Real Estate Sales Agent Terms Level 9
Sec. 1101.055. Terms; Vacancy
(a) Commission members serve staggered six-year terms, with the terms of three members expiring January 31 of each odd-numbered year. (b) If a vacancy occurs during a member's term, the governor shall appoint a person to fill the unexpired term. Members: 9 (All appointed by the governor and confirmed by at least 2/3 of Texas Senate.) Membership Term Length: 6 years Committee Purpose: Adopt and enforce rules for governing Texas real estate practitioners
Sec. 1101.254. Powers and Duties
(a) In addition to other delegated powers and duties, the committee shall draft and revise contract forms that are capable of being standardized to expedite real estate transactions and minimize controversy. (b) The contract forms must contain safeguards adequate to protect the principals in the transaction.
Sec. 1101.302. Bond Required
(a) In this section, "educational institution" means a school, excluding an accredited college or university, authorized by the commission under this chapter to offer a real estate or real estate inspection educational program or course of study. (b) An educational institution shall maintain a corporate surety bond or other security acceptable to the commission that is: (1) in the amount of $20,000; (2) payable to the commission; and (3) for the benefit of a party who suffers damages caused by the failure of the institution to fulfill obligations related to the commission's approval.
Sec. 1101.057. Grounds for Removal
(a) It is a ground for removal from the commission that a member: (1) does not have at the time of appointment the qualifications required by Section 1101.051(a) or (b) or 1101.052; (2) does not maintain during service on the commission the qualifications required by Section 1101.051(a) or (b) or 1101.052; (3) is ineligible for membership under Section 1101.053; (4) cannot discharge the member's duties for a substantial part of the member's term; or (5) is absent from more than half of the regularly scheduled commission meetings that the member is eligible to attend during each calendar year, unless the absence is excused by majority vote of the commission. (b) The validity of an action of the commission is not affected by the fact that it is taken when a ground for removal of a commission member exists. (c) If the executive director has knowledge that a potential ground for removal exists, the executive director shall notify the presiding officer of the commission of the potential ground. The presiding officer shall then notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal involves the presiding officer, the executive director shall notify the next highest ranking officer of the commission, who shall then notify the governor and the attorney general that a potential ground for removal exists.
Sec. 1101.051. Commission Membership
(a) The Texas Real Estate Commission consists of nine members appointed by the governor with the advice and consent of the senate as follows: (1) six members who have been engaged in the brokerage business as licensed brokers as their major occupation for the five years preceding appointment; and (2) three members who represent the public. (b) Each member of the commission must be a qualified voter. (c) Appointments to the commission shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointee.
Sec. 1101.456. Exemption from Continuing Education Requirements for Certain Brokers
A broker who got licensed before October 31, 1991 is not required to comply with the mandatory continuing education requirements.
Texas Real Estate Broker-Lawyer Committee
A committee that creates and corrects contract forms to be used by Texas real estate license holders
Texas Real Estate Commission (TREC)
A group of nine people appointed by the governor and confirmed by the state senate that are to set policy and rules from the real estate license act. TREC has the authority to adopt and enforce rules for governing real estate practitioners.
Texas Real Estate License Act (TRELA)
A law that governs the licensing, education, and activities of real estate license holders practicing brokerage in this state Today, the TRELA is a part of the Texas Occupations Code, Chapter 1101.
Sec. 1101.106. Equal Employment Opportunity Policy; Report
A lot has been stated about discrimination and Fair Housing laws in this course, but little has been mentioned about equality in employment. While this section does not deal with real estate office employees, it outlines how TREC goes about ensuring that they implement equal opportunity in their hiring practices.
Sec. 1101.457. Deferral of Continuing Education Requirements
All license holders should have their educational requirements completed and recorded with the Texas Real Estate Commission prior to sending in the application for renewal. If a license holder does not complete their continuing education in time for their license renewal, they may defer this requirement and essentially get a 60-day extension. In this situation, the applicant will have to pay an additional fee of up to $200. By doing so, the license holder will be allowed to keep practicing real estate until the education is taken care of.
Sec. 1101.359. Alternate Education Requirements for Certain License Holders
An applicant for a broker license who is not subject to the education requirements of Section 1101.356(a)(2) and an applicant for a sales agent license who is not subject to the education requirements of Section 1101.358 or 1101.454 must provide to the commission satisfactory evidence that the applicant has completed the number of classroom hours of continuing education that would have been required for a timely renewal under Section 1101.455 during the two years preceding the date the application is filed.
Sec. 1101.404. Examination Results
Any person who takes the exam should receive their results within 10 days. If it's going to take more than 10 days, TREC will reach out to the test taker(s) and explain the reason for the delay. If someone fails the exam, they have the option of requesting an analysis of their performance. This request needs to be submitted in writing and include a statement identifying themselves.
Sec. 1101.002. Definitions
Anyone who helps another party (such as a client) complete a real estate activity (such as buying, selling, leasing, or listing to sell) for a fee ($$$) must have a real estate license. A sales agent is defined as a person who is associated with (sponsored by) a licensed broker for the purpose of performing any of the practices of real estate as described above and by TRELA. A licensed salesperson must be associated with a broker to practice real estate on behalf of another and for compensation or a fee.
Sec. 1101.352. License Application
Applicants for a broker or sales agent license must submit an application to the commission. Each applicant needs to provide the commission with a current mailing address, telephone number, and email address if applicable. The potential license holder must disclose whether they have: - Entered a plea of guilty or no lo contender to a felony, or - Been convicted of a felony and the time for appeal has elapsed or the judgment or conviction has been affirmed on appeal. A person has one year from the date the application is filed to take the state examination.
Sec. 1101.405. Reexamination
Applicants who fail the license exam can retake it. They just need to file a request and pay a fee to do so. In fact, applicants get three chances to pass. After three failed attempts in a row, an applicant would have to submit proof of additional education and get TREC's permission to take the exam again and submit a new license application.
Sec. 1101.251. Definition of Committee
In this subchapter, "committee" means the Texas Real Estate Broker-Lawyer Committee. (a) The Texas Real Estate Broker-Lawyer Committee consists of 13 members appointed as follows: (1) six members appointed by the commission; (2) six members of the State Bar of Texas appointed by the president of the state bar; and (3) one public member appointed by the governor. (b) Appointments to the committee shall be made without regard to the race, creed, sex, religion, or national origin of the appointee.
Errors and omissions insurance
Insurance that protects against mistakes a license holder might make in real estate transactions; it does not cover acts of fraud or other intentional misconduct
Sec. 1101.205. Complaint Investigation of Certificate Holder
Just for informational purposes, a certificate holder is someone who deals with real estate, but only in terms of easements and right of ways.
Real Estate Center
Located at Texas A&M University to provide the results of research and education to license holders
Sec. 1101.402. Waiver of Examination
Not everyone has to take the exam to get their agent or broker license. An applicant may be exempt from the exam requirement if: They were previously licensed as a broker or sales agent here in Texas AND They put in their application within two years of their old license expiring
Sec. 1101.054. Official Oath
Not later than the 15th day after the date of appointment, each appointee must take the constitutional oath of office.
Sec. 1101.105. Career Development Program; Performance Evaluations
One of the motivational factors in most career fields is the opportunity to move to a higher position/income. This is an important part of keeping morale high within an organization. This section explains the necessity of having some sort of career development program for employees. This section also mentions that annual performance reports will take place, which is typical of most workplaces.
Who TREC Oversees
Real estate inspectors 🔎 Easement/right-of-way agents Education providers for real estate & inspection courses 📚 Developers of timeshares Residential service companies 🏠 Real estate brokers and sales agents TRELA was passed in 1939. TREC was created in 1949. TRELA is a law passed by the Texas Legislature to govern Texas real estate. TREC is a government agency created by the Texas Legislature to enforce TRELA.
Sec. 1101.451. License Expiration and Renewal
Real estate licenses are good for a period of two years. TREC gets to decide the exact date that renewal applications and associated fees are due. Fees may be due in full or prorated based on the timing of the renewal. If an agent or broker lets their license expire, they could face higher fees when they renew. If it's expired for 90 days or less, the applicant has to pay one-and-a-half times the regular renewal fee. If it's expired between 90 days and six months, renewal fees are doubled. If a person's license is expired for six months or longer, they cannot renew it. They must apply for a new license.
Sec. 1101.161. Gifts, Grants, and Donations
Says that giving gifts to the commission is possible and okay.
Sec. 1101.158. Advisory Committees
There are topics and concerns that the nine commissioners don't have time to research and the TREC staff is not qualified to perform. Because of this, an advisory committee made up of real estate license holders and instructors is created to assist with the development of identifying a situation that needs to be addressed. The advisory committee will also come up with solutions to whatever the problem is, working hand-in-hand with staff members of TREC.
Sec. 1101.053. Membership and Employee Restrictions
This law states that employees of a trade association and their spouses cannot be a member of the commission or be employed by the commission. In addition, lobbyists cannot serve as a member of the commission or as general counsel of the commission.
Sec. 1101.059. Training
To fully comprehend their duties and how the commission must function, the members of the commission are required to go through training.
Sec. 1101.362. Waiver of License Requirements: Previous License Holders
Under this statute, it's possible to have an expired license for almost two years and receive a waiver from TREC to reactivate the license. So if a broker placed their license into inactive status for several years while they worked for a local board of REALTORS®, but kept paying their renewal fees every two years, when they retired, they could reactivate their license by taking the required courses. They would then be able to begin practicing again without having to retake the state exam.
Sec. 1101.060. Quasi-Judicial Immunity
Unfortunately, it's possible that a commission member could be named in a lawsuit as a result of their actions while performing their duties. In this case, immunity is provided to them while they are functioning as a commission member. Notice, however, that the immunity only is in place as long as the member is in compliance with the law.
Sec. 1101.061. Educational Presentations
When a member of the commission or employees of the commission speak, continuing education credits might be available to those who attend the meeting. If a member of the commission or employee speaks on behalf of the commission, they cannot be compensated except for travel costs.
Sec. 1101.358. Sales Agent License: Education Requirements
Sec.1101.358 identifies the sales agent's license education requirements. An applicant for a sales agent's license must provide satisfactory evidence to the commission that the applicant has completed at least 12 semester hours (or equivalent classroom hours — 15 classroom hours is equivalent to 1 semester hour) of postsecondary education consisting of: - At least four semester hours of core real estate courses on principles of real estate and - At least two semester hours of each real estate course for agency law, contract law, contract forms and addendums, and real estate finance.
Sec. 1101.406. Guidelines; Study Guides
TREC publishes guidelines and study guides that license applicants can use to prepare for the test. TREC updates these materials and makes them free to the public. No one besides the commission is allowed to profit from distributing this study material.
Sec. 1101.354. General Eligibility Requirements
That means that applicants must demonstrate integrity by having a clean record. If they don't, they would need to write a pretty convincing argument as to why and what they've learned from the experience.
Sec. 1101.003. Qualifying Real Estate Courses
The 11 Core Real Estate Courses are: Agency Law Contract Law Principles of Real Estate Property Management Real Estate Appraisal Real Estate Brokerage Real Estate Finance Real Estate Investment Real Estate Law Real Estate Marketing Real Estate Math
Committee Members
The Broker-Lawyer Committee consists of 13 members. Six members are brokers appointed by the Commission Six members are lawyers appointed by the President of the State Bar Association One member is a member of the public appointed by the governor
Sec. 1101.156. Rules Restricting Advertising or Competitive Bidding
The Commission does have rules about signage, truthfulness in advertising, and the broker's name being prominently displayed in ads and on websites, but they don't regulate where and how license holders do their marketing.
Intermediary Relationship Notice
The TAR Intermediary Relationship Notice form is used by REALTORS® to inform sellers and buyers that there is an intermediary relationship. License holders who aren't REALTORS® do not have access to this form.
Term Lengths
The committee serves a staggered six-year term with two commission appointees and two Texas State Bar appointees expiring every two years. The governor-appointed public member term expires every six years.
Sec. 1101.104. Qualifications and Standards of Conduct Information
The employees will receive guidance directly from the commissioners. This means that the workers understand the qualifications as well as the responsibilities of conduct that they are to follow.
designated agent
someone must become the broker of record for the company A designated agent has a broker's license and is not only responsible for their own behavior, but also the actions of all of the others in the office who have a real estate license.
Sec. 1101.103. Code of Ethics; Standard of Conduct
Chapter 572 is a section of the Texas government code law that outlines ethical requirements for government employees. Among the ethical requirements, Chapter 572 says that employees have to submit a financial statement to the agency from time to time.
Sec. 1101.303. Approval of Continuing Education Provider or Course of Study
Continuing education courses are courses taken by agents every two years in order to renew their license. Once these are approved by TREC, these courses are good for two years. To keep providing these courses, educators need to go through this process every two years.
Promulgated Contracts
Contracts prepared and authorized by the Texas Real Estate Commission that must be used by real estate license holders. There are a few exceptions to this rule.
Sec. 1101.160. Negotiated Rule-making and Alternative Dispute Resolution Procedures
Disputes, while unfortunate, are somewhat inevitable. Knowing how to resolve them is extremely beneficial on both a business and individual level. This section says that TREC shall implement policies and procedures to resolve internal and external conflicts that are under their jurisdiction. They will also hire someone to coordinate the implementation of the policy and train others on it.
Sec. 1101.304. Examination Passage Rate Data
In order to assist someone who's considering taking real estate courses, TREC has a webpage where education providers are ranked according to the pass rate of each school. The formula uses data from all of the students from each school that took the exam for the first time for the last two years.
Sec. 1101.058. Per Diem; Reimbursement
(a) A commission member is entitled to receive: (1) $75 for each day the member performs the member's official duties; and (2) reimbursement for actual and necessary expenses incurred in performing the member's official duties. (b) For purposes of this section, the commission by rule may determine what constitutes a day or actual and necessary expenses.
Sec. 1101.360. Eligibility Requirements for Certain Nonresident Applicants
(a) A resident of another state who is not a licensed real estate broker and who was formerly licensed in this state as a broker or sales agent may apply for a license under this chapter not later than six months after expiration of the former license. (b) A nonresident applicant is subject to the same license requirements as a resident. The commission may refuse to issue a license to a nonresident applicant for the same reasons that it may refuse to issue a license to a resident applicant. (c) A nonresident applicant must submit with the application an irrevocable consent to a legal action against the applicant in the court of any county in this state in which a cause of action may arise or in which the plaintiff may reside. The action may be commenced by service of process or pleading authorized by the laws of this state or by delivery of process on the executive director or deputy executive director of the commission. The consent must: (1) stipulate that the service of process or pleading is valid and binding in all courts as if personal service had been made on the nonresident in this state; (2) be acknowledged; and (3) if made by a corporation, be authenticated by its seal. (d) A service of process or pleading served on the commission under this section shall be by duplicate copies. One copy shall be filed in the commission's office, and the other copy shall be forwarded by registered mail to the last known principal address recorded in the commission's records for the nonresident against whom the process or pleading is directed. (e) A default judgment in an action commenced as provided by this section may not be granted: (1) unless the commission certifies that a copy of the process or pleading was mailed to the defendant as provided by Subsection (d); and (2) until the 21st day after the date the process or pleading is mailed to the defendant.
Sec. 1101.355. Additional General Eligibility Requirements for Business Entities
(a) To be eligible for a license under this chapter, a business entity must: (1) designate one of its managing officers as its broker for purposes of this chapter; and (2) provide proof that the entity maintains errors and omissions insurance with a minimum annual limit of $1 million for each occurrence if the designated broker owns less than 10 percent of the business entity. (b) A business entity may not act as a broker unless the entity's designated broker is a licensed individual broker in active status and good standing according to the commission's records. (b-1) In determining whether a designated broker is in good standing under this section, the commission may consider: (1) the disciplinary history of: (A) the broker; or (B) any business entity for which the broker serves or previously served as a designated broker; and (2) the payment status of any amount owed to the commission by: (A) the broker; or (B) any business entity for which the broker serves or previously served as a designated broker. (C) A business entity that receives compensation on behalf of a license holder must be licensed as a broker under this chapter.
Sec. 1101.401. Examination Required
- TREC decides when and where applicants can take the exam. - You may be tested on any of the topics in these courses, and passing will mean that you're fit to serve the public as a license holder. - The sales agent exam requires you to show a required level of basic knowledge, but not as much as the broker exam. - TREC will provide study materials to all applicants. - You have to pass the exam within a year of filing an application for your license.
Licensing Requirements Broken Down
1. Age: Be at least 18 years old. 2. Residency: Have legal residence in the United States and be a resident of the state of Texas. 3. Integrity: Satisfy to the commission (TREC) that the candidate meets and exceeds their character standards (honesty, trustworthiness, and integrity). 4. Competence: Demonstrate competence by passing the licensing exam. 5. Complete Pre-License Courses: Complete all required courses of study. (And guess what? This course is one of the six required pre-license courses.)
Consumer Protection Notice - Online Link Appearance Guidelines
10 point if you spell out the Commission's name: Texas Real Estate Commission Consumer Protection Notice 12 point if you use the Commission's abbreviated name: TREC Consumer Protection Notice
Sec. 1101.356. Broker License: Experience and Education Requirements
A new license holder may be thinking about becoming a broker someday. The educational requirement to achieve this is the completion of 900 classroom hours. The law is written in semester hours, so 60 semester hours is equivalent to 900 classroom hours. (College transcripts will also count toward the 900.) The post secondary education must include 18 semester hours (or equivalent classroom hours) of core real estate courses. Two of those semester hours must be real estate brokerage and at least 42 hours of core or related courses accepted by the commission. One of the required courses must be a 30-hour course (2 semester hours) called Brokerage. Sec.1101.356 identifies the broker license experience and education requirements. An applicant for a broker license must have at least four years of active experience in this state as a license holder during the 60 months preceding the date the application is filed.
Sec. 1101.052. Public Member Eligibility
A person is not eligible for appointment as a public member of the commission if the person or the person's spouse: (1) is registered, certified, or licensed by an occupational regulatory agency in the real estate industry; (2) is employed by or participates in the management of a business entity or other organization regulated by the commission or receiving funds from the commission; (3) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by the commission or receiving funds from the commission; or (4) uses or receives a substantial amount of tangible goods, services, or funds from the commission, other than compensation or reimbursement authorized by law for commission membership, attendance, or expenses.
Attorney
A person who is licensed to give legal advice
Sales Agent
A person who is licensed to practice real estate and is sponsored by a real estate broker
§535.132 Eligibility for Licensure
A. A person residing outside of Texas may apply for a license under this section if the person: 1. is licensed as a foreign broker; or 2. was licensed as a Texas real estate sales person or broker no more than two years before filing of the application. 3. The commission may waive education and experience requirements if the applicant satisfies the conditions established by §535.56 or §535.55 of this title. B. A business entity created or chartered under the laws of a state other than Texas may apply for a Texas real estate broker license if the entity: 1. is licensed as a broker by the state in which it was created or chartered; 2. is licensed as a broker in a state in which it is permitted to engage in real estate brokerage business as a foreign business entity; or 3. was created or chartered in a state that does not license business entities and the entity is lawfully engaged in the practice of real estate brokerage in that state and meets all other requirements for applications for a license in Texas. c. An individual licensed as a broker who subsequently moves to a state other than Texas is not required to maintain an office in Texas unless the individual sponsors a salesperson in Texas. d. To be eligible to receive a license and maintain an active license, a business entity created or chartered in a state other than Texas must designate a person to act for it who meets the requirements of §1101.355 of the Act, although the designated broker is not required to be a resident of Texas. Foreign business entities must also be permitted to engage in business in Texas to receive a Texas real estate broker license.
Sec. 1101.3015. Fee for Educational Program
According to this part of the code, TREC is allowed to charge a fee for processing the courses submitted to the Education Department.
Sec. 1101.454. Sales Agent License Renewal
According to this section, newly licensed agents must take additional continuing education (90 classroom hours of coursework) prior to their first license renewal.
Sec. 1101.154. Additional Fee: Texas Real Estate Research Center
For every renewal of a broker/salesperson license, or certificate registrant, a fee is collected in addition to the application or registration fee. This money goes towards the Texas Real Estate Research Center. The real estate research center at Texas A&M University provides a wealth of information from the research conducted and presented in the Tierra Grande publication. This research benefits real estate professionals, our industry, and the general public. The educational benefits and information provided from their research is at your fingertips and worth frequent visits to their website.
Sec. 1101.005. Applicability of Chapter
Sec. 1101-005 identifies who is exempt from compliance with the license act and does not need a license to perform the acts or practice of real estate. These people do NOT need a real estate license: - An attorney licensed in this state (they have already acquired the license to practice law in this state) - An attorney in fact authorized under a power of attorney to conduct a real estate transaction - A public official while engaged in official duties - An auctioneer licensed under Chapter 1802 while conducting the sale of real estate by auction if the auctioneer does not perform another act of a broker or salesperson - A person conducting a real estate transaction under a court order or the authority of a will or written trust instrument - A person who is employed to sell or rent land and/or structures by the owner - An on-site manager of an apartment complex - An owner or the owner's employee who leases the owner's improved or unimproved real estate - Any transactions for the sale, lease, or transfer of mining or mineral interests - Any transactions for the sale, lease, or transfer of cemetery lots - Any transactions for the lease or management of a hotel or motel
Sec. 1101.006. Application of Sunset Act
Sec. 1101-006 provides that the commission is subject to the Sunset Act (Chapter 325 of the Government Code). The Sunset Act is a common state law, which, in Texas, requires the Sunset Commission to evaluate all state agencies every 12 years with respect to their efficiency and the need for their continued services. The Texas Real Estate Commission has been reviewed four times under this Act and has received approval each time.
Sec. 1101.004. Real Estate Brokerage
Sec. 1101.004 depicts what constitutes as engaging in real estate brokerage. If a license holder, with expectation of receiving valuable consideration, directly or indirectly performs or offers, attempts, or agrees to perform for another person any act described by Section 1101.002(1), they are engaging in real estate brokerage. Thus, those actions would require a real estate license and being in compliance with applicable laws for the practice of real estate. This section also outlines what is not considered engaging in real estate brokerage. This includes: Constructing, remodeling, or repairing a home or other building Sponsoring, promoting, or managing, or otherwise participating as a principal, partner, or financial manager of, an investment in real estate Entering into an obligation to pay another person that is secured by an interest in real property
Sec. 1101.0055. Non-Applicability of Law Governing Cancellation of Certain Transactions
Sec. 1101.0055. NON-APPLICABILITY OF LAW GOVERNING CANCELLATION OF CERTAIN TRANSACTIONS. A service contract that a license holder enters into for services governed by this chapter is not a good or service governed by Chapter 601, Business & Commerce Code.
Sec. 1101.152. Fees
Sec. 1101.152 establishes the commission's authority to adopt rules to charge and collect fees to cover the costs of administering these chapters.
Sec. 1101.157. Subpoena Authority
Sec. 1101.157 grants the commission subpoena authority to subpoena witnesses (order them to come to court) for examination under oath, documents, or other evidence relevant to an investigation of a violation of this chapter.
Sec. 1101.201 Public Interest Information
Sec. 1101.201 says the commission should prepare information that explains the functions of the commission and that information should be made available to the public and appropriate state agencies.
Sec. 1101.202. Complaints
Sec. 1101.202 establishes methods by which consumers are provided the name, mailing address, and telephone number of the commission for the purpose of directing complaints from the public. Such notice is provided in the Consumer Protection Notice TREC No. CN 1-2. This is required to be prominently displayed in each place of business. This form can be obtained from TREC'S website.
Sec. 1101.203. Complaint Information
Sec. 1101.203 requires the commission to maintain a prompt and efficient system for maintaining a file on each complaint and the requirements of what must be included in each file. The commission will periodically notify the parties as to the complaint status until final disposition, unless the notice would jeopardize an undercover investigation.
Sec. 1101.204. Complaint Investigation and Disposition
Sec. 1101.204 authorizes the commission or commission staff to file a complaint and conduct an investigation as necessary to enforce the chapter. The commission will also investigate the actions and records of a license holder if a person submits a signed written complaint related to that license holder. The submitter must provide reasonable cause for the investigation within four years of the date of the incident — hopefully sooner (the statute of limitations is four years).
Sec. 1101.365. Probationary License
Sec. 1101.365. PROBATIONARY LICENSE. (a) The commission may issue a probationary license. (b) The commission by rule shall adopt reasonable terms for issuing a probationary license.
Sec. 1101.351. License Required
Sec.1101.351 states that a person may not act or present themselves as a broker, salesperson, or rental locator unless that person receives a license evidencing that authority. Additionally, a business entity may not act as a broker unless the entity holds a license issued under this chapter.
Sec. 1101.353. Moral Character Determination
Sec.1101.353 says that the commission must also determine the moral character of an applicant and within 30 days after the commission's determination the applicant shall be notified. This area might concern some people because of something in their past. Acceptance from TREC is based upon how long ago it happened, the severity of the act, and the likelihood that the act will occur again.
Sec. 1101.363. Issuance of License
Sec.1101.363 indicates the commission shall issue an appropriate license to those who meet the requirements for a license. An inactive sales agent's license can be issued to a person meeting the sales agent licensing requirements. But the sales agent cannot perform any real estate related activities that require licensure as described in Sec 1101.002 (Definitions), unless that sales agent is sponsored by a licensed broker who has notified the commission, as required by section 1101.367b. A person who is issued a broker's license can perform the acts identified in 1101.002, provided the license is in an active status and not expired. However, every two years the renewal fee would have to be paid to TREC to continue being licensed. Failure to pay the fee will move the license status to expired. For most people, as soon as they receive their inactive license, they activate it by finding a broker who will sponsor them.
Sec. 1101.364. Denial of License
Sec.1101.364 addresses the commission denial of licensure of an applicant. If an applicant is denied a license, the commission will immediately give the applicant written notice. The denied applicant is entitled to a hearing under Section 1101.657 and can appeal the decision.
Sec. 1101.366. Inactive License: Broker
Sec.1101.366 says that inactive broker license status may be requested by submitting the prescribed form to the commission prior to the expiration of the license. A broker who wishes to change the license status from active to inactive must provide a written notice to each sponsored license holder 30 days preceding the broker applying for inactive status. Any inactive license holder cannot perform the activities regulated under this chapter.
Sec. 1101.367. Inactive License: Sales Agent
Sec.1101.367 says that when the association of a sponsoring broker and the license holder is terminated, the broker needs to immediately return the sales agent's license to the commission. The commission will change the status of an unsponsored sales agent license holder to an inactive status, provided the license is not expired. The license holder can file for an active status at any time, provided their license has not expired, they have had an approved sponsorship by a licensed broker, and the appropriate forms are submitted to TREC with the payment of the associated fees.
Sec. 1101.253. Terms, Vacancies
Section 101.253 essentially says that if there is a vacancy, the entity that appointed that person will appoint someone else to that position. There are three entities responsible for appointments to the committee: 1. The Texas Real Estate Commission appoints the six brokers to the committee. 2. The President of the Texas Bar Association appoints the six attorneys to the committee. 3. The governor appoints the one public member to the committee.
Broker
Someone who assists in buying and selling to receive a commission
Sec. 1101.102. Division of Responsibilities
The commission shall develop and implement policies that clearly separate the policymaking responsibilities of the commission and the management responsibilities of the executive director and the staff of the commission.
Sec. 1101.155. Rules Relating to Contract Forms
The forms required for use by license holders are prepared by the Texas Real Estate Broker-Lawyer committee and adopted by the commission. These contract forms are referred to as promulgated or required for use by license holders. However, there are some exceptions. The commission allows license holders to use alternatives to the promulgated contract forms in real estate transactions if the form is: Prepared by the property owner themselves, or Prepared by an attorney and required by the property owner Although the Texas Real Estate Commission does not have listing agreements available for license holders to use, the state legislature has stated that there are two things that have to be included in all listing contracts: - The first one is a line indicating that all commissions are negotiable. - The second one is to inform sellers about the special rules concerning anyone who lives along the coast.
Sec. 1101.151. General Powers and Duties of Commission
The general powers and duties of the Commission are outlined here. The term general is the right word for this section of the law because it does not dive into the details of exactly how these duties will be accomplished, it just gives TREC the power to adopt and enforce rules in order to administer TRELA.
Sec. 1101.056. Officers
The governor designates a broker member of the commission to serve as a presiding officer. The presiding officer, the assistant presiding officer, and secretary make up the executive committee of the commission. The executive committee will deal with administrative matters that don't require a vote of all of the commission members. This committee will work closely with the real estate commission administrator as needed, to help the day-to-day operation run as smoothly as possible.
Sec. 1101.2051. Confidentiality of Investigation Material
The information collected during an investigation will be confidential and shared with only a few. The parties may decide to announce what they know about the circumstances of the case, but TREC is not to let any cats out of any bags.
Sec. 1101.3521. Criminal History
The obtaining of fingerprints is a requirement. Even if someone has their prints on file with another branch of the state government, they will still have to give their fingerprints to TREC. Hey, just pretend it's a really fast finger painting art project! The new applicant will have to pay for their fingerprints to be taken. Failure to comply will result in the commission refusing to issue or renew a license from that applicant.
Sec. 1101.455. Continuing Education Requirements
This lengthy section outlines the requirements for continuing education and the topics that are acceptable for these courses. This part of the law allows the Texas Real Estate Commission to raise the number of hours required for license renewal by no more than three hours every two years. Section 1101.455 talks about both license holders who are in the first two years of being in the business and agents who have been licensed for more than two years. It says that these experienced agents have to take 18 classroom hours of continuing education. These 18 hours should be based on topics approved by TREC. A continuing education course may or may not have an exam. The law also says that no continuing education course may be shorter than one hour or longer than 10 hours. This section also states a requirement that applies to continuing education courses given through videos, webinars, online providers, and correspondence courses. It says that students should not get credit for completing a course until the given number of credit hours have elapsed. This ensures that the student is spending the same amount of time learning as they would at an in-person class.
Sec. 1101.301. Approval of Programs and Courses of Study
This part of the code is saying that all education needs to be approved by TREC.
Sec. 1101.357. Broker License: Alternate Experience Requirements for Certain Applicants
This part of the code says that someone wanting to become a broker needs four years of active experience in the state they're applying for. This experience needs to be in 60 months preceeding the application filing date.
Sec. 1101.361. Additional Eligibility Requirements for Certain Nonresident Applicants
This particular section applies directly to the sales agents and brokers who come to Texas from other states. Here is an example of when these rules apply to an agent: Texarkana is a place where an agent might need a license in more than one state. This town is at the state line for Texas, Arkansas, and Louisiana, so it's possible for the agent to show a property in one state and not drive too far to show another home in another state. Because of this geographical situation, it would be necessary for the license holders here to have more than one state license.
Sec. 1101.101. Executive Director and Other Personnel
This portion of the law gives the executive director the opportunity to hire support staff as needed to get the job done in an effective way. The members of the commission decide what the salary will be for the employees. There are a number of departments that can help both the public and the real estate license holders.
Sec. 1101.403. Administration of Examination; Testing Service
This section explains that TREC controls the scope and content of the exam, but the exam may be administered by a testing service of their choice. The testing service provider may handle such tasks as communicating with the applicants about the exam, collecting exam fees, and administering the exam at certain times and locations.
Sec. 1101.452. Information Required for License Renewal
This section is relevant to every license holder who's been in the business for two years or more. Along with submitting the renewal form and fees, the license holder must declare if they have been convicted of a felony. The reason this section of the law exists is so TREC stays informed about license holders' criminal records and can decide whether those who have broken the law should be allowed to keep working in real estate.
Sec. 1101.305. Review Committee
This section is stating that TREC can form a committee for the purpose of reviewing an educational program that's not performing well. The committee can't revoke the approval of the under-performing program, but TREC can temporarily suspend it.
Sec. 1101.458. Additional Education Requirements for Certain License Holders
This section of the law is relevant to: - The broker of record for a business entity - A broker who sponsors sales agents - Any license holder including sales agents who supervise other license holders For these people, there is a required six-hour course called Broker Responsibility. This course is written in conjunction with the Real Estate Center at Texas A&M and updated every two years. It must be taken every two-year period for license renewal.
Sec. 1101.453. Additional Renewal Requirements for Business Entities
This section pertains to real estate business rather than individual license holders. If the company is a sole proprietorship, then there's no requirement that the owner must purchase errors and omissions insurance. However, any company that doesn't have this type of insurance is placing itself in a potentially difficult position should a problem arise with a transaction. If the designated broker owns less than 10% of the company, errors and omissions insurance is required.
Sec. 1101.159. Use of Technology
This section requires the commission to implement new technology in order to improve the way they do their job.
Sec. 1101.4521. Criminal History Record Information for Renewal
This section simply states that the commission may require a background check for license holders who are renewing their unexpired licenses.
Sec. 1101.206. Public Participation
This section states that the commission should develop policies to allow the public a reasonable opportunity to appear before the commission and to speak on any issue under the commission's jurisdiction. The Commission will also maintain a written plan to address how a person who does not speak English or who has disability can be provided reasonable access to the commission's programs.
§535.21 Mailing Address and Other Contact Information
a. Each license holder shall provide a mailing address, phone number, and email address used for business to the Commission and shall report all subsequent changes not later than the 10th day after the date of a change of any of the listed contact information. If a license holder fails to update the contact information, the last known contact information provided to the Commission is the license holder's contact information. b. The Commission shall send a notice or correspondence to an active broker or an inactive license holder to the mailing or email address of the broker or license holder as shown in the Commission's records. The Commission shall send a notice or correspondence to an active sales agent to the mailing or email address of the sales agent's sponsoring broker as shown in the Commission's records.
