TITLE 22. EXAMINING BOARDS

PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 531. CANONS OF PROFESSIONAL ETHICS AND CONDUCT

22 TAC §531.18

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §531.18, Consumer Information, in Chapter 531, Canons of Professional Ethics and Conduct, without changes, as published in the November 26, 2021, issue of the Texas Register (46 TexReg 7955). The rule will not be republished.

The amendment to §531.18 and the form adopted by reference implement statutory changes enacted by the 87th Legislature in HB 1560, which moved the regulation of residential service companies, also known as home warranty companies, from TREC to the Texas Department of Licensing and Regulation (TDLR) effective September 1, 2021. The amendment to the Consumer Protection Notice removes a reference to home warranty companies being regulated by TREC.

No comments were received on the amendments as published.

The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 18, 2022.

TRD-202200605

Vanessa Burgess

General Counsel

Texas Real Estate Commission

Effective date: March 10, 2022

Proposal publication date: November 26, 2021

For further information, please call: (512) 936-3284


CHAPTER 535. GENERAL PROVISIONS

SUBCHAPTER E. REQUIREMENTS FOR LICENSURE

22 TAC §535.56

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.56, Consumer Information, in Chapter 535, General Provisions, without changes, as published in the November 26, 2021, issue of the Texas Register (46 TexReg 7956). The rule will not be republished.

The amendment to §535.56 and the forms adopted by reference incorporate a new point system that is easier to understand. This simplified point system does not increase the requirements to obtain a broker's license and is intended to further streamline the broker license application process. The amendment and forms adopted by reference also include changes to the requirements by mandating an applicant must have performed at least one transaction per year for at least four of the five years preceding the date the application is filed. They also remove the low point value categories of Exclusive Right to Sell Listings, Buyer and Tenant Representation Agreements, and Listings, but increase the opportunity for agents to count team management and now delegated supervision by eliminating the previous maximum points that could be counted under that category.

The Commission received four comments related to the changes, all of which were reviewed by the Broker Responsibility Working Group. Two comments generally expressed support for the changes. Another comment expressed concern related to what the commenter viewed as a reduction in requirements related to mandating transactions under (c) take place in at least four of the five proceeding years; however, the adopted change does not change the number of transactions required and is not a reduction in the experience requirements to obtain a broker's license. The final comment received expressed concern related to someone like himself who works in compliance and training and completing one transaction per year in the five years preceding the application date. The rule expands the experience points one can earn when supervising and the transactional requirement under (b)(2)(C) does not limit someone in this position from obtaining the requisite experience because such supervision falls under (c). As a result, the Commission did not make any changes in response to the comments received.

The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 18, 2022.

TRD-202200606

Vanessa Burgess

General Counsel

Texas Real Estate Commission

Effective date: March 10, 2022

Proposal publication date: November 26, 2021

For further information, please call: (512) 936-3284