Starting in January 2024, license holders will have the option to register certain LLCs and S-Corps with the Texas Real Estate Commission to accept compensation. The registered entity cannot perform any other brokerage activity and must be 51% owned by the license holder on whose behalf the entity receives compensation. Read more details about the new business entity registration.
The Texas Real Estate Commission (TREC) met November 6 for its final quarterly meeting of 2023. TREC Chair Scott Kesner recognized a group of license holders who attended to earn Continuing Education (CE) credit. This was the first opportunity to earn CE credit by attending a quarterly TREC meeting under a rule change adopted by the Commission in August. Previously, license holders could only earn credit by attending the February TREC Meeting.
As of now, the only way a license holder can receive compensation through a business entity is by obtaining a business entity real estate broker license. Effective January 2024, license holders will have the option to register LLCs and S-Corporations (S-Corps) with TREC for the sole purpose of receiving compensation, as long as those entities meet certain requirements.
The Texas Real Estate Inspector Committee (TREIC) met on October 16 for the final meeting of the calendar year. This meeting marks the last meeting for multiple members on the committee. Steve Rinehart, Shawn Emerick, Keisha Moulton, and Dave Motley have graciously volunteered their time to help make the inspection industry better. Their contributions have been extremely valuable and greatly appreciated.
The Texas Real Estate Broker-Lawyer Committee (BLC) met October 13 and continued discussing possible revisions to contract forms and recommended one new form for proposal.
Under Texas law, if a seller’s property is located in a water district, like a municipal utility district (MUD), the seller must provide a notice that includes certain specific information to the buyer prior to execution of the contract.
The TREC Education Standards Advisory Committee (ESAC) met October 2 and discussed draft revisions to the Principles I and II course content. ESAC also discussed combining the Principles I and II courses into a single 60-hour Principles course and making this course a pre-requisite for the four additional pre-licensing courses. The committee asked staff to look into the feasibility of their recommendations and will continue discussion at the January 8, 2024 meeting.
Starting October 1, active license holders whose licenses expire will be set to inactive status as of the expiration date, and any license relationships to sales agents and/or brokers will be terminated.
If you late renew—up to six months after your expiration date—your license will be renewed on inactive status.
These changes were adopted during the May TREC Meeting.
Legislation passed by the 88th Texas Legislature requires the Texas Real Estate Commission to update two frequently used forms: the Consumer Protection Notice and the Seller’s Disclosure Notice.
What changed? It no longer references the real estate inspection recovery fund, which was repealed this session.
A bill passed by the 88th Texas Legislature requires all licensing agencies, including the Texas Real Estate Commission, to remove or redact certain details about applicants and current and past license holders in publicly available information, such as the TREC website license holder search or via public information requests.
A new rule effective earlier this summer sets a timeline of two calendar days to respond to parties to a real estate transaction you’re involved in. Here’s what you need to know.
535.157, Obligation to Respond Timely
June 11, 2023
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