license after March 1, 2021. 

Registration of Easement or Right-of-Way Agents
Proposed Date
05/04/2020
Adopted Date
08/10/2020
Effective Date:
08/31/2020

The amendments eliminate the requirement for an applicant for an easement or right-of-way agent to provide a photograph to the Commission.


Recently Proposed Rules

Rule Number
Rule Name
Consumer Information
Proposed Date
08/10/2020
Adopted Date
11/10/2020

The proposed amendment to the Consumer Protection Notice adds a statement to alert consumers that inspectors licensed by TREC are required to maintain errors and omissions insurance to cover losses arising from the performance of a real estate inspection in a negligent or incompetent manner.

Attachment(s)
Standard Contract form TREC No. 9‐13 (Unimproved Property Contract)
Proposed Date
08/10/2020
Adopted Date
11/10/2020

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, 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 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.

Standard Contract form TREC No. 20‐14 (One to Four Family Residential Contract (Resale))
Proposed Date
08/10/2020
Adopted Date
11/10/2020

See description of changes above under §537.20.

Standard Contract form TREC No. 23‐15 (New Home Contract (Incomplete Construction))
Proposed Date
08/10/2020
Adopted Date
11/10/2020

See description of changes above under §537.20.

Standard Contract form TREC No. 24‐15 (New Home Contract (Completed Construction))
Proposed Date
08/10/2020
Adopted Date
11/10/2020

See description of changes above under §537.20.

Standard Contract form TREC No. 25‐12 (Farm and Ranch Contract)
Proposed Date
08/10/2020
Adopted Date
11/10/2020

See description of changes above under §537.20.

Standard Contract form TREC No. 30‐13 (Residential Condominium Contract (Resale)
Proposed Date
08/10/2020
Adopted Date
11/10/2020

See description of changes above under §537.20.

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

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.

Standard Contract form TREC No. 51‐0 (Addendum Regarding Residential Leases)
Proposed Date
08/10/2020
Adopted Date
11/10/2020

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 exiting leases, or conveyance of interest in the property.

Standard Contract form TREC No. 52‐0 (Addendum Regarding Fixture Leases)
Proposed Date
08/10/2020
Adopted Date
11/10/2020

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.