Have you heard TREC’s decision about unlicensed assistants?
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.
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