Chapter 7 - Subchapter J Flashcards
Sec. 1101.451.
License Expiration and Renewal outlines all the rules for renewing a license.
⦁ The commission may issue or renew a license for a period not to exceed 24 months.
⦁ The commission by rule may adopt a system under which licenses expire on various dates during the year. The commission will adjust the date for payment of the renewal fees accordingly.
⦁ For a year in which the license expiration date is changed, renewal fees payable will be prorated on a monthly basis so that each license holder pays only that portion of the fee that is allocable to the number of months during which the license is valid. On renewal of the license on the new expiration date, the total renewal fee is payable.
⦁ Except as noted below, a renewal fee for a license under this chapter may not exceed, calculated on an annual basis, the amount of the sum of the fees established under Sections 1101.152, 1101.154, and 1101.603.
⦁ A salesperson whose license has been expired not more than six months, who files an application to late renew on active status must pay the applicable renewal fee, have the CE hours completed, and file the correct application. If the CE hours have been completed by the license expiration date, no additional fee will be due. If the hours are completed within 60 days of the license expiration date, a $200 CE deferral fee will be required. If the hours are completed between 61 - 180 days of the license expiration date, the deferral fee and the $250 late reporting fee (total $450) will be required.
⦁ A salesperson whose license has been expired more than two years must reapply for licensure. The applicant must meet salesperson application requirements (including education), file an original application and pass the salesperson licensing exam.
⦁ A salesperson or broker whose license has been expired more than six months but less than two years, who files an application to reinstate that license on active status, must complete the 18 hours in CE during the two-year period prior to filing the correct application. If the CE hours are not completed within two years of the application filing date, the license will be renewed on inactive status.
Sec. 1101.452.
Information Required for License Renewal details what licensees must provide for renewal.
⦁ To renew an active license that isn’t subject to the education requirements of Section 1101.454, the license holder must provide to the commission proof of compliance with the continuing education requirements of Section 1101.455.
⦁ Each applicant for the renewal of a license must disclose in the license application whether the applicant has entered a plea of guilty or nolo contendere to a felony or has been convicted of a felony and the time for appeal has elapsed or the judgment or conviction has been affirmed on appeal.
⦁ The applicant must provide the above disclosure even if an order has granted community supervision suspending the imposition of the sentence.
Sec. 1101.4521.
Criminal History Record Information for Renewal states that an applicant for the renewal of an unexpired license must comply with the criminal history record check requirements of Section 1101.3521.
Sec. 1101.453.
Additional Renewal Requirements for Business Entities states that to renew a license under this chapter, a business entity must designate one of its managing officers as its agent and provide proof that the entity maintains errors and omissions insurance with a minimum annual limit of $1 million for each occurrence if the designated agent owns less than 10% of the business entity.
A business entity may not act as a broker unless the entity’s designated agent is a licensed broker in active status and good standing according to the commission’s records.
Sec. 1101.454.
Salesperson License Renewal states that an applicant applying for the first renewal of a salesperson license must provide to the commission satisfactory evidence of completion of at least 18 semester hours, or equivalent classroom hours, of core real estate courses. The commission may not waive the requirements for renewal under this section.
Sec. 1101.455.
Continuing Education Requirements lists in detail the types of courses that will be approved for continuing education credit.
⦁ In this section, “property tax consulting laws and legal issues” includes the Tax Code, preparation of property tax reports, the unauthorized practice of law, agency law, tax law, law relating to property tax or property assessment, deceptive trade practices, contract forms and addendums, and other legal topics approved by the commission.
⦁ A license holder who isn’t subject to the education requirements of Section 1101.454 must attend during the term of the current license at least 18 classroom hours of continuing education courses approved by the commission.
⦁ The commission by rule may prescribe the title, content, and duration of continuing education courses that a license holder must attend to renew a license and may approve relevant educational experience and correspondence courses as a substitute for the classroom attendance otherwise required by this section.
At least eight (8) of the required continuing education hours must cover one or more of the following legal topics:
⦁ Commission rules
⦁ Fair housing laws
⦁ Property code issues, including landlord- tenant law
⦁ Agency law
⦁ Antitrust laws
⦁ Subchapter E, Chapter 17, Business & Commerce Code
⦁ Disclosures to buyers, landlords, tenants, and sellers
⦁ Current contract and addendum forms
⦁ Unauthorized practice of law
⦁ Case studies involving violations of laws and regulations
⦁ Current Federal Housing Administration and the Department of Veterans Affairs regulations
⦁ Tax laws
⦁ Property tax consulting laws and legal issues
⦁ Other legal topics approved by the commission
Sec. 1101.456.
Exemption From Continuing Education Requirements For Certain Brokers states that notwithstanding any other provision of this chapter, a broker who, before October 31, 1991, qualified under former Section 7A(f), The Real Estate License Act (Article 6573a, Vernon’s Texas Civil Statutes), as added by Section 1.041, Chapter 553, Acts of the 72nd Legislature, Regular Session, 1991, for an exemption from continuing education requirements isn’t required to comply with the mandatory continuing education requirements of this subchapter to renew the broker’s license.
To qualify for this exemption in 1991, each of these brokers had to be licensed as a broker for more than ten years, among other requirements. If a broker was notified by the commission and accepted the opt-out clause at that time, they could opt-out from continuing education requirements moving forward.
There’s no current path to opt-out of continuing education requirements when renewing a broker’s license.
Sec. 1101.457.
Deferral of Continuing Education Requirements says that the commission by rule may establish procedures under which an applicant may have his or her license issued, renewed, or returned to active status before the applicant completes continuing education requirements. In such a case, the commission may require an applicant to:
⦁ Pay a fee, not to exceed $200, in addition to any fee for late renewal of a license under this chapter.
⦁ Complete the required continuing education not later than the 60th day after the date the license is issued, renewed, or returned to active status.
