Have you heard TREC’s decision about unlicensed assistants?

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02/16/2017 | Author: Editorial Staff

This week, the Texas Real Estate Commission met to discuss several rules, including adopting previously proposed amendments to TREC Rule 535.4 to clarify what constitutes showing property.

  • “Show” definition added. The definition is “causing or permitting the property to be viewed by a prospective buyer or tenant, unlocking or providing access onto or into a property for a prospective buyer or tenant, and hosting an open house at the property.”
  • Unescorted viewing of a vacant property available for lease is permitted. This permission can be granted as long as certain methods, like technology, are used to control access and verify identity of the potential tenant and the property owner consents in writing. The consent must be in bold print, in at least 12-point font, and must specify whether the broker enabling access or the owner will be responsible for any damage that results and that the owner is aware unescorted access may occur. TAR is currently creating a written consent form that will comply with this requirement, which will be available for members’ use soon.

Remember, last year TREC removed a provision that authorizes an unlicensed person to act as a host or hostess at an open house.

A proposed change to business entities and designated broker rules 
TREC proposed a change to rule 535.53(b)(5)(B) to clarify that designated brokers can own at least 10% of a business entity through a verified ownership chain in other business entities. 

A proposed change concerning TREC oversight of “wholesale brokers” 
Imagine a scenario where a buyer makes an offer on a property that is accepted by the seller, and though the parties haven’t closed yet, the buyer offers to sell his “equitable interest” in the property to a second buyer. Under the proposed rule, if the original buyer does not disclose his equitable interest in the property to the second buyer, TREC says he is engaging in real estate brokerage, meaning such activities would fall under its jurisdiction. The proposed rule also sets forth additional disclosure requirements for license holders. In addition, it’s possible this issue may be addressed in a bill this legislative session. 

Other proposals were made that affect education, including proposed rules about qualifying instructors, qualifying courses, and responsibilities of providers.

Get specific details on these updates and other information from the meeting on TREC’s website.

Categories: Legal
Tags: legal, trec

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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