No. ], Yes. Yes, as long as the church member who made the referral receives nothing that may be defined as valuable consideration from the church or the license holder. Additional information about the two recovery accounts maintained by TREC are on our website. 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. The listing broker can agree to reduce the commission if requested by the seller without violating the prohibition on splitting. [Rule 535.147(d)]. If someones criminal history has been expunged, can the information still appear on the background check? [Rule 535.147(d)]. The TREC requires all potential real estate licensees to complete 180 hours of education on real estate-related topics. Yes, but a locator will be required to first obtain the consent of the apartment complex if the locator does not represent the tenant. No. I am having a dispute with my Homeowner Association (HOA) regarding violating neighborhood restrictions. Section 1101.652(a)(7) of the License Act provides that if you have entered a plea of guilty or nolo contendere or have been convicted of a felony or any criminal offense that involves fraud (including misdemeanors), you must disclose this to the Commission not later than the 30th day after the final conviction or the entry of a plea of guilty or nolo contendere. [TRELA 1101.652(b)(9)] Further, paying an operating expense or making a withdrawal from a brokers trust account for any purpose other than proper disbursement of trust money is prima facie evidence of commingling. The license holder who offers to or actually pays cash to an unlicensed person for a referral is subject to disciplinary action. 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? [TRELA 1101.354(2)] Each applicant is evaluated individually and TRELA does not contain a list of crimes or number of crimes that would automatically disqualify an applicant from obtaining a license. The Texas Real Estate Licensing Act . This website provides both a means for HOAs to upload their management certificates to a central database and a means by which the public can search for and access the management certificates after they have been uploaded. I have a license in another state. A new required notices section is added to Paragraph 6, which provides one location where MUD, PID, or other similar notices that have been given or are attached to the contract can be listed. Can a license holder rebate a portion of the license holders commission to a church or other non-profit organization of the license holders choosing or one of the principals choosing? Is the inspector required to determine the presence of Chinese drywall? On my inspection report, the inspector reported certain things in the house as safety hazards or code violations. [Rule 535.32]. 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. Corporations and LLCs doing business in another state? 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. 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 license holder must disclose the fact that he or she represents a party upon the first contact with another party or a license holder representing another party. Is the inspector required to inspect to trade or industry association standards? [Rule 535.154(a)(5)]. If the license holder is an agent of the buyer, the license holder owes a fiduciary duty to the buyer. Written comments on proposed rulesare accepted for 30 days after publication in the Texas Register. The entity must designate an active Texas real estate broker to act on behalf of your company. The IABS Form can be provided by: The answer depends on what duties the property manager performs for the property owner. The standards of practice are not based on a specific requirement such as those promulgated by model building codes. The absence of an anti-entrapment cover in a spa is not a required reporting item. Associated broker means a broker who associates with and is paid through another broker under a relationship that is intended to be a continuous relationship, including but not limited to, an employment or ongoing independent contractor relationship. In 22 TAC 535.133, proposed changes are made to remove references to residency requirements, which were removed from Chapter 1101, Texas Occupations Code, as a result of the agencys most recent Sunset review. Can we get out of the deal? The proposed changes to 22 TAC 535.219 correct a reference to another rule. A broker may authorize another license holder to withdraw or transfer money from a trust account. You may want to call one of the tenant assistance associations for help or contact a private attorney. both the buyer and seller are presented with the Information About Brokerage Services by their respective sales agent at the time of the first substantive communication; the seller executes a Listing Agreement or other written document with the broker that authorizes the broker to act as intermediary and specifies in conspicuous bold or underlined print the conduct that is prohibited under TRELA 1101.651(d);and. 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. [TRELA 1101.654]. Information About Brokerage Services (IABS) & Consumer Protection Notice, Real Estate Recovery Trust Account and Fund, Tips for Posting the IABS and Consumer Protection Notice, Announcing The Application Status Tracker, Provider Exam Passage Rates for Inspectors, Real Estate Inspector Standards of Practice (SOP) - Online Version, Related Regulatory and Consumer Protection Groups, Residential Service Companies (Home Warranties), Become a Business Entity Real Estate Broker, Become a Professional Real Estate Inspector, Become an Easement or Right-of-Way Business, Exam Topic Reports for Sales Agents and Brokers, Inspector Standards of Practice Subcommittee, Prior to March 1, 2021 Professional Real Estate Inspector Requirements, Provider Exam Passage Rates for Sales Agents and Brokers, Renew Your Business Entity Real Estate Broker License, Renew Your Easement or Right-of-Way Agent Registration, Renew Your Easement or Right-of-Way Business Registration, Renewal of Qualifying Education (QE) Providers, Texas Real Estate Broker-Lawyer Committee, Texas Real Estate Inspector Examination Study Materials, TREC Advertisement Rule Review - What's In A Name, Application for Inactive Broker or Sales Agent Status, 2023 Purchase Orders and Contracts through 1/31/2023, Application for: Inactive Inspector Status, FY21 Public Funds Investment Act Compliance Audit, FY21 Purchase Orders/Contracts through 8/31/21, FY22 Accounting and Finance Processes Report, FY22 Purchase Orders/Contracts through 8/31/22, FY23 Public Funds Investment Act Compliance Audit, For Instructor Credit Certification of Instruction of Ride Along Inspection Substitute Experience Course Session, Real Estate Apprentice and Inspector Sponsorship Form, Sales Agent Apprentice Education (SAE) Cover Sheet, Qualifying Education Provider Application, Abbreviated Registration of a Timeshare Plan, Application for Inactive Real Estate Sales Agent License, Presale Authorization for a Timeshare Plan, Renewal of Inspector License-Timely or Expired Less Than Six Months, Inspector Continuing Education (CE) Course Application, Application for Real Estate Broker License by an Individual, Continuing Education (CE) Provider Application, Inspector Non-Elective CE Course Application, Application for Real Estate Sales Agent License by Current or Previous Broker, Continuing Education (CE) Provider Application Supplement, Education Provider Annual Fee Application, Reinstatement of Real Estate Sales Agent License or Broker License by Individual, Renewal of Individual Real Estate License-Timely or Expired Less Than Six Months, Change of Address for Inspector or Registrant, Affidavit in Lieu of Documentation and/or Signature, Affidavit in Support of Claim for Experience, Application for Apprentice Inspector License, Application for Broker to Return to Active Status, Application for Easement or Right-of-Way Agent Registration for a Business, Application for Easement or Right-of-Way Agent Registration for an Individual, Application for Order Directing Payment Out of the Real Estate Inspection Recovery Fund, Application for Order Directing Payment Out of the Real Estate Recovery Trust Account, Application for Professional Real Estate Inspector License, Application for Real Estate Broker License by a Business Entity, Application for Real Estate Inspector License, Application for: Inspector to Return to Active Status, Certificate of Insurance for a Broker Business Entity, Change of Designated Agent for an Easement or Right-of-Way Company, Change of Designated Broker for a Business Entity, Change of Main Address by Broker, Professional Inspector, Easement or Right-of-Way Registrant and/or Reprint of License, Change of Name for Inspector or Registrant, Consent to Service of Process (Corporation), Consent to Service of Process (Limited Liability Company), Consent to Service of Process (Partnership), Consent to Service of Process (Sales Agent or Individual Broker), Continuing Education (CE) Credit Request for an Out of State Course, For Continuing Education Credit Certification of Completion of Ride Along Inspection Continuing Education Course Session, Individual Continuing Education (CE) Elective Credit Request for State Bar Course, License Holder Change of Contact Information, Notice Concerning Easements and Rights-of-Way, Notice of Alternate Name Used by a Sales Agent or Broker License, Notice of Apprentice/Real Estate Inspector Termination, Notice of Assumed Business Name (DBA) for a Broker's License, Notice of Assumed Business Name or DBA for a Professional Real Estate Inspector or Real Estate Inspector's License, Qualifying Course Design and Delivery Criteria, Qualifying Real Estate Course Approval Form (Principles of Real Estate I - 30 hour course), Qualifying Real Estate Course Approval Form (Principles of Real Estate II - 30 hour course), Real Estate Continuing Education (CE) Course Application, Real Estate Non-Elective Continuing Education (CE) Course Application, Renewal Form for Easement or Right-of-Way Agent or Business, Renewal of Business Entity Broker License-Timely or Expired Less Than Six Months, Report Regarding Staff Compensation FY 2019, Report on Customer Service, submitted June 2016, Report on Customer Service, submitted May 2018, Supplement A-Qualifying Experience Report for a Broker License, Supplement B-Qualifying Experience Report for a Broker License After an Application has been Filed, Supplemental Form for Military Service Members, Military Veterans, and Military Spouses, Qualifying Real Estate Course Approval Form (Law of Agency - 30 hour course), Qualifying Real Estate Course Approval Form (Law of Contracts - 30 hour course), Distance Education Course Evaluation Form, Inspector Course Approval Form (Property and Building Inspection Module I), Qualifying Real Estate Course Approval Form (Real Estate Finance - 30 hour course), Inspector Course Approval Form (Property and Building Inspection Module II), Qualifying Real Estate Course Approval Form (Promulgated Contract Forms - 30 hour course), Inspector Course Approval Form (Analysis of Findings and Reporting Module), Qualifying Real Estate Course Approval Form (Real Estate Brokerage - 30 hour course), Inspector Course Approval Form (Business Operations and Professional Responsibilities Module), Qualifying Real Estate Course Approval Form (Real Estate Appraisal - 30 hour course), Inspector Course Approval Form (Texas Law Module), Inspector Course Approval Form (Texas Standards of Practice Module), Qualifying Real Estate Course Approval Form (Real Estate Law - 30 hour course), Qualifying Real Estate Course Approval Form (Real Estate Marketing - 30 hour course), Qualifying Real Estate Course Approval Form (Real Estate Math - 30 hour course), Qualifying Real Estate Course Approval Form (Real Estate Property Management - 30 hour course), Notice of Delegation of Supervising License Holder, Notice of Sales Agent Sponsorship Termination, Request for Certificate of Active Licensure or Sponsorship History, Instructor Manual Guidelines for Qualifying Real Estate and Real Estate Related Courses, Course Acceptance Application (Accredited College or University), Continuing Education (CE) Course Application Supplement, Texas State Board of Plumbing Examiners (TSBPE), Use of Unlicensed Assistants in Real Estate Transactions, https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml. Additionally, you may not use your expertise to the disadvantage of others with whom you deal. Contact us today for business registration and business compliance assistance. I have a property management company and engage in leasing activity. Don't let the courthouse door close on you. In Texas, any person who reports on wood destroying insects in a home must be licensed by the state as a wood destroying insect inspector. In response to the 2nd question, an inspector must keep in mind that his role is primarily to document the condition of the home at the time of the inspection per 535.227(b)(1). Is the inspector required by the SoP to be knowledgeable of local requirements? Do the Standards of Practice require inspectors to report as deficient the presence of a transite pipe to be reported? A broker may not enter into a net listing agreement unless the principal requires a net listing and the principal is clearly familiar with the current market values of real property. College Station-Bryan Area. [See Rule 535.144]. The proposed amendments to 535.222 address the situation where payment is received prior to the scheduled inspection and require the report to be delivered to the client within two days of completion of the inspection. A license is also required for any person who controls the acceptance or deposit of rent from a resident of a single-family residential real property unit. A home inspection tells you the condition of the component at the time of the home inspection. Can I advertise that I will rebate a part of my compensation to the buyer? The proposed amendments to 537.11 reorganize and consolidate the rule for clarity, and simplify the language regarding when a license holder is required to use a Commission-approved contract form and what is considered the unauthorized practice of law. Rule 535.34 provides guidelines to determine if evidence of an employer/employee relationship exists. The proposed change to subsection (i)(2) corrects a rule reference. Is the presence of a single drain or suction opening in a pool spa deficient and a required reporting item per TREC? After an Fitness Determination (FD) request is filed and all required documentation is obtained (either initially or following subsequent requests for additional information), TREC will investigate the information and make a determination. Sanitarians. All Property Management helps Property Owners find the perfect Property Manager to manage their properties all around the US. The rules also include corresponding contract forms adopted by reference. A security deposit can also be deposited in an account separate from the trust or escrow account, but this is not a requirement. I am renewing my license. Yes. 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. No. Wolters Kluwer is a global provider of professional information, software solutions, and services for clinicians, nurses, accountants, lawyers, and tax, finance, audit, risk, compliance, and regulatory sectors. Can I use a power of attorney to engage in a real estate brokerage transaction without a real estate license? 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. Is a real estate license necessary in order to be an apartment locator? If I am buying, selling or leasing property for a relative, do I need to disclose that I have a real estate license? Transcripts would need to be evaluated to determine whether the attorney may receive credit for any applicable courses. The damage from the termites has cost me thousands of dollars to repair. Are inspectors required to mark and or comment as deficient the absence of tamper resistant receptacles? [Rule 535.146(c)(6)], The broker must provide a monthly accounting of trust money if there has been any activity in the account. Is an egress window with a sill greater than 44 inches from the floor a required reporting item and deficient? Please send written commentsto TREC'sgeneral.counsel@trec.texas.gov. Does TREC determine which brokerage business names may be registered with the agency if a name is similar to others already registered? The proposed changes to 22 TAC 535.63 are being made to reflect the fact that in 2021, a new eight-hour non-elective coursethe Inspector Legal and Ethics and Standards of Practice Reviewreplaced the two four-hour courses in 2021. Yesterday, I discovered a big problem with the house that was never disclosed to me. Yes. A salesperson working under a broker may engage in such activities. TREC has created a website specifically dedicated to HOA management certificates, which is available at, www.hoa.texas.gov. See also Chapter 209, Property Code. Campground membership sales are regulated by the Texas Secretary of States Office, Statutory Documents Section, under the provisions of the Texas Camping Membership Resort Act [Chapter 222, Texas Property Code] and you should check with that agency regarding its requirements. [TRELA 1101.803, Rule 535.2(l), ] A sales agent may not engage in real estate brokerage activity unless the sales agent is associated with, and acting for, a sponsoring broker. Yes because the designated broker own 10% or more of the licensed business entity through the broker's ownership of the other entity. The agency's sole interest in requiring all brokerage business names to be disclosed to TREC and reflected in the agency's database is to provide a resource to consumers who need to know which individuals and licenses are associated with any particular business name; therefore all names are "searchable" from our agency website. An attorney has presented an offer from a buyer that the attorney represents and wants me to share my commission. 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. No. The designated broker can be an officer, manager, or partner of the corporation, LLC, or partnership. Real estate managers who buy or sell property must have a real estate license in the state in which they practice. 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. Do I have to file a complaint first? Additionally, inthe Farm and Ranch Contract, 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. 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). 24-18, New Home Contract (Completed Construction), Standard Contract Form TREC No. A brokers name alone is okay. [TRELA 1101.751], An unlicensed person may not engage in any activity for which a license is required. 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. Only an active licensed sales agent sponsored by a licensed business entity may make a referral on behalf of the brokerage, and any referral fee must be paid to the sponsoring broker. [TRELA 1101.652(b)(23) and Rule 535.155(d)(7)], Yes. Is the presence of a gas shut off valve that requires a tool to turn off deficient? [Rule 531.20(e)]. (2) a meeting is with a party currently known to be represented by another license holder; or The person who made the referral and received cash would be considered an unlicensed person engaged in the business of real estate brokerage [TRELA 1101.351(a)] and could be subject to administrative penalties and criminal charges. Do the Standards of Practice require inspectors to report as deficient evidence of a past attic fire? Real estate license & property management license requirements by state Section 535.228(c)(3)(D) of the Standards of Practice requires inspectors to report as deficient deficiencies in flashing details. Property Tax Consultants. Some exceptions for when a license holder does not have to use a form are in Rule 537.11(a). A license holder may not represent both principals as a dual agent under the revisions to TRELA. Before you can renew your license, you are required to have completed a total of 270 hours of qualifying course hours, and the Legal Update I and II courses. 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 addition, pursuant to Chapter 53 of the Texas Occupations Code (www.statutes.legis.state.tx.us/) and Rule 541.1(c), TREC will consider evidence of certain mitigating factors and rehabilitation. Do I need to file a complaint with TREC first before I can obtain funds from the Real Estate Recovery Trust Account or the Real Estate Inspection Recovery Fund? 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. The exact duties of a property manager vary depending on the property type under management but typically include tasks such as: Marketing Screening tenants Showing and leasing owner property Resolving tenant issues Organizing and coordinating building maintenance Collecting rent and deposits [Rule 535.155 (effective May 15, 2018)] A sales agent must also have their sponsoring broker's authorization to offer a rebate. First, the person must be employed by the owner of the property. Outsourcing business registration and license research, applications, management, and renewals can help you take the pressure off internal resources. If the individual was only acting in one capacity, you should file the complaint with the agency that regulates that function. However, a license holder may rebate all or a portion of the fee or commission to the party being represented in the transaction, or, with consent of the party being represented, the license holder can also pay all or a portion to a party the license holder does not represent in the transaction. Yes, as long as your license was active when you engaged in brokerage activity. Now, such instructors can provide documentation within the instructors current license period for a course taught within that same term. The Standards of Practice do not require an inspector to dig up gas lines in order to determine their condition. 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. Pursuant to Section 535.227(b)(3)(C)(i) of the Standards of Practice, inspectors are not required to report manufacturer requirements except as specifically required by the Standards.