However, because TREC must dispose of certain documents in accordance with a records retention plan, TREC may no long have those documents and an applicant should be prepared to resubmit documents and the explanation previously submitted. See also Rules535.154 and 535.155 regarding advertising. Is the inspector required to inspect to trade or industry association standards? Yes. Consult the contract or the timeshare disclosure statement you received for instructions on how to proceed. The definition of accepted industry practice is situation-specific and may depend on the context in which the question is being asked. The proposed changes update terminology for consistency and clarity throughout the chapter. [TRELA 1101.355 and Rules 535.50(5) and 535.53]. The link must be in at least a 10 point font and in a readily noticeable place on the homepage of the business website of the broker and sales agent. The Real Estate License Act The buyer may, however, seek to be released from the buyer representation agreement. 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. Thus, for example, any authorization language in the special provisions of the standard Resale contract is not separate consent by a seller. New paragraph H is added related to authorization to release information. No. Can an individual broker use an assumed business name in advertising? Inspectors are not required to determine utility sources or to research codes and ordinances related to this issue. Requirements for an assumed business name and team name are set out in Rule 535.154. A gift card from a bank (e.g. 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. Is the presence of carpet on an attached garage floor deficient and a required reporting item per TREC? [Rule 535.227-535.233] However, an inspector is free to inspect to a higher standard (such as to various codes or based on recognized safety hazards), as long as they do so competently. Yes, as long as the ad complies with Rule 535.155 (effective May 15, 2018), which requires the consent of the party the license holder represents in a transaction. As the question suggests, it is sometimes also possible to use a digital camera to see in areas that are not otherwise accessible and there are multiple means of detection of gas leaks in existence, such as through the use of hand held detectors (however, these would be considered specialized tools and are not required to be used in performing inspections). If so, what is the minimum distance the damper should be open? [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. A sales agent may own the firm but the business must be conducted through the sales agent's sponsoring broker. 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. No, filing a complaint with TREC is not a prerequisite to obtaining funds from one of the two recovery accounts maintained by TREC for paying judgments taken by consumers against real estate license holders or inspectors. We tried to buy a house but our loan application was not approved. No. Section 535.233(2)(B)(i), however, requires an inspector to report as deficient the presence of a single blockable main drain. 2. In addition, a referral drawing may be considered a contest defined as an illegal lottery under Sections 47.01(7) & 47.03(5) of the Texas Penal Code. Inspectors are free to use or not use a contract. For a general partnership or individual broker, the assumed business name is filed with the county clerk in the county or counties where you do business. Must the permission of the owner authorizing the agent to offer the unit for rent be in writing? 2. However, you should consult with a private attorney for advice on this matter. An attorney will need to prepare an appropriate form. Assumed Business Name (also known as a dba) is another name for the brokers business that can be used by all sponsored sales agents and brokers associated with this broker. If you prefer, you can also submit the Change of Main Address form by email. No. See https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml, Evidence of registration of the assumed business name with the Secretary of State or in the county or counties where the broker does business is adequate proof of authority to do business under that name. 1101.002. The proposed repeal of 535.212reflects the expiration of this section by rule. I went on a tour to inspect unimproved lots. Additionally, the phrase including but not limited to: water rights, claims, permits, strips and gores, easements, and cooperative or association memberships is deleted from the paragraph. Update contact information and Place of Business (business physical) address on the Contact Information page and click "Next". Yes. [Rule 535.146(c)(2)] The Commission can take disciplinary action against you if you fail within a reasonable time to properly account for or remit money that you receive on behalf of another person. The Texas Real Estate Inspector Committee recommends theamendments. 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. When a rental locator represents an apartment complex, the locator needs the consent of the apartment complex. This section gives the Commission authority to suspend or revoke a license holder that has entered a plea of guilty or nolo contendere or has been convicted of a felony or any criminal offense that involves fraud (including misdemeanors). Are inspectors required to inspect underground drainage systems or to test gutters or downspouts? However, an inspector who advertises or represents that he or she will inspect to a higher standard could be subject to disciplinary action for failure to do so. 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 3/31/2023, Application for: Inactive Inspector Status, Apprentice and Real Estate Inspector Sponsorship Form, 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, Instructor Credit Request for a Ride Along Inspection, Sales Agent Apprentice Education (SAE) Cover Sheet, Continuing Education (CE) Provider Initial Application, Qualifying Education Provider Initial Application, Continuing Education (CE) Provider Renewal Application, Inspector Non-Elective CE Course Application, Real Estate Non-Elective CE Course Application, Continuing Education (CE) Provider Reinstatement Application, Abbreviated Registration of a Timeshare Plan, Application for Inactive Real Estate Sales Agent License, Inspector CE Secondary Course Application, Inspector QE Secondary Course Application, Presale Authorization for a Timeshare Plan, Renewal of Inspector License-Timely or Expired Less Than Six Months, Application for Real Estate Broker License by an Individual, Application for Real Estate Sales Agent License by Current or Previous Broker, 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 Inspector to Return to Active Status, 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, 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, ICE Credit Request for Completing a Ride Along Inspection, 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 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), 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, Continuing Education (CE) Provider Application Supplement, 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), Real Estate or ERW CE Secondary Course Application, Texas State Board of Plumbing Examiners (TSBPE), Use of Unlicensed Assistants in Real Estate Transactions, https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml. Purely cosmetic corrosion is not required to be reported as a deficiency. Yes, on the first contact with the license holder representing the buyer. If so, does that entity have to be licensed as a real estate broker? 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. The listing agent represents the seller and has a duty to present all offers in a timely manner to the seller. Additionally, in the Unimproved Property Contract, the Sellers Disclosures paragraph has been amended to: (i) add check boxes 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. Is olfactory detection of methane/natural gas odorant the only reasonable method of discovering gas leaks when the connectors are not accessible? [Rule 535.144(b)]. [Rule 531.20(e)]. Once TREC makes a determination, TREC has 30 days to notify the person of the determination. Is hydrostatic testing a mandatory part of the inspection of a resale of real property? I have a license in another state. Presuming an upstairs floor or the ceiling below does not exhibit obvious evidence of failure, is a squeaky floor a defect and required reporting item per TREC? 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. (3) the communication is at an open house and the communication concerns that same property. 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. Section 535.231(a)(3)(A) states that inspectors are not required to operate any main, branch, or shut-off valves. I signed a Property Management Agreement and do not understand some of the terms. Another name that indicates a brokers line of business, e.g. It is a violation of the law for a license holder to draft an instrument that transfers or otherwise affects an interest in real property. If you were to perform an inspection in connection with a transaction in which your broker was involved, your broker would need to disclose your relationship (as the brokers sponsored agent), and if you were paid or received compensation or anything of value from anyone in your office in connection with the inspection, you would also need to disclose this fact and obtain the clients prior permission. If you do have an unreported felony, or an unreported criminal offense involving fraud, report it to the Commission as soon as possible. [Rules 535.146((c)(6) and (e)] TREC requires a broker to maintain for at least four years from the date of a closing or termination of a contract eight specific types of records in a format that can be readily made available to the Commission. Section 535.229(a)(2)(B) states that an inspector is not required to test an arc-fault circuit interrupter device when the property is occupied or when damage to personal property may result, in the inspectors reasonable judgment. Do I need a license to lease or rent real property if I am an employee of the property owner? As a licensed inspector in the State of Texas, am I supposed to charge a sales tax on the amount of my inspection fee? For example, you may have paid a fee to obtain an option period in the contract. [Rule 535.146(c)(3)] Accounting is more simple if the broker puts all escrow money into a non-interest bearing account, To avoid an advertisement that implies the sales agent is responsible for the operation of the brokerage in this situation, the sales agent should make sure that the ad clearly indicates that the sales agent is not the broker. The sales agents agreement should also address how compensation is handled with the broker. If a license holder is convicted of a felony or a criminal offense involving fraud it is a violation of section 1101.652(a)(1) of the License Act. (3) in the body of an email; or A license holder shall not use the license holders expertise to the disadvantage of a person with whom the license holder deals. As an example, if corrosion to copper tubing lines or copper wires were found, that could in the opinion of the inspector constitute a deficiency, the inspector is not required to determine or report the cause of the corrosion, such as from Chinese drywall.". However, a real estate license holder's failure to deposit earnest money in accordance with the terms of the contract could form the basis of a complaint. 26-8, Seller Financing Addendum, Standard Contract Form TREC No. If someones criminal history has been expunged, can the information still appear on the background check? You should direct your questions to your sponsoring broker. A licensed broker is prohibited from sharing compensation with anyone who acts in the capacity of a broker but is not licensed as a broker [TRELA 1101.651(a) and 1101.652(b)(11)]. If the sales agent is an employee of the owner of the timeshare, the employee would not be required to be licensed. A license holder is required to use contract forms adopted by TREC. 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. CE must include 4 hours of Legal Update I, 4 hours of Legal Update II, 3 hours of Contract-Related coursework, and 7 hours of elective CE courses for a total of 18 hours. [Rule 535.146(b)(5)], No. What kind of criminal matters will prevent an applicant from obtaining a real estate license? If you are acting on your own behalf or on behalf of your spouse, parent or child, you must inform any person with whom you deal that you are a licensed broker or sales agent acting on that relatives behalf. TREC only handles the licensing and discipline of real estate inspectors, you would need to contact the state agency in charge of collecting state sales tax which is the Texas Comptroller of Public Accounts. [Rules 535.2(c), 535.146(c)(7).]. During this option period, an inspection can be performed and if specific repairs are identified, the parties can negotiate to amend the contract to address these items, or the buyer can terminate the contract. Must I disclose my licensed status? [TRELA 1101.355(c)]. Paragraph 21 is amended to add a line for a courtesy copy to another individual, like an agent. A broker is not required to directly supervise sponsored sales agents; this responsibility may be delegated to another person with the required level of experience and expertise to provide proper supervision under the law. [See 535.2(g),535.154, and 535.155 (effective May 15, 2018); TRELA 1101.652(b)(23)]. Inspectors are not required to measure the headroom clearance of every flight of stairs. No. It resides in Title 7 Chapter 1101 of the Texas Occupations Code. Is the inspector required to report water heaters that are covered with an insulation blanket as obstructed if they did not remove the blanket? (2) first class mail or overnight common carrier delivery service; and more. These licenses are issued by the Texas Structural Pest Control Service of the Texas Department of Agriculture at www.texasagriculture.gov. Can the team name used by an associated broker be the same as the assumed name used by the associated broker when he or she is not associating with another broker? If a homeowner wanted to hire a consultant to perform a cursory, major defect visual inspection, including the foundation, roof, plumbing, electrical, and major appliances, would TREC require any written report? Rule 535.146(b)(2) prohibits a sales agent from having an escrow account. It depends on what the property manager is doing for the property owner. After living in the home a few weeks, the dishwasher started leaking and had to be replaced. The proposed amendments to 535.141(i) will limit an existing regulation to correspond with applicable law. The information is not supposed to appear on a background check; however it still may by mistake. Who registers an assumed business name, team, or alternate name? The proposed changes to 22 TAC535.74 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. Paragraph 2.B(2) and 2.C(2) are amended to clarify the timing related to termination and to add a reference to the applicable Property Code provision. The Real Estate License Act is Chapter 1101 of the _______. Section 535.229(a)(1)(G)(vii) requires an inspector to report a deficiency in the operation of an installed ground-fault or arc-fault circuit interrupter device. Including such information in your advertisement could be construed to be misleading in that a consumer may believe that you or members of your company are licensed to inspect for wood-destroying insects. Is it illegal or unethical for an agent to present two offers to the seller at the same time? No. This form is on our website here. 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. No. Inspectors are not required to report the presence of transite pipe as a deficiency. I only represent buyers. Log on to your My License Services account. 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. In limited circumstances, TREC may order a license holder or registrant or certificate holder to pay a refund to a consumer. Occ. Is the absence of weather-strip on the door a required reporting deficiency? [See 535.2(i)(6)]. [Rule 535.154(a)(5)]. A buyer can choose the broker with whom the buyer wants to work. You must use a form drafted by an attorney or a form supplied by either the buyer or seller. However, a rebate to a buyer from a license holder may be subject to restrictions by the buyers lender. 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. What if a license holder does not comply with the requirements for forming an intermediary relationship? The unlicensed person may share in the income earned by a real estate brokerage if the person engages in no acts for which a license is required. Can a licensed inspector perform a hydrostatic test? 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. The Commission does not have jurisdiction over title companies. 1101.802. The refund cannot exceed the amount paid by the consumer to the license holder or registrant or certificate holder for a service or accommodation regulated by TREC. A broker may authorize another license holder to withdraw or transfer money from a trust account. Otherwise, the buyer should check Paragraph 7D1. The Texas Association of Realtors (TAR) provides certain forms to its members. What requirements does TREC impose on inspectors/consultants who perform maintenance consultations? A real estate license is not required for a person who calls an auction of real property, provided the person is licensed as an auctioneer by the Texas Department of Licensing and Regulation. [Rule 535.32]. Paragraph 2.B is amended to make the terms house and garage plural. For additional information, read Rule 535.2 regarding broker responsibility. The proposed changes to 535.218(f) serve to extend the amount of time an instructor of a ride-along inspection course can provide a certificate of course completion to receive continuing education credit. The proposed change in 22 TAC 535.66(c)(1) is made to reflect current course approval practice by the Texas Higher Education Coordinating Board. [TRELA 1101.702] The Commission may also issue a cease and desist order. he broker always is the intermediary. This means that if you wait until your renewal to notify the Commission of your felony, you could be subject to the penalty, in addition to any disciplinary action related to the crime. If you participate in a transaction and hold more than a 10% interest in the corporation or other business entity, you are subject to the disclosure requirements. The proposed changes to 22 TAC 535.214 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. What qualifies as proof of ownership of the business entity? Does this mean that the contract is invalid or void? Can a name used in advertising be both an assumed business name and a team name? Yes. You should contact a private attorney if you have any questions about extending a listing agreement.
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