 Everyone knows that when you want to do something you’re not familiar with, it’s best to contact an expert – someone who knows what he or she is doing and who can offer you sound advice.
It’s a lot like that when you buy or sell a home and choose to call a REALTOR® to help. But did you also know that, besides helping consumers to buy and sell homes, REALTORS® in Texas are also helping to change laws that affect the homebuying process?
After all, no one knows the business of real estate better, so REALTORS® can easily see where improvements can be made. They then bring these issues and proposals to the legislative table, where positive outcomes enable homeowners to reap the rewards.
Making strides for Texas homeowners
For example, 1,000 Texas REALTORS® converged on Austin in early April to talk to state legislators about issues important to Texas property owners. Topics ranged from homeowners insurance reform to consumer protection of the Texas home equity law.
Besides focusing on current issues, Texas REALTORS® have made considerable progress closer to home in past years. For example, before 2002, a quirk in Texas law made it possible for homebuyers to unknowingly have their homeseller’s service contract canceled in the first three days after closing. Thanks to the efforts of Texas REALTORS®, legislation was passed that ensured home warranties become effective immediately when a buyer takes possession of a home.
In other instances, when legislative changes were sorely needed to prevent Texans from losing their homes to foreclosure because of late payments to mandatory membership homeowner associations, REALTORS® voiced their support. The result? Because of consumer safeguards that were implemented, homeowners now have more control over potential abuse by overly aggressive homeowner association attorneys – and the danger of foreclosures has been lessened.
Saving time and money
Even those who own or are considering purchase of a manufactured home now have more protection for their investment. Thanks to legislation passed during the last legislative session, Texans now see disclosures on financing terms, hookup fees, and other costs related to buying a manufactured home.
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Another piece of legislation affecting consumers was the Texas Uniform Electronic Transactions Act (UETA), also passed during the 2001 session. Texas REALTORS® helped reduce excessive paperwork and save consumers time by supporting legislation that makes it legal for homebuyers and sellers to conduct real estate transactions electronically if they so choose.
Ever been confused when confronting a loan application – or trying to find out whether or not you’ve been approved? Who hasn’t? Luckily, it was Texas REALTORS® who supported legislation to introduce standardized forms for commitment and pre-qualifying letters. This legislation became law on Jan. 1, 2002. Simple is definitely better.
Insurance reform: Looking out for the consumer
And, during the current legislative session, the Texas Association of REALTORS® has taken the lead on homeowners insurance reform. Using radio messages and newspaper ads, Texas REALTORS® are letting the public and lawmakers know about the following homeowners insurance reform proposals:
- Limit insurance companies’ use of a person’s credit score to determine their homeowners insurance rates;
- Limit the use of the Comprehensive Loss Underwriting Exchange, an insurance industry database, when a water-damage claim has been correctly repaired;
- Close the loophole that allows insurance companies to write more than 95% of their homeowners insurance policies through unregulated Lloyd’s companies or subsidiaries;
- Prohibit insurance carriers from inserting a right-of rescission clause into a homeowner’s policy, which allows the company to cancel during the first 90 days after the policy has been issued;
- License public adjustors and mold remediators to put a stop to the artificial inflation of insurance claims.
It’s easy to see that sometimes being a REALTOR® involves a lot more than helping folks buy and sell houses. It’s about ensuring that our rights as consumers and homeowners are protected. These are just a few of the steps that Texas REALTORS® have taken in making life easier for our fellow Texans, and you can be sure there will be more to come.
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