The Texas Real Estate
Commission held its regularly scheduled meeting at the TREC headquarters in
Austin, Texas on Monday, June 13, 2005. Chairman John Walton presided.
Denise Whisenant, Director of Continuing Education from the Real
Estate Center at Texas A&M University, reported that 106 people attended
the instructor training session for the Legal Update and Ethics courses held
in College Station on May 23-24, 2005. The Commission requested that the Real
Estate Center update the required Legal Update and Legal Ethics Courses.
After executive session, the Commission voted to pay four claims
against the Real Estate Recovery Trust Fund: one for $100,000, one for $9,000,
one for $7,000 and one for $4,500. They also voted to pay one claim against
the Inspector Recovery Fund for $8,000.
Loretta DeHay, general counsel, presented the agenda item concerning
discussion and possible action to adopt amendments to 22 TAC §535.2. The
Commission voted to postpone any action on this item until the next meeting.
The Commission voted to adopt amendments to §535.51, regarding
general requirements; §535.71, regarding mandatory continuing education;
and §535.121, regarding inactive licenses. (See article).
The Commission voted to withdraw the proposed amendment to §535.220,
regarding profession conduct and ethics for inspectors.
The Commission voted to withdraw the proposed repeal of §535.217
regarding dishonest conduct as grounds for disciplinary action.
The Commission voted to propose amendments to §§539.31, 539.51, 539.81,
and 539.121. (See article)
Mr. Thorburn presented his legislative update concerning three
bills that will affect the Commission. They are SB 810, HB 1236 and HB 1045.
(See article).
The Commission voted to seek an attorney general opinion regarding
the Inspector Committee's ability to meet by teleconference under §552.125
of the Texas Government Code.
There was a discussion concerning the elimination of salesperson
and broker renewal forms and simplifying the process by mailing out notification
postcards.
The next meeting of the Commission will be August 15, 2005. Meetings
have been scheduled for October 17, 2005 and December 5, 2005.
at the June
13, 2005 meeting of the Texas Real Estate Commission
(for text of rules go to www.trec.state.tx.us)
| Number |
Topic of Rule |
Summary of amendment |
| §539.31 |
Definitions proposed |
Changes the cites to the relevant statutory provisions in Chapter 1303, Texas Occupations Code. |
| §539.51 |
Authorized Personnel proposed |
Changes the cites to the relevant statutory provisions in Chapter 1303, Texas Occupations Code. |
| §539.81 |
Funded Reserves proposed |
Changes the cites to the relevant statutory provisions in Chapter 1303, Texas Occupations Code. |
| §539.121 |
Examinations proposed |
Changes the cites to the relevant statutory provisions in Chapter 1303, Texas Occupations Code. |
| Number | Topic of Rule | Summary of amendment |
|---|---|---|
| §535.51 | Requirements for Licensure adopted |
Revises §535.51(c)(6) to clarify
that an education evaluation must be obtained within one year of the date
of application for a license. |
| §535.71 | Mandatory Continuing Education: Approval of Providers, Courses and Instructors adopted |
Revises the verification on MCE Form
14-1, Individual MCE Partial Credit Request Form, which an education provider
must sign as evidence that the provider has no reason to believe the amount
of credit claimed is inaccurate. Adds new subsection (hh) to allow accredited
colleges and universities, and professional trade associations that are
otherwise approved MCE providers, to use experts from other related fields
to teach an approved MCE elective course without first registering as
a commission-approved instructor. |
| §535.121 | Termination of Salesperson's Association With Sponsoring Broker adopted |
Revises subsection (b) to clarify
that a broker may notify the Commission that sponsorship of a salesperson
has ended by either sending the license or a copy of the license to the
Commission, or otherwise notifying the Commission that sponsorship has
ended |
| §535.217 | Real Estate Inspectors WITHDRAWN 6/13/2005 |
Repeals §535.217
concerning Dishonest Conduct as Grounds for Disciplinary Action because
the subjects addressed in this section will be covered in new proposed
revisions to §535.220. |
| §535.220 | Real Estate Inspectors WITHDRAWN 6/13/2005 |
Revises §535.220
concerning real estate inspector professional conduct and ethics to prohibit
contingency arrangements in cases where compensation depends on specific
findings or on closing or settlement; to prohibit an inspector from paying
a fee to any person for referral of inspections; to prohibit an inspector
from receiving an undisclosed fee for an inspection from more than one
party without the consent of the inspector's client; to prohibit an inspector
from accepting a fee for recommending services or products to the property;
to prohibit an inspector from conducting repair for a fee of any systems
or components of property covered by the Standards of Practice on which
the inspector has performed an inspection under an earnest money contract,
lease, or exchange of real property within 12 months of the date of the
inspection; to require that inspectors perform services and provide opinions
based only on areas in which they are educated, trained, or have experience;
and to prohibit an inspector from disclosing inspection results or client
information without prior approval from the client, except for observed
immediate safety hazards to occupants exposed to such hazards. |
At its June 13, 2005 meeting, the Commission discussed eliminating the current license renewal form for salespersons and brokers. It is anticipated that the existing renewal card will be replaced with a notification postcard by July 1, 2006. The notification postcard will alert salespersons and brokers that they need to renew their license online.
WHAT WILL CHANGE
WHAT
WILL REMAIN THE SAME
This change is being implemented to further streamline the salesperson and broker license renewal process and should be in place by July 1, 2006.
Although the postcard notification change does not go into effect until July 1, 2006, salespersons and brokers may continue renewing their licenses online by visiting: www.trec.state.tx.us
The online renewal
service has been available since August 2000. Please visit TREC’s web
site for online renewals and to obtain other current information pertaining
to the Commission.
FOR
YOUR OWN GOOD...
CHECK THE EXPIRATION DATE OF YOUR LICENSE It is your responsibility to ensure that your license is renewed in a timely manner. Any education required must be completed before your license expiration date if you want to maintain an active real estate license, unless you pay an additional $200 fee and complete your MCE within 60 days of the expiration date of your license. (A license subject to SAE cannot renew without education being completed). Renewal
forms are sent out to all licensees and may also be obtained on our
web site. The Texas Real Estate Commission is not responsible for U.S.
Postal Service delivery or knowing where to find you if you have moved
and have not filed a change of address with our office. Failure to receive
a renewal notice does not provide a valid excuse for not renewing your
license. |
LICENSEE HONORED FOR OVER 50 YEARS OF LICENSURE
S.D. Davis was presented with a resolution honoring him for more than 50 years as a real estate licensee at the New Braunsfel/Canyon Lake Association of Realtors on June 10, 2005. The resolution was presented by TREC Assistant Administrator Dr. Sabrina Hassumani and The Honorable Carter Casteel, State Representative for District 73 attended the function.
Other questions and answers may be found on TREC's web site at
http://www.trec.state.tx.us/questions/faq-enf.asp
Consumer Complaints
Fenoglio,
Jacqueline
(Houston); license #402069
Revocation of salesperson license, effective March 4, 2005 ; failing to provide
information to the Commission in response to Commission request for same in
connection with an application for renewal of real estate salesperson license,
in violation of 22 TAC §535.91(c) of the Rules of the Texas Real Estate
Commission
Dicken, Jerry Wayne
(Paris); license #309778
Agreed reprimand of broker license, entered March 8, 2005; acted negligently
or incompetently when, after the ending of a written exclusive listing agreement
that included terms of a protection period and during an oral open listing
agreement wherein it did not include a definite start or ending date or a
protection period, Mr. Dicken made demands for the payment of a commission
that he was not otherwise entitled to as he had not complied with the written
exclusive listing agreement protection period terms, and the oral open listing
agreement did not include a protection period, in violation of 15(a)(6)(W)
of the Real Estate License Act [§1101.652(b)(1) of the Texas Occupations
Code]
Waddell,
Willard Bemus
(Mansfield); license #497639
Agreed 1 month suspension of salesperson license fully probated for 6 months,
effective March 10, 2005; Agreed administrative penalty of $500, entered March
9, 2005; published, or caused to be published, advertisements, including a
web site and listing agreement, that tended to created a misleading impression
in others that Mr. Waddell was the person responsible for the operation of
the real estate brokerage in violation of 1101.652(b)(23) of the Texas Occupations
Code; acted negligently or incompetently when, in an attempt to promote a
listing to a prospective buyer's agent, he mistakenly informed the other agent
that the sellers would take a sales price that was in fact lower than the
listed sales price and, under a mistaken belief that he had the seller's permission,
Mr. Waddell accessed the property for purposes that were not expressly authorized
under the written listing agreement, in violation of §1101.652(b)(1)
of the Texas Occupations Code
Grunnah,
Robert James Jr.
(Austin); license #499205
Agreed 6 months suspension of salesperson license fully probated for 1 year,
effective March 15, 2005; Agreed administrative penalty of $1,000, entered
February 25, 2005; acting negligently or incompetently in performing an act
for which a person is required to hold a real estate license, in violation
of §1101.652(b)(1) of the Texas Occupations Code; paying a commission
or fees to or dividing a commission or fees with an unlicensed assistant for
compensation for services as a real estate agent, in violation of §1101.652(b)(11)
of the Texas Occupations Code; using a business name in brokerage business
which had not been properly filed with the Commission, and publishing, or
causing to be published, an advertisement which is misleading, or which is
likely to deceive the public, or which in any manner tends to create a misleading
impression, in violation of §1101.652(b)(23) of the Texas Occupations
Code; and establishing an association, by employment or otherwise, with an
unlicensed person who is expected or required to act as a real estate licensee,
in violation of §1101.652(b)(26) of the Texas Occupations Code
D
& J Real Estate Services, Inc.
(Plano); license #435319
Agreed administrative penalty of $500 against broker license, entered March
21, 2005; paid a commission or fees to, or divided a commission or fees with,
an unlicensed person for compensation for services as a real estate agent,
in violation of §1101.652(b)(11) of the Texas Occupations Code; and established
an association, by employment or otherwise, with an unlicensed person who
was expected or required to act as a real estate licensee, in violation of
§1101.652(b)(26) of the Texas Occupations Code.
Ford,
Patricia Davies
(Austin); license #220593
Agreed reprimand of salesperson license, entered March 24, 2005; Agreed administrative
penalty of $250, entered March 24, 2005; performing real estate brokerage
services and accepting a fee or commission in year 2001, while salesperson’s
real estate license was on inactive status, in violation of §1(b) of
the Real Estate License Act, Article 6573a, Texas Civil Statutes [§1101.351(c)
of the Texas Occupations Code] and §15(a)(5) of the Real Estate License
Act, Article 6573a, Texas Civil Statutes [§1101.652(a)(9) of the Texas
Occupations Code]
Johnson, William Lee
(Mabank); license #474670
Agreed 3 month suspension of salesperson license, fully probated for 6 months,
effective April 4, 2005; Agreed administrative penalty of $3,000, entered
April 4, 2005; as president of a real estate company that conducted property
management services, William Lee Johnson acted negligently or incompetently,
failed within a reasonable time to account for or remit money received for
another person, and commingled money belonging to another person with his
own when Mr. Johnson maintained a trust account that was not properly identified
as such; advanced the funds belonging to owners from the trust account to
pay for expenses of another owner without owners' authorizations; failed to
take necessary steps to stop using the funds of owners for expenses of another
owner; failed to maintain procedures to allow time for tenant's rent payments
to clear prior to issuing checks to an owner whereby the checks were returned
insufficient funds; failed to adequately keep owners informed of significant
information regarding the management and leasing of the owners' properties;
failed to account for and remit moneys belonging to owners within the proper
time period after termination of his property management services; and managed
property for an owner whereby a sales associate personally leased the property
and failed to pay rent for the first 7 months of the lease in violation of
§1101.652(b)(1) of the Texas Occupations Code [§15(a)(6)(W) of the
Real Estate License Act], §1101.652(b)(9)&(10) of the Texas Occupations
Code [§15(a)(6)(E) of the Real Estate License Act], and 22 TAC §535.156(c)
Vaughan,
Olujimi O.
(Houston); license #437546
Agreed reprimand of broker license, entered April 5, 2005; Agreed administrative
penalty of $500, entered April 5, 2005; failing within a reasonable time to
properly account for or remit money coming into his possession which belongs
to others, or commingling money belonging to others with his own funds, in
violation of §15(a)(6)(E) of The Real Estate License Act, Article 6573a,
Texas Civil Statutes [§1101.652(b)(10) of the Texas Occupations Code,
effective June 1, 2003] and 22 TAC §535.159(f).
Peterson,
Roy Anthony
(El Paso); license #3003
Agreed reprimand of professional inspector license, entered April 12, 2005;
Agreed administrative penalty of $2,500, entered April 12, 2005; acting as
a professional real estate inspector in Texas for a buyer or seller of real
property without holding a professional real estate inspector license, in
violation of §§1102.103 and 1102.305 of the Texas Occupations Code;
making a material misstatement to the Commission on an application for licensure,
in violation of 22 TAC §535.208(f)
Brown,
Leann A.
(Wichita Falls); license #458862
Agreed reprimand of broker license, entered April 13, 2005; acted negligently
or incompetently and failed to convey to her principal all known information,
when Ms. Brown used a lead based paint addendum that was signed by the owner's
property manager when she knew, or should have known, there was no legal authority
for the manager to sign for the owner; failed to clarify to parties who the
listing broker represented; failed to provide a prospective buyer the Information
About Brokerage Services form; and failed to submit all written offers to
the seller on the mistaken belief the seller desired to reject one of the
offers, in violation of §1101.652(b)(1) of the Texas Occupations Code
and 22 TAC §535.156 of the Rules of the Texas Real Estate Commission
M.
John Pollock, Inc.
(Arlington); license #479985
Agreed reprimand of broker license, entered April 15, 2005; Agreed administrative
penalty of $1,000, entered April 15, 2005; negligent supervision of a real
estate salesperson’s activities, in violation of §1101.652(b)(1)
of the Texas Occupations Code; commingling money that belongs to another person
with the licensee’s own money, in violation of §1101.652(b)(10)
of the Texas Occupations Code
Dugdale,
Lori Lee
(Hurst); license #421396
Agreed reprimand of salesperson license, entered April 15, 2005; Agreed administrative
penalty of $250, entered April 15, 2005; acting negligently or incompetently
when completing promulgated real estate sales contract forms, in violation
of 1101.652(b)(1) of the Texas Occupations Code; commingling money that belongs
to another person with the license holder’s own money, in violation
of §1101.652(b)(10) of the Texas Occupations Code and 22 TAC §535.146(f);
conduct which constitutes dishonest dealings, bad faith or untrustworthiness,
in violation of §1101.652(b)(2) of the Texas Occupations Code
Huffman, Maria Luise
(Houston); license #318372
Agreed reprimand of salesperson license, entered April 22, 2005; Agreed administrative
penalty of $250, entered April 22, 2005; acted negligently or incompetently
when she, acting as Buyer’s agent, gave the Buyer the lock box code
before a Temporary Residential Lease was executed, in violation of §1101.652(b)(1)
of the Texas Occupations Code
Harris,
Archie
(Houston); license #502489
Agreed reprimand of salesperson license, entered April 25, 2005; Agreed administrative
penalty of $750, entered April 25, 2005; acted negligently or incompetently,
engaged in conduct which constituted dishonest dealings, bad faith or untrustworthiness,
failed to within a reasonable time account for or remit money belonging to
another, and commingled money that belonged to another person with the license
holder’s own money, in violation of §15(a)(6)(E), 15(a)(6)(W),
and 15(a)(6)(V) of The Real Estate License Act [Sections 1101.652(b)(9), 1101.652(b)(10),
1101.652(b)(1), and 1101.652(b)(2) of the Texas Occupations Code, effective
June 1, 2003]
Carter,
Rebecca Leigh
(Austin); license #488717
Agreed reprimand of salesperson license, entered April 4, 2005; Agreed administrative
penalty of $250, entered April 4, 2005; 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
Darbonne,
Todd John
(Houston); license #513359
Agreed reprimand of salesperson license, entered April 5, 2005; Agreed administrative
penalty of $250, entered April 5, 2005; failing 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(c) of the Rules of the Texas Real Estate Commission
Kniejski,
Celina Garcia
(Von Ormy); license #487251
Revocation of salesperson license, effective April 5, 2005; failing 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(c) of the Rules of the Texas Real Estate
Commission
Blanton,
Larry J. Jr.
(Dallas); license #480482
Agreed reprimand of salesperson license, entered April 7, 2005; Agreed administrative
penalty of $250, entered April 7, 2005; 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
Sharp,
Boyd Franklin
(Austin); license #479909
Agreed reprimand of salesperson license, entered April 11, 2005; Agreed administrative
penalty of $250, entered April 11, 2005; 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
Kirchhoff,
John Edwin
(Temple); license #225594
Revocation of broker license, effective April 13, 2005; 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
Hines, Andrew H.
(Greenville, South Carolina); license #477905
Revocation of salesperson license, effective April 13, 2005; 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
Dickson,
Robbie Mae
(Dallas); license #261757
Agreed reprimand of broker license, entered April 28, 2005; Agreed administrative
penalty of $250, entered April 28, 2005; 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
Dickson,
Maloyce
(Dallas); license #335179
Agreed reprimand of salesperson license, entered April 28, 2005; Agreed administrative
penalty of $250, entered April 28, 2005; 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
Stephens,
Brian Robert
(Double Oak); license #500561
Agreed reprimand of salesperson license, entered April 29, 2005; Agreed administrative
penalty of $250, entered April 29, 2005; failing 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(c) of the Rules of the Texas Real Estate Commission
At its April 25, 2005 meeting, the Commission appointed three new members to the Texas Real Estate Inspection Committee. The inspector committee is required by statute to recommend rules, forms, fees and ethical conduct standards to the commission to provide a high degree of service to and protection of the public in dealing with an inspector. Each member serves a six year term. The Inspector Committee generally meets about six times a year at commission headquarters in Austin.
Curtis Carr of Beaumont has served as president of Home Team Inspection Service of Beaumont, Texas, since 1996. He is a member of The Texas Association of Real Estate Inspectors (TAREI) and has nine years experience in conducting home inspections. Mr. Carr is active in his local Chamber of Commerce, a licensed mold inspector and tester and manages the fifth largest Home Team company out of approximately 300 in the nation. Mr. Carr is active in his community and profession. His term will expire February 1, 2011.
Russell Strahan of Austin is the owner and operator of Stone Creek Engineering Services, Inc., an engineering and inspection firm that produces property condition reports, due diligence reports for residential and commercial structures, inspects foundation, framing or installation performance, special forensics, stucco problems, moisture detection among other specializations. Mr. Strahan obtained his Bachelor of Science in Mechanical Engineering in 1987 from the University of Texas at Austin and his Master of Science in Mechanical Engineering in 1991 from the University of Southern California, Los Angeles. In addition to his professional inspector license, he is a licensed professional engineer, a licensed by the Texas Structural Pest Control Board, and a code certified building official and residential inspector.
Mr. Strahan is a member of a umber of inspector and engineer related organizations and associations including the American Society of Home Inspectors and the National Academy of Building Inspection Engineers. His term will expire February 1, 2011.
Phillip
Stojanik of Houston is a licensed home inspector, certified
mold remediator and inspector, a mold assessor consultant and a licensed HVAC
contractor among other building related licenses and certifications that he
currently holds. He has more than 15 years experience in home and property
inspections. Mr. Stojanik is active in a number of professionally related
associations and organizations. He is a TREC approved instructor for general
inspection training and has written several educational courses and textbooks.
His term will expire February 1, 2011.
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: August 15, 2005, October 17, 2005 and December 5, 2005
Broker-Lawyer
Committee Meetings: August 1-2, 2005
Inspector Committee Meetings: July 22, 2005
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 16, Number 4
July 2005
Rick Perry
Governor
Commission Members:
| John
Walton, Chairman |
Mary
Frances Burleson,
Vice-Chair |
Elizabeth Leal, Secretary EL PASO |
James N. Austin, Jr. FORT WORTH |
Ramon "Mick" Cantu HOUSTON |
William H. Flores SUGAR LAND |
Louise E. Hull VICTORIA |
Lawrence
D. Jokl BROWNSVILLE |
Paul H.
Jordan GEORGETOWN |
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