The Texas Real Estate Commission took a road trip to Houston for its May 16 meeting. The agenda and materials are available at TREC’s website. Below are highlights relevant to your business.
Adopted Rule Changes
Timely Response Required
The commission approved new rule 535.157, requiring a broker or sales agent to respond to his or her principal, a broker or sales agent representing another party to a real estate transaction, or an unrepresented party to a real estate transaction within two calendar days. While a sponsoring broker or designated supervisor has always been (and will still be) required to respond to sponsored sales agents, clients, and license holders representing other parties in real estate transactions, the new rule clarifies that all brokers and sales agents are required to make a timely response to others engaged in a real estate transaction, considered by TREC to be from offer to close.
Engaging in a New Type of Brokerage Activity
A change to rule 535.2(i)(5) increases the minimum number of times that a sales agent who performs a type of real estate brokerage activity must receive coaching or assistance from a competent, experienced license holder from one time to three times.
Renewal After License Expiration
Current rule 535.93 allows license holders to renew within six months after the expiration date of their license without any lapse in active licensure as long as certain certifications are met. The change to this rule now requires a license holder who renews within six months after the expiration date to automatically renew on inactive status, requiring a $250 reactivation fee.
Unauthorized Practice of Law
Based on recommendations from the unauthorized practice of law working group, the commission adopted changes to TREC rules defining “informational items” to mirror the new language in Paragraph 11 of the commission’s contract forms and to continue to allow attorney-drafted brokerage forms to be used by license holders.
Proposed Rule Changes
One significant proposed rule change would allow license holders to receive up to 4 hours of CE elective credit for attending one commission meeting per renewal cycle. TREC currently allows credit for attending the February commission meeting held during the Texas REALTORS® Winter Meeting.
This and other proposed rules will be available for public comment on the Texas Register, and the full text of the changes can be found in the meeting materials.
Let me wait a couple of days and get back to you on this. 🙂 🙂 🙂
TREC also passed the proposed rule requiring all newly licensed agents take a 30-hour Brokerage course, as part of their first 98-hr SAE renewal requirement.
Yea!
That’s great news about the attorney drafted Brokerage forms! We have a well addendum, that is attorney drafted, to fill a void in promulgated forms. I’m sure there are other valid reasons as well.
When do they become effective?
When do these rules become effective?
Timely Response Required… This requirement should be within 24 hours, 2 days is way too long. This requirement should pertain to all real estate related calls not just when you are in an transaction. Lack of returned call is one of the consumers top complaints. I have potential clients call me and say “finally a person answers their phone” or “finally someone calls me back”. Professionalism suffers due to lack of timely returned calls. Messages should state and create an expectation.
if they had a thumbs up I’d give you 300
I agree with the 24 hours
Amen on the 24 hours unless there is a good reason such as medical, accidents, being out of the country.
That has been my greatest complaint since I became licensed. I am so very pleased that this step has been taken.
I completely agree!!!
I agree with the 48 for various reasons. I don’t agree with 24 hours because there might be another offer coming in and that does not allow for the time to review both potentially. Plus not all people are internet savvy (say it isn’t so!!) and have to have a meeting. Not all people work traditional hours, I have had an offer accepted when multiple offers came in, drove away from the presentation and had the winning offer agent tell me her client was withdrawing his offer. So back to the sellers to compare the other offers. Plus if an… Read more »
Look forward to the changes.
THE NEXT RULE:
No new rules more often than every FIVE years!
Are they going to drop the requirement to use the tenant flood notice when it’s a sellers lease back? This rule makes no sense when the seller is now leasing the house he has lived in and the buyer, the new owner/landlord, has zero knowledge of flood issues.
I completely agree. I think it makes us look foolish.
Great Point
I agree the tenant flood notice on the seller’s leaseback, is very unnecessary since they obviously are the only party that has any experience with the property.
This should also apply to agents, that act as their own showing service many of them will never call you back I’ve personally experienced this! In a way this is denying equal access to all and hindering home ownership!