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TREC Enforcement

Make Sure Paragraph 21 is Filled Out

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!

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

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.

What Texas Inspectors Should Know About TREC Complaints

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.

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

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.

New Process to Streamline Advertising Complaints

Around 1% of Texas Real Estate Commission license holders are the subject of a complaint, and in 2022, slightly more than 5% of all complaints received by TREC were related to advertising issues.

Many advertising-related complaints can be handled easily, from adding missing brokerage information on for sale signs to adding missing required links on a license holder’s website. Because of these simple remedies, TREC is launching the Advertising Compliance Program, which will streamline the processing of complaints that deal only with advertising violations.