Can a license holder offer or pay cash to an unlicensed person for referring a potential lessee or buyer? TREC does not determine what constitutes "procuring cause" or who is entitled to a commission or other compensation. [TRELA 1101.005(2) and Rule 535.32]. [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. The entity must designate an active Texas real estate broker to act on behalf of your company. Im buying a house. I am having a dispute with my Homeowner Association (HOA) regarding violating neighborhood restrictions. The topics and units will continue to be listed in the forms adopted by reference. Trust CT Corporation's extensive experience to help your business maintain compliance. Who registers an assumed business name, team, or alternate name? None of the forms promulgated by TREC are intended for use as a contract for deed. Can a sales agent receive or pay a commission to a party in a real estate transaction? I am a sales agent, Sally White. 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. They must also be individually licensed as an active Texas real estate broker. Can a name used in advertising be both an assumed business name and a team name? You will need to have a property management license to perform specific duties as a property manager. 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)]. When the rental locator represents a tenant and not an apartment complex, as demonstrated by a written representation agreement or other evidence of representation, the locator is not required to obtain the consent of the apartment complex because the complex is not his client. TRELA and the Rules do not prohibit an individual from having other licenses. The second proposed change is found in 535.2(j). 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. Can TREC obtain reimbursement of commissions paid by buyers and sellers to brokers and sales agents for compensation in real estate transactions? Do I have to file a complaint first? The IABS Form can be provided by: A property manager will need a brokers license for any of the following situations: A salesperson working under a broker is permitted to engage in these activities. Inspectors are not required to determine utility sources or to research codes and ordinances related to this issue. A home inspection tells you the condition of the component at the time of the home inspection. If the sales agent is an employee of the owner of the timeshare, the employee would not be required to be licensed. Is the inspector required to determine the presence of Chinese drywall? If a sales agents last name is contained in the brokers licensed or assumed business name, how can the sales agent let the consumer know the agent is not the broker? 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. 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. Can I perform mold inspections under my TREC inspector license? How long does an agent have to deposit the earnest money once a binding contract has been negotiated? 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. Is the presence of a gas shut off valve that requires a tool to turn off deficient? Neither option is permissible. Thus, for example, any authorization language in the special provisions of the standard Resale contract is not separate consent by a seller. Paragraph B is amended to modify the time period within which the seller may terminate. The rules also include corresponding contract forms adopted by reference. A buyer representation agreement is intended to be a legal and binding contract. Appointments provide the agents the opportunity to provide a higher level of service to their clients. I went on a tour to inspect unimproved lots. You can contact them at www.dshs.texas.gov/mold for information on the requirements to obtain a license to inspect for mold. It is best to disclose it as early as possible but it must be disclosed in the contract, lease, or in another written document given to the other principal before the agreement is signed. 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? If you are a nonresident business entity (meaning your business entity was created or chartered under the laws of another state), you may apply for a license in Texas if your business meets the following criteria: Texas real estate broker licensing requirements. No. Can I advertise a service provider such as an inspector, moving company, or repair contractor on my website? If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party represented by the license holder before making the payment. Although a license holder may not pay an unlicensed person valuable consideration for referring a potential lessee or buyer, gifts of merchandise with a retail value of $50 or less are not considered valuable consideration. Any amount of cash or a credit or bonus toward rent owed is also not allowed as a reward for a referral. Mynd Property Management is a national residential-only property management company with a local branch in Dallas offering full-service management. No. [Rule 535.154(a)(5)]. Is the inspector required to report the symptoms of Chinese drywall? 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See, for example, Rules 535.4, 535.5,and 535.131. Does TREC consider promotional items and sponsorships to be advertising? [TRELA 1101.652(b)(3)] Should you want to take legal action against the seller and/or the broker for damages, you will need to consult with a private attorney. No. Disciplinary action by TREC is not a prerequisite for pursuing a lawsuit against a license holder. Please see TREC rule 537.28 for changes that apply to all contract forms. 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. The broker must provide a monthly accounting of trust money if there has been any activity in the account. 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? Probably not. 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. When a license holder files a reinstatement application and answers yes to the criminal questions, does TREC require the license holder to resubmit legal documents that have already been submitted in the past? TREC has the authority to adopt administrative rules to provide specificity to provisions of the Acts. Do the Standards of Practice require inspectors to report as deficient the presence of a transite pipe to be reported? [See TRELA 1101.355 and Rules 535.50(5) and 535.53(a)]. Recovery of these losses is a civil action and should be discussed with a private attorney. Is the definition of accessible, as applied to gas appliance connections, left to the reasonable judgment of the inspector? When a contract falls through, can part of the earnest money be held to pay the commission fee for the other real estate license holder? If the underlying conduct violates 1101.652(a-1)(1) or 1101.652(b) of TRELA, disciplinary action can be taken against the license holder for the underlying conduct. You may want to check with Texas Department of Licensing and Regulation to see if they regulate the providers. [Rule 535.155(b)(3)]. Is a license holder required to provide a party with written information relating to agency? If a buyer's agent is required to disclose his or her status as the buyers agent to a listing broker when setting up a showing appointment, must the listing broker also disclose to the buyer's agent that the listing broker represents the seller? License holders must meet Continuing Education (CE) requirements during each two- year license period. I am a seller and I signed a contract with a buyer. Further, a judgment that involves conduct thatviolates 1101.652(a-1)(1) or 1101.652(b) of TRELA may be eligible for payment from the Real Estate Recovery Trust Account even if the debt was discharged in bankruptcy. The termination option is a negotiable contract term. 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. Please send written commentsto TREC'sgeneral.counsel@trec.texas.gov. Paragraph 2.A adds the term Counties to reflect the fact that farm and ranch properties could be located across two or more counties. Paragraph 7.F is revised to require that the seller: (i) provide the buyer with copies of documentation from the repair person that shows both the scope of work and payment for the work completed; and (ii) transfer, at sellers expense, any transferable warranties at closing. [TRELA 1101.651(b) and (c)]. Is the inspector required to perform any inspection of the meter? Paragraph D.2(b) is further amended to add a requirement that the seller provide the buyer with an annual accounting of the escrow account, use escrow deposits to pay taxes and insurance premiums in a timely manner in certain circumstances, and hold the escrow deposit in a separate account. An active real estate license is required to negotiate a real estate transaction between third parties. An attorney will need to prepare an appropriate form. For instance, if your company lists, rents, negotiates, collects rent, or places a tenant in Texas, your business will need a real estate broker license. At the top of TRECs homepage go to Search Licensee Info / Education and type in the license holders name and click. Our license holders are governed by theTexas Real Estate License Act, the Inspector Act, and the Timeshare Act. 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? She didnt state that she sold it but an average person reading the card could surely and reasonably imply an erroneous claim of involvement. Is a screen combustion air opening a required reporting deficiency? Can a rental locator rebate a portion of the rental locators fee received from the apartment complex to a prospective tenant if the tenant uses the locators services? Is the absence of combustion air in the bottom of the closet a required reporting deficiency? Yes. A rental agent who solicits a prospect by phone must be licensed. Remember, everything from marketing to qualifying renters to signing the lease is considered a real estate transaction and should be handled by someone with the proper licensing. 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. An attorney has presented an offer from a buyer that the attorney represents and wants me to share my commission. The guide was not licensed, but she showed us the lots and told us about possible developments on the land. I already have a license. 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). With this repeal and the additional proposed changes in 22 TAC Chapter 535, a license holder who late renews (meaning no later than 6 months after the expiration date) would automatically renew on inactive status. Will I need to take both sections of the exam when I reapply? [TRELA 1101.558(b-1)]. As a licensed inspector I would like to advertise that my company performs wood destroying insect inspections. Is a hand rail that is not continuously deficient a required reporting item per TREC? Can a broker be the designated broker for more than one business entity? Do the Standards of Practice require inspectors to report as deficient evidence of a past attic fire? Verify the sponsoring broker information on the Summary page and click "Submit". However, under the home inspector license issued by TREC, the inspector MAY NOT comment on whether termite infestations exist. The TREC requires all potential real estate licensees to complete 180 hours of education on real estate-related topics. TREC is unable to advise you in private contractual matters. Rule 535.155 requires each advertisement to include the following items in a readily noticeable location in the advertisement: To be eligible for a real estate license, applicants must prove to TREC that they have the required honesty, trustworthiness & integrity. Pursuant to Section 535.227(b)(3)(A)(vi) of the Standards of Practice, an inspector is not required to inspect or test metering devices. Do the Standards of Practice require inspectors to comment on the way a gas pipe enters a crawl space? Although you may not need to get a property management license, you may choose to get certification through an organization like the National Association of Residential Property Managers (NARPM). [TRELA 1101.751], An unlicensed person may not engage in any activity for which a license is required. You can check the license status of Texas property managers using their Licensee Info Search tool. The proposed changes to 22 TAC535.218 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. 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 the buyer fails to deliver the earnest money within the time required, the seller may terminate the contract, exercise the remedies under Paragraph 15 of the contract, or both. 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. If you wish to file a complaint against a title company in Texas, you need to contact the Texas Department of Insurance. Yes, Section 535.228(f)(2)(E)(i) requires inspectors to report deficiencies in weather stripping. Section 535.228(e)(3)(A) of the Standards of Practice states that inspectors are not required to report cosmetic damage or the condition of floor, wall, or ceiling coverings. 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. Can a sales agent have an escrow account? Can an out-of-state broker conduct brokerage business from another state by mail, phone, the Internet, or other medium? My business entity is a series LLC. Can I break my contract and list with someone else? [TRELA 1101.652(b)(1)] Typically, sign ordinances prohibit placing a sign on a utility pole, traffic signal box, or in a road median. What if a license holder does not comply with the requirements for forming an intermediary relationship? If the business entity is a series LLC, you must include a copy of the Certificate of Filing from the Secretary of State's Office with the Franchise Tax Account Status page. Evidence of a past fire is not, in itself, a deficiency. Must Texas property management companies have a real estate broker's license? It is the responsibility of the applicant to provide that evidence to TREC. Does TREC consider a sign on a building to be an advertisement?