Real estate inspectors licensed in Texas are required to follow the Standards of Practice (SOPs). These SOPs define the minimum requirements for a real estate inspection performed for a prospective buyer or seller of one to four family dwelling. Changes to the SOPs were adopted at the August TREC Commission Meeting and are effective February 1, 2022.

Changes to the general provisions now:

TREC’s Broker-Lawyer Committee met January 14 to discuss public comments and potential changes to the Farm and Ranch Contract and other contract forms. Here are some takeaways from the meeting.

The Texas Real Estate Inspector Committee met January 18, 2022. Three new officers were elected to serve in committee leadership:

• Shawn Emerick, chair
• Scott Regan, vice chair
• Steven Rhinehart, secretary

The committee also made two subcommittee appointments:

The Education Standards Advisory Committee (ESAC) met January 3 and discussed potential courses and appointed new leadership.

New Committee Officers

The committee appointed three new officers to serve through 2022:

The Broker Responsibility Working Group met January 12, 2022, to discuss property management practices, public comments, and broker oversight in new agent transactions. Here is a recap of the group’s discussion.

The Texas Real Estate Commission (TREC) is conducting a study on wholesaling and seeking input from consumers, wholesalers, and license holders. Wholesaling is a model where a person enters into a contract to buy real estate and then sells their contractual interest in the property to a third party prior to closing. Take this anonymous survey to help the agency as it examines wholesaling practices and consumer protection measures. The survey should take about five minutes to complete.

We have published the video of the November 2021 "Coffee with the Commission" session. Chair Scott Kesner and Executive Director, Chelsea Buchholtz discussed all the latest from the November Commission meeting and what is coming for 2022.

During the November quarterly Commission meeting, several rule changes were proposed and adopted. See the full agenda and materials on the Commission Meetings and Minutes page. The next Commission meeting is scheduled for February 14, 2022 at 10:00 a.m.

Proposed Rules

There may be instances where a client wants to add language to a real estate contract. In a “hot market,” it is not uncommon for a buyer to want an escalation clause added to the contract (for example, language stating the buyer will pay “X amount more than the highest offer if other offers are present”). Typically, an escalation clause such as this will be added to “Paragraph 11, Special Provisions” (which is reserved for factual statements and business details) of the One to Four Family Residential Contract, but it might also be drafted as an addendum to the contract. 

The Texas Real Estate Commission recently adopted changes to the real estate inspector Standards of Practice (SOPs) at its August 9, 2021 meeting based on recommendations from the Texas Real Estate Inspector Committee. These changes are not effective until February 1, 2022. This six-month period will provide inspectors the time necessary to familiarize themselves with the updated SOPs prior to their mandatory use on February 1, 2022.