Is the absence of gutters a defect and required reporting item per TREC? The Standards of Practice require inspectors to report as deficient the lack of a 1-3/8 solid wood or fire-rated door between a house and garage. 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. She didnt state that she sold it but an average person reading the card could surely and reasonably imply an erroneous claim of involvement. It is not a violation of TRELA or the Rules for a license holder to rebate a portion of the license holders commission to a party to a real estate transaction. Also, new 22 TAC 535.120 will create a new regulation in order to provide greater consumer protection through clarity to license holders regarding conducting licensed activity while on an inactive license status. [TRELA 1101.355(c)]. Must a person be licensed to locate apartment units for prospective tenants and be paid by the owner of the apartments? No. If the individual was only acting in one capacity, you should file the complaint with the agency that regulates that function. If it does, TREC will ask you to provide a copy of the Order of Expungment or Non-disclosure and upon receipt will not consider that offense in determining a person's fitness for licensure. The foreign broker must either associate with a Texas broker who handles all the negotiations and other acts that require a license in Texas, including showing the brokers listings or soliciting listing of real property, or obtain a Texas real estate license. Additionally, in the New Home Contract (Incomplete Construction), the Sellers Disclosures paragraph has been amended to: (i) add checkboxes to each disclosure item to indicate whether the seller is or is not aware; and (ii) add two additional disclosures relating to whether the property is located in a floodplain or if any tree located on the property has oak wilt. 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. What is the estimated time frame to process an Fitness Determination (FD) form? [Rule 535.154(a)(5)]. Another name that indicates a brokers line of business, e.g. [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. Does this mean that the contract is invalid or void? , or TREC rules. An active real estate license is required to negotiate a real estate transaction between third parties. However, the license holder should verify that the giveaway is not considered an illegal lottery under Sections 47.01(7) & 47.03(5) of the Texas Penal Code. The sponsoring broker is still responsible for the sales agent's actions, even when the sales agent does not work out of the brokers main office. Although entering a name into a drawing may not have a cost associated with it, whoever won the drawing would be receiving valuable consideration. In cases such as this, the listing broker still needs to present the offer to the seller. A rental agent who solicits a prospect by phone must be licensed. It could be. For example, if the owner is a parent corporation, an employee of a subsidiary corporation selling for the parent corporation would need to have a license. A notice is added that states the form is designed for use in sales of existing farms or ranches of any size, and that its not for use in complex transactions. Do the Standards of Practice require inspectors to report as deficient a plumbing fixture that does not fully drain, retaining a slight amount (such as a few cups) of residual water? No. The proposed change to 535.54 reflects the proposed repeal of 535.93. The intermediary is prohibited from acting so as to favor one principal over the other, and may not reveal confidential information obtained from one principal without the written instructions of that principal, unless disclosure is required by TRELA, court order, or the information materially relates to the condition of the property. [See 535.2(g),535.154, and 535.155 (effective May 15, 2018); TRELA 1101.652(b)(23)]. No. No. Additionally, such advertising may also be in violation of the Structural Pest Control Service advertising rules. Do I need a license to sell or lease cemetery lots? These licenses are issued by the Texas Structural Pest Control Service of the Texas Department of Agriculture at www.texasagriculture.gov. When the real property concerned is located wholly or partly in Texas, the broker must obtain a Texas license or associate with a Texas broker. Information regarding fire ratings of doors is often obscured by paint. If the broker does not appoint associated license holders to represent the buyer and seller respectively, then the broker and/or agent may not offer advice and opinions relevant to the real estate transaction to either party and must not favor one principal in the transaction over the other principal. Paragraph 3 is amended to add that a note must be secured by vendors and deed of trust liens only if required by the buyers lender. [Rule 535.155 (effective May 15, 2018)] You may advertise an inspectors services, however, an inspector may not pay a fee or other valuable consideration for (1) a referral, (2) inclusion on a list of inspectors or preferred providers, or a similar arrangement; or (3) inclusion on a list of inspections contingent on other financial agreements. Now we have changed our minds and don't want to buy the house after all. It is important to remember that there will always be a single intermediary broker even if another license holder has been authorized to make the specific appointments. If your sponsoring broker is unable to help you with your questions about a Texas Association of Realtors (TAR) listing agreement form, you can direct your questions to TAR. No, TREC does not have the authority to require a license holder to pay another person for monetary damages. Can I find out online if there have been any disciplinary actions against an agent? [TRELA 1101.652(b)(23) and Rule 535.155(d)(7)], Yes. Unless specifically indicated otherwise, the Standards of Practice only address items that are present at the time of the inspection. Become Licensed You'll need to know TRELA in and out, first for the licensing exam and then for your work in the industry afterward! Yes. The Commission members have instructed the staff to enforce the law vigorously. The Standards of Practice do not address tamper-resistant receptacles. Does a broker have to supervise the daily activities of a sales agent? Now, such instructors can provide documentation within the instructors current license period for a course taught within that same term. [Rule 535.5(d).] Click on the "Manage my Sponsorship (Sales)" and click on the "Select" tab. The person may not use the power of attorney to engage in more than three real estate transactions per calendar year. If the broker refuses to release you from your buyer representation agreement, you should seek the advice of a private attorney. Only with appropriate disclosure and consent. [TRELA 1101.803, Rule 535.2(a)] A sales agent may not lawfully engage in brokerage activity unless the sales agent is associated with, and acting for, a sponsoring broker at all times. I am renewing my license for the first time. TREC is unable to advise you on private contractual matters. As copper gas line material is only a concern in areas where there may be corrosive additives in the gas supply, the presence of copper gas line material is not required to be reported as deficient. Criminal Penalty for Certain Violations by Broker, Sales Agent, or Certificate Holder. I am not currently performing inspections, but I'd like to maintain my license. Would it be permissible to use a promulgated contract form as a contract for deed or contract of sale by making appropriate changes in Paragraph 11? 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. The entity must have a designated broker through whom all transactions must be handled and whois responsible for the entity's (and any sponsored sales agents) actions. To determine how many hours have posted to your license record, you can visit our license holder search. I have moved my sponsorship to a new broker, can my prior sponsoring broker pay me a commission directly for a transaction or referral? Can I perform mold inspections under my TREC inspector license? Failing to timely notify may result in more severe or further disciplinary action. Section 535.228(c)(3)(D) of the Standards of Practice requires inspectors to report as deficient deficiencies in flashing details. Otherwise, the guide needs to be licensed in accordance with 1101.002(1) of TRELA. There is no requirement that a phone number or email address included in an advertisement belong to the broker. Will advising the client to place a climbable object (such as the chest) supersede the need to identify the item as deficient? If the transaction concerns a residential lease of less than one year and a sale is not being considered, the locator is not required to provide the tenant with a copy of the statutory information about agency (Information about Brokerage Services). [Rule 535.146(b)(1)]. The Statute of Frauds, as defined by Chapter 26 of the Business and Commerce Code, requires that certain agreements be reduced to writing to be enforceable. 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. A TREC licensed inspector may perform inspections on commercial property, as long as no other laws prohibit the inspector from doing so (please check with the Texas Board of Professional Engineering to determine when a Professional Engineer license is required). A properly constructed and properly functioning bathtub or shower should drain virtually all water (with the exception of minimal amounts that remain due to the surface tension of the water). The Commission can issue an order revoking the license of a locator found to have engaged in this practice. Is the absence of combustion air in the bottom of the closet a required reporting deficiency? Subsection (d)(1) is is removed to account for the scenario whereby an inspector renews the inspectors license after the licenses expiration date. The second proposed change is found in 535.2(j). What about a buyer? The Standards of Practice do not address insulating covers or blankets on water heaters. Please see TREC rule 537.28 for changes that apply to all contract forms. The proposed change in now subsection (c)(2)(D) corrects a rule reference. If the individual was acting in both capacities, you could file a complaint with both TREC and Texas Department of Savings and Mortgage Lending. However, you should consult with a private attorney for advice on this matter. These course approval form revisions were recommended by the Education Standards Advisory Committee. TREC does not have jurisdiction over title companies. The rules also include corresponding contract forms adopted by reference. IABS 1-0, that license holders must use to comply with the statute. Is this legal? My corporation owns property. Like a listing agreement, the buyer representation agreement must be in writing and signed by the buyer to be binding. TREC contract forms require the buyer to deliver any earnest money to the escrow agent. TREC does not have the authority to require a broker to release you from a listing agreement. No. Subsection(a) of 22 TAC 535.208 is being amended to correct a typographical error in the subsection. TREC is unable to advise you in private contractual matters. You can contact them at www.dshs.texas.gov/mold for information on the requirements to obtain a license to inspect for mold. The termination option is a negotiable contract term. The name on your government issued photo ID must match the name on your real estate license application. Can I just leave both boxes in Paragraph 7D of the One to Four Family Residential Contract (Resale) blank or can I check 7D 2 and write in repairs to be listed following inspection? In what type of account should a security deposit be placed? TREC does not consider URLs or email addresses to be advertisements in and of themselves. Does TREC consider a logo that contains the brokers full name sufficient for the broker name requirement? Can an associated broker refer to himself or herself as a "broker" in an advertisement? [Rule 535.155(b)(1)]. Request inactive status by following the steps below: If you prefer, you can also submit the Application for Inactive Broker or Sales Agent Status form by email. 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. Can I be paid a commission or referral fee if my license is inactive or expired? Language is also added to specify whether the escrow account will or will not be services by a third-party servicer at either the buyers or sellers expense. TREC is unable to advise you on how to fill out a private contract form. [Rule 535.147(d)]. Can an individual sales agent use an assumed business name in advertising? The damage from the termites has cost me thousands of dollars to repair. See also Chapter 209, Property Code. Does TREC have an improved commercial earnest money contract form? Section 535.228(d)(1)(B) requires an inspector to report approximate average depth of attic insulation. We are unable to prescribe a certain "level of precision that would satisfy this requirement; any of the examples you presented would satisfy the requirement to report the depth of insulation, as long as they accurately reflect the conditions. Can a license holder offer to enter an unlicensed person in a drawing to win a cruise for referring a potential lessee or buyer? We also accept copies of tax records which indicate ownership. If the inspection you are proposing relates to a purchase or sale transaction, then TREC's Standards of Practice would apply, and a written report would be required. These Acts establish the makeup of the Commission and its advisory committeesand outline procedures by which a person can become real estate license holders in Texas. If you are a member, TAR may have a form that fits your needs. A resolution, minutes or other official record of the business entity. The absence of an anti-entrapment cover in a spa is not a required reporting item. Section 535.228(h)(1)(B) of the Standards of Practice requires inspectors to report deficiencies in steps, stairways, landings, guardrails, and handrails as deficient. [TRELA 1101.652(b)(11)]. After becoming licensed as a sales agent, the attorney can review the education and experience requirements for becoming a real estate broker. No. Additional information about the two recovery accounts maintained by TREC are on our website. Conducting Paragraph 2.A adds the term Counties to reflect the fact that farm and ranch properties could be located across two or more counties. Can a broker share a commission or other compensation with an attorney when the attorney is a principal in the transaction? No. Paragraph 9.B(3) is amended to add the transfer of any warranties to correspond with the change in Paragraph 7F. (4) as an attachment to an email or as a link in the body of an email so long as there is a specific reference to the IABS Form in the body of the email. [See 535.2(i)(6)]. The Addendum for Property Subject to Mandatory Membership in a Property Owners Association is amended to except prepaid regular periodic maintenance fees, assessments, or dues from the buyers obligation to pay any and fees associated with the transfer of the property not to exceed a certain amount, and the seller pays the excess. I am a seller and I signed a contract with a buyer. Yes. The real estate brokerage referral business, commonly called a Limited Function Referral Office (LFRO), must have a business entity brokerage license because the business is assisting in procuring property or clients to effect the sale, exchange, or lease of real estate [TRELA 1101.001(A)(viii) and (ix)]. [Rule 535.32]. No. My brother-in-law says I might be able to recover a judgment. To determine how many hours have posted to your license record, you may visit the license holder info search feature on our website. The Addendum for Reservation of Oil, Gas, and Other Minerals is also amended to replace the phrase reserve and retain implied with waive in Paragraph C. The term current is added to contact information in Paragraph D. The amendments and new rule to Chapter 537 are made as a result of the Commissions quadrennial rule review. Is the inspector required to inspect to trade or industry association standards? In order to mirror the format of 535.216 (which relates to inspectors), the relevant language of 535.93 has been added to 535.91. If you prefer, you can also submit the Change of Main Address form by email. Keep in mind that the associated broker registers the assumed business name that is used when they are not associating with another broker and the broker that they are associating with registers the team name being used when associating with that broker. There are two additional amendments that were recommended by the BRWG. The proposed repeal of certain language in 535.213 reflects the expiration of this sectionby rule. Rule 535.146(b)(2) prohibits a sales agent from having an escrow account. You cannot use either company name because each implies that Sally, a sales agent, is in charge. They are only required to conduct a visual inspection of the property, and buried gas lines are not required to be inspected. However, if you pay the seller an agreed option fee, you have the unrestricted right to terminate the contract for any reason if you give written notice to the seller during the option period. Section 535.228(c)(3) of the Standards of Practice do require inspectors to report as a deficiency a starter course tab that is not sealed material. Yes, if the real estate business entity holds a real estate license and the sales agent is sponsored by that entity. The rules also include corresponding contract forms adopted by reference. Do the Standards of Practice require inspectors to determine the headroom clearance on stairs or to report inadequate clearance as a deficiency? 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. The rules also include corresponding contract forms adopted by reference. The Residential Condominium Contract also contains the following additional changes: 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. In addition, once an owner of a manufactured home has completed the detailed TDHCA process to treat the manufactured home as real property, the TDHCA licensing requirement does not apply to a TREC license holder. Does the designated broker own 10% or more of a licensed business entity if the designated broker owns 10% or more of another business entity that owns 100% of the licensed business entity? [TRELA 1101.351(c)], Yes, as long as the broker has the legal authority to use that name in the State of Texas and it is registered with TREC before it is used in advertisements. Is a real estate license necessary in order to be an apartment locator? It resides in Title 7 Chapter 1101 of the Texas Occupations Code. Finally, subsection (i) is removed to more appropriately reflect agency practice and jurisdiction. TREC requires licensure if the person seeks or has an expectation of compensation for offering to locate a unit in an apartment complex to a prospective tenant. . What is proof of legal authority to use an assumed business name in Texas? In general, the buyer's promise to buy and the seller's promise to sell is consideration. New paragraph 9.B(5) provides that private transfer fees will be the obligation of the seller, unless otherwise provided in this contract. Am I required to complete the Legal Update I and Legal Update II courses? When a broker holds money from property management activities in a trust account, how often is a broker required to account for that money? [Rule 535.141(c) and (d)] A business entity can only provide the proper supervision by the personal involvement of the broker or by the brokers delegation to a qualified supervisor. Any name used by an individual sales agent, other than the name on the license or a registered alternate name, is considered a team name under TREC rules and must meet the team name requirements. If the permission is given over the telephone, for example, the license holder should document who gave the permission and how it was given in case that information is later requested by TREC in connection with a complaint. Yes, but with limitations. Yes. TREC leaves the determination of "similar" names to the Secretary of State's rules or to common law remedies. Paragraph 5D provides "If no dollar amount is stated as the Option Fee or if Buyer fails to deliver the Option Fee within the time required, Buyer shall not have the unrestricted right to terminate this contract under this paragraph 5.".

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