After nearly two years of research and development, the Texas Real Estate
Commission (TREC) adopted rules at its meeting on August 9, 2004 that significantly
change the mandatory continuing education (MCE) requirements for real estate
brokers and salespersons to renew a license on active status. The rules change
the process by which MCE courses and instructors are approved and require all
real estate licensees to attend a three hour legal update course and a three
hour legal ethics course to fulfill the six legal hours of MCE to renew an active
license under the Real Estate License Act (the Act).
The rules developed by the Commission
incorporate recommendations from licensees, trade associations and the TREC
Education Task Force, members of which were appointed by Chairman Mike Brodie
in July 2002 to look at the present structure of MCE in Texas, analyze its effectiveness
and make any necessary recommendations for improvements.
The following is a summary of the
most significant changes to the Texas MCE rules:
The Texas Real Estate Commission held its regularly scheduled meeting at the
TREC headquarters in Austin, Texas on Monday, August 9, 2004. Chairman John
Walton presided.
During staff reports, Ms. Hassumani
reported that the number of applications submitted continues to increase.
The Commission agreed to pay one recovery
fund in the amount of $8,300.
The Commission proposed rule amendments
to 22 TAC §§535.63 & .64 concerning education, experience, educational
programs, time periods and types of license. The proposed revisions would conform
the provisions to the new rules concerning mandatory continuing education.
The Commission withdrew the proposed
amendment to 22 TAC §535.2, concerning Broker's Responsibility determining
that action could be taken on this item at a later date if needed.
The Commission adopted amendments
to §535.51, which adopts by reference a corporation broker original application
with the amended fee structure to include the subscription fee for the TexasOnline
Authority.
The Commission adopted amendments to 22 TAC §§535.71-535.73.
The Commission adopted the following
amendments which change cites in the rules to the relevant statutory provision
in Chapter 1101, Texas Occupations Code: §§535.91, 92, and .94; §535.101;
§§535.122-.123; §§535.131, .132; §§535.141., .143,
.147, .153, .154; §§535.206, .208, .213-.216, .220, .224, .227; §535.300;
and §§535.400, .402, .403.
The Commission adopted amendments
to §535.171 which require a party appealing the final decision of TREC
in a contested case to pay the costs of preparing the original or certified
copy of a record of the contested case proceedings.
The Commission adopted amendments
to §537.11 and .46 which revises Standard Contract Form TREC No. 39-5.
The next meetings of the Commission
will be October 18, 2004, December 6, 2004 and February 21, 2005.
TREC is pleased
to announce that Lorie
De Anda has received the Outstanding Employee Award for the first half
of calendar year 2004.
As Manager of TREC's
busy Communication Section, Lorie works conscientiously to ensure that licensees
receive the answers they need, whether on the phone or by email. She displays
concern for callers, and strives to train her staff to be thoroughly prepared
for the many types of questions they are asked daily.
Lorie's team members respect her not only for her training and her ability to lead by example in helping the public, but equally for her support and genuine empathy toward her staff.
TREC offers many services online…File and Pay (by credit card) for These Licenses Online
Download TREC applications and contract forms, education forms, rules and License Act, and the Advisor newsletter. Subscribe to the e-mail notification service and receive information as soon as it becomes available. Search the TREC web site for information concerning licensees, courses, schools and instructors. |
Other questions and answers may be found on TREC's web site at
http://www.trec.state.tx.us/questions/faq-enf.asp
Q. My broker license is inactive. I intend to
either rent or buy a home. Am I required to disclose to the
landlord or seller that I have a real estate license?
A.Yes. Even though your license is inactive, you must
disclose that you have a license in writing in the contract or in some other
writing furnished to the other party prior to executing the contract.
Q. I am an
agent and would like to give a gift certificate to a spa or boutique to either
the buyer or seller that I represent at the close of a sale. May I do so?
A. Yes. A gift to a principal (buyer or seller) is permitted under
TREC Rules. There are no prohibitions as to what form the rebate can take. Note,
however, if you are not representing the person who is going to receive the
rebate, the consent of the person you are representing is required prior to
giving the rebate. If you advertise your plan, be aware of the advertising provisions
of the TREC Rules which require certain language to be included in all advertisements
of rebates to principals. Look at Rule 535.154(k) on the TREC web site at www.trec.state.tx.us.
Q. I recently
closed on the purchase of a home and have moved in. I have found several major
problems that were not disclosed by the sellers and not found by the inspector.
The real estate agent told me that I got a great deal and that I should be happy
with it. What can I do?
A. You could file a complaint with the Commission naming the agent,
if you believe the agent had knowledge of the defects or problems you have discovered,
and the agent failed to disclose that information to you. You could also file
a complaint against the inspector if you believe he saw or should have seen
defects on the day of inspection. Inspectors are only responsible for observations
made about the property on the day the inspector saw the property. The Commission
does not have legal authority to take action against the seller for failing
to disclose a known condition of the property on the Seller's Disclosure of
Property Condition form. For that you would need to seek assistance from an
attorney..
Q. Is a real
estate agent required to call the occupant of property prior to showing the
property?
A. The law does not specifically require an agent to call ahead of
time. However, a licensed agent who shows property has a duty to act in a competent
manner. This duty would require, as a general matter, that the showing agent
respect instructions given by the owner or listing agent regarding showing the
property. You may wish to confirm with the owner or listing agent what instructions
have been noted in the listing for the property.
Q. I have
recently sold my home very quickly without using a real estate agent. Now my
friends have requested my help in selling their homes. I would like to be paid
for my consulting without having to become a real estate agent. Could you tell
me the law regarding this issue?
A. The law says you cannot receive compensation for helping others
buy or sell property unless you have a real estate license. If you do so, it
would be considered unlicensed activity under the law and could result in a
large fine and/or criminal penalties.
Q. Must a
Buyer's Representation Agreement have a fixed date for when the agreement expires?
A. Yes. The law requires an agent to specify a definite termination
date that is not subject to prior notice in a contract to perform some type
of brokerage service other than property management services.
Q. I have
contracts that are pending in which I am representing the buyer in one and the
seller in the other. If I turn in my resignation to my current broker, and I
ask him to return my license to TREC, and I move to another sponsoring broker,
can I continue to handle these transactions and receive a commission?
A. After you terminate your sponsorship with your current broker, you
may no longer act as an agent for that broker. If the clients have signed a
buyers' representation agreement or a real estate listing agreement with your
current broker, you may not continue to represent the client after termination
of your sponsorship by the broker, unless you make arrangements with both the
broker you are leaving, your new broker, and you and your new broker enter new
or modified agreements with the clients to continue your involvement in the
transactions. Of course, you would need to maintain an active license, under
the sponsorship of a broker, to continue acting as an agent.
The Commission does not have jurisdiction over the issue of whether you are
entitled to commissions in these transactions. It would depend on the independent
contractor agreement between you and the old broker. If it is agreed that you
are entitled to the commissions, you may be paid through your old broker any
commissions that were earned while you were still under the sponsorship of that
broker. For this purpose, we generally consider commissions to be earned at
the time a contract of sale or lease is executed by all parties.
Q. If an out
of state broker refers a buyer to a Texas broker, is the Texas broker allowed
to pay a referral fee to the out of state broker?
A. Yes. A Texas licensee may cooperate with and divide fees with a
broker licensed in another state, as long as all negotiations in Texas are conducted
by Texas licensees.
Q. In the
TREC promulgated "One to Four Family Residential Contract (Resale)",
paragraph 7.B.(1), even if the buyer receives the Texas Property Code Sellers'
Disclosure Notice, does he have the right to terminate the contract within 7
days after receiving notice?
A. The right of the buyer to terminate the contract is found in Paragraph
7.B.(2). The right to terminate described in this paragraph may be exercised:
Q. I am a
developer and I sell home sites. If a real estate licensee registers with us
and brings a buyer, we pay a commission to the licensee. If a licensee does
not register with us but brings us a buyer, do we have to pay a commission to
the real estate agent?
A. No. Under the Real Estate License Act, a licensee does not have
a legally enforceable right to a commission unless the agreement to pay the
commission, or some memorandum of an agreement, is in writing and signed by
the party to be charged. If you have not signed such an agreement or memorandum,
you are not legally obligated to pay a commission.
Q. I am a
Texas attorney and want to assist a friend in purchasing a home. Do I need a
real estate license?
A. No. As an active licensed attorney you may assist a person/entity
in buying a home. Attorneys are exempt from licensure under The Real Estate
License Act. Therefore, attorneys may conduct real estate brokerage activities
without a real estate license. However, a real estate licensee may not share
a commission with an unlicensed person. Therefore, your commission would have
to be paid by one of the parties to the transaction.
Q. I am a
real estate agent and a mortgage loan officer. If I want to handle both sides
of a real estate transaction, may I do so?
A. Yes. A real estate licensee can also act as a mortgage loan officer
in the same transaction if the agent/loan officer discloses that he will receive
a fee from both parties to the transaction and obtains consent from the parties
to the transaction, i.e., the buyers and the sellers. Although this type of
activity is not prohibited by the Real Estate License Act, we do not encourage
doing it due to possible conflicts of interest that may occur, and due to the
fact that an agent should not put his own financial interests above those of
his principal. You should also check with the Texas Savings and Loan Department
at www.sml.state.tx.us to ensure you are following their requirements as well.
Consumer Complaints
Gibbs,
Ford W.
(Dallas); license #466978
Agreed reprimand of broker license, entered June 1, 2004; acted negligently
or incompetently when a salesperson he sponsored conducted his real estate
brokerage business through a limited liability company not first licensed
as a real estate broker and the same salesperson maintained a web site with
content that offered to pay cash to an unlicensed person for referrals for
real estate brokerage services and the advertisements did not readily identify
the advertiser as a real estate licensee, in violation of §1101.652(b)(1)
of the Texas Occupations Code and 22 TAC §§535.20 & 535.154
of the Rules of the Texas Real Estate Commission
Costilla,
Ramon
(The Colony); license #502695
Agreed reprimand of salesperson license, entered June 3, 2004; Agreed administrative
penalty of $750, entered June 3, 2004; acted negligently or incompetently
when he maintained a web site with content not approved by his broker and
the content offered to pay cash to an unlicensed person for referrals for
real estate brokerage services and the advertisements did not readily identify
the advertiser as a real estate licensee, in violation of §1101.652(b)(1)
of the Texas Occupations Code and 22 TAC §§535.20 & 535.154
of the Rules of the Texas Real Estate Commission
Said,
Michael R.
(Austin); license #448758
Agreed reprimand of salesperson license, entered June 14, 2004; Agreed administrative
penalty of $750, entered June 14, 2004; failure to deposit money and documents
received in a real estate transaction within a reasonable time, in violation
of 22 TAC §535.159 of the Rules of the Texas Real Estate Commission;
negligence in his failure to deliver a buyer’s option fee payment along
with a written offer that included an option period and required an option
fee, and negligence in his physical loss of the executed contract documents,
buyer’s earnest money check, and buyer’s option fee check, in
violation of §15(a)(6)(W) of the Real Estate License Act [§1101.652(b)(1)
of the Texas Occupations Code, effective June 1, 2003]
Galleon
Bay Club Condoshare
(South Padre Island); license #02208601
Revocation of timeshare registration, effective June 30, failing to refund
a purchaser's deposit after timely cancellation of a contract for purchase
of a timeshare interest, in violation of §221.042(b), of the Texas Timeshare
Act (5 counts); failing to disclose information concerning goods or services
which was known at the time of the transaction if such failure to disclose
such information was intended to induce the consumer into a transaction which
the consumer would not have entered had the information been disclosed, by
failing to execute and tender a deed to the purchaser after the purchaser
had paid the full purchase price of a timeshare interest, in violation of
§17.46(b)(23) of the Texas Deceptive Trade Practices-Consumer Protection
Act
Christiansen,
Lynn Dee
(Houston); license #286828
Agreed reprimand of salesperson license, entered July 14, 2004; Agreed administrative
penalty of $500, entered July 14, 2004; leasing real property in her own name
and failing to advise the tenant in writing in the lease agreement, or in
another writing furnished to the tenant before execution of the lease agreement,
that she was a licensed real estate salesperson, in violation of 22 TAC §535.144
of the Rules of the Texas Real Estate Commission
Scott,
Justin Mark
(Belton); license #457923
Agreed reprimand of salesperson license, entered June 1, 2004; Agreed administrative
penalty of $250, entered June 1, 2004 failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Evans,
Thomas Lynn
(Dallas); license #286170
Revocation of salesperson license, effective June 3, 2004; failing within
a reasonable time to make good a check issued to the Commission and to pay
the processing fee, in violation of §1101.652(a)(4) of the Texas Occupations
Code and §534.2(a) of the Rules of the Texas Real Estate Commission
Evans,
Bessie Lynn
(Dallas); license #131890
Revocation of broker license, effective June 3, 2004; failing within a reasonable
time to make good checks issued to the Commission and to pay the processing
fees, in violation of §1101.652(a)(4) of the Texas Occupations Code and
§534.2(a) of the Rules of the Texas Real Estate Commission
English,
Timothy James
(Hockley); license #472104
Agreed reprimand of salesperson license, entered June 9, 2004; Agreed administrative
penalty of $250, entered June 9, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Lewis,
Michael Don
(Fort Worth); license #290825
Revocation of salesperson license, effective June 11, 2004; failing to complete
mandatory continuing education hours and pay the $200 fee within the 60-day
period provided by 22 TAC §535.92(f) of the Rules of the Texas Real Estate
Commission
Abiakam,
Rose Okoye
(Houston); license #354520
Agreed reprimand of broker license, entered June 24, 2004; Agreed administrative
penalty of $250, entered June 24, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Roberson,
Juanita
(Fort Worth); license #115829
Revocation of broker license, effective June 29, 2004; failing within a reasonable
time to make good a check issued to the Commission and to pay the processing
fee, in violation of §1101.652(a)(4) of the Texas Occupations Code and
§534.2(a) of the Rules of the Texas Real Estate Commission
Padilla-Vazquez,
Raul
(Killeen); license #367484
Agreed reprimand of broker license, entered July 1, 2004; Agreed administrative
penalty of $250, entered July 1, 2004; failing to complete mandatory continuing
education hours within the 60-day period provided by 22 TAC §535.92(f)
of the Rules of the Texas Real Estate Commission
Bean,
Milton Leon
(Boerne); license #4127
Revocation of professional inspector license, effective July 2, 2004; payment
of $7500.00 made by the Texas Real Estate Commission from the Real Estate
Inspection Recovery Fund toward satisfaction of a judgment against Milton
Leon Bean, in violation of §1102.402 of the Texas Occupations Code
Goode,
Diane Gilliam
(Austin); license #438969
Agreed reprimand of salesperson license, entered July 7, 2004; Agreed administrative
penalty of $250, entered July 7, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Bailey,
Tina Ross
(Dallas); license #272286
Agreed reprimand of salesperson license, entered July 7, 2004; Agreed administrative
penalty of $250, entered July 7, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Wales,
Christopher H.
(Round Rock); license #474914
Agreed reprimand of salesperson license, entered July 8, 2004; Agreed administrative
penalty of $250, entered July 8, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Umoekpo,
Ekponoudim Itok
(Missouri City); license #482717
Agreed reprimand of salesperson license, entered July 9, 2004; Agreed administrative
penalty of $250, entered July 9, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Harden,
Jack E.
(San Antonio); license #173119
Revocation of broker license, effective July 16, 2004; failing to complete
mandatory continuing education hours within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Norby,
Larry R.
(El Paso); license #394545
Revocation of salesperson license, effective July 16, 2004; payment of $29,902.83
made by the Texas Real Estate Commission from the Real Estate Recovery Fund
toward satisfaction of a judgment against Larry R. Norby, in violation of
§8(i) of the Texas Real Estate License Act, Article 6573a, Texas Civil
Statutes [§1101.655 of the Texas Occupations Code. effective June 1,
2003]
Taylor,
Larry Scott
(Austin); license #399516
Agreed reprimand of broker license, entered July 21, 2004; Agreed administrative
penalty of $250, entered July 21, 2004; failing to complete mandatory continuing
education hours within the 60-day period provided by 22 TAC §535.92(f)
of the Rules of the Texas Real Estate Commission
McKown,
Melanie Jordan
(San Antonio); license #475397
Agreed reprimand of salesperson license, entered July 22, 2004; Agreed administrative
penalty of $250, entered July 22, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Martin,
Ann M.
(Conroe); license #313950
Revocation of salesperson license, effective July 23, 2004; failing to complete
mandatory continuing education hours and pay the $200 fee within the 60-day
period provided by 22 TAC §535.92(f) of the Rules of the Texas Real Estate
Commission
Best,
John Kraetsch
(El Paso); license #178242
Agreed reprimand of broker license, entered July 28, 2004; Agreed administrative
penalty of $500, entered July 28, 2004; failing to complete mandatory continuing
education hours and pay the $200 fee within the 60-day period provided by
22 TAC §535.92(f) of the Rules of the Texas Real Estate Commission
Klaes,
Daniel Earl
(Houston); license #446662
Agreed reprimand of salesperson license, entered July 30, 2004; Agreed administrative
penalty of $250, entered July 30, 2004; failing to complete mandatory continuing
education hours within the 60-day period provided by 22 TAC §535.92(f)
of the Rules of the Texas Real Estate Commission
DON’T FORGET: You must still renew your license even if you choose to be inactive.
Got A Question About A Relocation Company?
Through a link maintained on the TREC web site, licensees may directly access
The Real Estate Coalition for Cooperative Business Practices (the Coalition)
of the
Employee Relocation Council
by clicking on “The Interchange” on the Coalition’s website
at
http://coalition.erc.org
Licensees may raise concerns about their dealings with a
relocation company and send a message to the appropriate company for response.
Calendar of Events
Commission
Meetings: October 18, 2004, December 6, 2004 and February 21,
2005
Broker-Lawyer
Committee Meetings: October 28-29, 2004
Inspector Committee Meetings: none scheduled
Web site: http://www.trec.state.tx.us
Phone: (800) 250-TREC (8732) or (512) 459-6544
Official publication of the
Texas Real Estate Commission
Volume 15, Number 4
September 2004
Rick Perry
Governor
Commission Members:
| John
Walton, Chairman |
Louise E. Hull,
Vice-Chair VICTORIA |
James N. Austin, Jr.,
Secretary FORT WORTH |
Mary Frances Burleson AUBREY |
Ramon "Mick" Cantu HOUSTON |
William H. Flores SUGAR LAND |
Lawrence D. Jokl BROWNSVILLE |
Paul H. Jordan GEORGETOWN |
Elizabeth Leal EL PASO |
TREC Administrator
Wayne Thorburn
Desktop Publisher
Patricia Holder
The TRECAdvisor (ISSN 1047-4579) is published by the Texas Real Estate Commission (TREC) as an educational service to licensees in the state of Texas. The purpose of the newsletter is to promote a better understanding of the Real Estate License Act and to inform all licensees of changes affecting laws and practices in the real estate industry. The TRECAdvisor is funded through legislative appropriations and subscriptions collected from TREC licensees. The official text of TREC rules is filed with the Office of the Secretary of State, Texas Register. TREC encourages reproduction of this newsletter with the appropriate acknowledgments. Subscriptions are available for $4.00 for two years. Single issues are $1.00. To order a subscription or a single issue write to TRECAdvisor, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. For information regarding TREC, contact:
Texas Real Estate Commission
P.O. Box 12188
Austin, Texas 78711-2188
(512) 459-6544 or (800) 250-TREC
http://www.trec.state.tx.us