A recent change in the appearance of TREC licenses has left some brokers
with questions about who must "maintain" licenses. In 2003, The Real
Estate License Act (TRELA) was amended to remove the requirement that licenses
of salespersons and brokers must be prominently displayed at the broker’s
place of business unless the salesperson or broker is a residential rental locator.
TREC redesigned the salesperson and broker license to resemble a voter registration
card which allows a licensee to carry it in a wallet or card case for easy identification
as a TREC licensee. TREC no longer provides a license certificate for display.
TRELA also requires brokers to maintain custody and control of sponsored salespersons licenses. Given this requirement, questions have been raised as to whether the broker should hold all licenses or whether it is acceptable for a salesperson to carry the license for identification purposes. Brokers may comply with both provisions by maintaining a photo copy of the sponsored salespersons' licenses in their records. Should the broker wish to terminate sponsorship of a salesperson, the broker can send the photo copy to TREC in lieu of sending the original license.
To see example of new license click here.
There are three steps to becoming certified to teach the new MCE required update and/or ethics course.
| November 15-16, 2004 Houston Community College West Loop Center 5601 West Loop South Houston, TX 77081 |
December 2-3, 2004 San Antonio Board of Realtors 9110 IH 10-West San Antonio, TX |
See the TREC website www.trec.state.tx.us or the Real Estate Center web site www.recenter.tamu.edu for more information.
The Texas Real Estate Commission held its regularly scheduled meeting at the
TREC headquarters in Austin, Texas on Monday, October 18, 2004. Chairman John
Walton presided.
During staff reports, Linda Bayless, Director of Enforcement, introduced two new employees, Brett Blair, staff attorney, and John Barajas, investigator.
The Chairman announced that Wayne Thorburn, TREC Administrator had been installed as President of the Association of Real Estate License Law Officials (ARELLO) in Pittsburgh, PA on October 3, 2004. ARELLO is an international organization.
Mr. Thorburn announced that seven employees would be receiving service awards on October 19, 2004: Laura Chandler for 5 years; Barbara Kolb for ten years; Bill Titter for fifteen years; Debbie Orosco, Angelique Gladney and Laura George for twenty years and Susan Steger for twenty-five years.
After meeting in an executive session, the Commission agreed to pay three payments from the recovery fund: two for $50,000 each and one for $4,000.
The Commission adopted the rule amendments to 22 TAC §§535.62 & .64 concerning education, experience, educational programs, time periods and types of license, which conform the provisions to the new rules concerning mandatory continuing education.
The Commission approved the MCE required legal and ethics courses prepared by the Real Estate Center Texas at A&M University.
The Commission approved the annual internal audit report and the annual review of fees and estimated revenues.
The Commission denied a request to appeal the disapproval of a license in the matter of Shanteri Twanette Thomas and also, denied the request for a rehearing in the matter of Christopher Anthony Marache.
The next meetings of the Commission
will be December 6, 2004, February 21, 2005 and April 18, 2005.
In August of 2000, the Texas Real Estate Commission became the first state agency to provide online license renewals. In the last four years the Commission has worked continuously to improve its web site and the services that are offered there.
It is now possible to file and pay for the following licenses online:
Go to the TREC web site www.trec.state.tx.us and make your next renewal online.
At its meeting in Pittsburgh, Pennsylvania on October 2-5, the international
Association of Real Estate License Law Officials (ARELLO) elected TREC Administrator
Wayne Thorburn as its President for 2004-2005. The organization brings together
real estate commissioners and staff from 77 jurisdictions, including most American
and Australian states and Canadian provinces as well as regulatory agencies
from Armenia, Bahamas, Bermuda, Guam, Hong Kong, New Zealand, Puerto Rico and
South Africa. Associate members include organizations of real estate professionals
in a number of other jurisdictions where licensing is not required currently.
In addition to his
responsibilities as Administrator of TREC, Thorburn is also Commissioner of
the Texas Appraiser Licensing and Certification Board. His position as President
of ARELLO will require him to represent the organization at various conferences
and meetings related to real estate licensing and regulation. He is the first
Texan to serve in this capacity in over thirty years. TREC Administrator Andy
James served as President in 1971 when the organization was known as the National
Association of Real Estate License Law Officials (NARELLO). Thorburn had been
President-Elect of ARELLO for the past twelve months and will continue as President
until the organization’s next annual conference in Toronto, Ontario, Canada
in October 2005.
At its meeting on February 21, 2005, the Texas Real Estate Commission will be selecting three individuals to serve on the Texas Real Estate Inspector Committee. As provided in the Real Estate License Act,
“A member of the committee must have been primarily engaged in the practice of real estate inspecting for at least five years before the member’s appointment and must be actively engaged in that practice as a professional inspector at the time of the member’s appointment.”
Terms of appointment are for six years and there is no prohibition on the
reappointment of individuals to the committee.
Consumer Complaints
Meyer,
Jerry Ray
(Lubbock); license #422105
Revocation of broker license, effective August 5, 2004; acting in the capacity
of, engaging in the business of, or advertising or holding himself out as
engaging in or conducting the business of a real estate broker within this
state without the authority of a license issued by the Texas Real Estate Commission,
in violation of §1(b) of The Real Estate License Act, Article 6573a,
Texas Civil Statutes [§1101.351(a)(1) of the Texas Occupations Code,
effective June 1, 2003]
Noah,
Rita Lorraine
(Richardson); license #443384
Agreed 3 month suspension of salesperson license fully probated for 1 year,
effective August 15, 2004; Agreed administrative penalty of $500, entered
August 11, 2004; as a buyer's agent she promised to pay the buyer money toward
repairs to the property, the buyer closed relying on the promise and thereafter
she refused to pay until a much later date, in violation of 22 TAC §§535.145
& 535.156(b) of the Rules of the Texas Real Estate Commission
Bowen,
Joe Brad
(Brady); license #455528
Reprimand of broker license, entered August 20, 2004; offering property for
sale on the Internet without the knowledge or consent of the owners or the
owners’ authorized agent, and at a price other than that authorized
by the owners or the owners’ authorized agent, in violation of §15(a)(6)(O)
of the Real Estate License Act [§§1101.652(b)(19) and 1101.652(b)(20)
of the Texas Occupations Code, effective June 1, 2003]; acting negligently
or incompetently by failing to take care that he had authority to advertise
real property for sale and that the sales price information contained in the
advertisement was accurate, 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]
Blair,
Russell Alan
(Garland); license #323809
Revocation of broker license, effective August 24, 2004; engaged in a property
management business and failed to properly account for monies belonging to
others and commingled owner's funds, in three counts of violations of §§1101.652(b)(1),
(2), (9), & (10) of the Texas Occupations Code and 22 TAC §535.146
of the Rules of the Texas Real Estate Commission; failed to provide within
a reasonable time information or documents related to complaints filed with
the Texas Real Estate Commission, in violation of §§1101.652(a)(5)
& (6); and failed to submit to the Texas Real Estate Commission after
he moved his business office an application for a license that designated
the new location in violation of §1101.442(b) of the Texas Occupations
Code
Valenta,
D. Neal
(Dallas); license #2105
Revocation of professional inspector license, effective August 24, 2004; violated
a term and condition of his probation by failing to pay an outstanding balance
of interest due on a payment made on his behalf from the real estate inspector
recovery fund
Allgood,
Virgil Franklin
(Harker Heights); license #462037
Agreed 6 month suspension of salesperson license fully probated for 1 year,
effective August 25, 2004; Agreed administrative penalty of $750, entered
August 24, 2004; failing within a reasonable time to properly account for
or remit rents, deposits, and other money which came into his possession which
belonged to others, and commingling money which belonged to others with his
own funds, in violation of §15(a)(6)(E) of the Real Estate License Act
[§§1101.652(b)(9) and (10) of the Texas Occupations Code, effective
June 1, 2003]; failing to keep his principal informed at all times of significant
information applicable to the transactions in which he was acting as an agent
for the principal, in violation of 22 TAC §535.156(c) of the Rules of
the Texas Real Estate Commission; establishing an association with an unlicensed
person who was expected or required to act as a real estate licensee, in violation
of §15(a)(6)(S) of the Real Estate License Act [§1101.652(b)(26)
of the Texas Occupations Code, effective June 1, 2003]; and acting negligently
or incompetently in preparing legal documents and performing other property
management activities for a principal, in violation of §15(a)(6)(W) [now
§1101.652(b)(1) of the Texas Occupations Code, effective June 1, 2003]
Porter,
Debra Ann
(Houston); license #480916
Reprimand of salesperson license, entered September 7, 2004; guilty of negotiating
or attempting to negotiate the sale, exchange, lease, or rental of real property
with an owner, knowing that the owner had a written outstanding contract granting
exclusive agency in connection with the transaction to another real estate
broker, in violation of §15(a)(6)(N) of the Real Estate License Act [§1101.652(b)(22)
of the Texas Occupations Code, effective June 1, 2003]
DeVoss, Richard Alan
(Fort Worth); license #298463
Agreed 3 month suspension of salesperson license fully probated for 6 months,
effective September 15, 2004; Agreed administrative penalty of $250, entered
August 18, 2004; DeVoss as a salesperson maintained a bank account for property
management and leasing services without his sponsoring broker's knowledge
or authority; DeVoss failed to properly identify the account as a trust or
escrow account; DeVoss negligently conducted property management services
including not properly or fully filling-in lease documents and failing to
promptly assist a party with contract procedures which resulted in a monetary
dispute, 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]
and 22 TAC §§535.146 & 535.159 of the Rules of the Texas Real
Estate Commission
Bousquet,
Denise Santoy
(Houston); license #349295
Agreed reprimand of salesperson license, entered August 5, 2004; Agreed administrative
penalty of $250, entered August 5, 2004; failing within a reasonable time
to provide information to the Commission in response to Commission's request
for same in connection with an application for renewal of real estate salesperson
license, in violation of 22 TAC §535.91(a) of the Rules of the Texas
Real Estate Commission
Pyatte,
Carol Leone
(Alvin); license #313010
Revocation of salesperson license, effective August 10, 2004; failing within
a reasonable time to provide information to the Commission in response to
Commission's request for same in connection with an application for renewal
of real estate salesperson license, in violation of 22 TAC §535.91(a)
of the Rules of the Texas Real Estate Commission
Kelly,
Ophie M.
(Houston); license #441731
Revocation of salesperson license, effective August 11, 2004; failing within
a reasonable time to provide information to the Commission in response to
Commission's request for same in connection with an application for renewal
of real estate salesperson license, in violation of 22 TAC §535.91(a)
of the Rules of the Texas Real Estate Commission
Cathey,
Felicia Lynn
(San Antonio); license #498433
Revocation of salesperson license, effective August 11, 2004; failing within
a reasonable time to provide information to the Commission in response to
Commission's request for same in connection with an application for renewal
of real estate salesperson license, in violation of 22 TAC §535.91(a)
of the Rules of the Texas Real Estate Commission
Eggert,
Dana Ann
(Bedford); license #475803
Agreed reprimand of salesperson license, entered August 12, 2004; Agreed administrative
penalty of $250, entered August 12, 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
Austin,
Glenn Patrick
(San Antonio); license #474603
Agreed reprimand of salesperson license, entered August 13, 2004; Agreed administrative
penalty of $250, entered August 13, 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
Shami,
Irfan Mahmood
(Houston); license #434880
Reprimand of salesperson license, effective August 25, 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
Phillippi,
Deborah Ann
(Midlothian); license #437202
Agreed reprimand of salesperson license, entered August 25, 2004; Agreed Administrative
penalty of $300, entered August 25, 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
Davis,
Robert Bernard
(Flower Mound); license #240767 Agreed reprimand of salesperson license, entered
August 26, 2004; Agreed administrative penalty of $300, entered August 26,
2004; failing to 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
Powers,
Michael John
(Austin); license #408543
Agreed reprimand of broker license, entered August 31, 2004; Agreed administrative
penalty of $250, entered August 31, 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
Inchingolo,
Michael Gerard
(Irving); license #487691
Revocation of salesperson license, effective August 31, 2004; failing within
a reasonable time to provide information to the Commission in response to
Commission's request for same in connection with an application for renewal
of real estate salesperson license, in violation of 22 TAC §535.92(a)
of the Rules of the Texas Real Estate Commission
Pickens,
Sheryl Anne
(Dallas); license #290433
Agreed reprimand of broker license, entered September 1, 2004; Agreed administrative
penalty of $250, entered September 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
Johnson, Jason Jerrod
(Dallas); license #503190
Revocation of salesperson license, effective September 9, 2004; procured a
license for himself by making a material misstatement of fact in his application
for a license, in 2 violations of §15(a)(2) of the Real Estate License
Act [§1101.652(a)(2) of the Texas Occupations Code, effective June 1,
2003]
Nickel,
Brett Stephens
(Southlake); license #360561
Agreed reprimand of salesperson license, entered September 10, 2004; Agreed
administrative penalty of $250, entered September 10, 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
Gibbons,
Keith Christopher
(Houston); license #518046
Revocation of salesperson license, effective September 10, 2004; failing within
a reasonable time to make good a check issued to the Commission and pay the
processing fees, in violation of §1101.652(a)(4) of the Texas Occupations
Code
Large,
Adrienne Marie
(Duluth, Georgia); license #493656
Agreed reprimand of salesperson license, entered September 14, 2004; failing
within a reasonable time to make good a check issued to the Commission and
pay the processing fees, in violation of §1101.652(a)(4) of the Texas
Occupations Code
Phillippi,
Deborah Ann
(Midlothian); license #437202
Revocation of salesperson license, effective September 14, 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
Watson,
Phillip Roy
(Irving); license #237420
Agreed reprimand of broker license, entered September 17, 2004; Agreed administrative
penalty of $250, entered September 17, 2004; failing to 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
Noble,
Addison Grant
(Spring); license #432529 Agreed reprimand of salesperson license, entered
September 23, 2004; Agreed administrative penalty of $250, entered September
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
Garrett,
Kelley Lee
(Houston); license #375137
Agreed reprimand of salesperson license, entered September 27, 2004; Agreed
administrative penalty of $250, entered September 27, 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
Go to the TREC website (www.trec.state.tx.us) for more questions and answers.
I have an active two-year license that expires on April 30, 2005. I intend to complete all my Mandatory Continuing Education (MCE) requirements for renewal before January 1, 2005. Will I need to take the new legal update course and legal ethics course to renew my license on active status?
I was out of the business for a couple of years. I just filed a late renewal of my license and now I have an active one-year license that expires on October 31, 2005. Will I need to take the new legal update course and legal ethics course to renew my license on active status?
I have an active two-year license that expires on April 30, 2005. I intend to
complete some of my MCE requirements before January 1, 2005, but I will need
to take an additional 6 hours to comply with the legal MCE requirements. Will
I need to take the new legal update course and legal ethics course to renew
my license on active status?
I will get my first salesperson license that is not subject to Salesperson Annual Education (SAE) requirements in February 2005. When I renew in February 2006, will I need to take the new legal courses?
I currently have a one-year salesperson license. I completed my SAE and got
my one-year license in October 2004. Will I need to take the new legal courses
to renew my license on active status in October 2005?
My license is inactive. I plan on returning my license to active status in February 2005. Will I need to take the new legal courses?
I have an active two-year license that expires on October 31, 2005. I plan on renewing inactive. When I decide to return my license to active status, will I need to take the new legal courses?
Assume for purposes of this question that the date is August 2005. I had an active two-year salesperson license that expires on April 30, 2006. My broker terminated me in June 2005, which made my license inactive. I found another broker to sponsor me, but when I sent my sponsorship form to TREC, I received a letter indicating that I needed to complete my MCE requirements. Do I need to take the new legal courses to return to active status?
I will get my broker license in August 2005. Will I need to take the new legal courses to renew my license in August 2006?
I will apply for a late renewal of my salesperson license in February 2005. Will I need to take the new legal courses before I apply for my license?
I am a broker. In 1991, I got the one-time exemption from continuing education requirements under section 1101.456 of the Occupations Code. Do I need to take the new legal courses?
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: December 6, 2004, February 21, 2005 and April 18, 2005
Broker-Lawyer
Committee Meetings: January 13-14, 2005
Inspector Committee Meetings: November 29, 2004 and January 12, 2005
Other questions and answers may be found on TREC's web site at
http://www.trec.state.tx.us/questions/faq-enf.asp
Q.
I own a home in one city in Texas, and I live in another city. I do not want
to hire a real estate salesperson. My friend has volunteered to do it. Would
it be against the law for her to market and sell my home?
A. Not if you signed a power of attorney authorizing your friend
to be your "attorney-in-fact". Under the Texas Real Estate License
Act, a person may conduct a real estate transaction if she is operating under
a power of attorney. In addition, if you are not compensating your friend for
selling your home, she would not need a license to help you sell it.
Q. May auctioneers
auction real estate? Are they required to be licensed to do so, and if so, by
whom?
A. Yes. Auctioneers who auction real estate are exempt from
having to obtain a real estate license, if they are calling an auction in which
real estate is auctioned. The auctioneer cannot perform any other acts of a
real estate broker or salesperson. Auctioneers are required to have an auctioneer
license issued by the Texas Department of Licensing and Regulation.
Q. I have been a
licensed agent for over 35 years. Am I required to take mandatory continuing
education (MCE) courses or am I grandfathered?
A. You are exempt from the requirement to take mandatory continuing
education courses if you applied for and qualified for the one-time exemption
from the MCE rule in 1991, the law has not changed since that time. It is too
late to apply for this exemption now. However, we do encourage you to voluntarily
take the new courses, particularly the newly required legal and ethics course.
Q. We are aware that
TREC has recently changed to issuing only wallet-sized licenses. Are we still
required to display current licenses in our office? If so, how do we display
these wallet-sized licenses?
A. No, the requirement for a broker to post real estate licenses
in the broker's main office or a branch office was repealed with amendments
to the Real Estate License Act, effective September 1, 2003. Posting of licenses
is no longer required.
Q. May a broker representing
the seller tell a prospective buyer that a home has received a full price offer
and is no longer on the market when in fact the home is still active on the
market?
A. No. The provisions of the Texas Real Estate License Act
and Rules prohibit a licensee from sharing the terms of one buyer's offer with
another buyer making an offer, e.g., disclosing that another offer was at full
price, and it prohibits dishonesty.
Q. Does TREC prohibit
licensees from stating, either orally or in writing, the square footage of residential
property?
A. No. TREC does not have a rule or statute prohibiting the
calculation or disclosure of the square footage of residential property. However,
a licensee should identify the source of the square footage, such as tax records
or per the county appraisal district or appraisal, to avoid possible misrepresentation.
Q. I would like to
read more about intermediary laws in Texas. Where may I find information on
this issue?
A. The intermediary laws for Texas are found in the Texas Occupations
Code which is available on our web site at www.trec.state.tx.us. Click on the
Real Estate License Act link in the purple tab area for "Forms, Laws, Publications".
You should specifically review §§1101.557 through 1101.561 of the
Texas Occupations Code. There is also a document on our FAQ's page regarding
intermediary practice and agency disclosure on the TREC website.
Q. I am a broker
licensed in another state. I have a client who wants to purchase a home in Texas.
May I represent her?
A. No. All negotiations physically conducted within Texas,
or when the broker conducts brokerage business from another state by mail, telephone,
internet, etc., and all prospective buyers and sellers are legal residents of
Texas and the property is in Texas, the transaction must be handled by a Texas
licensee. However, if you work with a Texas licensee to find a home for your
client, the Texas licensee may share earned commissions with you.
Q. If I use the word
"Realtor" must it appear in all capital letters or can it be written
in lower-case letters?
A. Realtor® is a trademark of the National Association
of Realtors®. You should consult with your local board of Realtors®
or the national association about who may use it and its proper use.
Q. May I offer an
unlicensed person a $50.00 gift certificate to use at a retail store or restaurant?
A. Yes, as long as the gift certificate cannot be converted
to cash and is not more than $50.00. You may not give cash in any amount, nor
can you give a gift with a retail value of more than $50.00, rent bonuses or
rent discounts.
Q. I am a licensed
salesperson representing the seller. The potential buyer is represented by an
attorney. Do I have to pay the attorney a commission?
A. Although attorneys are exempt from real estate license requirements
and may represent or assist others in negotiating the sale or lease of real
property and receive compensation from their own clients, you, as a licensed
salesperson, may not share or split a commission with anyone not licensed as
a real estate broker or salesperson including attorneys.
Q. May two real estate
brokers operate two different companies which share the same office space?
A. Yes. Nothing in the Act or Rules prohibit office sharing.
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 5
November 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