Does a trust account have to have a special name? The proposed changes to 535.141 are made to better track Chapter 1101, Occupations Code, and to better reflect the potential for consumer harm. On my inspection report, the inspector reported certain things in the house as safety hazards or code violations. The definition of accepted industry practice is situation-specific and may depend on the context in which the question is being asked. TREC does not consider URLs or email addresses to be advertisements in and of themselves. Occupations Code Chapter 1102. Real Estate Inspectors Paragraph numbers referenced are from the One to Four Family Residential Contract (Resale). TREC leaves the determination of "similar" names to the Secretary of State's rules or to common law remedies. [TRELA 1101.652(b)(23) and Rule 535.155(d)(7)], Yes. [TRELA 1101.351(c)]. [TRELA 1101.561(b)] To the extent a dual agency relationship is created by accident or otherwise, a license holder must resolve the matter by immediate compliance with the notice and consent requirements under TRELA 1101.558-561 and act as either an intermediary or represent only one of the principals in a transaction while working with the other principal only as a customer. 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. 25-15, Farm and Ranch Contract, Standard Contract Form TREC No. The proposed amendments to Chapter 535 are made as a result of the Commissions quadrennial rule review. 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. Under Rule 535.156, a real estate license holder has a duty to disclose to a client any relationship the license holder has with an inspector performing an inspection on property that is the subject of a transaction involving the license holder. What are my requirements? TREC does not have jurisdiction over Homeowner Associations or Association Management Companies. If you feel that the broker has not fulfilled the broker's part of the agreement, i. e. advertising, holding open houses, etc., then you may have grounds to terminate the contract but you would need to contact a private attorney for help in making that determination. Is the inspector required to comment on or report as deficient those gas appliance shut-off valves and connectors not visible or accessible without moving the gas appliances? The Standards of Practice do not require an inspector to dig up gas lines in order to determine their condition. 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. We do not provide advice on how to run or set up a referral-based brokerage business (or LFRO). As long as the attorney is licensed in Texas, they are exempt from the licensure requirements. TREC is unable to advise you in private contractual matters. The broker intermediary may, with the written consent of the parties, appoint separate individual license holder associated with the broker to work with and advise the party to whom they have been appointed. (a) The Texas Real Estate Commission consists of nine members appointed by the governor with the advice and consent of the senate as follows: (1) six members who have been engaged in the brokerage business as licensed brokers as their major occupation for the five years preceding appointment; and (2) three members who represent the public. A person using a TREC form assumes all risks associated with its use. Yes. In what type of account should a security deposit be placed? No. Is the use of a net listing agreement a breach of the brokers fiduciary duty? [TRELA 1101.652(b)(23)]. If you are a member, you may find a listing agreement form that meets your needs through TAR. What kind of criminal matters will prevent an applicant from obtaining a real estate license? [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. Purely cosmetic corrosion is not required to be reported as a deficiency. [TRELA 1101.652(b)(23) and Rule 535.154(a)(5)]. [TRELA 1101.652(b)(1)]. If a broker has an exclusive listing with a seller, may another broker solicit a listing from the same seller that would begin after the other listing expired? SECTION 14. I am renewing my license. A hydrostatic test is a way in which pipeline, plumbing, gas cylinders, boilers, and fuel tanks can be tested for strength and leaks. An advertisement does not include a communication from a license holder to the license holder's current client. It is not a violation of TRELA or the Rules for a license holder to rebate a portion of their compensation to a party in the transaction. [TRELA 1101.558(c)(3)]. Otherwise, you should consult with a private attorney. Lines have also been inserted into the blank. At the top of TRECs homepage go to Search Licensee Info / Education and type in the license holders name and click. 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. You can contact them at www.dshs.texas.gov/mold for information on the requirements to obtain a license to inspect for mold. 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. [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. TREC does not have jurisdiction over title companies. [Rule 535.146(b)(5)], No. a gift card to a restaurant or department store) is not defined as valuable consideration and is permissible. I did not get it inspected since the seller and the broker said everything was in good shape. Can a listing broker share a portion of the listing brokers commission with an attorney who represented the buyer in a real estate transaction? [TRELA 1101.005(4)] However, it is clear from the statute that an auctioneer may not perform any act of a broker or sales agent, such as the preparation . Will this prevent me from taking the exam? I am a sales agent, Sally White. [TRELA 1101.652(b)(11)]. It is the responsibility of the applicant to provide that evidence to TREC. (2) first class mail or overnight common carrier delivery service; This chapter may be cited as The Real Estate License Act. I signed a buyer representation agreement, but I want to work with a different Broker. No. Can I do this? Yes. No. Can a sales agent work in a different office than the sponsoring brokers office? 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. Can a license holder offer to give a $50 gift card to an unlicensed person for referring a potential lessee or buyer? Some TREC licensed home inspectors are also licensed wood destroying insect inspectors, and therefore, may inspect a home for termites, etc. If you feel there has been a violation of After that period, comments can be made in person at the next Commission meeting. 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. Can TREC review my advertising and advise me whether my advertising complies with TREC Rules? Is the proximity of the return to the gas fired appliances a required reporting deficiency? [See 535.2(g),535.154, and 535.155 (effective May 15, 2018); TRELA 1101.652(b)(23)]. You should consult with a private attorney. The proposed change to subsection (i)(2) corrects a rule reference. Do I have any recourse against the inspector for failing to note on his report that there was a gas leak outside the home due to a corroded gas line? The first proposed change is found in subsection (i)(5). We are unable to provide a general definition. Can I be exempt from taking the National portion of the exam? What requirements does TREC impose on inspectors/consultants who perform maintenance consultations? A license holder should also be familiar with Rules 537.11(f)-(g). Is the absence of combustion air in the bottom of the closet a required reporting deficiency? This is an improper combination of the different functions of intermediary and appointed license holder. 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. I listed my property for sale with a broker and the broker has done nothing about selling the house. You will need to consult a private attorney. A brokers name includes a brokers assumed business name that has been registered with TREC. If a sales agents name or team name is on a building sign, the brokers name must also be present (in at least half the size). Inspectors are not required to remove water heater covers to inspect the water heater. TREC does not require inspectors to inspect to any of the various building codes and cannot assist you in determining what code provisions were applied in a particular situation. They should comment on visible damage regardless of the underlying cause and note it as a deficiency on their report, but may not assess that the damage was specifically caused by wood destroying insects. Can I switch my listing to the new brokers office? 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). You are required to tell us within 30 days of a felony. 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. Does a lease for a term of longer than one year and a contract for the sale of real estate need to be in writing to be enforceable? 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. 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). [TRELA 1101.651(b) and (c)]. The proposed changes to 22 TAC 535.219 correct a reference to another rule. Does the buyer have to deliver the earnest money to the escrow agent for a contract to be binding? This disclosure may be oral or in writing. An attorney will need to prepare an appropriate form. Can an individual broker use an assumed business name in advertising? The primary duty of the agent is to represent the interests of the agents client, not the agent's own interests. Can a license holder offer to enter an unlicensed person in a drawing to win a cruise for referring a potential lessee or buyer? The website for that agency is www.comptroller.texas.gov and their toll free number is 800.252.5555. Language is also added to clarify that these fees should be prorated pursuant to Paragraph 13 of the Contract. Lesson 7: Texas Real Estate License Act AND Lesson 8: Legal A seller may receive, review and negotiate several offers simultaneously. What is the difference if a broker appoint sales agents to represent the buyer and the seller or if the broker makes no appointments to the principals in a real estate transaction? You may also want to consult with a private attorney regarding your legal rights as a homeowner. The term does not include an interest given as security for the performance of an obligation. Brokers should be familiar with and follow the duties set out in Rule 535.2 . Not unless the person depositing the money has signed an agreement authorizing the broker to keep the interest. If I am buying, selling or leasing property for a relative, do I need to disclose that I have a real estate license? My agent moved to another brokers office and I want them to continue to handle my listing. Section 2: Texas Laws, Rules and Regulations Flashcards The proposed changes to 22 TAC535.72 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. Is an egress window with a sill greater than 44 inches from the floor a required reporting item and deficient? If the broker appoints an associated license holder to represent the seller and another associated license holder to represent the buyer, the individual agents may offer advice and opinions regarding the real estate transaction to the party each has been appointed to represent. Additionally, inthe New Home Contract (Complete 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. Will Your Criminal Record or Disciplinary History Keep You from Getting Licensed? Further, TREC will consider all advertisements in their entirety and if an email address or URL] makes the advertisement misleading or deceptive, it violates the law. Is the inspector required to inspect a water metering device to determine if a leak may exist? Finally, subsection (i) is removed to more appropriately reflect agency practice and jurisdiction. If I represent the seller, can I advertise that I will rebate part of my compensation to the buyer? A brokers name alone is okay. Can a sales agent own his or her own real estate business entity? The listing broker should inform the seller that the broker is prohibited from sharing compensation with the attorney. All license holders criminal backgrounds are rechecked upon renewal, however, this does not excuse a license holder from notifying the Commission not later than the 30th day after the final conviction. I only represent buyers. A broker may authorize another license holder to withdraw or transfer money from a trust account. Once TREC makes a determination, TREC has 30 days to notify the person of the determination. Each day a violation continues can be considered a separate violation for imposition of the administrative penalties. Is the inspector required to perform any inspection of the meter? The proposed changes update terminology for consistency and clarity throughout the chapter. These course approval form revisions were recommended by the Education Standards Advisory Committee. I signed a Property Management Agreement and do not understand some of the terms. Inspectors are free to use or not use a contract. [Rules 535.2(c), 535.146(c)(7).]. What is proof of legal authority to use an assumed business name in Texas? This could tend to mislead the public that the associated broker is in charge of the brokerage operation. They are only required to conduct a visual inspection of the property, and buried gas lines are not required to be inspected. [TRELA 1101.558(c)]. A buyer representation agreement is a private contract between the buyer and the real estate broker, not the sales agent. Proposed new 22 TAC 535.120 makes clear that a license holder cannot engage in real estate brokerage activity while on inactive status. 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? Assumed Business Name: Broker [Rule 535.154(d)(1)], Alternate Name: Individual License Holder [Rule 535.154(b)(1)]. [TRELA 1101.652(b)(10)] The money should be deposited in a trust or an escrow account where other money from the managed property or properties is kept. You should discuss the terms of the listing agreement with a private attorney. The listing agent represents the seller and has a duty to present all offers in a timely manner to the seller. The Texas Occupations Code, Real Estate Inspectors, Chapter 1102, 1102.303 specifically prohibits an inspector from acting in the capacity of an inspector and real estate agent in the same transaction. [TRELA 1101.652(b)(11)]. The Standards of Practice require inspectors to inspect attic ventilators and report deficiencies but do not require that they be operated. OCCUPATIONS CODE CHAPTER 1101. REAL ESTATE BROKERS AND SALES AGENTS - Texas Can you help? No, a hydrostatic test is not mandatory in the inspection of a property. Am I required to complete the Legal Update I and Legal Update II courses? Basic Requirements to Apply for a Texas Real Estate License Citizen of the United States or lawfully admitted alien 18 years of age or older Meet TREC's qualifications for honesty, trustworthiness, and integrity (TREC recommends submitting an optional 'Fitness Determination' form if you have any criminal offenses, unpaid judgments, etc.) All inspections would be subject to 1102.301 et seq. What are the penalties for unlicensed brokerage activity? Added by Acts 2001, 77th Leg., ch. 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. 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. of the License Act (Subchapter G, Prohibited Acts), as well as 22 TAC 535.220, Professional Conduct and Ethics. 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. The designated broker acting as a general partner must be an individual, not another business entity. Yes, Commission Rule 535.3 permits you to receive any compensation through your current sponsoring broker or the broker who sponsored you at the time you earned the right to the compensation.