Source: https://www.trec.texas.gov/article/i-received-complaint-now-what-happens
Timestamp: 2019-04-25 10:48:13+00:00

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Do the Standards of Practice require inspectors to report as deficient evidence of a past attic fire?
Evidence of a past fire is not, in itself, a deficiency. Accordingly, inspectors are not required to report mere evidence of a past fire or the presence of paint in the attic. If there are any deficiencies due to fire or other causes, those deficiencies must be reported.
The Standards of Practice require inspectors to inspect attic ventilators and report deficiencies but do not require that they be operated. How should an inspector identify deficiencies in the power ventilators without operating them?
In inspecting an attic with a powered ventilator, which is not required to be operated, the inspector should perform a visual inspection and consider the totality of the ventilation system.
The Standards of Practice require inspectors to report as deficient the lack of a 1-3/8” solid wood or fire-rated door between a house and garage. How should an inspector positively identify fire-rated doors when the markings are covered by paint?
Information regarding fire ratings of doors is often obscured by paint. In that case, inspectors are required to do their best to determine whether the door is fire-rated and to report accordingly. In some instances, the inspector will only be able to report that he or she was not able to determine whether the door was fire-rated or that the door appeared to be (or did not appear to be) fire-rated.
Is a starter course tab that is not sealed material, deficient and a required reporting item per TREC?
We assume you are referring to composition shingle roofing. Section 535.228(c)(3) of the Standards of Practice do require inspectors to report as a deficiency a starter course tab that is not sealed material. However, it is important to keep in mind that fastening of shingles is required to be checked by random sampling, so this condition is only required to be reported as identified though such sampling.
Does TREC require the use of a “contract” for inspections which would outline the responsibilities of the parties to the contract or have a form inspectors can use?
No. TREC does not require a pre-inspection or employment contract to be signed by the parties to the inspection. Inspectors are free to use or not use a contract. You may want to have a private attorney create a contract for you, or you may check with some of the inspector trade associations to see if they provide templates of pre-inspection contracts.
I am licensed as a real estate sales agent and as a professional home inspector. Can my broker's real estate office offer my inspection services to their clients?
Under Section 1102.303 of the Texas Occupations Code, an inspector may not act in a transaction in the dual capacity of inspector and either (1) broker or sales agent or (2) an undisclosed principal. Therefore, it would violate Section 1102.303 for you to inspect any property your broker has listed or where you were personally involved. Under Rule 535.156, a real estate license holder has a duty to disclose to a client any relationship the license holder has with an inspector performing an inspection on property that is the subject of a transaction involving the license holder. If you were to perform an inspection in connection with a transaction in which your broker was involved, your broker would need to disclose your relationship (as the broker’s sponsored agent), and if you were paid or received compensation or anything of value from anyone in your office in connection with the inspection, you would also need to disclose this fact and obtain the client’s prior permission.
I wish to file a complaint with TREC regarding a home inspector. What must I do?
TREC cannot accept unsigned email or oral complaints against inspectors. All complaints must be in writing and signed by the person making the complaint. Any person may file a complaint whether or not they are a party to the inspection transaction. The TREC website contains a complaint form that may be downloaded, signed and either faxed, scanned and emailed, or mailed in. You may also submit a signed letter outlining your complaint issues and including copies of relevant documentation (such as repair estimates, receipts, and other inspection reports) or photographs. Please do not send original documents as they will not be returned to you.
If a licensed professional inspector is conducting a commercial inspection, is he or she required to use the inspection report form promulgated by TREC? Do the Standards of Practice apply?
A licensed TREC inspector is not required to use the promulgated form or the Standards of Practice when inspecting property other than one to four family residential. A TREC licensed inspector may perform inspections on commercial property, as long as no other laws prohibit the inspector from doing so (please check with the Texas Board of Professional Engineering to determine when a Professional Engineer license is required). All inspections would be subject to §1102.301 et seq. of the License Act (Subchapter G, Prohibited Acts), as well as 22 TAC § 535.220, Professional Conduct and Ethics.
Is a water heater covered by an insulation cover deficient and a required reporting item?
Is the inspector required to inspect a water metering device to determine if a leak may exist? Is the inspector required to perform any inspection of the meter?
Pursuant to Section 535.227(b)(3)(A)(vi) of the Standards of Practice, an inspector is not required to inspect or test metering devices.
Is the inspector required to inspect to trade or industry association standards? For example, ASTM, UL or ARMA?
Inspectors are not required to inspect to trade or industry association standards. However, an inspector who advertises or represents that he or she will inspect to a higher standard could be subject to disciplinary action for failure to do so.
Are inspectors required to inspect underground drainage systems or to test gutters or downspouts?
Inspectors are not required to inspect anything buried, hidden, latent, or concealed. Accordingly, the requirement that inspectors report deficiencies in installed gutter and downspout systems applies only to visible deficiencies in above-ground gutter and downspout systems and not to underground drain piping, cisterns, or other buried components. Furthermore, there is no requirement that inspectors test gutters or downspouts (by pouring water into them or through other means).
Are inspectors required to mark and or comment as deficient the absence of tamper resistant receptacles?
No. The Standards of Practice do not address tamper-resistant receptacles.
As a licensed inspector I would like to advertise that my company performs wood destroying insect inspections. Neither I nor anyone in my company is a licensed wood destroying insect inspector, but we recommend or provide one if requested by the client.
Under inspector advertising Rule 535.221, an inspector may not engage in false or misleading advertising. Including such information in your advertisement could be construed to be misleading in that a consumer may believe that you or members of your company are licensed to inspect for wood-destroying insects. Additionally, such advertising may also be in violation of the Structural Pest Control Service advertising rules.
As a licensed inspector in the State of Texas, am I supposed to charge a sales tax on the amount of my inspection fee?
TREC only handles the licensing and discipline of real estate inspectors, you would need to contact the state agency in charge of collecting state sales tax which is the Texas Comptroller of Public Accounts. The website for that agency is www.comptroller.texas.gov and their toll free number is 800.252.5555.
As an inspector, when do I have to show proof of E&O insurance?
A Certificate of Insurance form (promulgated by TREC), signed by the insurance agent, must be filed with TREC at the time the license is issued and with each renewal of the license. In addition, an inspector must retain sufficient records of professional liability insurance coverage, or any other insurance that provides coverage for violations of Subchapter G of Chapter 1102, to document to the commission continuous coverage for the preceding two year license period.
Probably not. TREC’s Standards of Practice (§535.231) require an inspector to operate plumbing fixtures, test for drain performance, and to report deficiencies in water supply pipes and waste pipes. An inspector can inspect the condition of an accessible pipe by visually inspecting the exterior of the pipe, by feeling the exterior with his or her hand, or by using a mirror or a camera that does that does not enter the sewer pipe.
A TREC inspector is specifically exempt from inspecting for defects or deficiencies that are otherwise buried, hidden, latent, or concealed and should not inspect the interior of pipes using specialized invasive techniques such as a sewer scope. According to the Texas State Board of Plumbing Examiners, a sewer scope inspection must be performed by a licensed plumber, and an inspector who performs a sewer scope inspection could be subject to disciplinary action.
Can I perform mold inspections under my TREC inspector license?
No. The Texas Department of State Health Services regulates mold inspections. You can contact them at www.dshs.texas.gov/mold for information on the requirements to obtain a license to inspect for mold.
Can a licensed inspector perform a hydrostatic test?
No, only a licensed plumber may perform a hydrostatic test on a system within a home.
Do I have any recourse against the inspector for failing to note on his report that there was a gas leak outside the home due to a corroded gas line?
Probably not. TREC licensed inspectors are required to follow Standards of Practice when inspecting property. These may be found on our website about Rules Governing Inspectors. The Standards of Practice do not require an inspector to dig up gas lines in order to determine their condition. They are only required to conduct a visual inspection of the property, and buried gas lines are not required to be inspected.
Do the Standards of Practice require inspectors to comment on the way a gas pipe enters a crawl space?
The Standards of Practice require only that the pipe entry be reported as deficient when the gas piping is concealed in a duct, plenum, or chase. See Section 535.230(d)(4).
Do the Standards of Practice require inspectors to determine the headroom clearance on stairs or to report inadequate clearance as a deficiency?
Inspectors are not required to measure the headroom clearance of every flight of stairs. The Standards of Practice do not establish a minimum headroom clearance height. Whether to report inadequate headroom clearance as a deficiency is up to the reasonable judgment of the inspector.
Do the Standards of Practice require inspectors to report as deficient a gas log fireplace with a damper that has not been blocked open? If so, what is the minimum distance the damper should be open?
The lack of a damper clamp is required to be reported as a deficiency when a gas appliance or artificial gas logs (but not merely a log lighter pipe) is present. The Standards of Practice do not establish a minimum distance that the clamp should hold the damper open.
Do the Standards of Practice require inspectors to report as deficient a plumbing fixture that does not fully drain, retaining a slight amount (such as a few cups) of residual water?
A properly constructed and properly functioning bathtub or shower should drain virtually all water (with the exception of minimal amounts that remain due to the surface tension of the water). Amounts beyond this that remain due to indentations or improper slope in the tub or shower (including shelves, ledges, etc.) constitute deficiencies and should be reported as such.
Do the Standards of Practice require inspectors to report as deficient the absence of weep holes along the bottom course of brick and above steel lintels?
Lack of weep holes is only required to be reported as a deficiency when there is visible evidence of water penetration or a structural issue that may be related to the lack of weep holes.
Do the Standards of Practice require inspectors to report as deficient the lack of a dishwasher power receptacle in an adjacent cabinet (for example, under a kitchen sink)?
Do the Standards of Practice require inspectors to report as deficient the presence of a transite pipe to be reported?
Inspectors are not required to report the presence of transite pipe as a deficiency.
Do the Standards of Practice require inspectors to report copper gas lines as deficient?
Inspectors are not required to determine utility sources or to research codes and ordinances related to this issue. As copper gas line material is only a concern in areas where there may be corrosive additives in the gas supply, the presence of copper gas line material is not required to be reported as deficient.
Do the Standards of Practice require inspectors to report double-tapped neutral wires on a panel box terminal as deficient?
Yes, double-tapped grounded conductors (neutrals) are a deficiency and must be reported as such, unless otherwise approved and listed by the manufacturer.
Does TREC consider a roof with roofing felt ending short of the drip edge and the rake not overlapped over the drip edge a required reporting deficiency? If yes, is the inspector required to inspect 100% of the materials under the edge of the roof?
Section 535.228(c)(3)(D) of the Standards of Practice requires inspectors to report as deficient deficiencies in flashing details. Drip and rake edge flashing materials are recommended by most shingle manufacturers but are not required. If installed and if visible, the installation described in your question is required to be reported as a deficiency. However, the inspector is not required to inspect every inch of the material under the roof and may “spot check” for this condition.
How shall an inspector ascertain with any degree of accuracy if the fire separation between a residence and its attached garage is in place?
The Standards of Practice require inspectors to perform a visual inspection. If it is not visibly apparent whether proper fire separation is present, the inspector must make clear to the client that he or she was not able to ascertain whether proper fire separation was in place.
I am a licensed professional inspector. I am also a licensed real estate sales agent. May I both inspect the home for and sell to the same person?
No. The Texas Occupations Code, Real Estate Inspectors, Chapter 1102, §1102.303 specifically prohibits an inspector from acting in the capacity of an inspector and real estate agent in the same transaction.
I am not currently performing inspections, but I'd like to maintain my license. Is there a way for me to do that without going to the expense of obtaining insurance?
An inspector may request inactive status in writing at any time. An inspector who meets all other renewal requirements but does not show proof of insurance will receive an inactive license (which does not permit the inspector to perform inspections). To become active, a professional inspector would need to send in the Return to Active Status form (or, for apprentice or real estate inspectors, the sponsorship form) along with the applicable fee and the required proof of insurance.
I recently purchased an older home that was inspected before the purchase. After living in the home a few weeks, the dishwasher started leaking and had to be replaced. Shouldn’t the inspector have told me this unit was about to fail?
I think my inspector was negligent in performing the inspection. My brother-in-law says I might be able to recover a judgment. Do I have to file a complaint first?
Disciplinary action by TREC is not a prerequisite for pursuing a lawsuit against a license holder. Your rights against the license holder may be subject to a two-year statute of limitations. You should consult with a private attorney to determine whether you have a claim and what deadlines may apply to your claim.
If a homeowner wanted to hire a consultant to perform a cursory, major defect visual inspection, including the foundation, roof, plumbing, electrical, and major appliances, would TREC require any written report?
If the inspection you are proposing relates to a purchase or sale transaction, then TREC's Standards of Practice would apply, and a written report would be required. If the inspection you are proposing is not in anticipation of a purchase or sale, then TREC's requirements would not apply, and the parameters of the inspection would be governed by the agreement between the inspector and his or her client. For further information, please see Sections 1102.001 and 1102.002 of the Texas Occupations Code and Rule 535.223.
Is a TREC inspector required to report the presence of CSST as a deficiency? Is the TREC inspector required to inform the client of the CSST litigation history?
The mere presence of corrugated stainless steel tubing (CSST) is not, in itself, required to be reported as a deficiency, nor are inspectors required to notify the client of the litigation history or the risks associated with CSST.
Is a corroded bathroom fixture that remains operable a defect and required reporting item per TREC?
Purely cosmetic corrosion is not required to be reported as a deficiency.
Is a hand rail that is not continuously deficient a required reporting item per TREC?
Section 535.228(h)(1)(B) of the Standards of Practice requires inspectors to report deficiencies in steps, stairways, landings, guardrails, and handrails as deficient. In some circumstances, a break in a handrail would be considered a deficiency; however, this would depend on the specific design of a particular set of stairs (e.g., a landing in the middle of a flight of stairs would not be considered deficient simply because it lacked a continuous handrail).
Is a keyed deadbolt on the interior of an exterior egress door deficient and a required reporting item per TREC?
The Standards of Practice do not require double-cylinder deadbolts to be reported as deficient unless such a deadbolt would impede functional emergency escape from a sleeping room.
Is a receptacle on a garage ceiling that is not GFCI protected deficient and a required reporting item per TREC?
Pursuant to Section 535.229(b)(3)(A)(ii), a garage receptacle that does not have GFCI protection is deficient and must be reported as such. Note, however, that the Inspector Committee may consider a change to the Standards to create an exception for garage ceiling receptacles serving garage door openers.
Is an egress window with a sill greater than 44 inches from the floor a required reporting item and deficient? Will advising the client to place a climbable object (such as the chest) supersede the need to identify the item as deficient?
The answer to the first question is “No”. The standards of practice are not based on a specific requirement such as those promulgated by model building codes. The requirements for emergency escape and rescue openings in sleeping rooms and the sill heights and sizes of the emergency escape openings in sleeping rooms have varied through the years. The inspector must use “reasonable judgment” in determining if the emergency escape and rescue openings are sufficient for the intended purpose of the openings for the inspector’s client. In response to the 2nd question, an inspector must keep in mind that his role is primarily to document the condition of the home at the time of the inspection per §535.227(b)(1). An inspector is not required to recommend “fixes”.
Is an inspector required to determine if a light fixture is approved for its location over a bathtub or shower?
The Standards of Practice do not require inspectors to determine if light fixtures are approved for wet locations or to report such installations as a deficiency.
Yes. The specific requirement to report the deficiency takes precedence over the general limitation against inspecting an photoelectric sensor.
Is it true that home inspectors licensed in Texas, cannot inspect plumbing in a home nor report plumbing deficiencies in the TREC inspection report? Can the inspector advertise that he inspects plumbing?
It depends. Under the Standards of Practice found in Rules 535.227 - 535.233, a home inspector is required to perform a visual check of plumbing fixtures and associated items and report as in need of repair deficiencies in the type and condition of all accessible and visible water supply and waste-water and vent pipes, as well as others listed in Rule 535.231. Please see the Texas State Board of Plumbing Examiners (TSBPE) website to determine whether any of your activities may be in violation of their statutes or rules governing plumbers, such as advertising that you specifically inspect aspects of plumbing systems that may require a license from the TSBPE. Also, please review the advertising rule for inspectors found at Rule 535.221.
Is observance of gas shut-off valves and connections with a digital camera placed behind or under appliances considered a reasonable method for discovering deficiencies in inaccessible areas?
Pursuant to Section 535.227(a)(1) of the Standards of Practice, inspectors are not required to move appliances in order to inspect behind them. However, it is often possible to locate gas shut-off valves either behind or near appliances (such as in the cabinet next to the range). If a gas shut-off valve cannot be located, this should be reported. As the question suggests, it is sometimes also possible to use a digital camera to “see” in areas that are not otherwise accessible and there are multiple means of detection of gas leaks in existence, such as through the use of hand held detectors (however, these would be considered specialized tools and are not required to be used in performing inspections).
Is olfactory detection of methane/natural gas odorant the only reasonable method of discovering gas leaks when the connectors are not accessible?
Is removal of the blanket required by TREC for inspection reasons?
Is the absence of a dirt or drip leg, 1. a deficiency? 2. a required reporting item? 3. unsafe?
No. The SOP does not address the absence of a “trap” in a gas line. Please note that an inspector is not required to designate a condition as safe.
Is the absence of an anti-entrapment cover in a spa deficient and a required reporting item per TREC? 2. Is the presence of a single drain or suction opening in a pool spa deficient and a required reporting item per TREC?
The absence of an anti-entrapment cover in a spa is not a required reporting item. Section 535.233(2)(B)(i), however, requires an inspector to report as deficient the presence of a single blockable main drain.
Is the absence of combustion air in the bottom of the closet a required reporting deficiency? Is a screen combustion air opening a required reporting deficiency? Is the proximity of the return to the gas fired appliances a required reporting deficiency?
Section 535.230(2)(J)(vi)(I)of the Standards of Practice requires inspectors to report as deficient, in gas HVAC units, deficiencies in combustion, and dilution air. None of the issues you listed would necessarily be required to be reported as deficiencies; this determination depends on several factors, such as the design of the system.
Is the absence of gutters a defect and required reporting item per TREC?
No. Unless specifically indicated otherwise, the Standards of Practice only address items that are present at the time of the inspection. If gutters are present, they are required to be inspected under §535.228(b)(1)(C).
Is the absence of weather-strip on the door a required reporting deficiency?
Yes, Section 535.228(f)(2)(E)(i) requires inspectors to report deficiencies in weather stripping.
Is the definition of accessible, as applied to gas appliance connections, left to the reasonable judgment of the inspector?
Is the inspector required by the SoP to be knowledgeable of local requirements?
Pursuant to Section 535.227(b)(3)(C)(i), inspectors are not required to determine code compliance, utility sources, or regulatory requirements except as specifically required by the standards.
Is the inspector required by the Standards to state or explain a condition as a hazard to the consumer?
It is up to the “reasonable judgment” of the inspector to determine if the situation encountered during the inspection is or is not a hazard for the inspector’s client.
Is the inspector required to be report the mere presence of an FPE panel as deficient? 2. Is the inspector required to warn or advise of the alleged risks if TREC determines the panel is not required to be reported as deficient?
No. The standards of practice do not address this condition.
Is the inspector required to comment on or report as deficient those gas appliance shut-off valves and connectors not visible or accessible without moving the gas appliances?
Is the inspector required to determine the presence of Chinese drywall? Is the inspector required to report the symptoms of Chinese drywall? Is the inspector required to warn of the risk of Chinese drywall?
Pursuant to the general limitations in the Standards of Practice, inspectors are not required to determine the presence of “Chinese drywall” or to report its symptoms or risks. As an example, if corrosion to copper tubing lines or copper wires were found, that could in the opinion of the inspector constitute a deficiency, the inspector is not required to determine or report the cause of the corrosion, such as from “Chinese drywall."
Is the inspector required to inspect to manufacturer requirements, specifications or instructions?
Pursuant to Section 535.227(b)(3)(C)(i) of the Standards of Practice, inspectors are not required to report manufacturer requirements except as specifically required by the Standards. Section 535.227(b)(3)(H) further provides that inspectors are not required to review installation instructions.
Is the inspector required to report water heaters that are covered with an insulation blanket as obstructed if they did not remove the blanket?
Yes. The Standards of Practice do not address insulating covers or blankets on water heaters. Inspectors are not required to remove water heater covers to inspect the water heater. However, if the cover is not removed, and its presence interferes with the inspection of any part of the water heater, the inspector must advise the client and report the resulting limitations of the inspection in accordance with the departure provision, Section 535.227(b)(5).
Is the presence of a gas shut off valve that requires a tool to turn off deficient?
Question is not clear. Some gas shut off valves are safety or emergency shut off devices and some are not. As the type of valve in question is not defined, no answer can be provided.
Is the presence of carpet on an attached garage floor deficient and a required reporting item per TREC?
The presence of carpet in a garage is not required to be reported as a deficiency.
Is wrinkled loose carpet a defect and required reporting item per TREC? 2. Presuming an upstairs floor or the ceiling below does not exhibit obvious evidence of failure, is a squeaky floor a defect and required reporting item per TREC?
Section 535.228(e)(3)(A) of the Standards of Practice states that inspectors are not required to report cosmetic damage or the condition of floor, wall, or ceiling coverings. Neither loose carpet nor floor squeaks, without further evidence of deficient conditions, is required to be reported as deficient.
It appears that the inspector who inspected my home before my purchase missed major termite infestation. The damage from the termites has cost me thousands of dollars to repair. Shouldn’t the inspector have noted this problem on his report?
In Texas, any person who reports on wood destroying insects in a home must be licensed by the state as a wood destroying insect inspector. These licenses are issued by the Texas Structural Pest Control Service of the Texas Department of Agriculture at www.texasagriculture.gov. Some TREC licensed home inspectors are also licensed wood destroying insect inspectors, and therefore, may inspect a home for termites, etc. if hired for that purpose. However, under the home inspector license issued by TREC, the inspector MAY NOT comment on whether termite infestations exist. They should comment on visible damage regardless of the underlying cause and note it as a deficiency on their report, but may not assess that the damage was specifically caused by wood destroying insects.
On my inspection report, the inspector reported certain things in the house as “safety hazards” or “code violations”. Can TREC give me information about what codes the inspector is referring to?
There are many different codes that can figure into the construction of a house, depending on when it was built and local amendments. TREC does not require inspectors to inspect to any of the various building codes and cannot assist you in determining what code provisions were applied in a particular situation. Instead, TREC has established Standards of Practice for inspectors to follow. [Rule 535.227-535.233] However, an inspector is free to inspect to a higher standard (such as to various codes or based on recognized safety hazards), as long as they do so competently. If you have questions about your inspection report, you should ask your inspector for the basis of his statement. You may also wish to contact your local code enforcement authority for more information about relevant codes.
The Standards of Practice require inspectors to report as deficient the lack of exhaust ventilators in required areas. What are the required areas for exhaust ventilators?
At a minimum, bathrooms and water closets that that do not have an operative window must be reported as deficient if they lack an exhaust fan that vents to outside air.
What are inspectors required to report regarding AFCI’s?
Section 535.229(a)(1)(G)(vii) requires an inspector to report a deficiency in the operation of an installed ground-fault or arc-fault circuit interrupter device. Section 535.229(a)(2)(B) states that an inspector is not required to test an arc-fault circuit interrupter device when the property is occupied or when damage to personal property may result, in the inspector’s reasonable judgment.
What are inspectors required to report regarding gas supply lines?
Section 535.231(a)(2)(E)(ix) requires inspectors to report deficiencies in the condition of the gas distribution system. Section 535.231(a)(3)(D)(iii) does not require inspectors to inspect inaccessible gas supply system components for leaks. Section 535.231(a)(3)(A) states that inspectors are not required to operate any main, branch, or shut-off valves.
What is the definition of an “accepted industry practice”?
The definition of “accepted industry practice” is situation-specific and may depend on the context in which the question is being asked. We are unable to provide a general definition.
What level of precision is expected for the “approximation” of average insulation depth?
Section 535.228(d)(1)(B) requires an inspector to report “approximate average depth of attic insulation.” We are unable to prescribe a certain "level of precision” that would satisfy this requirement; any of the examples you presented would satisfy the requirement to report the depth of insulation, as long as they accurately reflect the conditions.
What requirements does TREC impose on inspectors/consultants who perform maintenance consultations?
TREC's jurisdiction over real estate inspections is limited to inspections performed for a buyer or seller of real property in connection with a transaction.
Are gas ranges, built-in wall ovens, or clothes dryers considered to be large, heavy, fragile objects which could be damaged or cause damage while being moved, and an undue hazard and risk to the inspector?
I already have a license. Do I have to tell you about my crime?
Yes. You are required to tell us within 30 days of a felony. Section 1101.652(a)(6) of the License Act provides that if you have entered a plea of guilty or nolo contendere or have been convicted of a felony or any criminal offense that involves fraud (including misdemeanors), you must disclose this to the Commission not later than the 30th day after the final conviction or the entry of a plea of guilty or nolo contendere. The minimum penalty is $1,000; maximum is $5,000 per failure to report. This means that if you wait until your renewal to notify the Commission of your felony, you could be subject to the penalty, in addition to any disciplinary action related to the crime. If you do have an unreported felony, or an unreported criminal offense involving fraud, report it to the Commission as soon as possible.
Can I use a power of attorney to engage in a real estate brokerage transaction without a real estate license?
Do I need a license to sell a mobile home or a manufactured home?
The sale of mobile or manufactured homes requires a separate license from the Texas Department of Housing and Community Affairs (TDHCA); however a TREC license holder is not required to be separately licensed by TDHCA if the manufactured or mobile home is attached to real property that is being offered for a sale, exchange, or lease transaction. “Attached” means that the manufactured or mobile home is permanently affixed to the real estate and its separate title document has been surrendered.
Do I need a license to sell or lease mineral or mining interests?
Does TREC have a promulgated buyer representation agreement?
No. A buyer representation agreement is a private contract between a real estate broker and a buyer and is not promulgated or regulated by TREC. You should consult with a private attorney. The Texas Association of Realtors (TAR) provides certain forms to its members. If you are a member, TAR may have a form that fits your needs.
I am the listing broker. An attorney has presented an offer from a buyer that the attorney represents and wants me to share my commission. Can I do this?
No. A licensed broker is prohibited from sharing compensation with anyone who acts in the capacity of a broker but is not licensed as a broker [TRELA §1101.651(a) and §1101.652(b)(11)]. In cases such as this, the listing broker still needs to present the offer to the seller. The listing broker should inform the seller that the broker is prohibited from sharing compensation with the attorney. Assuming the attorney is licensed in Texas, the seller and buyer may work something out between themselves regarding any compensation to be paid to the Texas attorney. The listing broker can agree to reduce the commission if requested by the seller without violating the prohibition on splitting.
I loaned Broker Smith $10,000 to build his real estate office and now he won't repay me. Can you help?
No. Failure to repay a loan constitutes a breach of your private agreement with the license holder and is not a violation of TRELA or the Rules. In addition, since it is not a violation of §1101.652(a-1)(1) or §1101.652(b) of the License Act, any judgment obtained would not be eligible for payment from the Real Estate Recovery Trust Account.
I went on a tour to inspect unimproved lots. The guide was not licensed, but she showed us the lots and told us about possible developments on the land. Is this legal?
If someone’s criminal history has been expunged, can the information still appear on the background check?
The information is not supposed to appear on a background check; however it still may by mistake. If it does, TREC will ask you to provide a copy of the Order of Expungment or Non-disclosure and upon receipt will not consider that offense in determining a person's fitness for licensure.
I’ve been harmed by a license holder. Can TREC recover damages for me?
No, TREC does not have the authority to require a license holder to pay another person for monetary damages. Recovery of these losses is a civil action and should be discussed with a private attorney. In limited circumstances, TREC may order a license holder or registrant or certificate holder to pay a refund to a consumer. The refund cannot exceed the amount paid by the consumer to the license holder or registrant or certificate holder for a service or accommodation regulated by TREC. The order must be the result of a complaint matter that resulted in an agreement with the license holder or registrant or certificate holder from an informal settlement conference or an enforcement order.
My corporation owns property. Does an employee of the corporation need a license to sell or lease the property?
Are locators subject to the agency disclosure requirements of The Real Estate License Act?
As a broker, am I the only person who can sign a check written on my trust account?
Can I find out online if there have been any disciplinary actions against an agent?
Can TREC obtain reimbursement of commissions paid by buyers and sellers to brokers and sales agents for compensation in real estate transactions?
No, unless a refund is ordered by TREC in conjunction with an agreement resulting from an informal settlement conference or an administrative order. However, the amount ordered may not exceed the amount the consumer actually paid to the license holder for the services subject to TREC regulation and may not require payment of other damages or estimate harm. [TRELA §1101.659] In addition, TREC has no jurisdiction or authority to enforce collection of such amounts.
Can TREC provide legal advice?
TREC attorneys can provide general advice about the applicability or interpretation of the provisions of The Real Estate License Act and TREC Rules but cannot, with few exceptions, give advice pertaining to specific matters or transactions, other laws, or civil matters.
Can a broker share a commission or other compensation with an attorney when the attorney is a principal in the transaction?
It is not a violation of TRELA or the Rules for a license holder to rebate a portion of their compensation to a party in the transaction. If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party the license holder represents. This must be done before making the payment. [Rule 535.147(d)].
Can a license holder be disciplined for paying a commission or a fee to or dividing a commission or fee with an unlicensed person for services as a real estate agent?
Can a license holder donate a portion of his commission to a church if one of the church members refers a client to the license holder?
Yes, as long as the church member who made the referral receives nothing that may be defined as valuable consideration from the church or the license holder.
Can a license holder hold a gift giveaway of any prize regardless of its value as long as entry into the giveaway is not limited to only those that refer a prospect for a real estate transaction?
Nothing in TRELA or the Rules would prohibit this. However, the license holder should verify that the giveaway is not considered an illegal lottery under Sections 47.01(7) & 47.03(5) of the Texas Penal Code.
Can a license holder offer or pay cash to an unlicensed person for referring a potential lessee or buyer?
Can a license holder offer to enter an unlicensed person in a drawing to win a cruise for referring a potential lessee or buyer?
No. Since the cruise would have a value greater than $50, it is defined as valuable consideration. Although entering a name into a drawing may not have a cost associated with it, whoever won the drawing would be receiving valuable consideration. In addition, a “referral” drawing may be considered a contest defined as an illegal lottery under Sections 47.01(7) & 47.03(5) of the Texas Penal Code.
Can a license holder offer to give a $50 gift card to an unlicensed person for referring a potential lessee or buyer?
Although a license holder may not pay an unlicensed person valuable consideration for referring a potential lessee or buyer, gifts of merchandise with a retail value of $50 or less are not considered valuable consideration. [Rule 535.20(a)] Therefore, a $50 gift card that is only redeemable for certain merchandise (e.g. a gift card to a restaurant or department store) is not defined as valuable consideration and is permissible. A gift card from a bank (e.g. Visa or American Express), however, which can be converted to cash is not permissible. Any amount of cash or a credit or bonus toward rent owed is also not allowed as a reward for a referral.
Can a license holder rebate a portion of his commission to a seller? What about a buyer?
Can a license holder rebate a portion of the license holder’s commission to a church or other non-profit organization of the license holder’s choosing or one of the principals’ choosing?
Yes. This is a donation and not a rebate.
Can a non-license holder use the promulgated contract forms?
Yes. The contract forms are available for public use. A TREC contract form, however, is intended for use primarily by licensed real estate brokers or sales agents who are trained in their correct use. A mistake in the use of a form may result in financial loss or an unenforceable contract. A person using a TREC form assumes all risks associated with its use.
Can a real estate license be revoked because a license holder files for bankruptcy?
No. A license holder's bankruptcy does not affect a pending complaint or limit disciplinary action by TREC. If the underlying conduct violates §1101.652(a-1)(1) or §1101.652(b) of TRELA, disciplinary action can be taken against the license holder for the underlying conduct. Further, a judgment that involves conduct that violates §1101.652(a-1)(1) or §1101.652(b) of TRELA may be eligible for payment from the Real Estate Recovery Trust Account even if the debt was discharged in bankruptcy.
Can a rental locator rebate a portion of the rental locator’s fee received from the apartment complex to a prospective tenant if the tenant uses the locator’s services?
Yes, but a locator will be required to first obtain the consent of the apartment complex if the locator does not represent the tenant.
Can all or part of the educational hours be waived in view of a person's business experience?
No. A person's license in another state or experience in real estate brokerage or any related business does not substitute for the educational requirements. [Rule 535.63(a)] To be eligible for a Texas license, an out-of-state license holder must meet all current Texas licensing requirements found on our website. In addition, an applicant may not have to take the national portion of the licensing examination if the applicant maintains a license equivalent to the license being applied for and has already passed a comparable national examination that is accredited by a nationally recognized real estate regulatory association such as ARELLO.
Can an out-of-state broker conduct brokerage business from another state by mail, phone, the Internet, or other medium?
When the real property concerned is located wholly or partly in Texas, the broker must obtain a Texas license or associate with a Texas broker.
Can listing agreements be extended?
Listing agreements are private contracts between a real estate broker and a seller. The terms of the contract and/or desires of the parties would determine whether the listing agreement can be extended. You should contact a private attorney if you have any questions about extending a listing agreement.
Do I need a license to act as an on-site manager of an apartment complex?
No, but this exemption only applies to apartments; managers of condominiums or town homes need to be licensed. Note, also, that the "on-site" requirement means that you have an office at the apartment complex, not that the manager has to live there.
Do I need a license to lease or rent real property if I am an employee of the property owner?
No. Rule 535.34 provides guidelines to determine if evidence of an employer/employee relationship exists.
Do I need a license to sell a builder's new houses?
No, provided you are an employee of the new home builder (being an independent contractor is not enough). Rule 535.34 provides guidelines to determine if evidence of an employer/employee relationship exists.
Do I need a license to sell or lease cemetery lots?
Do I need a real estate license to sell a campground membership?
No. Campground membership sales are regulated by the Texas Secretary of State’s Office, Statutory Documents Section, under the provisions of the Texas Camping Membership Resort Act [Chapter 222, Texas Property Code] and you should check with that agency regarding its requirements.
Do I need to file a complaint with TREC first before I can obtain funds from the Real Estate Recovery Trust Account or the Real Estate Inspection Recovery Fund?
No, filing a complaint with TREC is not a prerequisite to obtaining funds from one of the two recovery accounts maintained by TREC for paying judgments taken by consumers against real estate license holders or inspectors. Additional information about the two recovery accounts maintained by TREC are on our website.
Does TREC determine which brokerage business names may be registered with the agency if a name is similar to others already registered?
In Texas, business names and "DBA"s are regulated under common law (deceptively similar names may give rise to a private cause of action) and "notice" laws which may provide certain presumptions or tacit protections to names recorded at the local county clerk's office or with the Secretary of State. The agency's sole interest in requiring all brokerage business names to be disclosed to TREC and reflected in the agency's database is to provide a resource to consumers who need to know which individuals and licenses are associated with any particular business name; therefore all names are "searchable" from our agency website. TREC leaves the determination of "similar" names to the Secretary of State's rules or to common law remedies.
Does TREC have a promulgated listing agreement form?
No. A listing agreement is a private contract between a real estate broker and a property owner and is not promulgated by TREC. The Texas Association of Realtors (TAR) provides certain forms to its members. If you are a member, you may find a listing agreement form that meets your needs through TAR. Otherwise, you should consult with a private attorney.
Does TREC have an improved commercial earnest money contract form?
No. You must use a form drafted by an attorney or a form supplied by either the buyer or seller. [Rule 537.11(a)] If you are a member of The Texas Association of Realtors (TAR), you may use a form prepared by TAR attorneys.
Does TREC mediate complaint matters between a complainant and a license holder?
Once a complaint is opened, if the Mediator with the Commission’s Standards & Enforcement Services determines the case is a good candidate for alternative dispute resolution, the Mediator will offer a complainant and license holder the opportunity to participate in informal telephone dispute resolution. The Mediator, acting as a facilitator between the complainant and license holder, assists the parties in trying to reach an agreed settlement. If the parties reach an agreement, the Commission closes the complaint without further investigation. The agreed settlement may or may not include some form of disciplinary action against the license holder. If the process does not result in an agreed settlement, the case proceeds through the normal complaint process. The dispute resolution process is kept confidential from each party and from other Commission staff.
Does TREC mediate contested complaint matters?
TREC offers an informal settlement conference for any contested matter involving a license holder or registrant or certificate holder. The process is voluntary and must include the license holder, registrant or certificate holder, at least one public member of the Commission, and two staff members of TREC. While the complainant may be present at the conference, they are not a party to the proceeding. At the conclusion of the informal conference, the Commission member or TREC staff may propose an informal settlement. The license holder, registrant or certificate holder may accept or reject the settlement offer. A final agreed order based on the settlement recommendation would conclude a contested case matter. If an agreement is not reached, the case is referred to the Director of Standards & Enforcement for appropriate action. Also, a party to a contested matter filed with the State Office of Administrative Hearings (SOAH) may, before a hearing, request that the matter first be heard by a SOAH mediator.
Does TREC require a trust or escrow record to be maintained for a specific period of time?
Does Texas have reciprocity with any other states regarding a real estate license?
Does a lease for a term of longer than one year and a contract for the sale of real estate need to be in writing to be enforceable?
Yes. The Statute of Frauds, as defined by Chapter 26 of the Business and Commerce Code, requires that certain agreements be reduced to writing to be enforceable. However, you should consult with a private attorney for advice on this matter.
Does a license holder have to use TREC's contract forms? Does TREC ever discipline a license holder who fails to use an adopted form?
Yes and yes. A license holder is required to use contract forms adopted by TREC. [TRELA §1101.155, Rule 537.11, etc.] Some exceptions for when a license holder does not have to use a form are in Rule 537.11(a). A license holder should also be familiar with Rules 537.11(f)-(g). Those rules prohibit a license holder from adding anything except factual matters or business details to a form adopted by TREC for mandatory use. Contract forms adopted for mandatory use are on our website.
Does a link to the IABS Form in my email signature satisfy the representation disclosure required by TRELA §1101.558?
(4) as an attachment to an email or as a link in the body of an email so long as there is a specific reference to the IABS Form in the body of the email.
Does a property manager have to be licensed?
Does a trust account have to have a special name?
How are days counted in a TREC contract?
Starting with the effective (final execution) date of the contract, the first day of the period starts the next day. Each day is counted as calendar day.
How can an out-of-state broker sell land in Texas?
The foreign broker must either associate with a Texas broker who handles all the negotiations and other acts that require a license in Texas, including showing the broker’s listings or soliciting listing of real property, or obtain a Texas real estate license. No license is necessary to sell land in Texas as long as the broker does not perform any acts in Texas that require a license.
How do I file a complaint with TREC?
There are instructions and a complaint form on our website. Please note that although the complaint form is in a fillable pdf format, once you have completed the form, you need to sign it before sending it to TREC. For more information, see the Complaint Overview manual.
How long does an agent have to deposit the earnest money once a binding contract has been negotiated?
I am a sales agent and am not sure how to fill out the listing agreement form. Can you help me?
No. TREC is unable to advise you on how to fill out a private contract form. You should direct your questions to your sponsoring broker. If your sponsoring broker is unable to help you with your questions about a Texas Association of Realtors (TAR) listing agreement form, you can direct your questions to TAR.
I am a seller and I signed a contract with a buyer. Before the earnest money was deposited, the buyer backed out. Am I entitled to the earnest money?
The Commission does not have jurisdiction to decide which party is entitled to the earnest money. However, a real estate license holder's failure to deposit earnest money in accordance with the terms of the contract could form the basis of a complaint. Please note that TREC cannot order a license holder to pay money damages. You will need to consult a private attorney about monetary damages or other civil remedies.
I am a tenant and having problems with my landlord getting him to make repairs. Also, I sent the landlord the rent on time but the landlord is still threatening me with eviction and late charges. What are my rights as a tenant?
I am changing sponsoring brokers. Do I get to take my listings with me?
No. Listing agreements are private contracts between the property owner and the real estate broker, not the sales agent.
I am having a dispute with my Homeowner Association (HOA) regarding violating neighborhood restrictions.
TREC does not have jurisdiction over Homeowner Associations or Association Management Companies. You may wish to consult with a private attorney regarding your legal rights as a homeowner. See also Chapter 209, Property Code.
I am having problems with a manufactured home that I purchased recently and wish to file a complaint against the manufacturer and broker/dealer.
TREC does not have jurisdiction over manufacturers or dealers of manufactured homes. You may file a complaint with the Texas Department of Housing and Community Affairs. TREC only has jurisdiction in situations where the manufactured home is attached to the real estate when you purchased it and your complaint is against a real estate license holder that was involved in that purchase.
TREC does not have jurisdiction over builders. You may wish to file a complaint with the Better Business Bureau or the Texas Attorney General’s Office, Consumer Protection Division. You may also wish to consult with a private attorney before any possible warranties or other legal remedies expire.
I discovered that a real estate license holder is also a licensed mortgage broker. Is this legal? With what agency should I file a complaint?
I have a property management company and engage in leasing activity. May I have some of my unlicensed employees solicit business for me?
No. A rental agent who solicits a prospect by phone must be licensed.
I just bought a house and noticed that the title company I used made a mistake at closing.
TREC does not have jurisdiction over title companies. If you wish to file a complaint against a title company in Texas, you need to contact the Texas Department of Insurance.
I listed my property for sale with a broker and the broker has done nothing about selling the house. Can I break my contract and list with someone else?
Your listing contract with the broker is a private legal contract. TREC is unable to advise you on private contractual matters. If you feel that the broker has not fulfilled the broker's part of the agreement, i. e. advertising, holding open houses, etc., then you may have grounds to terminate the contract but you would need to contact a private attorney for help in making that determination. You could also ask the broker to agree to cancel or release the listing. If the broker agrees, then the contract can be mutually rescinded.
I signed a Property Management Agreement and do not understand some of the terms. Can you explain them to me?
No. A Property Management Agreement is a private contract and TREC is unable to advise you in private contractual matters. You should discuss the terms of the agreement with a private attorney.
I signed a listing agreement with a broker and don’t understand some of the terms in the agreement. Can you explain the terms to me?
No. TREC is unable to advise you in private contractual matters. You should discuss the terms of the listing agreement with a private attorney.
I was trying to buy a house and the earnest money was deposited in the broker's escrow or trust account. The transaction has fallen through and now the broker won't return the earnest money.
If the broker used a Commission promulgated form, it contains provisions permitting the broker to require the buyer and seller to agree on who gets the earnest money and to sign a release before the money is disbursed. See Rule 535.146(d) for proper procedures for handling earnest money disputes where the broker is holding the money in a trust or escrow account.
I will be holding the security deposit for an owner whose property I am managing. In what type of account should a security deposit be placed?
If a broker has an exclusive listing with a seller, may another broker solicit a listing from the same seller that would begin after the other listing expired?
Yes. Rule 535.153 states that §1101.652(b)(22) of TRELA does not prohibit a license holder from soliciting a listing from the owner while the owner's property is subject to an exclusive listing with another broker, provided the listing does not commence until after the current listing expires.
If a buyer wishes to have a hydrostatic test performed on a home, what is required for a seller to consent to such a test?
Therefore, there must be a separately signed document of authorization by the seller for a hydrostatic test. Thus, for example, any authorization language in the special provisions of the standard Resale contract is not separate consent by a seller.
Is TREC interested in compliance by residential rental locators?
Is a licensed attorney required to hold a real estate license to act as a broker?
Is a locator permitted to rebate a portion of the locator's fee to the tenant?
Is a real estate broker's license required to call an auction involving real property?
No. A real estate license is not required for a person who calls an auction of real property, provided the person is licensed as an auctioneer by the Texas Department of Licensing and Regulation. [TRELA §1101.005(4)] However, it is clear from the statute that an auctioneer may not perform any act of a broker or sales agent, such as the preparation of a written agreement for the transaction.
Is hydrostatic testing a mandatory part of the inspection of a resale of real property?
No, a hydrostatic test is not mandatory in the inspection of a property.
Is it permitted to submit an invoice to an apartment complex falsely claiming that the locator has procured a tenant for the apartment complex?
I’m buying a house. Do I have to have pay for an option period to be able to buy the house?
No. The termination option is a negotiable contract term. However, if you pay the seller an agreed option fee, you have the unrestricted right to terminate the contract for any reason if you give written notice to the seller during the option period. A buyer can use the option period to perform an inspection of the property and negotiate an amendment to the contract for any necessary repairs as a result of the inspection.
Must the earnest money check be deposited to create a binding contract?
The formation of a real estate contract requires "consideration" for the contract to be binding. In general, the buyer's promise to buy and seller's promise to sell is consideration. Although the TREC contract forms include a provision for the deposit of earnest money, if the buyer fails to deposit the earnest money the buyer is considered in default of the contract, and the other party may then exercise the remedies under paragraph 15 of the contract. However, TREC is unable to make a determination as to whether your contract is binding. You should discuss the validity of your contract with a private attorney. Once a binding agreement has been created, a license holder handling the check must deposit the earnest money in a timely fashion in accordance with the contract terms. In addition, a license holder’s failure to deposit the earnest money within a reasonable time is a violation of §1101.652(b)(30) of TRELA.
Must the permission of the owner authorizing the agent to offer the unit for rent be in writing?
No, the permission may be in writing or oral. If the permission is given over the telephone, for example, the license holder should document who gave the permission and how it was given in case that information is later requested by TREC in connection with a complaint.
My agent moved to another broker’s office and I want them to continue to handle my listing. Can I switch my listing to the new broker’s office?
No. Listing agreements are private contracts between the property owner and the real estate broker, not the sales agent. You can ask the original broker to release you from the agreement or contact a private attorney to advise you if you can terminate the listing agreement in some other fashion. TREC does not have the authority to require a broker to release you from a listing agreement.
My broker did not fill out our contract properly and the effective date is blank. Does this mean that the contract is invalid or void?
My client does not want to accept the property “as is”. Can I just leave both boxes in Paragraph 7D of the One to Four Family Residential Contract (Resale) blank or can I check 7D 2 and write in “repairs to be listed following inspection”?
Neither option is permissible. Leaving both boxes in blank in Paragraph 7D or altering the contract terms by adding language that does not enumerate specific repairs in Paragraph 7D2 could be considered to be acting negligently or incompetently if a complaint were to be filed in connection with the transaction [TRELA §1101.652(b)(1)]. The buyer should only choose Paragraph 7D2 if there are specific repairs known at the time of the contract that the buyer wants the seller to pay for. Otherwise, the buyer should check Paragraph 7D1. Most buyers in your client’s situation will then also elect to pay an option fee pursuant to Paragraph 23 in exchange for the right to terminate for any reason within a negotiated number of days. During this option period, an inspection can be performed and if specific repairs are identified, the parties can negotiate to amend the contract to address these items, or the buyer can terminate the contract.
My license is expired or on inactive status with TREC. Can I receive money for referrals?
Generally, no. Your license must be on active status at the time you make the referral. If you made the referral while you were active, however, you may collect that fee while you are expired or on inactive status. In addition, if you are a licensed sales agent, the referral fee must be paid through your sponsoring broker.
My wife and I signed an offer to buy a house over the weekend. Now we have changed our minds and don't want to buy the house after all. Can we get out of the deal?
If the seller has accepted your offer, you may have a binding contract. There is no automatic three-day or 72 hour cooling off period for you to change your mind like in some other consumer contract situations. Any rights that you have to terminate the contract will be contained in the contract. For example, you may have paid a fee to obtain an “option” period in the contract. You should consult with a private attorney for advice regarding termination of your contract.
We are selling our house and the buyer never paid the option fee. What happens now?
Typically, the buyer's agent collects the option fee upon final acceptance of the terms of the contract and delivers the option fee check to the seller's agent. Paragraph 23 in the 1-4 Family Residential Contract provides "If no dollar amount is stated as the Option Fee or if the Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract." Under the terms of the 1-4 Family Residential Contract, the buyer (or buyer’s agent) has three days to deliver the option fee. If the fee is not paid and the parties need help interpreting this provision, they will need to consult with a private attorney.
We tried to buy a house but our loan application was not approved. Our $500 earnest money had been deposited with a title company and they said they wouldn't return it without a release signed by the seller, which the seller won't sign. Help!
The Commission does not have jurisdiction over title companies. While a license holder is encouraged to assist the parties in the exchange of the necessary earnest money release and need to sign the release as appropriate, there is nothing in TRELA or the Rules to determine who is entitled to the earnest money. You will need to consult a private attorney.
What are the penalties for unlicensed brokerage activity?
What do I need to send with my complaint to TREC?
Complete the complaint form on our website by answering each question. Be sure to sign it. Attach additional sheets as needed to fully explain your complaint. When applicable attach clear and complete copies of all related documents. Do not send originals. For example, if your complaint is about an inspection report, attach a copy of the report or state why it is not available. Or, if your complaint is regarding a promise made by your buyer’s agent, attach a copy of your buyer representation agreement, if the promise was made in writing, and the sales contract and the TILA/RESPA Integrated Disclosure (TRID) statement. If the promise was made at closing in front of the title company closing agent, you could include this witness’ name and contact information and describe what this witness may know.
What happens after I file a complaint with TREC?
You will be notified by email or mail that your complaint has been received. If an investigation is opened, each person against whom the complaint is filed will receive a copy of the complaint. After the investigation is concluded, the information obtained will be reviewed to determine whether there is sufficient evidence to take disciplinary action for a violation of the applicable statute or Commission’s rules. Disciplinary action could include a formal reprimand, the suspension or revocation of a license, payment of an administrative penalty, or other appropriate action. Investigations and the disciplinary process differ in complexity and duration, so providing a time of completion is not possible. For more information, see the Complaint Overview manual.
What is a hydrostatic test?
A hydrostatic test is a way in which pipeline, plumbing, gas cylinders, boilers, and fuel tanks can be tested for strength and leaks. The testing pressure is always higher than the normal operating pressure of the system.
What is the definition of a “commission”?
What is the estimated time frame to process an Moral Character Determination (MCD) form?
After an MCD request is filed and all required documentation is obtained (either initially or following subsequent requests for additional information), TREC will investigate the information and make a determination. Once TREC makes a determination, TREC has 30 days to notify the person of the determination. Providing a complete form and promptly sending any requested documentation will decrease the processing time of an MCD.
What kind of criminal matters will prevent an applicant from obtaining a real estate license?
To be eligible for a real estate license, applicants must prove to TREC that they have the required honesty, trustworthiness & integrity. [TRELA §1101.354(2)] Each applicant is evaluated individually and TRELA does not contain a list of crimes or number of crimes that would automatically disqualify an applicant from obtaining a license. However, Rule 541.1(a) does list the types of criminal offenses that TREC considers directly relate to the duties and responsibilities of a license holder and tend to demonstrate a person’s inability to represent the interest of another with honesty, trustworthiness and integrity. Rule 535.52(b) also addresses conduct that tends to demonstrate that an applicant does not possess the requisite honesty, trustworthiness or integrity. In addition, pursuant to Chapter 53 of the Texas Occupations Code (www.statutes.legis.state.tx.us/) and Rule 541.1(c), TREC will consider evidence of certain mitigating factors and rehabilitation. It is the responsibility of the applicant to provide that evidence to TREC. [Rule 541.1(d)] Before applying for a license, a person may request TREC to determine whether the person’s moral character complies with the requirements for licensing by filing a Moral Character Determination (MCD). This form is on our website.
What should I do if TREC doesn’t promulgate a form that I need?
What types of complaints can be filed with TREC?
Written and signed complaints are accepted against the following types of businesses: real estate brokers and sales agents, real estate inspectors, TREC-approved education providers for real estate and inspection courses, TREC-approved instructors for real estate and inspection courses, residential service companies, timeshare developers, easement and right-of-way agents, and unlicensed persons engaging in any of these activities. TREC does not regulate and accept complaints against: Real Estate Developers (not regulated), Home Builders (not regulated), Appraisers (see the Texas Appraiser Licensing & Certification Board at talcb.texas.gov), Mortgage Brokers and Loan Officers (see the Texas Dept. of Savings & Mortgage Lending at www.sml.texas.gov), Property Tax Consultants (see the Property Tax Consultant Board of the Texas Dept. of Licensing and Regulation at www.license.state.tx.us/PTC/PTC.HTM), Title Insurance Companies (see the Texas Dept. of Insurance at www.tdi.texas.gov), Auctioneers (see the Texas Dept. of Licensing and Regulation at https://www.tdlr.texas.gov/auc/auclaw.htm, Manufactured Housing (see the Texas Department of Housing and Community Affairs at www.tdhca.state.tx.us/mh/), Plumbers (see the Texas State Board of Plumbing Examiners at www.tsbpe.state.tx.us), or Wood Destroying Insect Inspectors (see the Texas Department of Agriculture at www.texasagriculture.gov).
When I purchased my house there were repairs made before closing that I requested but were not performed properly. The seller gave me the receipts of the licensed repair people who performed the repairs. Why can I do?
TREC does not have jurisdiction over licensed repair providers. You may want to check with Texas Department of Licensing and Regulation to see if they regulate the providers. You may also want to consult with a private attorney regarding your legal rights as a homeowner.
When a broker holds earnest money or any money from property management activities in a trust account, how often is a broker required to account for that money?
When a broker holds money from property management activities in a trust account, how often is a broker required to account for that money?
When a contract falls through, can part of the earnest money be held to pay the commission fee for the other real estate license holder?
No, unless the parties agree in writing otherwise.
When a license holder files a reinstatement application and answers “yes” to the criminal questions, does TREC require the license holder to resubmit legal documents that have already been submitted in the past?
A “yes” answer to the criminal questions on a reinstatement application requires an applicant to submit a Background History form along with copies of the offense court records and a written explanation. If the required documents were previously submitted in a prior application, the applicant may explain this fact. However, because TREC must dispose of certain documents in accordance with a records retention plan, TREC may no long have those documents and an applicant should be prepared to resubmit documents and the explanation previously submitted.
Would it be permissible to use a promulgated contract form as a contract for deed or contract of sale by making appropriate changes in Paragraph 11?
No. None of the forms promulgated by TREC are intended for use as a contract for deed. An attorney will need to prepare an appropriate form.
If you think a license holder has violated the Real Estate License Act or the Rules of the Texas Real Estate Commission, you can file a complaint with TREC.
We have a detailed page dedicated to how to file a complaint on our website, as well as a wide range of FAQs related to complaints. (Search by the category "How Are Disputes Handled?" or do a word search with "complaint").
There are some requirements for complaints – these are mandated by the Texas Legislature.
Anyone filing a complaint must provide a name and contact information.
You are not required to use the TREC complaint form, but complaints must be in writing. It is helpful, however, to use the form because it prompts you for all the necessary, as well as helpful, information.
A complaint can’t be submitted over the phone.
A complaint must be signed.
So what happens after a complaint is filed?
When a complaint is received it is assigned a case number and reviewed to determine whether the Commission has jurisdiction over the issue raised in the complaint. For example, personal issues or contractual disputes with a license holder generally aren’t matters that the Commission can address. You should hear back from the Commission about whether we are moving forward with your complaint within 30 days. If SES staff determines that the Commission has the authority to address the issue in the complaint, the case is investigated. Each license holder who is the subject of a jurisdictional complaint is given a copy of the complaint and an opportunity to respond to the allegations made in the complaint.
If an investigator is assigned to the complaint, the investigator may determine that additional information is needed and conduct phone interviews of witnesses, which normally takes three-to-six months. An interview may also be in person, but this is less common. For some investigations, an investigator is not assigned and the information is gathered by questions submitted by letter and written responses received.
Once the investigation is complete, the case is assigned to an SES staff attorney. The SES staff attorney reviews the complaint and investigation to determine if the evidence in the case supports that a violation of TREC laws or Rules occurred. Because SES deals with a high volume of complaints, this stage of the process can also take several months.
What are the possible outcomes after the case is assigned to an attorney?
The attorney may find that there has been no violation, or the attorney could find that there is insufficient evidence to prove that a violation occurred. In these cases, the attorney issues a letter closing the complaint.
The attorney may find that the license holder should be warned about their actions. If so, the attorney will issue what we call an advisory letter. This letter becomes part of the license holder’s record and will be considered if further complaints are filed.
The attorney may determine that a violation has occurred and recommend that the license holder receive formal discipline. Formal discipline includes monetary fines, license suspension, or license revocation.
If the license holder accepts the recommended discipline, the complaint may be closed by agreement. If not, a Petition and Notice of Alleged Violation is prepared and served on the license holder.
If the license holder does not accept the recommended discipline and requests a hearing, then the case is scheduled for a hearing at the State Office of Administrative Hearings. During a hearing, the SES attorney presents the Commission’s case for formal discipline and the license holder presents their defense. At SOAH, the license holder can represent themselves or hire an attorney. After the hearing is finished, the judge typically has 60 days to issue a Proposal for Decision. The Commission then considers the case during an open meeting and issues a Final Order.
What additional information should I know?
If you would like more detailed breakdown of the complaint process, download the Complaint Overview manual.
Please understand that the Commission does not have authority to order a license holder to pay damages to another person.
Any claim for damages would need to be addressed in another forum and should be discussed with a private attorney. The Commission does maintain a Real Estate Recovery Trust Account to pay for certain judgments obtained in court against sale agents or brokers.

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