[TRELA 1101.651(b) and (c)]. It could be. If the intermediary authorizes another license holder to appoint associated license holders to work with the respective principals, that license holder cannot designate himself/herself as one of the appointed license holders. Will advising the client to place a climbable object (such as the chest) supersede the need to identify the item as deficient? Yes, for four years from the date a trust or escrow document is received or created by the broker. The guide was not licensed, but she showed us the lots and told us about possible developments on the land. real estate brokerage activity with an inactive license is considered a violation subject to sanctions. [See Rules 535.1(5) and 535.20(a)]. The changes are either updates to terminology or form for consistency throughout the chapter or are made to reflect updated processes. Yes. I did not get it inspected since the seller and the broker said everything was in good shape. . Only with appropriate disclosure and consent. Evidence of a past fire is not, in itself, a deficiency. 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. The proposed changes to 22 TAC 535.57 are being made to better reflect current contractual provisions. In inspecting an attic with a powered ventilator, which is not required to be operated, the inspector should perform a visual inspection and consider the totality of the ventilation system. Can a license holder donate a portion of his commission to a church if one of the church members refers a client to the license holder? Is the presence of a gas shut off valve that requires a tool to turn off deficient? The listing broker can agree to reduce the commission if requested by the seller without violating the prohibition on splitting. 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? [Rule 535.154(d)], A commission or fee includes any form of compensation received for engaging in an act for which a license is required, essentially anything of value. The first proposed change is found in subsection (i)(5). Yes. If I represent the seller, can I advertise that I will rebate part of my compensation to the buyer? 1101.002. Are there exceptions when the disclosure notice about agency relationships (IABS) is not required? Is the absence of combustion air in the bottom of the closet a required reporting deficiency? Under the Standards of Practice found in Rules 535.227 - 535.233, a home inspector is required to perform a visual check of plumbing fixtures and associated items and report as in need of repair deficiencies in the type and condition of all accessible and visible water supply and waste-water and vent pipes, as well as others listed in Rule 535.231. A mistake in the use of a form may result in financial loss or an unenforceable contract. Is the inspector required by the SoP to be knowledgeable of local requirements? 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. A person's license in another state or experience in real estate brokerage or any related business does not substitute for the educational requirements. Mechanical components like dishwashers can and will break down. The Standards of Practice do not require an inspector to dig up gas lines in order to determine their condition. If you are a member, TAR may have a form that fits your needs. [Rule 535.227(b)(3)(C)(i)]. Subsection (b) of 535.55 also contains a proposed change recommended by the Education Standards Advisory Committee that would require a sales agent to complete the 30-hour qualifying real estate brokerage course as part of the additional 90 hours of qualifying courses that must be completed by the expiration date of the sales agents initial licensing period. ], Yes. Can a non-license holder use the promulgated contract forms? No. Yes. Click on this to see what disciplinary actions have been taken. The answer to the first question is No. If the seller has accepted your offer, you may have a binding contract. TREC Adopts Changes to Inspection Report Rule, Proposes Rule Changes Related to Unauthorized Practice of Law, Broker Responsibility, Education Requirements, License Renewal, and More The Texas Real Estate Commission met February 13 in Austin. In this chapter: (1) "Broker": A license holder may not represent both principals as a dual agent under the revisions to TRELA. Does TREC ever discipline a license holder who fails to use an adopted form? The proposed changes to the Property Management course outline (being renamed Residential Property Management) are made to more accurately reflect the agencys jurisdiction and ensure relevancy. Subsection(a) of 22 TAC 535.208 is being amended to correct a typographical error in the subsection. Failing to timely notify may result in more severe or further disciplinary action. Finally, the proposed changes to subsection (h) update the language regarding reproduction of Commission-approved contract forms to better account for changes in technology. Under Section 1102.303 of the Texas Occupations Code, an inspector may not act in a transaction in the dual capacity of inspector and either (1) broker or sales agent or (2) an undisclosed principal. 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. What qualifies as proof of ownership of the business entity? Yes. You may also wish to consult with a private attorney before any possible warranties or other legal remedies expire. 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. [Rule 535.147(d)] In addition, if advertising a rebate to the tenant of a portion of the license holders commission, the ad must disclose that the rebate is subject to consent of the party the license holder represents. Standard Contract Form TREC No. Is the use of a net listing agreement a breach of the brokers fiduciary duty? What can I do? 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. I am a 25% stockholder in a corporation that holds title to a number of investment properties. Rule 535.34 provides guidelines to determine if evidence of an employer/employee relationship exists. Is a TREC inspector required to report the presence of CSST as a deficiency? [TRELA 1101.355(c)]. The link can also be "TREC Information About Brokerage Services," in at least 12 point font. 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. Instead, TREC has established Standards of Practice for inspectors to follow. Please check with the licensing authority in the state where the brokerage activity will be performed. See question regarding the difference between the types of names to figure out which one is appropriate for your situation. If the broker agrees, then the contract can be mutually rescinded. Consult the contract or the timeshare disclosure statement you received for instructions on how to proceed. Update contact information and Place of Business (business physical) address on the Contact Information page and click "Next". [Rule 535.63(a)] To be eligible for a Texas license, an out-of-state license holder must meet all current Texas licensing requirements found on our website. 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 buyer should only choose Paragraph 7D2 if there are specific repairs known at the time of the contract that the buyer wants the seller to pay for. Yes. Yes. Pursuant to the general limitations in the Standards of Practice, inspectors are not required to determine the presence of Chinese drywall or to report its symptoms or risks. A single drain line for a temperature/pressure relief valve and the pan is not required to be reported as a deficiency. Probably not. When a broker holds money from property management activities in a trust account, how often is a broker required to account for that money? If I am buying, selling or leasing property for a relative, do I need to disclose that I have a real estate license? No. [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. You should direct your questions to your sponsoring broker. A: Yes.