The proposed changes update terminology for consistency and clarity throughout the chapter. Conducting
TREC attorneys can provide general advice about the applicability or interpretation of the provisions of The Real Estate License Act and TREC Rules but cannot, with few exceptions, give advice pertaining to specific matters or transactions, other laws, or civil matters. Is a broker responsible for the actions of a sales agent who owns his or her own real estate business entity? Pursuant to Section 535.227(a)(1) of the Standards of Practice, inspectors are not required to move appliances in order to inspect behind them. I am a 25% stockholder in a corporation that holds title to a number of investment properties. Shouldnt the inspector have noted this problem on his report? As long as the attorney is licensed in Texas, they are exempt from the licensure requirements. The Standards of Practice do not require double-cylinder deadbolts to be reported as deficient unless such a deadbolt would impede functional emergency escape from a sleeping room. The proposed amendments to 535.91 eliminate the lookback period currently found in 535.93, which allows a license holder to renew after the expiration date of their license without any lapse in active licensure, as long as certain certifications are made. Yes, within certain limitations. Otherwise, the guide needs to be licensed in accordance with 1101.002(1) of TRELA. On page 10 of the Contract, the statement Do not sign if there is a separate written agreement for payment of Brokers fees is being modified to make it more conspicuous.
Texas Occupations Code Chapter 1101 - Real Estate Brokers and Sales Agents Does TREC consider a roof with roofing felt ending short of the drip edge and the rake not overlapped over the drip edge a required reporting deficiency? Finally, the amended language adds that the paragraph does not apply to a fee that is not imposed by the Association even if it is collected by the Association for the benefit of a third party. [Rule 535.155(b)(1)], Yes. I think my inspector was negligent in performing the inspection. Placement of signs in violation of city ordinance could be considered an act of negligence or incompetence that authorizes disciplinary action against the license holder as well as subject the license holder and possibly even their principal to enforcement actions by the appropriate authorities. Yes. Yes. As a licensed inspector I would like to advertise that my company performs wood destroying insect inspections. These may be found on our website about Rules Governing Inspectors. Can a sales agent have an escrow account? It appears that the inspector who inspected my home before my purchase missed major termite infestation. No. You should consult with a private attorney to determine whether you have a claim and what deadlines may apply to your claim. The Standards of Practice do not establish a minimum headroom clearance height. Can you explain the terms to me? Of note, subsection (d)(2) provides that it is not the practice of law to add language to or strike language from a contract form, if specifically instructed in writing by a principal, as long as any change is made conspicuous, including underlining additions, striking through deletions, or employing some other method which clearly indicates the change being made. Section 535.231(a)(3)(A) states that inspectors are not required to operate any main, branch, or shut-off valves. If the individual is acting in both capacities, he or she should have informed you in writing and obtained your consent before receiving any compensation from another party involved in the transaction. The proposed repeal of 535.212reflects the expiration of this section by rule. Those rules prohibit a license holder from adding anything except factual matters or business details to a form adopted by TREC for mandatory use. The name on your government issued photo ID must match the name on your real estate license application. The lack of a damper clamp is required to be reported as a deficiency when a gas appliance or artificial gas logs (but not merely a log lighter pipe) is present. As an inspector, when do I have to show proof of E&O insurance? Practicing real estate without an active license is a criminal offense, specifically, a Class A misdemeanor punishable by confinement of up to one year in a county jail and a fine of up to $4,000. The Certificate of Filing must show that the business entity is a registered series of the business entity listed on the Franchise Tax Account Status page. Please see TREC rule 537.28 for changes that apply to all contract forms. A sales agent may not accept compensation for a real estate transaction from anyone other than the broker the sales agent was associated with at the time the commission was earned and may not pay a commission to a person except through the sales agents sponsoring broker. You can ask the broker to release you from the buyer representation agreement. Rule 535.153 states that 1101.652(b)(22) of TRELA does not prohibit a license holder from soliciting a listing from the owner while the owner's property is subject to an exclusive listing with another broker, provided the listing does not commence until after the current listing expires. We tried to buy a house but our loan application was not approved. See question regarding the difference between the types of names to figure out which one is appropriate for your situation. After that period, comments can be made in person at the next Commission meeting. [Rule 535.154(a)(5)]. The changes to the existing rules add the title of the form adopted by reference in each rule to the rule title and add clarifying language to specify which forms are for mandatory versus voluntary use by license holders. None of the forms promulgated by TREC are intended for use as a contract for deed. A buyer representation agreement is intended to be a legal and binding contract. A broker may authorize another license holder to withdraw or transfer money from a trust account. In what type of account should a security deposit be placed? Additional information about the two recovery accounts maintained by TREC are on our website. Do I need a license to act as an on-site manager of an apartment complex? On my inspection report, the inspector reported certain things in the house as safety hazards or code violations. Inspectors are not required to determine utility sources or to research codes and ordinances related to this issue. What is the required information that must be provided in advertisements such as signs, email and business cards? Can a sales agent be the owner of a property management company? A key distinction between a limited function referral office and another brokerage is the agreement between the agent and the broker to limit the agents actions to generating referrals. What is the definition of an accepted industry practice? However, if you are not a member of TAR, you should have an attorney draft the necessary documents. If a broker maintains a trust account, it must be clearly identified as a trust account. Neither I nor anyone in my company is a licensed wood destroying insect inspector, but we recommend or provide one if requested by the client. Section 535.228(c)(3)(D) of the Standards of Practice requires inspectors to report as deficient deficiencies in flashing details. A license holder is not required to provide the statutory written statement at the open house. However, you should consult with a private attorney for advice on this matter. A license holder who makes a knowing misrepresentation or fails to disclose a latent defect can be disciplined by the Commission. [TRELA 1101.702] The Commission may also issue a cease and desist order. Does the buyer have to deliver the earnest money to the escrow agent for a contract to be binding? The proposed change to 535.55 regarding the real estate brokerage course requirement will not increase the overall education hours, but will require a specific course be taken and in a majority of cases, will also result in a real estate broker license applicant having to take the course twice if the rule is ultimately adopted. If installed and if visible, the installation described in your question is required to be reported as a deficiency. [TRELA 1101.558], Yes, if the assumed business name of the associated broker meets the requirements for a team name since a team name must be used when the associated broker is associating with another broker. Can a license holder offer or pay cash to an unlicensed person for referring a potential lessee or buyer? Paragraph 3 is amended to add a definition of cash portion of the sales price.. [Rule 535.144(b)] The disclosure is required even if the license holder is on inactive status. [Rule 535.2(e)] However, the broker remains responsible for the authorized acts of the brokers sales agents [TRELA 1101.803, Rule 535.2(a) ] and has many affirmative duties regarding written policies, record keeping and advising, training, approving advertising for and responding to sales agents. You should direct your questions to your sponsoring broker. Exam results for each section of the exam are valid for one year from the passing date. Is a starter course tab that is not sealed material, deficient and a required reporting item per TREC? You should contact a private attorney if you have any questions about extending a listing agreement. What are the agency disclosure requirements for a real estate license holder? No. Is the absence of combustion air in the bottom of the closet a required reporting deficiency? A Certificate of Insurance form (promulgated by TREC), signed by the insurance agent, must be filed with TREC at the time the license is issued and with each renewal of the license. TREC contract forms require the buyer to deliver any earnest money to the escrow agent. [TRELA 1101.652(b)(1)] Typically, sign ordinances prohibit placing a sign on a utility pole, traffic signal box, or in a road median. TREC Adopts Changes to Inspection Report Rule, Proposes Rule Changes Related to Unauthorized Practice of Law, Broker Responsibility, Education Requirements, License Renewal, and More The Texas Real Estate Commission met February 13 in Austin. Theproposed amendments to Chapter 535 are made as a result of the Commissions quadrennial rule review. The Loan Assumption Addendum contains the following amendments: The changes to the existing rules add the title of the form adopted by reference in each rule to the rule title and add clarifying language to specify which forms are for mandatory versus voluntary use by license holders. Whena broker maintains a trust account, documentary records of each deposit or withdrawal for that account must be retained for four years. If I am buying, selling or leasing property for a relative, do I need to disclose that I have a real estate license? Subsections (b) (d) provide further guidance to license holders and members of the public on what the Commission considers to be the unauthorized practice of law. Can I broker real estate located in another state? Under these proposed changes, a license holder who late renews (meaning no later than 6 months after the expiration date) would automatically renew on inactive status. No, the permission may be in writing or oral. [Rule 535.220(e)(3)] Also, acceptance of a fee from a service provider may violate the Federal Real Estate Settlement Procedures Act (RESPA), which prohibits certain referral fees and kickbacks. [Rule 535.63(a)] To be eligible for a Texas license, an out-of-state license holder must meet all current Texas licensing requirements found on our website. TREC licensed inspectors are required to follow Standards of Practice when inspecting property. In cases such as this, the listing broker still needs to present the offer to the seller. The Commission does not have the authority to revoke or suspend a license holder that has been only charged or accused of committing a felony or criminal offense that involves fraud. Is TREC interested in compliance by residential rental locators? Another potential example of a misleading advertisement is a license holder who included a list of Recently Sold Homes in his advertisement that included many properties where he had no role in the transaction, but he failed to make it clear in the ad which if any of those transactions he was involved in. Your rights against the license holder may be subject to a two-year statute of limitations. In 22 TAC 535.67(c) and (d), the time period is being proposed to change from 15 to 14 days to be more consistent with other similar rules. [Rule 535.147(b)]. The amendments clarify that when multiple boxes are checked for a particular item on the report form, the inspector must also explain the reason for checking multiple boxes. [TRELA 1101.803, Rule 535.2(a)] Despite this flexibility, a sales agent may not lawfully engage in brokerage activity unless the sales agent is associated with, and acting for, the sponsoring broker at all times. TREC does not have jurisdiction over title companies. Can a sales agent receive or pay a commission to a party in a real estate transaction? Texas Appraiser Licensing and Certification Board immediately 2. In inspecting an attic with a powered ventilator, which is not required to be operated, the inspector should perform a visual inspection and consider the totality of the ventilation system. No. Does TREC have an improved commercial earnest money contract form? My brother-in-law says I might be able to recover a judgment. TREC leaves the determination of "similar" names to the Secretary of State's rules or to common law remedies. You may want to have a private attorney create a contract for you, or you may check with some of the inspector trade associations to see if they provide templates of pre-inspection contracts. Probably not. The link can also be "TREC Information About Brokerage Services," in at least 12 point font. The first proposed change is found in subsection (i)(5). Paragraph 18.B is amended to add that if no closing occurs, the escrow agent may require a written release of liability before releasing the earnest money. The History and Purpose of TRELA TRELA was originally passed in 1939 as the Real Estate Dealers License Act. My agent moved to another brokers office and I want them to continue to handle my listing. 25-15, Farm and Ranch Contract, Standard Contract Form TREC No. [Rule 535.155(b)(4) and TRELA 1101.652(b)(23)], Yes, as long as the size of the brokers name itself (not the whole logo) is at least the size of the largest contact information. [Rule 535.155(b)(3)]. Liability Relating to Hiv Infection or Aids.
What Is the Texas Real Estate Act (TRELA)? - AceableAgent Can I back out? A yes answer to the criminal questions on a reinstatement application requires an applicant to submit a Background History form along with copies of the offense court records and a written explanation. Unless an exception applies, a locator representing either party must disclose that representation on the first contact with the other party. The proposed additions to 22 TAC 535.65 are being made to clarify the timing requirements for execution of pre-enrollment agreements and certain distance education delivery requirements for providers.