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.

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.

22 TAC §535.62, Approval of Qualifying Courses

The changes to §535.62 are made as a result of the agency’s license management system project. First, because of this project, users will be able to provide information to the agency through an online process, rather than by submitting a paper form. As a result, rule language is clarified to reflect this change. Secondly, because of license management system project requirements, the changes to §535.62(g)(3) clarify that a course approved for additional delivery methods under subsection(a)(3) expires on the same date as that of the originally approved course.

22 TAC §535.61, Approval of Providers of Qualifying Courses

The changes to §535.61 are made as a result of the agency’s license management system project. Because of this project, users will be able to provide information to the agency through an online process, rather than by submitting a paper form. As a result, rule language is clarified to reflect this change.

Using a Drone to Inspect the Roof? Keep This In Mind

Submitted by Summer Mandell on Wed, 2025-02-19 15:32

Inspectors ask …

"Can I use a drone to inspect the roof instead of climbing it?"

Many inspectors have gotten into the habit of using a drone to inspect the roof instead of walking the roof. This could be problematic if they are not properly following the departure provisions.

TREC Rule 535.228(c)(2) states that an inspector is not required to inspect the roof from the roof level if, in the inspector's reasonable judgment:

Information About Brokerage Services (IABS) Form

The Information About Brokerage Services (IABS) form now clarifies to the consumer that any brokerage fees are not set by law and are negotiable. The new form is available for voluntary use until April 1, 2025, when its use becomes mandatory.

A Win for Protecting Texas Consumers

Submitted by Sierra Pizarro on Tue, 2024-12-10 15:05

After combing through 1,100 complaints during his 11-year tenure with the Commission, TREC Chief Investigator Roy Minton wins Investigator of the Year for a second time. The first win was in 2019. Both recognitions, by the Association of Real Estate License Law Officials (ARELLO), were given for Minton’s work in uncovering rental fraud.

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.

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