If a licensed professional inspector is conducting a commercial inspection, is he or she required to use the inspection report form promulgated by TREC? You may wish to notify your landlord that if the repairs have not been completed within that time frame, you will break the lease and move at the end of 30 days. TREC does not have the authority to require a broker to release you from a listing agreement. 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. 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. What Types of Discipline Could a License Holder Receive? The unlicensed person may share in the income earned by a real estate brokerage if the person engages in no acts for which a license is required. I am a sales agent and am not sure how to fill out the listing agreement form. To recover under one of the methods above, you MUST follow these steps: Send the landlord a dated letter by certified mail, return receipt requested, or by registered mail, outlining the needed repairs. Do the Standards of Practice require inspectors to report as deficient evidence of a past attic fire? TREC does not require a pre-inspection or employment contract to be signed by the parties to the inspection. An attorney will need to prepare an appropriate form. The landlord will be liable for persecution, as defined by the law. 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. 92.056 and 92.0561. I bought a house from Sam Seller through broker Bob Brown three months ago. Put Your Complaint in Writing Put it in writing. Yes, if the real estate business entity holds a real estate license and the sales agent is sponsored by that entity. Is a broker responsible for the actions of a sales agent who transacts business from a separate location? If the transaction concerns a residential lease of less than one year and a sale is not being considered, the locator is not required to provide the tenant with a copy of the statutory information about agency (Information about Brokerage Services). I have a property management company and engage in leasing activity. The seller gave me the receipts of the licensed repair people who performed the repairs. [Rule 535.144(c)]. A brokerage should decide whether it makes good sense from a liability exposure standpoint to allow an associated broker (or a sales agent who owns a business entity) to use the same name for a team name under the brokerage that they have registered as an assumed name under their own licensed business entity. Can we get out of the deal? A license holder shall not use the license holders expertise to the disadvantage of a person with whom the license holder deals. If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party represented by the license holder before making the payment. Last night I reconsidered. Using REALTOR or agent is insufficient to distinguish the license status of sales agent. Gather any documents you think will support your complaint. See Section 535.230(d)(4). [TRELA 1101.803, Rule 535.2(a)] A sales agent may not lawfully engage in brokerage activity unless the sales agent is associated with, and acting for, a sponsoring broker at all times. How shall an inspector ascertain with any degree of accuracy if the fire separation between a residence and its attached garage is in place? [Rule 535.146(c)(6)], The broker must provide a monthly accounting of trust money if there has been any activity in the account. Filing eviction proceedings (unless in certain circumstances listed in Section 92.332, like when a tenant is behind in rent, has intentionally damaged the property, or remains in the property after their lease has ended); Depriving the tenant of use of the premises; Decreasing services to the tenant; Raising the rent or ending the lease; or Contact the Department of Housing and Urban Development in your area if you feel you have been the target of discrimination. In general, no. [Rule 535.155(b)(1)]. We are selling our house and the buyer never paid the option fee. A name used in advertising by an associated broker that is not the associated brokers licensed name must be registered as a team name by the broker he or she is associated with and meet all the requirements for a team name. Can a sales agent receive or pay a commission to a party in a real estate transaction? Can I advertise that I will rebate a part of my compensation to the buyer? Does a property manager have to be licensed? I am an attorney who is interested in becoming a real estate broker. No, unless a refund is ordered by TREC in conjunction with an agreement resulting from an informal settlement conference or an administrative order. Can a license holder rebate a portion of his commission to a seller? 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. Can a sales agent own his or her own real estate business entity? Help! Can you explain the terms to me? A broker is prohibited from sharing fees with or otherwise compensating the attorney acting as a buyers agent unless the attorney holds an active real estate license. Laws about the rights of tenants and landlords are almost always handled at the state level. Austin, TX 78711-2188 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. According to the U.S. Department of Housing and Urban Development website, the landlord may not deny you the right to rent based on your race, color, national origin, religion, sex, family status (including children under the age of 18 living with parents or legal guardians, pregnant women, and people seeking custody of children under the age of 18), as well as handicapped or disabled persons. If the duties include showing or leasing the property for the owner for which the manager gets paid, a license is required. 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. You should consult a private attorney regarding this issue. Therefore, there must be a separately signed document of authorization by the seller for a hydrostatic test. Can a broker pay all or a portion of a commission or fee to an unlicensed person? What is the required information that must be provided in advertisements such as signs, email and business cards? No, provided you are an employee of the new home builder (being an independent contractor is not enough). If the individual is acting in both capacities, he or she should have informed you in writing and obtained your consent before receiving any compensation from another party involved in the transaction. Can a license holder offer to give a $50 gift card to an unlicensed person for referring a potential lessee or buyer? Texas Department of State Health Services - Public Nuisance Complaints E-books at the Texas State Law Library You can borrow the e-books below with your library account. Yes, unless the person is an employee of the owner of the apartments or otherwise exempt, residential rental locators are required to be licensed as either a real estate broker or sales agent. The landlord must personally deliver the eviction notice, stating the reason the landlord wishes the tenant to leave and the date of the eviction. The intermediary may delegate to another license holder the authority to appoint license holders. The absence of an anti-entrapment cover in a spa is not a required reporting item. [TRELA 1101.652(b)(11)]. 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 inspectors client. If your landlord retaliates against you, first try talking to them. Yes, as long as the advertisement complies with Rule 535.155 (effective May 15, 2018)regarding any restrictions that might apply. Once you have finished filling out your complaint form and made clear copies of supporting documentation,you can send your materials to TREC by email. [Rule 535.155(b)(1)], Yes. Otherwise, the guide needs to be licensed in accordance with 1101.002(1) of TRELA. [Rule 531.1]. And if you and the landlord can't agree, you can turn to outside help. 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). 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? 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? The link can also be "TREC Information About Brokerage Services," in at least 12 point font. 2. No. A licensed attorney will need to meet all the standard requirements, including education, examination and experience, for issuance of first a real estate sales agent license and then a broker license. Here's what you need to know to successfully file your complaint with TREC. 3. unsafe? What is the difference between an assumed business name and a team name? How can I start a real estate brokerage referral business or Limited Function Referral Office (LFRO)? Yes, asales agentcan own his or her own business entity. See [Rule 535.146(c)(6)]. Formal discipline includes monetary fines, license suspension, or license revocation. File a complaint against a business with BBB, search for a business to file a complaint against, or find out the status of a complaint you submitted. I am a 25% stockholder in a corporation that holds title to a number of investment properties. Otherwise, the buyer should check Paragraph 7D1. As a licensed inspector in the State of Texas, am I supposed to charge a sales tax on the amount of my inspection fee? 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. If I am buying, selling or leasing property for a relative, do I need to disclose that I have a real estate license? What is the estimated time frame to process an Fitness Determination (FD) form? It depends on what the property manager is doing for the property owner. If you are a homeowner or have been renting a house for a while, you've probably heard about HUD. When TREC receives your complaint, it is assigned a case number and reviewed to determine whether the Commission has jurisdiction over the issue raised in the complaint. If it is not visibly apparent whether proper fire separation is present, the inspector mustmake clear to the client that he or she was not able toascertain whether proper fire separation was in place. Submit your complaint and your supporting documents to us one of the following ways: Email : DWCCOMPLAINTS@tdi.texas.gov. In such a situation, the designatedbroker for the entityis still responsible for the sales agent's actions, even when the sales agent ownsthe licensed business entity. Can the inspector advertise that he inspects plumbing? 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. If not, a Petition and Notice of Alleged Violation is prepared and served on the license holder. You have one year after an alleged violation to file a complaint, but you should file it as soon as possible. [Rule 535.4(i). Is the inspector required by the Standards to state or explain a condition as a hazard to the consumer? In cases such as this, the listing broker still needs to present the offer to the seller. With what agency should I file a complaint? 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. If no Disciplinary Search line appears under your name search result, then there have not been any disciplinary actions taken against that license holder. A broker may not enter into a net listing agreement unless the principal requires a net listing and the principal is clearly familiar with the current market values of real property. The license holder should inform the purchaser that the license holder is employed by the lender and give the names of several institutions to the purchaser. [See 535.2(g),535.154, and 535.155 (effective May 15, 2018); TRELA 1101.652(b)(23)]. a gift card to a restaurant or department store) is not defined as valuable consideration and is permissible. If you can pay the rent due and any late fees before the suit is filed, you will not be evicted. Rule 531.20(d) states that providing a link to the IABS Form in a footnote or signature block of an email is insufficient. Can a broker be the designated broker for more than one business entity? If a sales agents name or team name is on them, the brokers name must also be present (in at least half the size). If a broker maintains a trust account, it must be clearly identified as a trust account. [Rule 535.5(c)]. [TRELA 1101.351(c)]. Section 535.233(2)(B)(i), however, requires an inspector to report as deficient the presence of a single blockable main drain. As long as the attorney is licensed in Texas, they are exempt from the licensure requirements. Download Complaint Form Make Sure The Timing is Right TREC cannot investigate an incident that occurred four or more years ago. 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. Are the disclosure and statutory information requirements applicable to commercial transactions, new home sales, farm and ranch sales or transactions other than residential sales? [TRELA 1101.005(2) and Rule 535.32]. Yes. Drip and rake edge flashing materials are recommended by most shingle manufacturers but are not required. What can unlicensed office personnel or an unlicensed assistant do? However, a rebate to a buyer from a license holder may be subject to restrictions by the buyers lender. Do the Standards of Practice require inspectors to report double-tapped neutral wires on a panel box terminal as deficient? Failure of the intermediary broker or the sponsored sales agents to comply with the Intermediary Provisions of TRELA 1101.558-561 may subject them to disciplinary sanctions by the TREC, including but not limited to, revocation, suspension, reprimand and/or an administrative penalty. There is no prohibition against a license holder presenting more than one offer at a time to a seller. Yes. Can a non-license holder use the promulgated contract forms? At SOAH, the license holder can represent themselves or hire an attorney. 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. If the license holder did not participate in that specific transaction, he cannot state or imply that his actions resulted in the sale of that property. I signed a buyer representation agreement, but I want to work with a different Broker. 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. TREC is unable to advise you on private contractual matters. Can the buyer still terminate the contract by exercising the option period of the contract? It could be. If you participate in a transaction and hold more than a 10% interest in the corporation or other business entity, you are subject to the disclosure requirements. Can a license holder offer or pay cash to an unlicensed person for referring a potential lessee or buyer? Section 535.228(c)(3)(D) of the Standards of Practice requires inspectors to report as deficient deficiencies in flashing details. How can an out-of-state broker sell land in Texas? Purely cosmetic corrosion is not required to be reported as a deficiency. [Rule 535.146(c)(2)] The Commission can take disciplinary action against you if you fail within a reasonable time to properly account for or remit money that you receive on behalf of another person. 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. It is a violation of the law for a license holder to draft an instrument that transfers or otherwise affects an interest in real property. If the sales agent is an employee of the owner of the timeshare, the employee would not be required to be licensed. For example, ASTM, UL or ARMA? You are required to tell us within 30 days of a felony. What are the agency disclosure requirements for a real estate license holder? Is the presence of carpet on an attached garage floor deficient and a required reporting item per TREC? Under inspector advertising Rule 535.221, an inspector may not engage in false or misleading advertising. Is hydrostatic testing a mandatory part of the inspection of a resale of real property? Do I have to tell you about my crime? 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. Contract forms adopted for mandatory use are on our website. Filing a Complaint in the State of Texas. [Rule 535.147(b)]. Another potential example of a misleading advertisement is a license holder who included a list of Recently Sold Homes in his advertisement that included many properties where he had no role in the transaction, but he failed to make it clear in the ad which if any of those transactions he was involved in. In addition, once an owner of a manufactured home has completed the detailed TDHCA process to treat the manufactured home as real property, the TDHCA licensing requirement does not apply to a TREC license holder. This form is on our website here. Transcripts would need to be evaluated to determine whether the attorney may receive credit for any applicable courses. What are inspectors required to report regarding AFCIs? Can a license holder who negotiates a transaction also be employed by a lender and direct a purchaser to that lender to get a loan? Otherwise, the interest must be treated in the same manner as the deposited money. If the license holder is an agent of the buyer, the license holder owes a fiduciary duty to the buyer. Is the definition of accessible, as applied to gas appliance connections, left to the reasonable judgment of the inspector? Are locators subject to the agency disclosure requirements of The Real Estate License Act? If you have any questions, please reach out to us on our contact us page. An inspector may request inactive status in writing at any time. As a renter, you have the right to a safe and worry-free environment. What documents are required to be submitted with the Franchise Tax Account Status page? How should an inspector positively identify fire-rated doors when the markings are covered by paint? Put it in writing. You should consult with a private attorney. 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. 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 brokers listings or soliciting listing of real property, or obtain a Texas real estate license. My corporation owns property. The intermediary is prohibited from acting so as to favor one principal over the other, and may not reveal confidential information obtained from one principal without the written instructions of that principal, unless disclosure is required by TRELA, court order, or the information materially relates to the condition of the property. (3) in the body of an email; or Is removal of the blanket required by TREC for inspection reasons? 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.