TREC Enforcement Division

Make Sure Paragraph 21 is Filled Out

Submitted by Christine Anderson on Thu, 2018-08-16 15:15

The One to Four Family Residential Contract (Resale), like many contracts, contains a “Notices” provision. In that TREC contract, the provision is in Paragraph 21. This needs to be filled out so the parties know where a notice should be sent or delivered to be effective. A license holder should remind their client how important this provision is and ensure, to the extent possible, that it gets filled out fully and accurately.

Do You Advertise Your Business? Read This!

Submitted by Christine Anderson on Thu, 2017-11-30 11:45

Texas Real Estate Commission adopted new advertising rules at its November meeting. These rules are effective as of May 15, 2018, which gives license holders 6 months to comply with the updated requirements.
§535.154 lays out alternate, assumed business and team name registration requirements and §535.155 lays out the revised advertising requirements. You can read both rules on our website.

Reporting Visible and Present Indications of Adverse Performance in a Foundation

Submitted by Christine Anderson on Thu, 2017-06-01 10:58

Section 535.228(a) of the Texas Administrative Code (Foundations) requires an inspector to render a written opinion as to the performance of the foundation. Many inspectors understand this to mean one of two things; the foundation is either performing or it is not performing. But sometimes the inspector is unable to determine this with sufficient confidence.

Residential Service Companies (Home Warranties)

Residential Service Companies, more commonly known as Home Warranty Companies, are licensed by Texas Department of Licensing and Regulation (TDLR) as part of its Service Contract Providers program. These companies offer residential service contracts (also known as home warranties) to consumers for services related to the mechanical failure or failure of an appliance or household system due to normal wear and tear of an appliance or household system. These contracts are typically offered at the point of sale of a home.

Working for Multiple Brokerages: What Transaction Coordinators and Showing Agents Are Allowed to Do in Texas

Submitted by Summer Mandell on Tue, 2024-11-12 13:15

The Real Estate License Act (TRELA) says a licensed sales agent may not engage in real estate brokerage activity unless that sales agent is sponsored by a licensed broker and is acting for that broker.

In Texas, transaction coordinators and showing agents are frequently used by brokerages as part of their business model, but sometimes these models entail working for other brokerages. Here is what “acting for” your broker means in these situations.

Who is My Client When a Third Party is Paying for the Inspection?

Submitted by Summer Mandell on Tue, 2024-11-12 11:30

When a third party, such as a relative or real estate agent, is paying for an inspection, does this mean the third party is the client? Under TREC rules, the answer is no. Another person paying for the inspection on behalf of the client does not change who the inspector's client is for this transaction. The inspection report should be delivered to the client, regardless of who pays for the inspection.

Watch Out for Rental Fraud Scams in Texas

Submitted by Sierra Pizarro on Fri, 2024-05-24 12:58

They are still happening: Real estate leasing scams continue to pose a threat to property owners in Texas, especially in the greater Houston area, prompting the Texas Real Estate Commission (TREC) to issue warnings such as this press release sent to more than a dozen news outlets—most of them based in the southeastern part of the state—including The Houston Chronicle,

What Texas Inspectors Should Know About TREC Complaints

Submitted by Sierra Pizarro on Fri, 2024-04-26 13:05

The Texas Real Estate Commission’s Enforcement Division has 37 people—10 attorneys, legal assistants, and investigators. They enforce the laws and rules that regulate real estate brokers, sales agents, real estate inspectors, and timeshare plans, through the investigation of consumer complaints. They also review the fitness of an applicant for licensure.

The only way enforcement can initiate an investigation is through a filed complaint, which can be done by anyone.

I discovered the appliance gas connector was missing while inspecting the gas range. Should I report this in Section IV. Plumbing Systems or Section V. Appliances in the Property Inspection Report form (REI 7-6)?

88th Texas Legislative Session Update, and the Impact on License Holders

Submitted by Sierra Pizarro on Sat, 2023-05-27 10:24

The 88th Texas Legislature, Regular Session, began January 10, 2023, and ends May 29, 2023. This session opened with the Texas Real Estate Commission (TREC) and Texas Appraiser Licensing Board (TALCB) following 358 bills relevant to the administration of the agency. A much smaller number will become law, one of relevance to Texas real estate license holders.

Texas Real Estate Commission

TREC

TREC