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TREC's Houston Highlights: Changes to Broker Responsibility & Inspection Reports, 'Lookback Period' Soon to End, Comment Now on Proposed Changes

To reach more license holders, the Texas Real Estate Commission broke away from its Austin headquarters for the first time ever to meet in Houston on May 16. It was TREC’s second meeting of 2023. There were more than 80 attendees.

Welcoming New Commissioners, Thanking the Outgoing

TREC’s Chair, Scott Kesner, opened the meeting with a welcome to TREC’s newest Commissioners: Chance Brown, Renee Harvey Lowe, and Stuart Bernstein.

What Consumers Should Know About Texas Property Inspections

In a seller’s market, buyers may be tempted to waive an inspection entirely, or hire an inspector to do a walkthrough inspection of their ideal home to point out problems while the buyers take notes.

In a buyer’s market, sellers might think getting a similar inspection will make their listing stand out by disclosing information up front, so buyers will know what to expect.

Revised Forms Available for Voluntary Use, Mandatory Use Begins February 1, 2023

The form revisions adopted by the Texas Real Estate Commission in early November are now available for voluntary use until February 1, 2023, when their use becomes mandatory. The only exception is the revised Notice to Prospective Buyer (TREC 57-0) form, which will remain a voluntary use form.

Comment on Proposed Rule Changes by December 25: Unauthorized Practice of Law, Using the Standard Inspection Report Form

During the November TREC Meeting, the Commission proposed two rule amendments and one new rule. The Texas Real Estate Inspector Committee recommended the proposal of amendments to 535.223, Standard Inspection Report Form. The Unauthorized Practice of Law Working group recommended a new rule, 537.1, Definitions, and amendments to Section 537.11, use of Standard Contract Forms.

TREC Adopts Revised Forms, Proposes Rule Changes to Clarify the Unauthorized Practice of Law

The Texas Real Estate Commission met November 7 and received updates from advisory committees and staff, adopted revised forms, and proposed revisions to rules related to the inspection form and the unauthorized practice of law. Here are a few key takeaways from the meeting.

Appointments Made to ESAC, TREIC

The Commission appointed the following individuals to serve on the Education Standards Advisory Committee (ESAC):

Did You Comment on Proposed TREC Form Changes? Don’t Miss This Meeting

In August, the Texas Real Estate Commission proposed changes to several TREC forms based on recommendations by the Texas Real Estate Broker-Lawyer Committee (BLC). TREC received 123 public comments about the changes, which BLC will review and consider during its upcoming meeting on Friday, October 14.

Do You Really Have to Provide a Flood Disclosure for Temporary Residential Leases?

Yes. A bill passed during the 87th Texas Legislative Session does not generally exempt landlords of temporary residential leases from providing a disclosure notice about whether the landlord is aware that the dwelling is located in a 100‐year floodplain or that the dwelling has flooded within the last five years.

Broker Responsibility Working Group Recommends Response Times for Brokers and Sales Agents, Increased Oversight of Sales Agents’ First-Time Brokerage Activity

The Broker Responsibility Working Group (BRWG) met April 13 and made two proposed recommendations that will be discussed during the next TREC Workshop on May 3. Feedback from the TREC Workshop discussion will be part of the next BRWG meeting in July.