The Information About Brokerage Services (IABS) representations disclosureis not required when: Can a real estate license be revoked because a license holder files for bankruptcy? Regardless of representation, however, it is misleading advertising to advertise a rebate for an apartment complex that the locator knows has a no rebate policy. [Rule 535.20(a)] Therefore, a $50 gift card that is only redeemable for certain merchandise (e.g. Keep a copy of the letter. Can an individual sales agent use an assumed business name in advertising? Must the permission of the owner authorizing the agent to offer the unit for rent be in writing? When a contract falls through, can part of the earnest money be held to pay the commission fee for the other real estate license holder? If you feel there has been a violation of If the permission is given over the telephone, for example, the license holder should document who gave the permission and how it was given in case that information is later requested by TREC in connection with a complaint. The intermediary and any associated license holders appointed by the intermediary broker are prohibited from disclosing, without the written authorization from the seller, that the seller will accept a price less than the asking price or that the buyer will pay a price greater than the price submitted in a written offer. What is the required information that must be provided in advertisements such as signs, email and business cards? Do the Standards of Practice require inspectors to determine the headroom clearance on stairs or to report inadequate clearance as a deficiency? See also Chapter 209, Property Code. If someones criminal history has been expunged, can the information still appear on the background check? You should hear back from the Commission about whether we are moving forward with your complaint within 30 days. the buyer executes a Buyer Representation Agreement or other written document that authorizes the broker to act as intermediary and specifies the conduct that is prohibited under TRELA 1101.651(d) in conspicuous bold or underlined print. Code 1201.003(24)). My wife and I signed an offer to buy a house over the weekend. At a minimum, bathrooms and water closets that that do not have an operative window must be reported as deficient if they lack an exhaust fan that vents to outside air. Another potential example of a misleading advertisement is a license holder who included a list of Recently Sold Homes in his advertisement that included many properties where he had no role in the transaction, but he failed to make it clear in the ad which if any of those transactions he was involved in. You will need to consult a private attorney about monetary damages or other civil remedies. Do the Standards of Practice require inspectors to report double-tapped neutral wires on a panel box terminal as deficient? If the broker does not appoint associated license holders to represent the buyer and seller respectively, then the broker and/or agent may not offer advice and opinions relevant to the real estate transaction to either party and must not favor one principal in the transaction over the other principal. Section 1101.652(a)(7) of the License Act provides that if you have entered a plea of guilty or nolo contendere or have been convicted of a felony or any criminal offense that involves fraud (including misdemeanors), you must disclose this to the Commission not later than the 30th day after the final conviction or the entry of a plea of guilty or nolo contendere. Can TREC obtain reimbursement of commissions paid by buyers and sellers to brokers and sales agents for compensation in real estate transactions? It depends. We are selling our house and the buyer never paid the option fee. [Rule 535.146(e)]. The Standards of Practice do not require an inspector to dig up gas lines in order to determine their condition. The sales agents agreement should also address how compensation is handled with the broker. [TRELA 1101.651(b) and (c)]. Can TREC recover damages for me? Occ. No. Is the proximity of the return to the gas fired appliances a required reporting deficiency? Although this is not mandatory, it may still be placed on a sign. How long does a license holder have to keep financial and real estate transactions on file? Purely cosmetic corrosion is not required to be reported as a deficiency. A buyer can use the option period to perform an inspection of the property and negotiate an amendment to the contract for any necessary repairs as a result of the inspection. As copper gas line material is only a concern in areas where there may be corrosive additives in the gas supply, the presence of copper gas line material is not required to be reported as deficient. A sales agent may work from an office location different from the main office of the sales agent's sponsoring broker, but the sponsoring broker is still responsible for the sales agent's actions. Yes, Commission Rule 535.3 permits you to receive any compensation through your current sponsoring broker or the broker who sponsored you at the time you earned the right to the compensation. Javascript is disabled in your browser. In addition, an applicant may not have to take the national portion of the licensing examination if the applicant maintains a license equivalent to the license being applied for and has already passed a comparable national examination that is accredited by a nationally recognized real estate regulatory association such as ARELLO. All license holders criminal backgrounds are rechecked upon renewal, however, this does not excuse a license holder from notifying the Commission not later than the 30th day after the final conviction. It will be one or the other. Each day a violation continues can be considered a separate violation for imposition of the administrative penalties. If a licensed professional inspector is conducting a commercial inspection, is he or she required to use the inspection report form promulgated by TREC? You should discuss the terms of the agreement with a private attorney. [Rule 531.20(e)]. Is a broker responsible for the actions of a sales agent who transacts business from a separate location? Brokers should be familiar with and follow the duties set out in Rule 535.2 . The City of Houston Housing Department, Texas Attorney General's Office, and Fair Housing And Equal Opportunity (FHEO) all offer complaint forms for filing complaints about apartments. An attorney will need to prepare an appropriate form. Submit a license history from the state in which you are licensed when you file your application so we can determine if you are exempt. Is a corroded bathroom fixture that remains operable a defect and required reporting item per TREC? What is proof of legal authority to use an assumed business name in Texas? For example, if your complaint is about an inspection report, attach a copy of the report or state why it is not available. [Rule 535.147(d)]. In these cases, the attorney issues a letter closing the complaint. [Rule 535.155(b)(1)], Yes. Is it permitted to submit an invoice to an apartment complex falsely claiming that the locator has procured a tenant for the apartment complex? File a lawsuit. Listing agreements are private contracts between the property owner and the real estate broker, not the sales agent. Home File a Complaint Table of contents File a Complaint Can an associated broker refer to himself or herself as a "broker" in an advertisement? Some exceptions for when a license holder does not have to use a form are in Rule 537.11(a). [TRELA 1101.558], Yes, if the assumed business name of the associated broker meets the requirements for a team name since a team name must be used when the associated broker is associating with another broker. For all practical purposes, yes. You may also deliver the letter in person. A license holder must disclose the fact that he or she represents a party upon the first contact with another party or a license holder representing another party. Some gas shut off valves are safety or emergency shut off devices and some are not. Are locators subject to the agency disclosure requirements of The Real Estate License Act? [TRELA 1101.654]. Texas Department of State Health Services - Public Nuisance Complaints E-books at the Texas State Law Library You can borrow the e-books below with your library account. Speak with a Customer Service Rep: Call: 1-888-782-8477 Austin: 512-936-7120 TTY: 1-800-735-2988. Yes. For example, being active when negotiating a lease or sales transaction or when making a referral. However, you should consult with a private attorney for advice on this matter. Yes. The Standards of Practice do not address insulating covers or blankets on water heaters. You can submit a complaint online, or you can call their office at (512) 463-2642 or toll-free (Texas only) at (888) 452-4778. Make sure you get everything in writing. Rule 535.146(b)(2) prohibits a sales agent from having an escrow account. Im buying a house. Can I back out? Does TREC ever discipline a license holder who fails to use an adopted form? Yes, as long as the ad complies with Rule 535.155 (effective May 15, 2018), which requires the consent of the party the license holder represents in a transaction. May a license holder who is a rental locator advertise that they will pay a prospective tenant a portion of their fee received from an apartment complex if the tenant uses the locators services? If you have questions about your inspection report, you should ask your inspector for the basis of his statement. [Rule 535.146(c)(1)]. Yes, but if you offer, recommend, or promote the use of a service provider and expect to receive compensation from the service provider when a party uses the service, the ad must disclose that you may receive the compensation. Therefore, there must be a separately signed document of authorization by the seller for a hydrostatic test. A license holder shall not use the license holders expertise to the disadvantage of a person with whom the license holder deals. The Standards of Practice require inspectors to perform a visual inspection. TREC contract forms require the buyer to deliver any earnest money to the escrow agent. You may wish to consult with a private attorney regarding your legal rights as a homeowner. Is this legal? Is a starter course tab that is not sealed material, deficient and a required reporting item per TREC? Exceptions [Rule 535.220(e)(3)] Also, acceptance of a fee from a service provider may violate the Federal Real Estate Settlement Procedures Act (RESPA), which prohibits certain referral fees and kickbacks. If the transaction concerns a residential lease of less than one year and a sale is not being considered, the locator is not required to provide the tenant with a copy of the statutory information about agency (Information about Brokerage Services). Is a water heater covered by an insulation cover deficient and a required reporting item? Do I have to file a complaint first? 2. No. You have to provide the appropriate cancellation notice to the developer before the sixth day after you signed the contract. Is wrinkled loose carpet a defect and required reporting item per TREC? public housing authorities, non-TDHCA funded programs or properties, and homeowner associations) cannot be resolved by TDHCA. If a gas shut-off valve cannot be located, this should be reported. Yes, unless the person is an employee of the owner of the apartments or otherwise exempt, residential rental locators are required to be licensed as either a real estate broker or sales agent. However, because TREC must dispose of certain documents in accordance with a records retention plan, TREC may no long have those documents and an applicant should be prepared to resubmit documents and the explanation previously submitted. [TRELA 1101.652(b)(11) & (26)] However, a license holder may compensate an unlicensed person from a foreign country or state that does not require a license to engage in real estate brokerage activities, if the person otherwise complies with the law of the foreign country and practices there as a real estate broker. An inspector who meets all other renewal requirements but does not show proof of insurance will receive an inactive license (which does not permit the inspector to perform inspections). Rule 535.155 requires each advertisement to include the following items in a readily noticeable location in the advertisement: To be eligible for a real estate license, applicants must prove to TREC that they have the required honesty, trustworthiness & integrity. You should contact a private attorney if you have any questions about extending a listing agreement. A seller may receive, review and negotiate several offers simultaneously. Does TREC require a trust or escrow record to be maintained for a specific period of time? However, it is important to keep in mind that fastening of shingles is required to be checked by random sampling, so this condition is only required to be reported as identified though such sampling. Can a license holder donate a portion of his commission to a church if one of the church members refers a client to the license holder? Is removal of the blanket required by TREC for inspection reasons? [TRELA 1101.652(b)(11)]. At the time of first substantive communication with a party relating to a proposed transaction regarding specific real property, a license holder must provide a written notice regarding agency, commonly referred to as Information About Brokerage Services or IABS Form. No. Yes. If you participate in a transaction and hold more than a 10% interest in the corporation or other business entity, you are subject to the disclosure requirements. And if you and the landlord can't agree, you can turn to outside help. If you print out the form you may mail it to: U.S. Department of Housing and Urban Development No. This letter becomes part of the license holders record and will be considered if further complaints are filed. Also, I sent the landlord the rent on time but the landlord is still threatening me with eviction and late charges. In response to the 2nd question, an inspector must keep in mind that his role is primarily to document the condition of the home at the time of the inspection per 535.227(b)(1). A buyer can choose the broker with whom the buyer wants to work. If the buyer fails to deliver the earnest money within the time required, the seller may terminate the contract, exercise the remedies under Paragraph 15 of the contract, or both. However, if the cover is not removed, and its presence interferes with the inspection of any part of the water heater, the inspector must advise the client and report the resulting limitations of the inspection in accordance with the departure provision, Section 535.227(b)(5). No. Do partnerships need to be licensed if real estate brokerage activity is performed under the partnership name? If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party the license holder represents. Yes, if the real estate business entity holds a real estate license and the sales agent is sponsored by that entity. There is no requirement that a phone number or email address included in an advertisement belong to the broker. I am having a dispute with my Homeowner Association (HOA) regarding violating neighborhood restrictions. Have a pen or pencil and paper ready to take down the complaint or tracking number to check the status of the claim and determine whether an investigator has been to your apartment. Here's what you need to know to successfully file your complaint with TREC. A TREC licensed inspector may perform inspections on commercial property, as long as no other laws prohibit the inspector from doing so (please check with the Texas Board of Professional Engineering to determine when a Professional Engineer license is required). The preferred method for submitting a housing discrimination complaint form is through our Housing Discrimination Inquiry Form. Abortion Provider Transactions Report a governmental body entering into taxpayer resource transaction with an abortion provider in violation of Chapter 2272 of the Texas Government Code. When the rental locator represents a tenant and not an apartment complex, as demonstrated by a written representation agreement or other evidence of representation, the locator is not required to obtain the consent of the apartment complex because the complex is not his client. If a broker has an exclusive listing with a seller, may another broker solicit a listing from the same seller that would begin after the other listing expired? Do I need a license to act as an on-site manager of an apartment complex? For example, personal issues or contractual disputes with a license holder generally arent matters that the Commission can address. Can an associated broker use his or her own assumed business name in advertising? How can an out-of-state broker sell land in Texas? [TRELA 1101.803, Rule 535.2(a)] A sales agent may not lawfully engage in brokerage activity unless the sales agent is associated with, and acting for, a sponsoring broker at all times. Do the Standards of Practice require inspectors to report copper gas lines as deficient? [TRELA 1101.002(1) and Rules 535.4 and 535.5]. Additional information about the two recovery accounts maintained by TREC are on our website. I am a seller and I signed a contract with a buyer. However, an advertisement that contains a URL or email address of a sales agent that includes a title that implies responsibility for a brokerage violates TREC Rule 535.155(d)(4). Unless an exception applies, the requirements apply to all proposed real estate transactions. If the license holder did not participate in that specific transaction, he cannot state or imply that his actions resulted in the sale of that property. [Rule 535.146(b)(5)], No. To initiate the complaint process, you must submit a written complaint and you cannot file one by phone. I typically negotiate the resale of the properties for the corporation. The broker must provide a monthly accounting of trust money if there has been any activity in the account. [See 535.2(i)(6)]. Inability to pay rent is not a defense, and no contact is binding for the lease agreement unless it is in writing. An interview may also be in person, but this is less common. Is the absence of an anti-entrapment cover in a spa deficient and a required reporting item per TREC? The Texas Workforce Commission ("TWC") is the entity responsible for enforcing the Fair Housing Act in the State of Texas. If the promise was made at closing in front of the title company closing agent, you could include this person'sname and contact information and describe what this witness may know. If no Disciplinary Search line appears under your name search result, then there have not been any disciplinary actions taken against that license holder. Do I have to have pay for an option period to be able to buy the house? Can a broker pay all or a portion of a commission or fee to an unlicensed person? An inspector is not required to recommend fixes. Practicing real estate without an active license is a criminal offense, specifically, a Class A misdemeanor punishable by confinement of up to one year in a county jail and a fine of up to $4,000. Yes and yes. constitute deficiencies and should be reported as such. Shouldnt the inspector have noted this problem on his report? Neither option is permissible. You must use a form drafted by an attorney or a form supplied by either the buyer or seller. Or, if your complaint is regarding a promise made by your buyers agent, attach a copy of your buyer representation agreement, if the promise was made in writing, and the sales contract and the TILA/RESPA Integrated Disclosure (TRID) statement. Are there any restrictions on the placement of a license holder's signs? I am licensed as a real estate sales agent and as a professional home inspector. No. If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party represented by the license holder before making the payment. The seller gave me the receipts of the licensed repair people who performed the repairs. No. A person's license in another state or experience in real estate brokerage or any related business does not substitute for the educational requirements. No, the permission may be in writing or oral. Yes. In some states, complaints go to the state attorney generals office, department of consumer affairs or another agency with your local government. 92.056 and 92.0561. The testing pressure is always higher than the normal operating pressure of the system. If the individual was only acting in one capacity, you should file the complaint with the agency that regulates that function. Do I need a license to sell a builder's new houses? Is the inspector required to inspect to manufacturer requirements, specifications or instructions? A broker may not enter into a net listing agreement unless the principal requires a net listing and the principal is clearly familiar with the current market values of real property. No, unless the parties agree in writing otherwise. Can I advertise a service provider such as an inspector, moving company, or repair contractor on my website? How should an inspector positively identify fire-rated doors when the markings are covered by paint? A real estate license is not required for an individual employed by a property owner for the purpose of buying or selling real property on behalf of the owner. Does TREC consider promotional items and sponsorships to be advertising? No. This could tend to mislead the public that the associated broker is in charge of the brokerage operation. Not unless the person depositing the money has signed an agreement authorizing the broker to keep the interest. Failure to repay a loan constitutes a breach of your private agreement with the license holder and is not a violation of TRELA or the Rules. Is the inspector required to comment on or report as deficient those gas appliance shut-off valves and connectors not visible or accessible without moving the gas appliances? The requirements for emergency escape and rescue openings in sleeping rooms and the sill heights and sizes of the emergency escape openings in sleeping rooms have varied through the years. Do I get to take my listings with me? IABS 1-0, that license holders must use to comply with the statute. both the buyer and seller are presented with the Information About Brokerage Services by their respective sales agent at the time of the first substantive communication; the seller executes a Listing Agreement or other written document with the broker that authorizes the broker to act as intermediary and specifies in conspicuous bold or underlined print the conduct that is prohibited under TRELA 1101.651(d);and. It depends. File 52480. All advertisements must comply with TRELA 1101.652(b)(23) and Rules 535.154 and 535.155. What about a buyer? Yes, but a locator will be required to first obtain the consent of the apartment complex if the locator does not represent the tenant. Does a link to the IABS Form in my email signature satisfy the representation disclosure required by TRELA 1101.558? Does TREC consider a license holders URL or domain name or email address to be advertising? Is the inspector required to inspect a water metering device to determine if a leak may exist? See [Rule 535.146(c)(6)]. In some states, complaints go to the state attorney general's office, department of consumer affairs or another agency with your local government. If your sponsoring broker is unable to help you with your questions about a Texas Association of Realtors (TAR) listing agreement form, you can direct your questions to TAR. After the investigation is concluded, the information obtained will be reviewed to determine whether there is sufficient evidence to take disciplinary action for a violation of the applicable statute or Commissions rules. Instead, TREC has established Standards of Practice for inspectors to follow. Can a license holder offer to enter an unlicensed person in a drawing to win a cruise for referring a potential lessee or buyer? Question is not clear. The contract forms are available for public use. For most business entities, the assumed business name is filed with the Secretary of State. The license holder who offers to or actually pays cash to an unlicensed person for a referral is subject to disciplinary action. Do I need a real estate license to sell a campground membership? If Enforcement staff determines that the Commission has the authority to address the issue in the complaint, the case is investigated. Gather any documents you think will support your complaint. Unlicensed individuals who conduct residential rental location activity are subject to administrative penalties and criminal charges. Filing a complaint is how TREC can enforce rules and laws and ensure license holders correct errors or face appropriate disciplinary action. Requirements for an assumed business name and team name are set out in Rule 535.154. You cannot use either company name because each implies that Sally, a sales agent, is in charge. Evidence of a past fire is not, in itself, a deficiency. Is a screen combustion air opening a required reporting deficiency? In Texas, business names and "DBA"s are regulated under common law (deceptively similar names may give rise to a private cause of action) and "notice" laws which may provide certain presumptions or tacit protections to names recorded at the local county clerk's office or with the Secretary of State. Yes. To become active, a professional inspector would need to send in the Return to Active Status form (or, for apprentice or real estate inspectors, the sponsorship form) along with the applicable fee and the required proof of insurance. [TRELA 1101.355(c)]. A brokerage should decide whether it makes good sense from a liability exposure standpoint to allow an associated broker (or a sales agent who owns a business entity) to use the same name for a team name under the brokerage that they have registered as an assumed name under their own licensed business entity. A resolution, minutes or other official record of the business entity. It depends. [TRELA 1101.355 and Rules 535.50(5) and 535.53]. San Antonio, TX. You are not required to use TREC'sComplaint Form, but it makes it easier to file your complaint since it explains the information that you will need to provide. Probably not. The Commission does not have jurisdiction over title companies. Can my broker's real estate office offer my inspection services to their clients? Can I perform mold inspections under my TREC inspector license? Please see the Texas State Board of Plumbing Examiners (TSBPE) website to determine whether any of your activities may be in violation of their statutes or rules governing plumbers, such as advertising that you specifically inspect aspects of plumbing systems that may require a license from the TSBPE. [Rule 535.147(b)]. Is olfactory detection of methane/natural gas odorant the only reasonable method of discovering gas leaks when the connectors are not accessible? Anyone can file a complaint against a license holder, even other license holders. In such a situation, the designatedbroker for the entityis still responsible for the sales agent's actions, even when the sales agent ownsthe licensed business entity. Both TREC forms 20-14and 30-12, The One to Four Family Residential Contract (Resale) and Residential Condominium Contract (Resale), state, Any hydrostatic testing must be separately authorized by Seller in writing. TREC is unable to advise you on private contractual matters. Are inspectors required to inspect underground drainage systems or to test gutters or downspouts? [TRELA 1101.558(c)]. A license holder should also be familiar with Rules 537.11(f)-(g). Section 535.228(c)(3) of the Standards of Practice do require inspectors to report as a deficiency a starter course tab that is not sealed material. You may also want to consult with a private attorney regarding your legal rights as a homeowner. Otherwise, you should consult with a private attorney. a gift card to a restaurant or department store) is not defined as valuable consideration and is permissible. If the intermediary authorizes another license holder to appoint associated license holders to work with the respective principals, that license holder cannot designate himself/herself as one of the appointed license holders. Can you explain them to me? If you believe your rights have been violated, you can file a complaint by writing to HUD. Filing a Complaint in the State of Texas. Information regarding fire ratings of doors is often obscured by paint. For some investigations, an investigator is not assigned and the information is gathered by questions submitted by letter and written responses received. Under Section 1102.303 of the Texas Occupations Code, an inspector may not act in a transaction in the dual capacity of inspector and either (1) broker or sales agent or (2) an undisclosed principal. The Statute of Frauds, as defined by Chapter 26 of the Business and Commerce Code, requires that certain agreements be reduced to writing to be enforceable. Pursuant to Section 535.227(a)(1) of the Standards of Practice, inspectors are not required to move appliances in order to inspect behind them. Yes, on the first contact with the license holder representing the buyer. Can I break my contract and list with someone else? Donot submit the original documents. 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