TX Portion Flashcards
How many members in TREC?
9 Members;
6 licensed broker in business for last 5 years
3 public members
All appointed by governor
How many years TREC members serve?
6 years.
Members expiration date are staggered. 3 members’ term will expire on Jan 31 each year odd numbered year
Purpose of TREC?
To administer TRELA (TX RE License Act). Established in 1949,
Passing rules to enforce, interpret, and explain the provisions of TRELA. TREC establishes rules and policies in the best interest of the public.
- prohibiting false, misleading, or deceptive practices by any licensee.
- Adopting the rules and establishing standards permissible types of advertising in Texas
- Maintaining a registry of real estate certificate holders in Texas
- Designing and adopting the TREC seal
- Adopting and enforcing rules necessary to administer chapters 1101 and 1102 of the Texas
-Real Estate License Act, and ensuring
compliance with these chapters
- Establishing standards of conduct and ethics for real estate license holders
- Adopting the rules to charge and collect the fees necessary for covering the costs for administering TRELA
-Adopting rules that require license holders to use contract forms prepared by the Texas Real Estate Broker-Lawyer Committee and
promulgated by TREC
-Overseeing the accreditation of real estate educational programs and courses of study, which includes establishing accreditation standards,
establishing rules and reasonable criteria for real estate course approval, and inspecting and accrediting real estate educational programs
or courses of study, including those for continuing education courses and providers
-Temporarily suspending the accreditation of any educational program that’s performing below TREC’s established standards
Who does TREC regulate?
- RE brokers
- RE sale agents
- RE inspectors
- Educator provider for RE classes
- residential service companies
- time share developer
- easement or right-of-way agents
What does Texas Education Standards Advisory Committee (ESAC) do?
- review and revise current curriculum standards, course contentrequirements, and the certification requirements for real estate licensing and continuing education course instructors in Texas.
- evaluating the performance of any educational program that is performing below TREC’s established standards.
-make recommendations about the licensing
and regulation of education providers, instructors, and courses to TREC
How many members on ESAC?
12 Members;
7 active licensee past 5 years
4 educators
1 public member
2 years term
How many members in Broker-Lawyer Committee?
13 members;
6 brokers appointed by TREC
6 lawyers appointed by prez of TX Bar Association
1 public member appointed by governor
What does Broker-Lawyer committee do?
The broker-lawyer committee drafts, revises, and recommends contract forms intended for use by licensees
Texas licensees are required by law to provide all customers with the Information About Brokerage Services (IABS) brochure at the time of the first
substantive dialogue with a prospective client. (Substantive dialogue includes written or verbal communication—including email, phone, and text—in which a discussion about a specific real property is discussed.)
It’s an informational brochure created by TREC that explains the different types of agency representation available to consumers.
It doesn’t create or establish an agency relationship. It’s not a contract, and it’s not an agency disclosure.
Texas law doesn’t require that the IABS form be initialed or dated. However, the licensee must prove it was provided, so many brokerages
require initials, a proof of receipt via email (or email sent), or fax sent/received. If the consumer doesn’t want to initial the form, the licensee
can note on it that the consumer refused to initial.
Business websites must contain a link to the IABS form on their homepage, in a readily noticeable location, and in an appropriate font size.
Each IABS form must be kept on file by the broker for four years after the transaction has occurred.
Texas licensees aren’t required to provide the IABS brochure in the following situations:
-Meetings when a party is already represented
After the parties have already signed a sales/lease contract
-In situations concerning a residential lease for not more than a year (and a sale of the property is not being considered)
-To visitors at an open house (however, TRELA does require a licensee to disclose—either verbally or in writing—to open house visitors
that the licensee represents the seller
Licensees must provide agency disclosures to their customers (any party they don’t represent) in a transaction or a possible transaction. An agency
disclosure occurs when a licensee discloses which party they represent in a given transaction. Under the Texas Real Estate License Act (TRELA),
Texas licensees may provide this disclosure either orally or in writing at their first contact with another party to the transaction (or that that party’s
agent).
TX license disclosure regarding family member
licensees who are acting on behalf of themselves, their family, or with other personal interests must disclose their licensed status in writing in
the contract of sale, rental agreement, or in another written disclosure. The following requirements apply:
This written disclosure must be provided before that licensee enters into any sales contract or rental agreement for property.
Licensees in these situations must not use their expertise to the disadvantage of the other person in the transaction.
These disclosures must be provided by Texas real estate licensees engaging in a real estate transaction for property listed with them for:
- Themselves
- Their parent, child, and their spouse (through not required, licensees should also consider disclosing if siblings as well)
- A business entity in which they own at least a 10% interest
- A trust for which they’re a trustee
- A trust of which the licensee, their parent, child, or spouse is a beneficiary
Where can you find promulgated contract form?
Only at TREC
Who prepares and approve promulgated contract forms in TX?
Prepared by Broker-Lawyer Committee and approved by TREC
Licensees must prepare forms using only TREC-approved and promulgated forms or those otherwise permitted by TREC’s rules, such as formscreated by the Texas Association of REALTORS (TAR), when negotiating real estate transactions.
What you can’t do with the promulgated contract forms?
-Add or cross out any item in the contract.
-A Texas real estate licensee must be careful to avoid writing wording into an agreement that gives rights and/or remedies to a principal to the
contract
In Texas, there aren’t promulgated forms for executory contracts such as a contract for deed or a lease purchase/option agreement; a real estate
attorney must prepare these contracts.
