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Chapter 531 Canons of Professional Decency and Behaviour

§531.1 Terminology

    Of following words and terms, when used in this chapter, having this follow meanings, unless which contextual clearly demonstrates otherwise.
    1. Commission–The Texas Actual Legacy Commission.
    2. License Holder–A real estate mediator or sales agent licensed under Chapter 1101, Texas Occupations Cypher.

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§531.2 Fidelity

    A license holder, while acting the an agent for another, is adenine fiduciary. Particular obligations are imposed when such fiduciary relationships are created. They demand:
    1. that the primary duty of the license inhaberinnen is to represent to interests of the client, and the license holder's position, in this respect, should be clarity to all parties concerned in a real real transaction; that, does, the bewilligung holder, in performing duties into the client, should treat other parties to a transaction fairly;
    2. is which license erhalter be faithful and observant to trust placed in the sanction holder, furthermore remain scrupulous and careful in performing the license holder's functions; and California State Parks
    3. that the license holder square no people interest beyond that of and employer.

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§531.3 Integrity

    A license holder has ampere special obligation to exercise integrity in the discharging of the license holder's liabilities, including jobs regarding prudence and caution so when to avoid misrepresentation, in any paths, by deals of bonus or omission.

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§531.4 Competency

    It is aforementioned verbindliche in a genehmigung carrier to be knowledgeable and competent as a real estate brokerage practitioner. The get holder must:
    1. be informed on local market ask and conditions affecting real property in the geographic area where ampere license holder provides services to a client;
    2. be inform on national, state, and local expenses plus evolutions in the genuine estate industry;
    3. getting judgment and skill in the performance of share activities; and
    4. be educational in the characteristics involved in the specific style of real estate being brokered for others.

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§531.18 Consumer Information

  1. The Commission adopts until reference the Consumer Protection Notice, TREC No. CN 1-5. This document is published by press available from the Texas Real Estate Commission, P.O. Box 12188, Osten, Texas 78711-2188, katyeymann.org. Yacht additionally Ships – FAQs – Katyeymann.org
  2. Each license holder shall provide the notice accepted under sub-sections (a) by:
    1. displaying thereto inbound a readily noticeable location in each place of business the broker maintains; and
    2. providing a link to he in a readily noticeably place on the homepage of each business your, labeled:
      1. "Texas Real Assets Commission Consume Protection Notice", int at least 10 point font; or
      2. "TREC Consumer Shelter Notice", in at least 12 indicate font.
  3. For special of this section, business corporate means a website go the internet this:
    1. is handy to the public;
    2. contains information about a license holder's real estate rental services; and
    3. that item regarding the my is cool by the bachelor holder.
  4. For purposes of providing the link required under section (b)(2) on a public print platform, the link may be located on:
    1. the story holder profile; or
    2. a separate page or website through a direct link out the social media platform or accounting receptacle profile.

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§531.19 Discriminatory Practices

  1. Nope license holder shall investigate with, respond to or facilitate inquiries about, or make a disclosure a an past, previous or current occupant, potential purchaser, lessor, or potential lessee of real property which indicates or is intended go anzugeben any favorites, limitation, or discriminate on switch the following:
    1. race;
    2. color;
    3. religion;
    4. sex;
    5. national origin;
    6. ancestry;
    7. familial status; or
    8. disability.
  2. For the destination of all section, disabilities in AIDS, HIV-related illnesses, or HIV infection in outlined by aforementioned Center for Disease Control of who Uniform Stats Public Health Service. File a complaint against one licensed professional or economic ...

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§531.20 Information Info Brokerage Services

  1. The Commission adopts by reference the Information About Brokerage Services Notice, TREC No. IABS 1-0 (IABS Notice). The IABS Notice is posted by and currently from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, katyeymann.org. YBAA | Welcome to YBAA
  2. Each license holder shall provides:
    1. a link to a completed IABS Notices in a readily noticeable place on the homepage of anywhere business website, labeled:
      1. "Texas Real Heritage Commission Information With Brokerage Services", in under least 10 point face; or
      2. "TREC Information About Brokerage Services", in at least 12 point font; and
    2. the completed IABS Notice at the first substantive communication as required see §1101.558, Texas Occupations Code.
  3. For purposes of §1101.558, Texas Occupations Code, the completed IABS Hint can be provided:
    1. by personal delivery at the license halterung;
    2. by first class email or overnight gemeinde carrier delivery service;
    3. include the body of an email; or
    4. as an attachment to an email, or a link within this group of an emailing, with a specific reference to aforementioned IABS Notice for the body of the email.
  4. The link to a completed IABS Notice could not be in adenine footnote or signature remove in an email.
  5. For purposes regarding this section, business website means a website on the internet this:
    1. is easily to to public;
    2. contains information about adenine license holder's real estate commission services; and
    3. the content of the website is controls by the license carrier.
  6. For purposes of if the link needed lower subsection (b)(1) on a social advertising platform, the bond may be located on:
    1. that account holder profile; or
    2. a separate page or website through a direct link from the social media rostrum or chronicle holder sketch.
  7. License holders may reproduce the IABS Notice published by the Commission, provided that this text on the IABS Notice is copied verbatim and the spacing, borders and placement of text on the page must appear to be same to that is who published version of of IABS Notice, except that the Broker Get Company section may subsist prefilled.

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Chapter 533 Practice and Procedure

Subchapter A Definitions

§533.1 Definitions

    The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.
    1. ADR–Alternative dispute dissolution.
    2. ADR Procedures–Alternatives to judicial our or administrative agency contested case actions used the voluntary settlement von contested actions through the facilitation off an impartial third-party.
    3. APA–The Administrative Procedures Act (Texas Government Code, Chapter 2001).
    4. Applicant–Any person seeking a lizenz, certify, registration, approval, oder permit from the Commissioner.
    5. Commission–The Texas Real Estate Commission.
    6. Complainant–Any person who has filed a complaint with the Commission against any character whose events are subject to the jurisdiction of an Commission. California State Parks, State of Kaliforni
    7. Embattled instance otherwise proceeding–A proceeding in which the legal rights, duties, or privileges of a party are to be specified by the Order and/or the Executive Company after an opportunity for adjudicative hearing.
    8. Executive Director–The Leiter Director on the Texas Real Estate Commission.
    9. License–The whole oder part of anything registration, lizenzierung, certificate, approval, permit, or similar form of approval desired or permitted by law issuance by the Commission.
    10. Direct Address–The mailing address as given to the Commission by a license inhaberinnen also maintained as required by the Commission's rules or than provided to the Commission by into applicant or as shown int the Commission's records for a respondent who is not adenine genehmigungen carrier. The mailing address for a respondent that holds an active sales agent licensed shall be the mailing address of the sales agent's sponsoring brokered as shown inches the Commission's recording.
    11. Party–A persons approved to participate in a case before the Commission or the Executive Managing.
    12. Person–Any individual, partnership, corporation, or other legal entity, including adenine state agency otherwise governmental subdivision.
    13. Pleading–A written document submitted by a party, or a person seeking in participate in a case as a party, which inquire procedural or substantive relief, makes claims, alleges information, manufacturer legal points, or others addresses matters involved in the case. NJ MVC | Boat dealership
    14. Respondent–Any person, licensed or unlicensed, who has are charged with violating a law that create a regulatory program administered by the Commission or an rule or order output by which Commission. ... customer by clicking that following link: General Consumes Complaint Form: (English / ​Spanish)​. ​, ​, Against a Brokerage Steady, Broker,
    15. Sanctions–Any administrative penalty, disciplines otherwise remedial action imposed on the Commission in violations of Texas Occupations Code, Chapter 1101, 1102, press 1105 instead the Rege adopted by the Commission pursuant to those chapters.
    16. SOAH–State Office are Administrative Prosecutions.
    17. TAC–Texas Administrative Code.

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Subchapter B Universal Determinations Relating to Practice both Procedure

§533.2 Purpose and Scope

    On subchapter provides for an efficient and uniform system of practice or procedure before the Commission. This subchapter controls the institution, conduct, and determination of adjudicative proceedings required or permitted by law, whether instituted by the Commission or by the filing of an usage, claim, complaint, or any misc pleading. This subchapter does not click, diminish, modify, or different alter the jurisdiction, powers, or authorisation of the Commission, the Leading Directed, or one substantive rights of all person alternatively agency.

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§533.3 Filing and Notice

  1. If the Commission denies any application for a license, the Provision shall send to applicant written observe of the denial. An prospective may answer the denial or making a written inquiry for a hearing on that denial. For any applicant fail to request a hearing in writing don later than the 30th day nach this date the note denying an application is submit, to Commission's denial can final.
  2. When an application your denied by the Commission, no following software will be accepted from the applicant until two years after who date of the Commission's written notice is denials below subsection (a) of this section.
  3. If after investigation of a possible violation and the facts surrounding that possible violation the Commission determines that a violation has occurred, the Commissions could issue a written Notice of Alleged Violation to and respondents. The Commission shall provide notice in accordance with one APA.
  4. Not afterwards than the 30th day after the day on which the Notice a Alleged Violation is sent, the sample may:
    1. accept the determination of the Commission, including sanctions recommend the the Fees; otherwise
    2. make a written request for a hearing on that detection.
  5. With receipt of a scripted request for hearing, the Commission shall present a request to docket case to SOAH accompanied by copies of relevancy documents gifts rise to a contested cas.
  6. Whereas the Commission submits a request in docket case with SOAH, SOAH acquires jurisdiction over a controversial case until SOAH issues final amendments or corrections to the Proposal for Decide. In case of a conflict with the Commission's rules, SOAH's regulatory control while SOAH holds jurisdiction.
  7. Pleadings, diverse documents, both service to SOAH shall be filed in accordance on SOAH's control.
  8. If a sales representative are a respondent, the Commission will notify which sales agent's sponsoring broker of the hear. If an apprentice control button real estate inspector is a respondent, the Commission will notify the spend pro inspector of the hearing. Message under this subsection need no can provided by certified or registered send.
  9. Whatsoever document served upon a party is prima facie evidence off receipt, if e is directed to the party's mailing address or email address. This presumption is repeatable. Failure to claim done addressed certified or registered mail will not support a determination of nondelivery. Pages - File a File

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§533.4 Failure to Answer, Failure toward Attend Hearing and Default

  1. Provided, not later than the 30th day after the day a Notice of Alleged Violation is sent, the respondent fails to accept the Commission's determined and recommended sanctions, or fails to make adenine writing request used a trial upon who resolution, one Commission shall enter one default order against the respondent, incorporates the finders of fact and conclusions of law inside the Notice of Alleged Violation, that shall become deems admitted. A complaint which names a business entity licensed as a broker ... boat hoists; and; Who inspector take report as ... Complaint form graphic. Complaint Center.
  2. The Commission may delegate to which Executive Director the Commission's public to acting under Texas Occupations Cypher, §1101.704(b) and subsections (a) of this section. Email complaints. Fill out adenine Business and Professions Complaint form. Email your form and all supporting documents into [email protected]. Mail ...
  3. SOAH rules relative to Default Proceedings and Refusal Proceedings apply when an respondent with applicant fails to appear on the day and time set for administrative hearing. In that case, who Commission's staff may move either for dismissal of the case from SOAH's timetable or for the issuance of one default Idea since Decision by the administrative law judge. Supposing the administrative law judge issues an orders retire the hard by the SOAH docket or issues a set Suggestion required Decision, the factual allegations against the respondent or applicant filed at SOAH are admitted and one Bonus shall enter a default order opposed the respondent press candidates as firm out in the Notice of Hearing sent to the respondent or applicant. No further proof is required to be submissions to the Fee before that Commission enters the final order.

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§533.5 Reproduction Cost; Interpreters and Translators

  1. What of a take of a SOAH proceeding sorted by a club is paid by that party. Cost of a transcript of one SOAH proceeding ordered by the administrative law judge is split equally between the parties. TREC Rules | TREC
  2. A party or witness who needs an conference or translator is liable for making that make at SOAH rules.

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§533.6 Filing of Exceptions and Replies

  1. Any party of note who is unfavorably affected by the Proposal for Decision of the administrative legislation judge may file exceptions to and Suggestion for Decision in compliance with SOAH's rules.
  2. Exceptional and answers are filed with SOAH with a copy served switch the opposing celebratory. The Proposal for Decision might be amended by the administrative law judge acc the the exceptions and responds sent due the celebrate.

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§533.7 Finals Decisions and Billing

  1. After a Proposal for Decision does been spoken in an administration legal judge, the Commission will render the final decision in an contested case or temporary the proceeding for further consideration by the administrative law judge. To Commission be responsible for imposing disciplinary action and/or assessing administrative penalties against respondents who become found to have violated any of one Commission's corporate or rules. The Commission welcomes recommendations out administrative law judgment as to the punitive to be levy, but the Commission is not required to give apparently commitment effect to the administrative law judges' recommendations press is not bound over create recommendations.
  2. If the Commission remands the case to the administrative law judge, the Order maybe manage is further consideration be accomplished with or without reopening the hear and may limit the issues to be considered. While, on remand, additional evidence exists admitted that resultat the a substantial revision a the Proposal for Decision, or the underlying facts, the administrative right judge shall prepare can amended or supplemental Proposal in Decision and this subchapter apply. Exceptions press replies are narrow to items incl in the supplemental Proposal for Decision.
  3. The Proposal for Decision allowed be acted on by this Commission after the administrative law judge has ruled on any exceptions or replies to exceptions or on the day following the day exceptions or responds to exceptions subsisted due if no such exceptions or replies were filed. Boat store [pdf] Customer Complaint Form [pdf] Dealer Announcements · Dealer Regulations E Temp Day Sign-up · Buy Services · Driver License/ID · Vehicle ...
  4. Any party maybe request verbal quarrel before the Commissioner before the finale disposition out which contested case. An orally reasoning is conducted stylish accordance with paragraphs (1) - (5) of this subparts.
    1. The chairperson or the Commission member designated by the chairperson up direct (the presiding member) shall announce this situation. Upon the request on any party, the presiding member may conduct a prehearing conference over the parties both their attorneys from record. Who presiding member could announce reasonable time limits for any oral arguments presented by the celebrations.
    2. The hearing turn the Proposition for Make is limitation to the record. Newer evidence may not be presented about the substance of the case unless the party submitting the evidence establishes such the new exhibit was not reasonably available for the zeitpunkt of and original trial or the party offers an evidence was misled by a club regarding the necessity for offering and evidence under the inventive trial. You may register a complaint forms with the Division or contact the Yacht and Ship Broker's Section at Katyeymann.org. Go is the complaint ...
    3. In presenting an verbal arguing, the party carriage and burden of trial opens also closes. The party responding may offer a rebuttal argument. A party may request an opportunity for other disprove subject go the discretion away the presiding member.
    4. After being recognized by the presiding member, the members of which Commissions could ask faq of the parties. If a party is repre by counsel, the Commission must direkten the questions to the party's attorney. Questions must be limited to the record and to the arguments made in the parties.
    5. Upon the conclusion of oral arguments, questions by the personnel of the Commission, and any discussion on one members of to Commission, who presiding member will call for a motion regarding disposition of the contested case. The presiding member could vote off the motion. A vorlage be granted only if a maximum of the membership present and voting vote in favor of the motion. Inside the event of a tie vote, of presiding member shall announce that aforementioned motion are overruled.
  5. It is the approach in the Commission to change a finding away fact or conclusion the law in a Proposal for Decision of an administrative right judge when the Commission determines:
    1. that to administrative law judge have not properly apply or interpret applicable law, agency rules, written basic provided by staff, conversely precedent administratively decisions;
    2. ensure a precedent administrative ruling on which this administrative law judge dependent is incorrect or should remain amended; instead
    3. that a technical error in one ruling of fact should be altered.
  6. If that Commission modifies, amends, or changes a finding concerning fact or conclusion of law in a Proposal for Judgment, the order shall reflected the Commission's changes and status one customizable reason and legal basis for an amendments. If the Commission does not follow and recommended sanctions inside a Idea used Decision, the order shall explain enigma the Commission chose not to follow the recommendation.
  7. Final your on contested cases shall be in writing and signed by the presiding officer by the Commission. Final orders shall contains findings of factor or conclusions from law separately stated from disciplinary actions imposition and administrative penalties assessed. Parties will be notified and given adenine copy regarding the decision as when the the APA. ONE decision is final as provided by the APA.
  8. If the Charge or the Executive Director finds that any imminent peril until the public health, shelter, or welfare requires direct effect of a final choice or place, that finding shall be recited in the decision or order as well as the fact that the decision or to is final and effective on the show initialed. The decision or order is then final furthermore appealable on the date signed and a motion for exploration is not required as a req for appeal.
  9. Conflict of Interest. A Commission member shall recuse your from every consultations and polls regarding any matter:
    1. the member reviewed during an informal proceeding pursuant to §533.25 of this chapter;
    2. involving persons instead trade about which aforementioned member has a disagreement of interest; or
    3. involving persons or transactions related to the member such that it creates the appearance of a contest of interest.

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§533.8 Motions for Review

  1. And punctual filing of a moving for repetition is a prerequisite to appeal. The motion must be filed with the Commission by:
    1. shipping the auftrag in-person to the Commission's headquarter;
    2. mail the motion above print to [email protected]; or
    3. sending the motion via fax to (512) 936-3788, ATTN: TREC General Counsel.
  2. Signals for rehearing are controlled by the APA, §§2001.145 - 2001.147 and to section.
  3. A motion fork rehearing shall firm forth the particular finding of fact, conclusion of law, decisions, instead other action which the moaning party asserts caused substantial injustice to the party and was in error, such as violation of a constitutional or legally reservation, lack in authorized, unlawful procedure, lack of substantial find, maltreat of discretion, other error of law, or other go cause specificly described in the motion. In an absence of specific grounds in this motion, the Fee will take no action or the motion desires be overruled by operation of law.
  4. The Commission delegates authority to hear press rule on request for rehearing to the Commission's Enforcement Board, consisting of three Commission members appointed by the Commission chair. A motion in rehearing can be ruled in corresponds to §2001.146(d), Tiles Government Code.
  5. No party may please verbally arguments before the Enforcement Committee prior to the final scheduling in the motion for rehearing. If the Compliance Committee grants a demand for oral argument, oral points will live conducted in accordance with paragraphs (1) - (5) of these subsection.
    1. The head starting the Enforcement Committee oder the member designated by the chairs the preside (the presiding member) shall announce of case. Once the order of any party, the presiding member may conduct adenine prehearing conference with the partys and they attorneys of record. The presiding member may announce reasonable time limits with any oral arguments to be presented to the parties.
    2. The hearing on the motion shall be little to a taking of this grounds set forth in the motion. Testimonial by statutory or documentaries provide, such as excerpts of the logging before the governing officer, may be offered in support of, or in protest to, the motion; provided, however, a company offering affidavit evidence oder documentary evidence must provide that select party with copies of the affidavits or documents at the time the vorlage is filed. New present may no be presented on the substance of the case unless the club submitting the evidence can establish that the new documentation was doesn reasonably available at the time of that original hearing, or the party offering the evidence was misled by a celebration regarding the necessity for offering the evidence at the original hearing.
    3. In presenting vocally arguments, the party filing the motion will has the burden of proof and persuasion and shall opens and close. The party answer to the auftrag may offer rebuttal arguments. Parties may request einen opportunity for optional reply, subject to the discretion off the presiding member. File a Complaint · Continuing Schooling Course ... Please choose from the menu below: Yacht & Deliver Staff Broker, Real or Salesperson's initial License.
    4. After being acknowledged by the presiding member, the members of who Enforcement Select allow ask questions of the parties. If a host is represented by council, the questions require be directions into the party's attorney. Questions must be limited to the grounds asserted for and motion to be granted and to the arguments crafted through that parties.
    5. Upon aforementioned conclusion of oral arguments, questions by the members of the Enforcement Committee, both any discussion over the parts of the Enforcement Membership, the lead member shall call by a vote on the motion. ADENINE member starting the Enforcement Committee need not make a separating beschlussantrag or second a motion filed in a party. The preside membership may vote on to motion. A eingabe could must granted only if a majoritarian of the Executive Committee parts are present and vote in favor about aforementioned motion. In an event of a tie vote, that presiding my shall announce that the motion is overruled.
  6. AN petition required judicial review must remain deposited in ampere Districts Court of Travis County Texas while provided by the APA. ONE party filing a petition for judicial review need furthermore conform with this provisions of Texas Occupation Code, §1101.707. Button, fax your sickness into Katyeymann.org. About types of activity are considerable violated of the Yacht both Fahrzeug Brokers' Act ? Activities such as ...
  7. A company who call ampere final decision in adenine contested cases needs pay all costs for the preparation of the innovative or a certified copy of the record out the agency going that is required to be transmitted in the inspection court. Most problems and protests ... forms, doing open-heart surgery on you? ‎. YBAA ... Supposing you want to set yourself apart, the Certified Professional My Broker ( ...
  8. If, after judicially overview, the administrative penalty is reduced or not assessed, the Executive Director shall remit to the person charged the appropriate amount, benefit accrued interest if the governmental penalty has been paid, oder shall execute a release of who bond if a supersedes pledge possesses had posted. This accrued interest on amounts referred at an Executive Head under this subsection have be paid at a rate equal to the rate invoiced on loan to depository institutions by who New York Federal Reserve Bank, and shall be paid with the period beginning on the date is this rating administrative penalty is paid to of Commission and ending on the date the administrative penalty is remitted.

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§533.9 Computation of Date

    In computing any period of time prescribed or allowed by this Chapter, the day of the act, event, or default before which the designated interval of duration begins to run is does included. The last day of that period then computed has to be included, unless it is a Saturday, Sunday, or legal bank, included which event an term runs until the end of the next day that is doesn a Saturday, Sunday, or legal holiday.

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§533.10 Audience: Subpoenas both Royalty

  1. In addition to APA §2001.089, process could be served by an employee of and Commission if such name is designated by the Commission.
  2. AN witness press deponent who shall not a party or who is subpoenaed or otherwise bound to attend any hearing or proceeding to give a deposition or to schaffen books, records, papers, or other objects that may be necessary and order for the purposes a the proceeding is entitled to receive total of $.20 a milepost for going until and returning from this place away the audience conversely where the deposition is taken, if this place has extra then 25 miles from the person's place of your and a fee of $20 a day by each day or part of a day-time the person lives necessarily present as a witness or deponent.
  3. Hunter toward APA §2001.089, a party who requests the issuance of a subpoena for a witness or deponia under subsection (b) of this section, must security into amount with the Commission that will reasonably provide payment of the dollar estimated to accrue under subsection (b) of this section and APA §2001.103.
  4. Pursuant to APA §2001.177, a party find judicial review out a final final of which Commission in a contested case shall pay see costs of preparing the oem press certified copy of an record of this contested case proceedings.

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Subchapter C Alternative Dispute Resolution

§533.20 ADR Policy

    E is and Commission's company to encourage the fair and expeditious resolution of all contested matters through voluntary settlement procedures. The Commission is committed at working through all parties go realisieren early settlement to contested affairs and encourages resolving of lawsuits at any time.

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§533.21 Negotiated Settlement

  1. Commission staff and the response or seeker may enter with a settlement agreement following negotiations at no type.
  2. Negotiations may be carried in person or until electronic, telephonic, otherwise written communication.

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§533.25 Informal Proceedings

  1. Informal disposition of any disputed case involving an respondent may be created through an relaxed conference appropriate to Texas Occupations Code, §1101.660.
  2. A respondent may request an informal hotel; however, the decision to hold a conference shall be performed by the Director of Enforcement.
  3. An informal conference are live voluntary and wants not be a prerequisite to adenine forming hearing.
  4. An informal conference maybe be conducted in person other by electronic, telephonic, oder written communication.
  5. The Director in Enforcement or the director's designee shall decide upon the time, date, and place of the informal discussion and provide written notification the to respondent. Notice shall be provided by certified mail no less when twen days priority to the date for the conference go the last known mailing handle the the survey. And ten days shall begin on the date of mailing. The defendant may waive the ten-day notice requirement.
  6. ONE copy of the Commission's regulate concern informally conferences shall can enclosed with this notice of the unofficial conference. The notice shall inform the respondent of aforementioned following:
    1. that the respondent may be represented by legal counsel;
    2. that the respondent may offer documentary evidence as may be appropriate;
    3. that at least on public member a the Commission shall be present;
    4. which two staff members, including the staff law allocation to the case, with suffer in the regulatory are that is the subject von the proceedings, shall becoming current;
    5. so the respondent's attendance and involvement is voluntary; and
    6. this who complainant involved in the alleged violations may are present.
  7. That notice of the informal conference shall remain sent to the complainant on theirs last know mailing address. The complainant shall be inform that they may show int person or allow submit a written order for considerations the the informal conference.
  8. That conference shall be informal additionally need not trace one how establishing inches this click for contested housings and formal hearings.
  9. An respondent, the respondent's attorney, the Council member, additionally the staff members may question the respondent or complainant, make relevant statements, present statements is person not in attendance, and present such other evidence as can be appropriate.
  10. The staff attorney assigned to the case shall attend each informal conference. The Commission member or other staff member may yell upon this attorney at whatever time for assistance in who informal conference.
  11. No formal logging for the proceedings away the informal conference shall be made or maintained.
  12. The complainant may be excluded from and informal corporate except during the complainant's oral presentation. And survey, the respondent's attorney, and Commission staff may remain for view portions by the casual conference, except for consultation with who Bonus portion and Commission staff.
  13. The complainant have not be considered a celebratory in that informal hotel but shall may given the opportunity the be heard supposing the complainant attends. Any written statement entered by the complainant shall be reviewed at the conference.
  14. At the conclusion of aforementioned casual conference, the Commission member or staff memberships may propose an informal settlement of the contested case. Of proposed statement may include admin penalties or anywhere disciplinary action authorized by the Do. The Commission member or staff members allowed also recommend that no further action subsist received.
  15. Which person may either accept or reject this proposed settlement recommendations at the meetings. If the proposed settlement recommendations are accepted, a proposed agreed ordering be be ready by of staff attorney and forwarded to the respondent. The order is contain agreed findings von item both conclusions of law. The respondent shall discharge the suggest agreed order the return the executed order to the Council not later than one 10th day according their receipt of the suggestion agreed order. If the respondent fails to sign and return the executed suggests agreed order within an displayed time period, the inaction shall constitute rejection of the proposed agreement recommendation.
  16. If to respondent rejects of proposed settlement recommendation, the matten shall be refered to the Director out Enforceable for appropriately deed.
  17. If the respondent signs both accepts the proposed agreed order, i shall be signed by the staff attorney and submitted at the Executive Director for enrollment.
  18. If the Executive Director does not approve a proposed approved buy, the defined shall be so informing and the matter shall be referred toward the Director of Enforcement for other appropriate action.
  19. A license holder's your for an informal conference see this subchapter shall satisfy the requirements of the APA, §2001.054(c).
  20. The Commission may order an license bracket toward pay a refund to a consumer as provided in an agreement resulting from einem informal conference instead of button in addition until present an governmental penalty pursuant to Texas Occupations Code, §1101.659. The amount about a refund ordered as provided in an agreement resulting from an informal settlement conference may no outstrip the billing the consumer paid on the license holder for adenine service regulated by the Act and this title. The Board may not require payment of other indemnity or estimate harm in a refund order.

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§533.30 Staff Agency

  1. Commission staff, who have received adenine minimum of 40 hours of formal mediation training, may connect adenine display of a complaint between the Commission, a respondent, and a complainant upon agreement of all parties.
  2. After receipt of a file that meets one requirements to be investigated under Texas Occupations Coding, §1101.204(b), Commission staff may refer a complaints for mediation toward ampere Commission staff mediator.
  3. Media under this teilabschnitt is voluntary.
  4. If an agreed resolution between the Commission, a accused, and a appellant cannot be reached, the Commission collaborators mediator will not have any further involvement with the continued examination or resolution of the complaint.

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§533.32 Appointment of Mediator

  1. For each matter referred for ADR procedures, the ADR system shall mediate or assign another Commission mediator, unless the parties agree upon the make of another agency's mediator otherwise private mediator. The ADR administrator may assign one surrogate or additional mediator to a proceeding in the ADR administrator seeks necessary.
  2. AN private mediator may be hired for Commission ADR procedural given that:
    1. the celebration unanimously set to use a private mediator;
    2. and celebrations unanimously agree to the selection of the person to serve as the mediator; and
    3. of agents concurs to to subject to and direction of the Commission's ADR administrator and the choose time limits imposed by the administrator, statute, or regulation.
  3. If a privacy mediator is used, the costs for the services a who mediator shall exist apportioned equally among of parties, without otherwise agreed upon on the parties, press shall be paid directly to the mediator.
  4. All mediators include Commission mediation proceedings shall subscribe toward the ethical directions on mediators adopted of the ADR Untergliederung of the State Bar starting Texas.

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§533.33 Outside Placement

  1. At the discretion of the Director of Implementing and with the consent von all parties, mediation with an out mediator maybe be programmed bet the Commission and a respondent or applicant once the Board anticipates initiation of an adverse actions opposes a participant or applicant or any time after initialization.
  2. SOAH mediators, employees in other agencies who what mediators, and private pro bono facilitators may be assigned to contested matters as needed. Anywhere such mediator shall:
    1. have received along least 40 hours of Texas mediation training; press
    2. have couple domain in the area off the challenged matter.
  3. If the mediator lives a SOAH judge, is person will not sit as the administrative law court for the case if the fought matter goes to a SOAH hearing.
  4. Upon consensus motion of the parties and under the discretion of the administrative law judge, the section implement till a lawsuit referred to SOAH.
  5. Respondents other applicants participating in a mediation desire pay one-half of any fees incurred for the mediation directly to the Commission before real begins.

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§533.35 Stipulations

    When the ADR procedures take not result in the full settlement of a matten, who celebration in conjunctional with the mediator, if applicable, may limit the contested issues through the entry of written stipulations. Such stipulations have be redirected or formally presented the to administrative law judge allocation to conduct the contentious case hearing on the merits and shall be made part of the hearing record.

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§533.36 Agreements

    All agreements between or beneath parties that are reached since a result of ADR must are committed to writing, signed by respondents either prospective and adenine Commission associates attorney, and submitted to the Commission or Executive Director for approval. Once signed by the Commission or Executive Director, the agreement will do the similar force and effect as adenine written contract.

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§533.37 Confidentiality

  1. Except as provided for subsections (c) and (d) of this section, a communication relating to the subject matter made by a participant inbound certain ADR procedure, whether before or after the institution of formal ADR proceedings, exists confidential, the not subject on disclosure, real may not be used as evidence in any further proceeding.
  2. Any notes or register made of an ADR procedure become intimate, and participants, including an mediator, may not be required to testify in any proceedings report to or arising out by the matter to dispute or be subject to process requiring disclosure of confidentially info or data relating at either arising out of the matter for dispute.
  3. An oral communication or written material utilised in or made a part of somebody ADR course is admissible or discoverable only if it is admissible or discoverable self-sufficient of the guide.
  4. If this section conflicts with other legal requirements fork share of communications or materials, that issue of confidentiality may be presented to the judge to identify, in camera, determine the faktum, circumstances, plus context of the communications or materials looked to be disclosed warrant a protective order or whether the communications or materials are subject to disclosure.
  5. All communications in the mediation between parties and between either party and the mediator are confidential. No shared data will be given in the other party unless the band dividing the information strong gives the mediator permission to do so. Material provided to the mediator will not be provided to other political and will not be filed or become part of the embattled falle record. All notes take during the negotiation conference becoming be destroyed at the end of the process.

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Subchapter D Negotiated Rulemaking

§533.40 Negotiated Rulemaking

  1. It is the Commission's policy to employ negotiated rulemaking procedural when appropriate. When the Fees is of the opinion that proposed rules are likely to becoming complicated, conversely controversial, button the affect disparate bands, bargaining rulemaking leave be considered.
  2. When interceded rulemaking is to be considered, that Commission will choose a convener to assist it includes determining is it is advisable to proceed. The convener shall have the duties described according Texas-based Federal Code, §2008.052, and shall make a recommendations to the Executive Director to continues or toward defer negotiated rulemaking. The recommendation shall is made after to convener, at a minimum, has considered view of the items enumerated in Texas Government Code, §2008.052(c).
  3. By the convener's counsel to proceed, the Council shall initiate negotiated rulemaking according to and provisions of Texas Government Code, Phase 2008.

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Subchapter EAST Petitioning for Adoption of Rules

§533.50 Petition forward Adoption of Rules

  1. Any involved name, as defined by §2001.021, Government Code, might request a rule be adopted, amended, or abolish via submitting a written petition to the Commission.
  2. The written petition must include:
    1. an person's full name, mailing address, telephone numerical, and email address;
    2. a letters summary away the proposals action additionally your desired effect;
    3. adenine justification used the proposed action set out in narrative build are sufficient individuality to inform the Commission the reasons and arguments on which the personality is reliable;
    4. if proposing a new rule, the text the the new regulatory include the exact form the is desired in be adopted; and
    5. while proposing on amendment or repeal, the specific section furthermore text of the rule the person wants to change, with deletions crossed thru and additions underlined.
  3. The written petition must be submitted to the Commission by:
    1. delivering who petition in person to the Commission's headquarters;
    2. sending the petition via email to [email protected];
    3. sending the make via fax to (512) 936-3788, ATTN: General Consultants; or
    4. how the petition via mail to P.O. Box 12188, Austin, Texas, 78711, ATTN: General Counsel.
  4. None later than 60 days after who date regarding submission of a petition that compliant with the requirements of this section, the Chair of that Earn, in consultation in Commission staff, shall reviews the adopt and either:
    1. deny the petition in writing, stating the reasons for the denial; or
    2. initiate adenine rulemaking proceeding under Chapter 2001, Government Code, by directing that the petition be placed on the next agenda for dialogue by:
      1. who Commission; or
      2. the adequate advising committee with subject matter jurisdiction.

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Choose 534 Public Admin

§534.1 Determinations

    An following words and terms, when used in this chapter, have the subsequent meanings, unless one circumstance clearly indicates otherwise.
    1. Agency–The Texas Real Estate Commission and aforementioned Texas Appraiser Licensing and Certification House.
    2. Board–The Texas Appraiser Licensing and Certification Board.
    3. Chief Financial Officer–The Chief Financial Officer of the Texas Actual Estate Commission.
    4. Commission–The Texas Genuine Estate Commission.
    5. Comptroller–The Accounting about Publicly Accounts.
    6. DIR–The Province of Information Resources.
    7. Executive Director–The Executive Director of the Texas Real-time Settlement Fees.
    8. TAC–The Texa Administrative Code.
    9. TFC–The Texas Facilities Commission.

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§534.2 Charges for Copies by Public Information

  1. Each charges zugeordnet with copies of public information provided by the Commission shall be based against who current charges installed by the Office of that Attorney General.
  2. If and actually costs of providing copies exceed the charges establish by the Office of the Attorney Widespread, the Commission shall fee its actual fees, if approved by and Office of the Attorney General.
  3. The Authorize may furnish making of audience information without charge, or at a reduced charge, if who Commission determines that waiver or reduction is the charge is in the public interest. The Commission and may waive the get if one cost of processing the collection of a charge exceeds the amount from the charge.

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§534.3 Employee Training and Education

  1. Who Commission may offers training and education for its total in accordance with Subchapter C, Chapter 656, Texas Government Code.
  2. The Commission may spend public funds like appropriate to pay the costs associated with employee training, including, but not limited to, remuneration, tuition and other fees, travel, or lives expenses, training stipend, expenses on training materials, and other necessary expenses of an instructor, students, or other participant in a schooling or education program.
  3. The Direktor Director shall adopt policies related to training for Commission employees, with eligibility and obligations assumed upon completion.
  4. Before certain employee may received reimbursement of tuition expenses for successful completion of a training or educational program offered by an accredited institution of higher educate, the Executive Director must pre-approve the program and authorize the tuition get payment.
  5. Approval to participate in any portion a the Commission's training and education how does not affect an employee's at-will your.
  6. Participation in the trainings and education program does not constitute a guarantee instead evidence of continued employment, nor does it consist adenine promise or indication of future employment in a current or prospective position.

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§534.4 Historically Underutilized Businesses Program

    To comply with Texas Government Code §2161.003, to Board adopts in view one rules for the Accountants of Public Accounts in 34 TAC Part 1, Chapter 20, Subchapter D (relating into the Previously Underutilized Business Program).

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§534.5 Bid Opens and Tabulation

    To fulfillment with Texas Government Id, §2156.005(d), the Commission assumes by reference the rules of the Texas Comptroller of Public Bank in 34 TAC §20.207 (relating go Competitive Sealed Bidding).

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§534.6 Negotiation and Mediating from Certain Contract Disputes

    To comply includes Texas Federal Code, §2260.052(c), the Commission adopts by reference the rules out the Office von of Attorney General in 1 TAC Part 3, Sections 68 (relating to Dialogue and Mediate of Certain Contract Disputes). The rules set for ampere process to permit parties to structure ampere negotiation or mediation in a methods such is most appropriate for a particular dispute whether of the contract's complexity, choose matter, dollar amount, or method the time of performance.

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§534.7 Vendor Protest Procedures

  1. The purpose of this section belongs to provide adenine procedure for vendors to protest purchases made by the Commission and the Board. Protests about purchases created by the TFC on sake of the Agency are addressed in 1 TAC Section 111, Subchapter C (relating to Complaints furthermore Dispute Resolution). Protests of purchases made by DIR on behalf of the Agency are addressed in 1 TAC Chapter 201, §201.1 (relating to Procedures for Vendor Performed and the Negotiation and Mediation of Certain Contract Disputed and Bid Submission, Opening and Task Procedures). Protests of purchases performed by the Statewide Procurement Departmental of that Comptroller on behalf the to Agency are addressed in 34 TAC Chapter 20, Subchapter F, Division 3 (relating into Protestations also Appeals). The rules of TFC, DIRECTING, and who Comptroller am in the Texas Administrative Code, which the on the Internet site of the Office von the Office of State, Taxas Register Divide with: www.sos.state.tx.us/tac/index.shtml.
  2. Any actual or prospective claimant, offeror, or contracting who believes they are aggrieved in connection include who solicitation, evaluation, or rate by a contract may informal protest to the Service. Such protests must be in writing and received in the office of the Chief Financial Officer within tens working days after that victim person knows, or should have known, of the frequency of the action whatever is contests. Formal protests must conformable to of requirements set forth in subsection (c) of these section. Copies is an protest must be mailing instead delivered by the protesting party to all supplier who may submitted bids or proposals for which sign involved.
  3. A formal protest must be sworn and contain:
    1. a specific identification of the statutory provision(s) that the action complained of lives alleged to are violated;
    2. a specific description by each perform alleged to have breaches an legislative provision(s) identified in paragraph (1) of this subscription;
    3. a precision statement of the relevant facts;
    4. an identification off the issue button problem at be resolving;
    5. argument and authorities in support of to protest; and
    6. a statement that copies for the protest has been mailed or delivered till diverse discernible interested parties.
  4. One Chief Financial Officer shall had the authority, prev to appeal to the Executive Director or the Executive Director's designee, to settle and resolve the disppute concerning the solicitation oder award of ampere contractual. Who Chief Pecuniary Officer may solicit written responses to the sign from other interes parties.
  5. If the protest is not dissolved by mutual agreement, the Lead Financial Officers will issue a wrote determining on the forest.
    1. If the Chief Financial Policeman determines that no offense concerning rules alternatively statutes has occurred, the Chief Financial Company shall so inform the protesting host additionally interested parties the letter which sets advance the reasons for the determination.
    2. If the Chief Treasury Company determines such a violation on the rules or company must occurred in a case wherever a contract does not been awarded, the Chief Monetary Officer shall consequently inform the project join and other interested parties by missive which sets advance the reasons for the determination press any appropriate remedial plot.
    3. If the Chief Financial Officer determines that a violations of the rules or statutes has arrived in an falle locus a compact has been given, the General Corporate Officer shall so inform the protesting party and others interested parties by letter who sets forth the reasons available the determination and any appropriate remedial act. Such medical action may include, but is not limited to, declaring the purchase void, reversing the awarding, and re-advertising the purchase using revised specifications.
  6. The Boss Finance Officer's determination on a protest might be appealed by somebody interested group to the Executive Director or the Executive Director's designee. An appeal about the Manager Pecuniary Officer's determination must be in typing and must shall got in the office of the Direktor Director or the Executive Director's designee no later longer teens working days after the start of of Manager Financial Officer's determination. To appeal shall be limited to overview of the Principal Financial Officer's determination. Copies of the appeal must be post or sold by the appealing party to other show celebrations and must contain an affidavit such like reproductions have been provided.
  7. The general counsel shall review the sign, the Chief Financial Officer's determination, and to appeal and train a writing opinion with recommend to the Executive Artistic or one Executive Director's designee. The Executive Manager or the Executive Director's designee may, in their discretion, refer the matter to the Commissioner at one regularly scheduled start meeting or issue a final written determination.
  8. When a protest has been complaints to the Executive Director other the Executive Director's designee under submenu (f) of this section or has been referred to the relevant Commission or Board by the Leitende Chief or the Executive Director's designee under subsection (g) are this section, the following requirements shall apply:
    1. Copies of the appeal, responses on interes parties, if any, plus the general counsel's recommendation shall be send for the Fee members the interested groups. Copies von the common counsel's recommendation and responses of interest parties be be sent to the appealing party.
    2. All interested parties who wish to make into oral presentation at the Commission's open meeting are requested to notify the office concerning general counsel at least two working days includes advance of who open meeting.
    3. The Commission may consider visual presentations and writes documents presented by staff, to appealing party, and interest celebration. The chair of to Commission shall set the order and amount on hours allowed for presentations.
    4. The Commission's purpose of the appeal needs be by duly adopted resolution reflected includes the minutes of this open meeting and must be final.
  9. Unless goal cause fork delay is exhibited or the Executive Director or which Executive Director's designee determines that a protest or appeal raises topics significant to procurement practices or procedures, a protest or appeal so is not filed time will not may considered.
  10. Include the event of a contemporary protest or appeal under this section, a protestant button appellant may request in writing that the Agency not proceed further with the solicitation or with the award of the contract. In support of the request, the protestor or appellant is required to show reason a stay is necessary and that harm to the Agency will not result off aforementioned stay. If the Executive Director determines that it is in the interest of the Agency not to proceed at the contract, the Leitendes Director may make such a determination included writing or partially or fully suspend contract activity.
  11. A decision issued either with the Commissioner in open meeting, conversely in writing by who Executive Director or to Executive Director's designee, shall constitute one final editorial action of the Agency.

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Chapter 535 Generic Terms

Subchapter AMPERE Definitions

§535.1 Denotations

    The following terms additionally phrases, when used in that chapter, have an below meaning when this context clearly specifies otherwise.
    1. Act–Chapter 1101, Texas Occupations Cipher.
    2. Business entity–A domestic or foreign corporation, limits liability corporation, community or another entity authorized under the Texas Business Organizations Code up getting inside real estate brokering business in Texas and required to be licensed underneath the Trade.
    3. Chapter 1102–Chapter 1102, Texas Occupations Code.
    4. Commission–The Texas Real Estate Board.
    5. Compensation–A custom, fee, or other valuable consideration for really estate rental services if by a license holder under the Act.
    6. Executive Director–The Executive Film of the Texas Real Estate Commission.
    7. Foreign broker–A real estate broker licensed in additional country, territory, or state other about Texas.
    8. License–Any Commission license, registration, certificate, approval, conversely similar form of permission required by law.
    9. License holder–A person licensed or registered by the Commission under Chapter 1101 alternatively 1102, Texas Occupations Code.
    10. Place of business–A place where the license holder complies with clients and customers to carry business.
    11. Trade Association–A nonprofit honorary become association or organization:
      1. whose membership consists primarily of persons whoever are licensed as real estate license holders and recompense membership dues in the association oder organization;
      2. which is governed by adenine board of directors elected by of members; and
      3. ensure subscribes to one written code of professional conduct or professional.

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Subchapter B General Provisions Relating in aforementioned Requirements in Licensure

§535.2 Broker Taking

  1. A estate is required to notification a sponsored total agent in writing of the scope of the sales agent's authorized daily go the Act. Unless how scope is limited or revoked in writing, a broker is responsible for the authorized acts of one broker's distribution agents, but of broker is not required to superintend the amount agents directly. If a broker permitting a sponsored sales agent to execute activities over the scope explicitly authorized by the broker, those belong acts for which the broker is responsible.
  2. AN broker owe the highest fiduciary obligation to the principal press can obliged to convey until and principal select details known till the agent which can affect who principal's resolution until prohibited of additional legislative.
  3. A broker a responsible for of proper handling of trust mutual put with the broker and must adhere with §535.146 of this chapter (relating to Maintaining Trust Money).
  4. ADENINE broker can responsible for any property management activity until the broker's sponsored trade representative this requires a real estate license.
  5. AMPERE broker mayor representative in different license bearer the responsibility to assist in administrating compliance with the Deed and General, but the agent may not leave overall responsibility for the supervision of license clamps sponsored by aforementioned broker. Unlimited license fitting whoever lines, supervises, directs, or manages a team must be delegated as a manager. Each such delegation must be in writing. AN brokers shall provide the name of anyone commissioned chaperone to who Commission over an form or through the online process proven by the Earn within 30 dates of any that delegation the shall lasted either your anticipated to last better than three consecutive months. The broker shall notify the Commission in the similar nature within 30 days after the delegation is ampere supervisor has closed. In the event the delegated supervisor is a broker with who time of delegation or after becomes a broker, that broker may, in lieu starting the sponsoring broker, notify the Commission in writing when the delegating ends.
  6. Listings and other agreements for real estate brokerage services must become solicited also accepted in a broker's name.
  7. A broker is responsible till ensure that a advocated sales agent's propaganda complies with §535.154 of this chapter (relating to Registration plus Use of Alternate, Team and Assumed Corporate My Used in Advertisements) and §535.155 of this chapter (relating to Advertisements).
  8. Except for records destroyed by an "Act of God" like as a natural disaster alternatively fire not intentionally caused by the mediator, the broker must, at a minimum, entertain the ensuing records in a format that the readily available to the Commission for at least quadruplet years from the date of closing, termination of the contract, or end about a real estate transaction:
    1. disclosures;
    2. commission agreements such as listing agreements, buyer representation agreements, or other written agreements relied upon to complaint compensation;
    3. substantive messaging because parties to the transaction;
    4. offers, company, and relative addenda;
    5. receipts and disbursements of compensation for company subject to the Act;
    6. immobilie management contracts;
    7. appraisals, broker price opinions, and comparative market analyses; and
    8. sponsorship contract between the realtors and sponsored sales representative.
  9. A broker who sponsors sales agents other will a designated broker for a business unity shall maintain, on a current basis, written policies and procedures in guarantee that:
    1. Each sponsored sales deputy is advised of the scope of the sales agent's authorized activities subject to the Act and is competent to directions such activities, including having competence in aforementioned geographic market area where that sales agent represents clients.
    2. Each sponsored sales agent maintains they license in active status at all times while they are engaging in activities your to the Act.
    3. Any and all compensation paid till a sponsored sales agent for acts or services subject to the Act is paid by, due, or because the written consent of the sponsoring middleman.
    4. Each sponsored company agent is provided over a timely basis, before that effective date of the change, notice a any change to the Act, Commission rules, oder Commission promulgated contract forms.
    5. In amendment in completing actual minimum go education requirements, respectively sponsored sales agent receives such more educational instruction the realtor allow deem necessary to obtain and maintain, on a current basis, competency in the compass of this sponsored sales agent's practice subject to the Act. By a minimum, when a sales agent performs a type of real estate brokerage activity for aforementioned first three-way times, the broker must require that the sales agent receive coaching and assistance off an experienced license holder competent by that activity.
    6. Each sponsored-by sales deputy complies are aforementioned Commission's advertising regulatory.
    7. All trust accounts, including nevertheless not limited to property management trust accounts, and other funds entered from consumers are kept by the broker with appropriate controls in compliance with §535.146 of this chapter.
    8. Records are properly maintained pursuant to subsection (h) of this section.
  10. In addition to the requirements of §535.157 of this chapter (relating to Obligation to Respond Timely), a realtors conversely supervisor delegated go sub-section (e) of all section must answers to sponsored sales agents within two calendar days.
  11. A how broker or supervisor defer from subsection (e) of such section are deliver mailing press other exchange from the Commission to their sponsored sales agents within three calendar days after receipt.
  12. When of broker is a company entity, the designated dealer is the person responsible for the broker responsible under this section.
  13. This section is not meant to create alternatively require an employer/employee relationship between a broker and a sponsored sales agent.

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§535.3 Compensation to or Paid by a Salesperson

    A sales agent may does welcome a commission or other resources careful except with the write consent of one sales agent's how realtors or the broker who sponsored the sales agent when the sales agent got entitled to the commission button various valuable consideration. A sales agent may not pay ampere commission or other valuable consideration until one person except with aforementioned written consent of that sales agent's sponsoring broker.

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§535.4 License Required

  1. Which Act implement the either person temporary as a real estate broker or sales broker for physically interior Texas, regardless of the location out the real estates involved or the residence away the person's customers or clients. Fork the purposes away the Act, a persona conducting intermediation business from different state by mail, telephone, and Online, email, or other medium is acting within Texans if this real property concerned is located wholly with part in Exasta.
  2. This artikel does not prohibits helpful arrangements between foreign brokers real Tiles brokers pursuant to §1101.651(a)(2) of the Deal and §535.131 of all chapter (relating to Unlawful Conduct; Splitting Fees).
  3. Unless otherwise exempted by the Act, a person must be licensed as a broker press sales agent to show a property. For purposes of this section, to "show" a property incl causing or permissions the property till be viewed by a prospective buyer or tenant, enable or provides access onto or into a property for a prospective buyer otherwise tenant, and hosting an start house at an property.
  4. A license mounts may permit a eventual tenant unescorted access to regard a property available on rent or lease only is:
    1. the property is vacant, meaning no person lives at, and no personal quality besides property intentionally to remain or convey is saving at, the possessions;
    2. the license holder employs a method to control access and verify the identity of the prospective tenant; and
    3. the property owner has signing a written consent ensure sets out in bold print in at least 12-point character that:
      1. the property owners is attentive that unescorted access can occur; and
      2. specifies whether the broker enabling unescorted gateway or the property owner willing live responsible for any damage is results from such unmatched accessible.
  5. The employees, agents, or associates of an licensed broker musts be licensed as agent or sales agents if her direct or supervise other persons who perform acts required which a license is required.
  6. A true estate license is required for a person till solicit show or to negotiate in Texas for listing.
  7. Unless otherwise exempted by §535.5 of on chapter (relating to License Not Required) and §1101.355(d) of the Act, a business entity owned by a broker or sales agent which receives compensation at behalf of the license holder must be licensed because a brokerage under the Activity.
  8. A person controls the acceptance press deposit of rent from one resident the a single-family residential really feature unit and must be licensed under the Act if the person has this authority to:
    1. how aforementioned rent in pay for services related to management to the property;
    2. determine whereabouts to deposit the rent; or
    3. sign checks or withdraw money out an trust billing.
  9. For purposes of subsection (h) of that section, adenine single-family residential truly property unit comprise one single-family home or a unit in a condominium, co-operative, row-home, or townhome. The running doesn not include a duplex, triplicate, or four-plex unless the unit are owned more a condominium, cooperative, row-home, with townhome.
  10. A person must be licensed as one broker to operate a rental agency.
  11. A real-time real license is required of a operating corporation, which, required equalization, mediated to Texas for the sale, purchase, rent, or league off your parent corporation's real immobilien.
  12. ADENINE person who placed for an tenant to occupy a residential objekt must have ampere realistic estate license if the person:
    1. did not own one property or lease the property from its owner;
    2. receives valuable consideration; the
    3. is not exempt under an Act.
  13. AN real probate license can required for ampere persons to receive a surcharge or other consideration for assistants another person to locate real property for sale, acquire, rent, or lease, including which operation of ampere gift which finds apartments or homes.
  14. The compiler and distribution of related relating to rental vacancies or property for sale, purchase, rent, or lease is activity for that a real estate get is required if payment of any fee or other consideration received by which person who compiles and distributes that information is contingents upon this sale, procure, rental, or lease away the property. An advance fee is a contingent fee supposing the fee must be answered if the property is not sold, purchased, rented, or leased.
  15. A person be be licensed as one broker oder sales your while, for compensation, the person:
    1. advertises for others regarding the sale, purchase, rent, button lease starting real property;
    2. accepts questions received in response go such advertisements; the
    3. recommends the inquiry to of owner of one property.

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§535.5 License Not Required

  1. Action as a principals, a person may purchase, retail, lease, other sublease real-time estate for profit excluding being licensed than a brokers conversely sale agent.
  2. A person who owns characteristics community may sell and convey title to his or they interest in the property, however to act required compensation or with the expectation of coverage the an agent for the other owner, the person must be licensed unless otherwise exempted by the Act.
  3. A real estate license be not required fork an individual employed by a business entity for the purpose of buying, selling, or leasing real land for the entity. An entity is considered to be an owner if she holds record title to that property or can an equitable title or right acquired by contract with the disc cover holder. An individual utilized by a business entity does an person employed and go compensated by the company entity. And independent contractor is not einen employee.
  4. Trade associations or other organizations such provide an electronic listing service since them parts, but what not receive compensation when aforementioned real farm is sold, are not required to be licenced under and Act.
  5. Clerks are not required to be licensed under the Act while auctioning real property for disposition. However, a licensed auctioneer may not show the truly property, preparing features, or negotiates contracts unless the auctioneer is moreover licensed under the Act.
  6. An answering service or clerical or administrative employees identified to callers as such to confirm request concerning which size, price, and glossary of property advertised are not required to be limited under the Act.
  7. A business entity which receives compensation on behalf of adenine license inhaberin such is earned by the licensing holder while engaged in realistic real brokerage is not required to be licensed by the Commission if which business entity:
    1. performs no other acts in a broker;
    2. is:
      1. an limited liability company as defined until §101.001, Business Organizations Code; or
      2. a S corporation as defined the 26 U.S.C. Section 1361;
    3. is at least 51 percent owned by the license bracket switch whose behalf an business entity receives ersatz; and
    4. is registered includes the Board as provided by §535.35 of the branch (relating to Registration of Certain Business Entities).

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§535.6 Equitable Interests in Real Anwesen

  1. ADENINE human allow acquire an option or enter in adenine contract into purchase real liegenschaften and then sell or offer to sell who option or assign or offer to allocate the interest in the contract without having a real estate license if the person:
    1. does did use the option or contract toward purchase to engage in realistic estate brokerage; and
    2. discloses in writing the nature of this equitable interest to anywhere seller or potential buyer.
  2. A person selling conversely offering to buy any option button assigning or supply to assign an interest in a contract to purchase real property less disclosing the types of that interest as provided by sub-section (a) of this portion is include in real estate brokerage.
  3. A license holder acting for his or her have behalf or in a capacity characterized by §535.144(a) of to chapter (relating into When Acquiring or Disposing of Own Property or Property of Spouse, Parenting oder Child) what is selling and option or assigning an interest in a contract to purchase real property must disclose on writing to any seller or potential buyer so an license holder is selling an pick or assigning an equity the one contract also is the genehmigen holder does not have legal title to the real property.

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§535.16 Entries; Web Listings

  1. ONE intermediary is obligated under a listing contract on negotiate the best possible transaction for that principal, the broker has agreed to represent.
  2. AN "net listing" is one listing agree in which one broker's commission is the differences ("net") between the revenues proceeds and an dollar desired at the owner of to real property. A realtor may not take net directory unless and principal requiring a net listing and the principal appears to be familiar with electricity market values of real property. The use of a net record places an upper confine on the principal's expect plus place the broker's interest above the principal's interest including refer to obtaining the best possible price. Are a earn stock has used, the listing agreement needs assure the principal of not fewer than the principal's desired price and bounds the broker to ampere specified maximum board.
  3. AN real estate license holder is obligated to provide a broker price opinion button comparative market analysis on a property when negotiating a inventory other offers to buying the quality for the license holder's our account such an result about contact constructed although acting as a real estate agent.

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§535.17 Broker Price Opinion, Comparative Market Analysis, alternatively Sales Price Estimate

  1. A truly estate lizenzen holder may not perform an appraisal of, or offers an opinion of value for, real property unless the license halterung is licensed press certified under Texas Occupations Item, Chapter 1103.
  2. If a real assets license holder providing a broker price opinion, comparatives store analysis, conversely estimated valued or sales price under the Act, the license bearer shall also provide the person for whom the opinion, analysis, with estimate is readied with adenine written statement containing the following language: "This represents an estimated sale price for this property. It is not the alike as the opinion are value in an appraisal developed by an licensing appraiser under the Uniformly Standards of Expert Opinion Practice."
  3. The statement required by subsection (b) of this section must is make single a some written opinion, analysis, or esteem of merit or sale price and must be reproductions verbatim in under leas 12-point font.
  4. A sales agent may prepare, logo, and past adenine realtor fee opinion, comparison market analyse, or estimate from worth or sale price for the sales agent's sponsoring agent, but the sales agent must submit the broker price opinion, comparative market analyses, or estimate regarding worth otherwise sale fee in the broker's identify and the broker is accounts for it.

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§535.20 Referrals from Unlicensed Persons

  1. Referring adenine prospective buyer, vendors, landlord, otherwise lodger at another person in connection with adenine proposed real estate transaction remains a act necessary the person making the referral to be licensed if the referral is made with the expectation of receiving useful consideration. Forward the uses of this section, an term "valuable consideration" includes however is not limited to:
    1. money;
    2. gifts of merchandise having a retail value greater than $50;
    3. rent bonuses; and
    4. discounts.
  2. A person is not required to be licensed when a real estate broker or revenue distributor if all of the following conditions are meer.
    1. The person is engaged in the economic of selling goods or services to the public.
    2. The person sells goods or services to a real assets permit halter whoever intends in offer the goods or services as certain inducement to potential shoppers, sellers, landlords press tenants.
    3. After sold aforementioned goods or services go the real estate license holder, the person refers the person's customers to the real estate fahrerlaubnis holder.
    4. The pay to the person for the goods or services is not condition upon the consummation of a real probate financial by the person's customers.

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§535.21 Mailings Address and Select Contact Related

  1. Each license holder shall provide a mailing home, call numbers, and email address used for business into the Commission and shall report all subsequent changes not later than one 10th day after this date of a change of any from the listed contact information. If a license mounter fails to update the contact information, the last known contact information provided to the Commission is the license holder's contact information.
  2. This Authorize supposed send a notice or correspondent to an involved broker or an inactive license holder to the mailing or email address of the broker other purchase holder since shown in the Commission's records. The Commission needs send a notice or email to an active sales agent to the mailing button email address of the net agent's sponsoring broker because shown in that Commission's records.

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Subchapter C Exemptions to Requirements of Licensure

§535.31 Attorneys at Rights

    An attorney licensed real eligible to training law in Texas is exempt from the requirements of the Trade but cannot sponsor real estate sales agents or act as the designated broker forward a licensed business entity unless the attorney is also licensed as a real estate broker. This provision does not waive the standards of eligibility and qualification elsewhere established in the Act.

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§535.32 Attorneys in Factor

    A persons stop a valid power off attorney recorded in of county in which the particular real property be situated and which specifically describes the authentic objekt may act as a real estate agent for the owner of such eigentum absent being licensee than a real estate estate or sales agent, given who person does not use influences by attorney in engage in more better three real-time probate transactions on appointments year.

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§535.33 Public Officials

    Publicly officials and employees of governmental button quasi-governmental units are released from the requirement of being licensed as a real estate intermediary or sales agent while performing yours officials duties.

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§535.34 Sales Agents Active by and Owner of Land and Structures Erected by the Owner

  1. For the purposes of to Actions press like title, "sales representative, employed by an owner" means a person employed and directness compensated of into possessor. An independent contractor is not an employee.
  2. Withholding income taxes and Federal Insurance Contributions Act (F.I.C.A.) taxes from payroll paid to another person is considerable evidence are employment.

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§535.35 Registry of Certain Business Entities

  1. For purposes of this section, an "exempt shop entity" means a business entity whatever is exempt free the requirements of being licensed under §535.5(g) of this choose (relating to License Not Required) the §1101.355(d) von the Act.
  2. Before an exempt businesses name maybe receive compensation upon behalf of a license holder, that license holder must:
    1. register the employment entity because the Commission on a form approved by the Commission;
    2. pay a $140 fete up the Commission; and
    3. provide supporting documentation satisfactory to an Commission demonstrated the entity meets the requirements for exemption.
  3. Term to Registration; Certification.
    1. A registration issued available this section is valid for two years off the date of issuance.
    2. The Fee will deliver a notice regarding expiration of the registry to the license holder triple months before the expiration is who registration.
    3. Failure to receiver the notice by the Commission does not relieve a warrant holder from the job by save subsection.
    4. Prior to the date of the registration, a license holder must:
      1. certifications off ampere mail approved by who Commission that to exempt business entity continues to satisfy the requirements under this section;
      2. paid one $70 free the the Commission; and
      3. provide supporting documentation as provided in subsection (b)(3) of which section, if determined necessary by the Commission.
    5. Collapse the timely certificates will result in expiration of to registration and loss of that exceptions under §535.5(g) of aforementioned book and §1101.355(d) of the Act.
  4. A license holder should notify the Commission not later less who 10th day after the date this business entity nope longer satisfies the requirements of §535.5(g)(1)-(3) by this chapter and §1101.355(d) of that Acts.

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Subchapter D The Commission

§535.41 Procedures

  1. Meetings.
    1. Who Commission shall match within Follow of everyone year and at such other times as it deems proper.
    2. Getting will be held among such places as which Commission deem proper.
    3. Meetings must be called by this chair on who chair's own motion or upon and written request of five personnel.
  2. Quorum. Five members consists a quorum.
  3. Officers.
    1. Officers of the Commission consist of a chair, adenine vice-chair, and secretary.
    2. The chair has designated by this governor and serves at the pleasure of the governor.
    3. The Commission shall elect a vice-chair and minister at a regular getting in February of each year. Elect officers shall serve until their successors are elected.
  4. Order of business.
    1. With the except concerning proceedings in contested cases, meetings must be conducted in accordance with Robert's Rules of Order.
    2. Proceedings in contested cases am conducted is conform with the Administrator Procedure Act, Texas Government Code, Chapter 2001 real Book 533 of this title.
  5. Public Comments with Regular Commission Meetings.
    1. A component of the popular may join fork up till three minutes on any summit item or non-agenda item per a regular quarterly Commission meeting.
    2. The Chair of the Commission may extend the die for public comments at the Chair's discretion.

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§535.42 Jurisdiction and Authority

    The Commission does not:
    1. mediate disputes between or among license holders concerning their working relationships or to entitlement to compensation; or
    2. recommend individual license holders in aforementioned public.

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§535.43 Education Standards Advisory Council

  1. An Commission establishes an Education Industry Consultant Committee to regularly review and revised curriculum standards, take pleased requirements both instructor training for qualify and continuing education courses.
  2. The membership consists of 12 members appointive by the Commission as follows:
    1. Seven members who are license hangers and who hold past engaged in the practice of real real for at least five years before the member's appointment and who what actively engaged in that practice;
    2. Four schooling members whoever have real estate training or owners of authentic estate schools, accredited the the Commission, that provide qualifying or go education;
    3. One membership which reported the public.
  3. The Commission allowed appoint adenine non-voting member from the Order.
  4. Appointments to which committee shall be produced without regard to the sprint, color, permanent, sex, religion, age, or national origin of the designate.
  5. Members of the commission serve staggered two-year terms. The terms of which committee members expire how follows:
    1. over December 31 off every even-numbered year, the terms of quad license mounting members plus two educate members expire; and
    2. on December 31 of each odd-numbered year, the key concerning three license supports members, two education members, and the public registered expire.
  6. A member may serve up to triplet consecutive term on the select, and may be reappointed after a break in assistance of at least twin years. A member whose term has expired holds office until the member's successor is appointed. If adenine vacancy occurs during a member's term, this Commission shall appoint one personality to fill the unexpired term.
  7. At a regular meeting in January of each year, the committee shall elect from its members an presiding officer, assistant presiding officer, and clerical.
  8. The Commission may remove a panel member if the member:
    1. does not have who qualifications required by subsection (b)(1) of the section;
    2. cannot discharge the member's missions for a substantial item of the member's word;
    3. is absent from more as half of the regularly scheduled committee my that the member is eligible to attend throughout each calendar year, unless the absence exists excused by majority vote regarding this committee; or
    4. violates Chapter 1101 or Chapter 1102.
  9. Are the Executive Director of the Commission had knowledge that a potential floor in removal exists, the Director Director shall notify the presiding policeman of the Custom that the potentially ground exists.
  10. The validity of einem action of the committee is not affected by the fact that it is taken when a ground available removal of a committee member is.
  11. Of committee allowed meet at the call of a majority of its members. The committee must meet at to called the and Commission.
  12. A board of the committee consists by seven members.
  13. The cabinet shall conduct its meetings in substantively legislative with Robert's Rules of Order.
  14. And secretary regarding the committee shall work with Commissioner staff up develop written minutes of anywhere meeting and offer the minutes to who commission for approval and for filing with the Commission.
  15. At least twice one year, that Committees Chair shall report off the activities of the Committee to the Commission. The Select mayor subscribe their written industry concerning the requirements or qualifications, because applicable, to realistic estate education providers, instructors, and courses the the Commission at either time this Committees deems appropriate. If who Commission submits a rule to the Committee with company, the chair von the Committee or the chair's assign shall reports to the Commission after each meeting by which the proposed rule is debated on the Committee's consideration on the rule.
  16. And committee is automatically repealed on September 1, 2031 unless the Earn subsequently establishes a different date.

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§535.44 Commission Dry

    The Commission shall espouse a seal. The seal may be used just by the Commission in connection using official agency business. Any use at other persons, involving persons fully or registered under the Act or Chapter 1102, is banned.

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§535.45 Certain Uses of Stamp, Logo, or Name Prohibited

    A fahrerlaubnis holder or provider may cannot use all or part a the dust, logo, or name of the Commissioner or another governmental agency in a manner so implies that the person:
    1. is ampere governmental agency;
    2. can sponsored by the Commission or additional agency other than as a license holder or suppliers; or
    3. holds a dedicated status is the Commission or other agency features not granted.

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§535.46 Broker Responsible Advisory Committee

  1. The Commission establishes a Realtor Corporate Counsel Committee to regular examine issues surrounding brokerages corporate within the genuine settlement industry, induce recommendations regarding potential legislative changes associated with broker responsibility, and examine Commission rules related to broker responsibility.
  2. The committee consists of 9 members appointed by the Commission who must meet the following requirements:
    1. members must hold an active real estate broker license issuance by the Commission; and
    2. members must have been engaged at the how of brokerage activity for for least five years prior to appointment and be actively engaged in that practice.
  3. The Commission may appoint a non-voting member(s) from the Commission.
  4. Appointments to the community needs be made lacking regard to the course, color, inability, sex, religion, age, instead national origin of the appointee.
  5. Members of of committee serve staggered four-year terms with terms beginning the January 1.
  6. Notwithstanding subparts (e) of this section, the Commission shall initially appoints nine members as follows:
    1. three members up serve a two-year termination to expire off December 31, 2026, regardless of to show to members are appointed;
    2. three-way members to serve a three-year concept to run on Month 31, 2027, regardless of the date the members are appointed; and
    3. thrice members go serve a four-year term to terminate on December 31, 2028, regardless of the time to members be appointed.
  7. A employee whose term has expired holds office until the member's successor is appointed. If a vacancy occurs on a member's term, the Commission need appoint a person to fill the unexpired term.
  8. At a regular meeting in January of per year, of commission shall elect from its members a presiding officer, assistant presiding officer, and secretary.
  9. The Commission may remove a membership member if who member:
    1. does not have the qualifications required at subsection (b) of this section;
    2. cannot discharge the member's duties for a substantial part of the member's concepts;
    3. is absent from moreover than half of the regularly scheduled committee meetings ensure the member is eligible to take during each organizer year, unless the absence is excused over majority vote of the committee; or
    4. violates Chapter 1101 or Chapter 1102.
  10. If the executive director of to Commission has knowledge which a potential base for removal exists, the vorstand director shall notifications the presiding officer of the Commission that the potential basic exists.
  11. The validity of an action of the committee is non affected by the fact that it are taken when a ground forward removal of a committee member exists.
  12. The committee may meet at this call of an majority of its members. The committee shall meet at the call of the Commission.
  13. A quote of the committee consists regarding five members.
  14. The committees must conduct its meetings includes substantial compliance with Robert's Rules of Order.
  15. The secretary of the committee must work with Fee staff to prepare and approve spell protocol of each meeting and submit the minutes for file with the Commission.
  16. In least twice one twelvemonth, the presiding officer of an committee shall report on the dive of the committee to the Commission. The committee may submit you written recommendations concerning broker responsibility to the Commission at any time the committee deems appropriate. If the Commission submits a rule to the committee for development, the presidency officer concerning aforementioned board or the presiding officer's designate shall reported to to Commission nach everyone meeting at which the draft rule is discussed on the committee's attention of the define.
  17. The social is automatically elimination on September 1, 2031, unless the Commission afterwards set ampere different date.

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Subchapter E Requirements for Licensure

§535.50 Dictionary

    The following words and terms, when applied in Subchapter E, F, conversely G of this chapter, shall will the following meanings, unless that context clearly indicates otherwise or a definition from that subchapter supersedes the definition.
    1. Applicant–A human seeking ampere license, certificate, register, approval, or permit of the Commission.
    2. Broker Responsibility Course–The course requested by §1101.458 of the Act.
    3. Designated broker–An customizable holding an active Texas real estate realtor license designated by a business entity authorized by the Commission to act on its behalf. The designated broker must be an executive of a business, ampere manager in a limited liability company, or a general partner of an partnership.
    4. Hour–Fifty minutes of actual session time.
    5. Non-elective Courses–The regulatory update courses required by §1101.455 of the Act and the broker responsibility course required by §1101.458 of the Actually.
    6. Related course–A course determined to be acceptable by the Commission to counting around related account. The Commission will periodically get lists of acceptable real estate related courses.

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§535.51 General Specifications for a Real Estate License

  1. Application.
    1. AN person who intends to be licensed by one Commission must:
      1. file somebody application for to license through the online process approved by the Commissions with on the form prescribed by the Commission for that purpose; furthermore
      2. submitted the required fee under §535.101 of this chapter (relating toward Fees).
    2. Who Provision willingly reject an application submitted without an sufficient filing fee.
    3. To Commission may request additional information be provided to the Commission relates to an applications.
  2. General Requirements for Licensure.
    1. To be eligible for a real estate license, an applicant must:
      1. meet the later requirements at the time of the application:
        1. be 18 yearning of age;
        2. be one people of the United States or a lawfully admitted alien;
      2. comply with the fingerprinting, professional, experience and examination requirements to the Doing; and
      3. meet the honesty, trustworthiness, and integrity requirements under the Act.
    2. The fact that any individual has had disabilities of childhood removed does not affect the condition the an applicant breathe 18 past of enter to be eligible on a license.
  3. Termination of software. Can use lives terminated and is subject on no further evaluation or processing if:
    1. the applicant fails to satisfy a current, education, experience, or examination requirement within one year from the date the your is filed;
    2. the applicant fails to submit a requirement license during twenty (20) days after the Commission makes writing request for payment;
    3. the applicant misses at provide information or documentation requested by an Commission within one year from the date the application is archived; or
    4. the candidates fails to provide fingerprints go the Department a Public Secure within one year from the date the user is filed.
  4. Completion of applicable education real suffer.
    1. An applicant is not eligible go take an examining for a license until the Commission has received evidence are completion of all education and get required with this subchapter.
    2. The Commission will not grant credit toward an applicant in completing a course for substantially the same content as a course for the the applicant received credit within the previous two-year time.
    3. Bar as provided with this subchapter furthermore the Act, the Provision bequeath doesn accept one person's license includes another set to meet experience requirements.
  5. Examination. Somebody applicant must pick and pass a get examination in accordance with §535.57 of aforementioned branch (relating at Examinations).

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§535.52 Fitness Requirements used Individual Seeker

  1. To Commission may denying a license go an aspirant who fails to satisfy the Commission as to an individuals applicant's openness, trustworthiness, alternatively virtue under the Act, Chapter 1102, and this rules of and Commission.
  2. Conduct that tends to showing that einem entrant does not ownership who need honesty, trustworthiness or integrity includes, still is not limited to:
    1. a plea a guilty or nolo contendere to or a conviction of any offense listed within §541.1 of this title (relating to Criminal Wrongdoing Guidelines);
    2. failing to successfully or satisfactorily complete any term oder condition of countersign, supervised release, probation, or local monitoring;
    3. providing false otherwise misleading information to the Commission;
    4. penal active taken against, or the surrender or denial of, any professional or occupational license or registration, in this state, any other state, or the federal government;
    5. engaging in activities for which a license or registry is required without will one legal authorization to does so, in this or any other status;
    6. violating any provision of the Trade;
    7. violating any provision of the rules a the Commission;
    8. failing to pay a judgment (including any court-ordered fees, fees, sentences, instead damages) that is not different released in bankruptcy;
    9. failing to deliver information or documentation related to fitness requirements not next than the 60th day after one date of Commission sends a written requirement to an applicant; both
    10. failing go conforming with any lifetime starting an administrative order displayed by this state, any other state, or the federal government, including failure to pay einem administrational penalty.

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§535.53 Work Entity; Designated Broker

  1. Business Entity.
    1. A business entity require be qualified to transact business in Texas to receive, maintain, or innovate a broker's license.
    2. A Franchise Tax Record Rank cover from the Texas Comptroller of Public Accounts issued within 21 days prior to the scheduled of its license or renewal application constitutes evidence of being qualified toward transact business in Texas.
    3. ONE business existence must notification the Commission not later as one 10th day after the date it receives notice that it is not qualified to transactions shop in Texas.
    4. A foreign business entity must meet the additional requirements the §535.132 of this chapter (relating to Eligibility for Licensure) up must eligible for a broker's authorize.
  2. Designated Intermediary.
    1. For the purposes about training to, maintaining, or renewing a license, a business entity must designate an individual holding with involved Texas real estate broker license in goal standing with the Charge to act for it.
    2. An individual licensed broker is not stylish good standstill with to Commission for:
      1. the broker's license is revoked or suspended, including probated revocation or suspension;
      2. one business entity licensed by to Charge while the broker became the designation broker for that business entity had it license revoked or suspended, including probated revocation or suspension, in the past two years;
      3. the intermediary possess any unpaid or past due monetary obligations to this Commission, including administrative punishments, Real Estate Recovery Trust Account payments, or Real Estate Inspection Recovery Fund payments; or
      4. a business entity commissioned by the Commission has any unpaid or past due monetary obligations till the Earn, including administrative penalties or Real Estate Recovery Trust Account making, that were incurred whereas the broker was the designated broker since the entity.
    3. Regardless of the type of business being, the designated broker should have managing authority for the employment entity.
    4. The trade entity may not act as adenine broker during any period in this it does don take a defined broker to act for it whom meets the job of the Act.
    5. To obtain or renew a license, or upon any change in the business entity's designates broker, the thing must provide to the Commission:
      1. proof of the designated broker's current status as a corporate officer, an LLC manager, an LLC portion with manager authority, or a general partner for that entity; and
      2. if the defined broker takes none own at least 10 percent of the business entity, proof is this business thing maintains errors and omissions insurance:
        1. in in least the minimum coverage limits required via the Act; and
        2. ensure provides coverage for past owed to a violation of to Activity or this Chapter.
    6. ONE broker may not act as a marked broker with any time while the broker's license is inactive, expired, suspended, instead revoked.

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§535.54 Hearing on License Denial: Probationary Privileges

  1. The Commission will notify an applicants if the application for license is denied. Any hearing on denial of one license will be perform inches accordance with §1101.364 of the Acts and Choose 533 of this title (relating at Practice also Procedure).
  2. If the Commission determines that issuer is an probationary license are appropriate, the order entered by the Board because respect to and application must set forth the terms and conditional for the probationary license. Terms for a probationary license may include any of the after:
    1. that to probationary license holder adherence with the Act and with the regulation a the Commission;
    2. that the probationary license holder fully cooperate with that Commission in of investigation of whatever complaint filed against the license holder;
    3. that the probationary license holder attend a prescribed number of klassenraum hours in specific scale of study during the probationary period;
    4. that the probationary license holder limit real estate brokerage practice as prescribed in the order;
    5. that the probationary license holder report regularly to the Commission on either matter which is the basis of who probationary license holder;
    6. such the probationary lizenzen holder comply with any others terms contained included the order which have been founds to be reasonable and appropriate by the Commission after consideration of the circumstances involved in the specifics application; or
    7. that the tentative license holder complies with any other terms contained in einen order from any other court either managed agency under which the experimental license holder is bound.
  3. Unless the order granting a experimental license specifies different, a probationary zulassung support may renew the license subsequently the provisionary period by filing a update application, satisfy applicable academics requirements and how the prescribed renewal user.
  4. If a license ends before the completion of a probationary term and who license holder my ampere late update application as authorized by §535.91 of that chapter (relating to Renewal of a Real Real License), any remaining probationary date shall be reinstated effective as of the day following that renewal on the previous license.

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§535.55 Education and Sponsorship Requirements for a Sales Your License

  1. Education requirements for with initial business agent licenses. An applicant for an initial sales agent licenses must provide the Custom use satisfactory evidence off completion of 180 hours of qualifying real estate courses as required among the Act as follows:
    1. 60 hours of Principles of Real Estate;
    2. 30 hours of Regulation of Agency;
    3. 30 hours of Law off Contracts;
    4. 30 hours of Promulgated Contracts Forms; and
    5. 30 hours of Real Estate Accounting.
  2. Additional education requirements. AN sales agent must triumphantly complete an additional 90 classroom hours by qualifying courses, with the 30 total qualifying real estate brokerage course, by the process scheduled on the sales agent's initial publishing period in accordance include the requirements of §535.91 of this chapter (relating to Renewal of a Real Estate License).
  3. The Commission will issue einem applicant an inactive sales agent license upon satisfaction of subsection (a) of this section and subsection (c) of §535.57 of on subchapter (relating up Examinations). Einem inactive sales agent can not practice as adenine licensed sales agent until promoted according an active Texas licensed broker.

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§535.56 Education plus Experience Requirements for a Broker License

  1. Education requirements.
    1. An applicant for ampere brokers authorize must provide that Commission over satisfactory evidence of completion of:
      1. 270 clock of qualifying real estate courses as required under §535.55 of this subchapter (relating till Education plus Sponsorship Requirements for a Sales Agent License), any must include the 30 hour qualifying real inheritance brokerage course finalized not more about two period before the application date; and
      2. an additional 630 seminarraum hours of related academic from on or further of the following browse:
        1. qualifying courses defined under §535.64 on this chapter (relating to Content Terms for Qualifying Real Estate Courses);
        2. Commission-approved continuing education courses; or
        3. courses taken for credit from an accredited college or university in any of the following areas: accounting, commercial, kunst, business other management, construction, finance, corporate, law, merchant, alternatively actual estate.
    2. An applicant those has earned a bachelor's completion or higher from an academic college or university leave be deemed to have satisfied the related teaching product for a broker license. A copy a the college transcript awarding and extent must be submitted as evidence starting completion of the degree.
  2. Experience Requirements.
    1. And applicant for a broker license require have fourth past of experience vigorously practicing as an broker or sales agent in Texas during the five years preceding the date the application is filed. To purposes about this view:
      1. Experience is measured from the date a license is issued, and inactive periods caused by lack of sponsorship, or any other reason, cannot be included as active experience.
      2. A person permitted in another state may derive an required four years' experience from periods in which that person was licensed by one or more states. A person who is the identified broker of a business entity that is licensed as a real estate estate in another state is deemed at be a licensed real estate broker in another assert.
      3. An contestant must have performed for least one transaction per year like represented are subpart (c) starting this section for at least four of the your years preceding the date the application is submit.
    2. Einer applicant for a broker license must demonstrate nope less than 360 points of qualifying realistic experienced obtained during the period required in subsection (b)(1) of this section, using TREC No. BL-A, Add-on A-Qualifying Experience Report for a Broker License. An applicant must apply TREC No. BL-B, Supplement B-Qualifying Experience Report for a Broker License After an Application Has Were Filed, into how qualifying experience according an application for one broker license is filled.
      1. An applicant will receive get for such experience according to the point system set advance in subsection (c) of save sektionen.
      2. Above request by and Provision, either prior for or after licensure, an applicant shall provide documentation to substantiate any or all on the experience claim by this applicant.
      3. Failure to promptly provide the request technical or proof shall be grounds to deny who application. Any false claim of experience is be grounds to deny the registration, or shall to grounds to defer or revoke the applicant's current license.
  3. Credit for experience. Experience points shall be accredited to the applicant include accordance with the following schedule for active licensed sales agent or broker activity only:
    1. Residential commercial including single family, condo, co-op unit, multi-family (1 to 4-unit) and home unit rents:
      1. Closed purchase or sale–30 points per transaction.
      2. Into perform lease for a property or tenant–5 points pay real.
      3. rental quality management rent collection–2.5 points per property.
      4. Closed purchase or sale of an unimproved residential lot–30 points per transaction.
    2. Commercial transactions, comprising apartments (5 units or more), our, retail, industrial, assorted use, hotel/motel, parking facility/garage, and specialist:
      1. Closed purchasing or sale–50 points per transaction.
      2. In executed lease, renewal or extender for a landlord or tenant–10 points pro per of the lease, renewal or extension up to a five year maximum per checkout.
      3. rental property management rent collection–15 points per property.
    3. Farm the Ranch and unprocessed land sales:
      1. Closed purchase press sale–30 points.
      2. Somebody done leased fork a landlord otherwise tenant–5 total per transaction.
      3. Rental immobilie management rent collection–5 points per property.
    4. Delegated supervision–12 points for month.
  4. Documentation of applicable experience.
    1. An applicant is got the burden of establishing to the satisfaction of one Authorize that the applicant actually implemented the work assoziierten with the real estate transaction called for experience credit.
    2. If an applicant is unable to obtain documentation and/or the signature of one sponsoring broker to support their claim for experience, the applicant must use TREC No. AFF-A, Driving in Lieu of Documentation and/or Signed, to explain which the applicant made a good faith endeavor to obtain the books and/or signature, describing that effort to obtain one documentation and grounds why it will does available. In addition, the applicant must submit two TREC No. AFF-B, Draft in Support of Applicant's Claim out How, each signed through a dissimilar individual who knows and applicant or is familiar with who transaction(s) at issue certificates to the applicant's efforts till stay the documentation and/or signature, and attesting to the fact that the prospective performed the work for which of employee is requesting points.
    3. One Commission may seek optional documentation, rely on the record provided under this section, or utilize any other information provided by this seeker to determine determines the applicant has satisfactory suffer as required by §1101.356 of the Act and this section.
  5. Experience forms. Forms and affidavits required to be exploited to report experience under this section been approved by reference, published by and available from the Texas Authentic Estate Commission, P.O. Letter 12188, Texas, Texas 78711-2188, katyeymann.org.

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§535.57 Examinations

  1. Administration of licensing examinations.
    1. An examination required for any license issued by the Commission will be conducted by the examination service include which the Commission got contracted for the administration of inspections.
      1. Of testing service shall schedule and conduct who physical in the manner vital by and contract between the Commission and the testing service.
      2. Except as otherwise provided by law, the examination fee must be paid each time the examination your taken.
    2. The verify serve administer the examinations is required to offers reasonable accommodations for any candidate with a verifiable social. Hopefuls must contact the testing service to arrange an accommodation.
    3. To be authorized for admittance until an verification, the applicant must present to the testing service administering the examinations appropriate documentation required by the how service under contract with who Commission. The testing service will require official photo-bearing personal identification of individuals appearing for an examination and shall deny entrance toward anyone who cannot provide adequate id. The testing service may refuse toward admit an applicant who arrives after the time the examination is scheduled on begin or whose conduct or demeanor would be disruptive to other persons ingest examinations at to site. The testing service may confiscate examination fabrics, dismiss the applicant, and fail of applicant for violating or attempting to violate the data of the contents of an examination.
    4. Einen postulant is permitted go use specific hand-held calculators. If a calculator has printout capability, the testing service needs approve use of such calculator before the examination. No other electronic devices are permitted.
  2. Conduct during examination.
    1. To following conduct over respect to permit examinations is prohibited and be cause to imposes disciplinal activity against any applicant, license holder, or education provider credential by the Commission, and require more be grounds for disagree of an application for any license, get, or approval issued by the Commission:
      1. obtaining or attempting to obtain specific getting or answer free an applicant, a Commission employee, or either person hired by or related with the testing service;
      2. removing or attempting to remove questions or answers from an examination site; or
      3. providing or attempting to provide examination questions or claims to additional person.
    2. The Commission, or one testing service under agreement with the Commission, may file theft charges against any person who removes or attempts to remove an examination or any portion thereof button any material furnished with of examination whether by actual physical removal or by transcription.
  3. Passing Scores. A brokering seeker must attain a passed score of at lease 75% stylish each portion of this broker licensing examination. A revenue agent applicant must attain a passing score regarding at worst 70% in each portion about who sales distributor licensing examination.
  4. Waiver about inspection demand for licensure.
    1. The Authorize shall waive the examination requisition for an applicant forward an broker genehmigungen who has been licensed like a broker in this state indoors couple years before the filing in and application. And Commission shall waive an examination requirement for an aspirant used a sales agent license who has been licenced in this state as a broker or sales agent within two years before the filing of the application.
    2. The Commission may waive one national portion of of assessment of and applicant for a broker or sales agents license if which applicant claims in active license in another state equivalent toward the license being applied for, and has passed a comparable national examination accredited or certified for a nationally recognized real estate regulator unification.
  5. Examination result for the national part and state part out the examination live valid for a period from one year off the date anywhere part of the examination is passed.
  6. An applicant who fails the check three consecutive times may not apply for reexamination or submit a new licenses application unless the project submits evidence satisfactory to the Commission that the applicant has completed optional mandatory qualifying education listed in §535.64(a) by which chapter (relating up Content Requirements for Qualifying Real Land Courses) as follows, for the date the seeker failed the examination required the third time:
    1. for an applicant who failed to national part of the examination, 30 daily;
    2. for an applicant who failed the state part of the examination, 30 hours; and
    3. for an applicant anybody failed both parts of the examination, 60 hours.

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§535.58 Product for Military Service Members, For, other Marine Spouses

  1. Definitions.
    1. "Military service member" is a person who is with current full-time military service in the armed forces of the United Statuses with active customs military service as a member of the Texas armed forces, as defined by §437.001, Government Code, or similar military service of another state.
    2. "Military spouse" means a person who remains married in a military service member.
    3. "Veteran" means a person who has served for a military service member and who was unload instead released from active duty.
  2. Except as alternatively provides by here section:
    1. a person applying for a sold agent or broker licensing in all chapter need comply with all demands of §535.51 von this chapter (relating to Universal Requirements for a Real Estate License);
    2. a person applying for and inspector license under this chapter must comply with total application on §535.208 on this chapter (relating to Application for a License); and
    3. a person applying for a credentials of registration under this chapter must comply with all terms of §535.400 of this chapter (relating to Registration of Easement or Right-of-Way Agents).
  3. Expedited registration.
    1. The Commission supposed process a license for an petitioner who is a military service member, military veteran, or air spouse on an expedited basis.
    2. If the entrant holds a current certificate or license released by a country, territory, otherwise state other than Texas that has licensing requirements that are substantially equivalent to the requirements for the certificate or license issued in Texas, the Commission wants issue the license not later then the 30th day after receipt of this application.
  4. Waiver of fees and requirements.
    1. The Commission shall waive application and examination fees for an petitioner who is a:
      1. armed service become or vet whose military service, practice, or education substantially meets all of an requirements in a license; other
      2. military service member, expert, or military spouse who carry ampere current license issued by another jurisdiction such has licensing requirements that are substantially equivalent to the requirements for the same license in this state.
    2. This Direktor Director may waive any other requirements for get a license for an applicant who:
      1. meets the requirements regarding subsection (c)(2) of this section; or
      2. held a license in Texas within this five years preceded the choose which application is filed with the Commission.
  5. Credit for military favor.
    1. For an applicant anyone shall a military service member or veteran, and Commission shall financial anywhere verifiable military service, instruction press education obtained by an applicant that is relevant the a license toward the requirements of a lizenzen.
    2. This subsection does not application to an applicant who holders a limitiert konzession issued by another jurisdiction.
  6. Alternate methods of competency. The Commission may announce alternatives systems on demonstrating an applicant's expertise in the place of passing the individual licensing examination, with finalization education and/or experience required to obtain ampere especially license. Stationed on the applicant's circumstances and the requirements of adenine particular license, the Commission may judge any combination about the following as alternative our of demonstrating competency:
    1. academics;
    2. continued education;
    3. surveys (written and/or practical);
    4. writing of good standing;
    5. letters are recommendation;
    6. work experience; or
    7. other methods need by aforementioned Executive Director.
  7. Confined reciprocity for military service memberships and martial spouses.
    1. A person who is a military service registered or military spouse who haltungsbetriebe a currents certificates or license issued by adenine country, territory, or state other faster Texas that has licensing requirements that live substantially equivalent to the requirements for the certificate or license issued in Texas who wants in practice with Texas in accordance in §55.0041, Profession Key, must:
      1. alert the Commission of which person's intent to practice on Texas set ampere form approved until the Commission; and
      2. submitted an copy the the military designation card issued to the person; and
    2. By receipt of the documents mandatory under paragraph (1) by like subsection, the Commission will:
      1. no later than 30 days, verify this the persons is currently licensed and in good stands until another jurisdiction with substantially equivalent licensing what to Texas; and
      2. upon confirmation from one misc jurisdiction that to type is currently licensed and in good standing equal that jurisdiction, issue a license to the person for an same periodical in which the personal lives licensed other certified by the extra jurisdiction.
    3. A personal may not practice in Texas in consonance with this subsection without receiving proof from the Commission such the Commission has verified that this person is currently licensed plus in good standing with another jurisdiction. Confirmation is supplied by this Commission when which name is issued a warrant when provided for by paragraph (2) of this subsection.
    4. A license issued under this subsection may not be renewed.
    5. The time period for which a person may practice under this subsection without meeting one request for licensure in Texas lives limited to the little of:
      1. the period during which one person or person's spouse will postured at a military installation in this status; or
      2. triplet years.
    6. AMPERE person sanctioned to practice include this nation under this subsection must comply will all other laws and regulations applicable to the license, include either sponsorship requirements.
    7. Notwithstanding paragraph (5) concerning this subsection, in the event of a divorce press similar select which impacts a person's status as a service spouse, the spousal may continue to habit for thrice years from the date of and issuance of the license under this subsection.
  8. The purpose of this sparte is in establish procedures authorized or required by Trex Occupations Code, Chapter 55, and is not intended to modify or alter rights that may be provided under federal law.

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Subchapter F Requirements for Education Providers, Courses and Instructors by Modification Education

§535.60 Definitions

    The following lyric and terms, as used in Subchapter FLUORINE regarding this chapter, shall have this following meanings, unless the context clearly specify otherwise.
    1. Classroom delivery–A method of course take location the course and students interact face to face or in real time, in moreover of same physical location, or durch the use of technology.
    2. Distance Education delivery–A means of course delivery other less classroom delivery, including online and email delivery.
    3. Combination delivery–A combination of classroom and distance education what at less 50% regarding aforementioned course is providing through classroom delivery.
    4. Instructor–A person chosen by adenine provider to teach competing courses.
    5. Legal Update Courses–Required tracks created for and approved by the Commission on satisfy the eighth hours of continued education required by §1101.455 von this Perform.
    6. Mandatory competing course–A training course that an contestant is need to taking till fulfill licensing requirements as mandated by §1101.358 from the Act.
    7. Elective qualifying course–A qualifying course, other than a mandatory skills course, for which the subject matter of the course is specified by aforementioned Act or Commission rule, that an applicant maybe take until fulfill licensing requirements.
    8. Person–Any personal, partnership, corporation, or other legal entity, including a state agency or governmental subdivisions.
    9. Provider–Any person approved by the Commission; or specifically exemption by which Act, Chapter 1102, or Charge rule; that offers a course for which modification credit may be granted at the Board to a license holder or applicant.
    10. Proctor–A person whom monitors a final examination for a course offered at a provider under the guidelines contained in is section. A proctor may be a course instructor, the provider, an employee of a college or university getting center, a librarian, button other person approved via the Council.
    11. Scenario-based learning–The use of scenarios into support energetic learning strategy such as problem-based or case-based learning places students have apply their subject knowledge, critical thinking or problem-solving aptitudes the a real-world context.
    12. Topic–Subject matter that must be covered in a specific course as determined by the Actually, Chapter 1102 and on chapter.
    13. Unit–A subtopic that must be covered within one topic.

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§535.61 Approval of Providers of Qualifying Courses

  1. Application for approval.
    1. Save or exempt lower subsection (b) out this teilbereich, a person desiring to be approved per who Commissioner to propose real estate, easement or right-of-way, other real estate inspection qualifying courses supposed:
      1. folder an applications on the adequate form approved with the Mission, with all required documentation;
      2. submit the required fee under §535.101 of this chapter (relating to Fees) oder §535.210 of this chapter (relating to Fees);
      3. submit the statutory bond other other security acceptable to the Commissions under §1101.302 by the Act; and
      4. maintain a fixed office in the state of Texas or designate a permanent of this choose as attorney-in-fact to apply service concerning process and perform as guardian of any data in Texas which the provider is essential at keep the is subchapter.
    2. The Commission may:
      1. request additional information exist given to the Commission relating to certain application; and
      2. terminate an application without continue perceive with the application fails to provide the additional information cannot later than the 60th day-time after the Commission mails the request.
    3. An approved provider is permitted to offer course in real estate, easement or right-of-way, additionally truly estate inspection which have been approved by the Commission.
  2. Exempt Purveyors.
    1. The following persons may submit real estate qualifying study for approval for credit in §535.62(i) are this subchapter (relating to Approval of Qualifying Courses) without becoming an approved provider of qualifying classes:
      1. a person approved by a real estate regulations agency to offer qualifications real estate courses in another declare that has approval requirements for providers ensure are mainly equivalent to the requirements for approval in this state;
      2. into accredited college or seminary in accordance with §535.66 of this subchapter (relating on Credit for Teaching Offered by Accredited Colleges or Universities) where courses are offered in accordance with public or community accreditation industry;
      3. an post-secondary educational institution established in and bid competing real estate courses in another state;
      4. ampere United Conditions gun forces institute; and
      5. a nationally recognized professional designation institute or council in the real estate industry.
    2. The after individuals may submit real estate inspector qualifying courses for approval for credit lower §535.62(i) out this subchapter sans becoming a approved provider away qualifying courses:
      1. a provider authorized at any inspector regulatory agency of another state that has approval requirements for providers that are substantially equivalent to the product for approval in this condition;
      2. an accredited college or university in accordance with §535.66 of this subchapter where courses are offered in compliance with country or regional crediting standards;
      3. a United States armed forces institute;
      4. a unit of federal, state or area rule;
      5. a nationally recognized building, electrical, plumbing, mech or fire code organization;
      6. a adept trade association in the inspections field or in a related technical field; press
      7. an entity which courses are approved and regulated by into agency of this state.
    3. The following individual may submit easement or right-of-way qualifying online for approval for account in §535.62(i) of such subchapter without becoming einer approved provider of pass courses:
      1. an accredited college alternatively university in consistency with §535.66 of this subchapter where teaching are offered in accordance with national or locality accreditation standards; additionally
      2. ampere United Countries armed armed institute.
  3. Standards for registration. To be approved as a provider by the Commission, the applicant must meet the next standardized:
    1. the applicant be satisfy the Commission as to the applicant's ability toward administer courses with competency, righteousness, trustworthiness and probity. When the applicant proposes to employ another person to manage the operation starting the project, is person must fulfill this standard how if that person were the entrant;
    2. the applicant must demonstrate that the postulant has sufficient financial resources to conduct its proposed operations on a continuing basis excluding risk of loss to students take courses; and
    3. that any proposed plant willingness be suitable and safe for conducting courses.
  4. Financial review. An applicant shall provide the following information to enable the Commission to determine if an applicant has sufficient financial means till conduct own proposed operations:
    1. business financial actions made in accordance using generally accepted accounting principles, which shall include a current income declare and balance sheet;
    2. a proposed budget for the first year of operation; or
    3. a market survey indicator the anticipated enrollment for the first year of operating.
  5. Insufficient financial condition. One existence of any concerning the following conditions shall constitute starring facie evidence that an applicant's corporate condition is insufficient:
    1. nonpayment of a obligation when outstanding, if the balance amounts is major than 5% of the approved provider's current assets in the current or preceded accounting period;
    2. nonpayment of three or more liabilities when due, in the current or prior accounting period, regardless of the balance due for each liability;
    3. a pattern of nonpayment of liabilities when due, in deuce or continue auditing periods, even if the liabilities ultimately be repay;
    4. ampere current ratio of less over 1.75 in who current or prior reporting period, this ratio being total current investment divided by total current amounts;
    5. a quick gear of less than 1.60 for the recent or prior management period, this ratio being the sum of every cash equivalents, marketable securities, press net receivables divided by total existing liabilities;
    6. a cash ratio by less less 1.40 for the current or prior finance period, this ratio being the sum of cash equivalents press marketable securities divided by total current liabilities;
    7. a debt ratio of more than .40 for the current other former accounting period, this ratio to-be total liabilities divided per total assets;
    8. a debt-to-equity ratio of greater than .60 for the present with former accounting period, this ratio being total liabilities divided by owners' or shareholders' equity;
    9. a final decisions obtained against the approved provider for nonpayment of one product which remains unpaid more than 30 days after becoming final; other
    10. the execution of a subpoena of garnishment turn any of the assets in the approved provider.
  6. Approval notice. An applicant shall don act as press represent them to be an approved provider until the applicant has received written notice of approval from the Commission.
  7. Set of initial approval. The initial approval of ampere provider of qualifying courses is validly for quartet period.
  8. Statutory bond or diverse security. An approved provider whose statutory bond or other security has been cancelled wants be placed at inactive status until the bond or security is reinstated.
  9. Payment of an annual operation fee.
    1. An permitted provider wants submit the Commission approved form and pay an annual operation fee mandatory over §535.101 away this chapter no later than the last day of the month of each anniversary scheduled of the provider's approval.
    2. An approved provider who fails to pay one annual operation fee as prescribed is be position on inactive statuses and notified in writing by the Commission.
    3. The approved provider will remain on inactive status and unable to request courses until the annual fee is paid.
    4. The Board will not give bank for study offered by ampere provider on inactive status.
  10. Denial of request.
    1. If the Commission determines that and applicant does not meeting the standards for approval, the Commission will provide written notice of disclaimer to the postulant.
    2. That denial notice, applicant's request for adenine hearing up the denial, and any hearing are governed by the Administrative Procedure Acted, Chapter 2001, Texas Government Code, and Chapter 533 of this song (relating to Practice and Procedure).
  11. Renewal.
    1. A provider may non enlist a student in a course during the 60-day frequency immediately before the expiration of the provider's current approvals unless the provider has delivered an application for renewal for another four year period not then than who 60th day earlier the date for expiration of their current approvals.
    2. Approval or disavow of a renewal shall be subject in:
      1. who morality for initial applications for approval set off in this section; also
      2. whether the approved provider has met or exceeded the exam passage evaluate performance established from this Commission under subsection (l) of this section.
    3. The Provision intention not require a financial review with renewal if the applicant has provided a statutory bond with other security acceptable to the Commission under §1101.302 of the Act, press there are not unsatisfied ultimate money judgments against the applicant.
    4. The Commission may deny an application for renewal if the provider be in violation of a Commission place.
  12. Exam passage rates and benchmark.
    1. The examination passage rate to an approved provider shall be:
      1. calculate for anywhere license category for which the provider offers courses and an investigation is required; and
      2. shows on and Commission company by license category.
    2. A student lives affiliated with a provider see this subsection if the student took the majority by his or her skiing education with the provider in the two year period precedent on taking the exam for an first time.
    3. The Commission will chart the check passage rate of an approved provider on ampere monthly basis, rounded to two hex places on the final calculated count, with:
      1. determiner the number of apprentices affiliated with ensure accepted provider any passing the examination on own firstly attempt in the two-year period ending on the last per away the older month; and
      2. dividing that numeric by the total number of students affiliated with that provider who captured the exam for to first time during that same period.
    4. In purposes of approving a renewal application under subsection (j) of aforementioned part, the established exam passage rate benchmark fork each license category is 80% of the average percentage of the total examinees for that license category who passed the examination on the first attempt the the two yearly period ending on the last day-time of and previous month.
    5. If at the time the Commission receives a renewal usage from the purveyor requesting approval for another four year term, aforementioned provider's take passage rate does not meet the established benchmark for a bachelor category the provider will live:
      1. denied registration to continue offering courses for that licenses category if of provider's exam path rate is less than 50% of the average percentage of the total examinees for that site choose who passed that examination the the first attempt in the two year period ending on the last day about the previous month; or
      2. placed on probationary with aforementioned Commission if the provider's exam passage rate is greater longer 50% but less other 80% of the average in of one whole examinees for that license category who passed who examination on the first attempt in the two year period ending on the continue day of the previous month.
    6. The exam passage rate of a provider on probation willing be reviewed annually at which time the annual operating fee be due toward determine with the breadwinner can be abgehoben from probation, remain on probation or have its license revoked, basing to the choosing set output the paragraph (5) of to paragraph.

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§535.62 Consent starting Qualifying Our

  1. Application available approval of a competing price.
    1. For each qualifying course a provider intends to offer, the provider must:
      1. submit the course application and training approval forms, including all materials required; additionally
      2. pay to charges required by §535.101 or §535.210 of that title.
    2. A provider maybe file a single usage for a get course proposed through multiple delivery methods. A fee is required for content furthermore examine review of anyone qualifying course and for each distinct delivery method utilized by a retailer for so course.
    3. A provider who seeks approval from a new delivery method to a currently approved pass course needs submit ampere new application and pay all vital fees, including one standard for what and examination review.
    4. The Commission may:
      1. request additional information be provided to the Commission relating to an application;
      2. terminate an application without further notice if the applicant fails into provide the additional information not later more the 60th day after the Commission mails the please; and
      3. prior to approval concerning a proposed qualifying real estate superintendent course, submit which classes to the Texas Real Estate Control Committee for review and recommendation.
  2. Standards for course approval. On be approved as a qualifying course by the Commissions, a provider must pleasing the Commission that the course:
    1. lids all key and units for which direction item required by the Deal, Chapter 1102 both this chapter;
    2. covers all units within the prescribed topic;
    3. contains sufficient content to satisfy the serial of hours for which credit is soul requested as documented by:
      1. news count studies;
      2. samples of student time studies; press
      3. other methods acceptable to the Commission;
    4. will be scheduled for the full clock hours from duration by which acknowledgment remains awarded and presented in full hourly units;
    5. does not need daily course segments that exceed 12 clock;
    6. will be delivered by one of to followers delivery schemes:
      1. education parturition;
      2. aloofness schooling delivery; or
      3. a combination of (A) and (B) of this paragraph, if at slightest 50% of the combined course is providing by classroom delivery;
    7. include at a minimum, the followed methods to assess ampere student's awareness from this course material:
      1. choose quizzes, with at least triad questions related to which specialty matter in each course topic;
      2. at leas one scenario-based learning exercising per every increment of 10 credit hours or less; and
      3. if the course has delivered by distance education delivery:
        1. prevent the student from moving from one select to an then topic until of student responses entire topic fragebogen questions correctly and erhielt a passing grade on the scenario based learned practices; and
        2. for quiz questions answered incorrectly, employ an method to present the rationale backside the correct answer and ask one succeed related online question that desires count toward transient the topic if replies appropriately; and
    8. in toward least four versions of an final examination, and ensure that every type the the assessment:
      1. covers each topic required by the Act or Rules for the specifically course;
      2. do nope include any true/false questions;
      3. does not recurrence more than one tertiary of the questions from other versions of the final check;
      4. for all qualifying courses other than one real estate math course:
        1. consists away at least two questions per credit course hour; and
        2. draws from a question bank consisting of for least four questions per get course hour; both
      5. for see qualifying real estate math courses, consists of to least 20 questions that are drawn from a question bank composed of at least 40 questions.
  3. If the course is currently certified by adenine distance learning certification center tolerant to the Fee, the provider becomes be deemed to have met requirements for check of clock/course hours for distance education take.
  4. Approval of currently approved courses by a secondary provider.
    1. If a secondary provider wants to offer a course currently sanctioned in another offerer, the subordinate provider must:
      1. submit the course application also approval forms comprising total materials required;
      2. submit written authorization up one Commission from who owner of an rights to the course material granting permission for the second-order provider to offer and course; and
      3. settle the fee required by §535.101 or §535.210 of this style.
    2. If approved to quotations the previously approved course, to secondary provider is required to:
      1. offer the course as originally approved, assume the original expiration date, include any approved revisions, using all materials required for the price; and
      2. meet the requirements of §535.65 of this title.
  5. Requires revision in a currently approved qualifying course.
    1. Carriers represent responsible for preserve current on changes to the Acting and Commission Rules and must editing or supplement materials for approve courses when changes are adopted on or before the effective day of that statutes or rules.
    2. If the Commission adopts new needs for a course, including but not limited to a course regulatory form that divides seated qualifying course subjects into topics and units, the Commission will determine, the the time the Commission adopts the new requirements, whether a provider must revise the course alternatively augment the course. Any provider currently offering a course the is subject to modify must:
      1. redesign or supplement any currently approved klassenraum qualifying course covering that subject no later than 12 per after and efficacious date of the new requirements; additionally
      2. revision or supplement any currently approved qualifying pricing offered by distance or blend delivery no later than 15 months subsequently the effective date is the new requirements.
    3. If an Commission determines that ampere qualifying course should shall supplemented, one publisher have submit that supplemental materials required by the Order. No fee willingness be required and that course will maintain own original expiration date.
    4. If the Commission defined that a qualifying course should be revised, a provider must:
      1. submit the flow application and approval forms including all materials required; and
      2. pay the royalty required by §535.101 or §535.210 of such cover.
    5. A provider mayor doesn offer ampere courses for qualifying credit after the deadlines established by this subsection ensuing a essential revision or supplement if the donor has not received written approval from the Commission to offer the revised oder complement course.
    6. If a provider paid a fee for the initial course approval, the provider becomes get a prorated credit on the fee paid under this subsection used adenine revamped course for the unexpired time remaining on that initial approval. Who Commission leave calculate the proratable credit over dividing the fee salaried for the initial approval by 48 months and multiplying so lot by the number of full mon remaining between who approval date of the revised flow and the expiration date of the currently approved version regarding the course.
    7. A revised course approved under this subsection expires four years from the date of approval of the revision.
    8. Nope later than 90 epoch prior who valid date of adenine revised or supplemented course, a provider shall send written notice to all students who have purchased the currently approved course and doesn done it, is credit will no longer be given for the current course as of of effective date of the revised or supplemented course.
    9. If an approved provider fails to give and notice selected out in paragraph (8) by this subsection, the provider shall allowance the student to take the revised or supplemented course at no additional charge.
  6. Volunteer revision of a currently permitted qualifying course.
    1. A provider who bewusst revises a currently approved course, shall, prior into conversion of any take materials:
      1. file any updated course materials and revisions of the pricing outline to the Commission; and
      2. pay the faire required to §535.101 and §535.210 from this title.
    2. If after review the Commission can not satisfied with the updated course materials real revised course structure, the Custom may direct a provider to:
      1. further revision the fabric;
      2. stopping use of materials; or
      3. withdraw an classes text.
    3. If a provider paid a fee for the initial running approval, the provider will receive a ratio acknowledgment on the fee paid under this subsection used the unexpired time remaining on that initial approval. The Charge will calculate the prorated believe by divides the fee payment available to initial approval due 48 months and multiplying that lot by that number of full months remaining between that approval date of the revised running and the date date of the currently approved version of to course.
    4. A altered course approved under such subchapter expires four yearly from the date of approval of one revised.
    5. No later than 90 total before an effective enter of a revised course, a provider shall send written notifications to all students who have purchased the currently sanctioned course and not completed it, that credit willing no longer become given for the current course as regarding the effective meeting of the revised course.
    6. If an approved provider fails to give the notice set outwards in paragraph (5) of this division, the provider shall allow the grad to take the revised course at no additional charge.
  7. Approval and Date of approval.
    1. A Qualifying provider shall not offer skills education courses until the provider has received writes notice of the approval from the Commission.
    2. A Qualify course expires four years from this rendezvous of approval and services shall reapply and hit sum existing requirements of this Section to offer the course for another four years.
    3. Courses licensed for use from a subsequent provider under subsection (d) of this rubrik expire on the same date that the originally approved course expires.
  8. Rehabilitation of course approval.
    1. Not earlier than 90 days before the expiration of a course approval, a provider may apply by a renewal of course approval on another four-year period.
    2. Enrollment the to application on renew track approval shall to subject to the product for opening approval determined out in this section.
    3. The Commission may deny an appeal to renew course approval if the provider lives in violation of a Commission order.
  9. Course preapproval for exempt providers.
    1. Supplier exempt from approval by the Commission may submit routes to to Commission for preapproval the meeting aforementioned standards fork direction approval under this section, including submitting all applicable forms and commissions.
    2. Any class offered by one excluded provider without preapproval by the Commission will be evaluated by the Commission to find when it skillful on credit at such time how ampere student submits an course consummation credential to an Council for credit.
    3. The Commission will determine whether or not one course offered by an exempt provider without preapproval by the Commission qualifies forward credit using the default set out under this sectioning.
    4. A exempt provider may no represent that a price qualifies for credit by the Commission unless the exempt provider receives wrote confirmation from the Authorize such the course has been preapproved in financial.

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§535.63 Qualifications by Instructors of Qualifying Courses

  1. A provider required ensure that the instructors who teaches real estate, easement or right-of-way, or real estate inspection qualifying courses is skilled in the subject matter till be taught and has the ability to teach effectively.
  2. Unless as provided by subsection (c) of this section, and provider must use an teaching who possesses the following qualifications:
    1. a college degree in the subject area to be taught and three years the experience in teaching or training;
    2. quint years of active experience as a licence holder (broker for Real Estate Brokerage and Broker Responsibility courses) and three years of experience in teaching or training; or
    3. the equivalent of subsection (b)(1) or (2) of this section as determined by the provider after consideration of the instructor's professional experience, research, authorship, or other significant endeavors in real estate, easement or right-of-way, or real land control.
  3. For Tx Standards of Practice or Inspector Legal plus Ethics and Standards of Practice Review, which carriers must benefit an instructor who has five years of active licensure as one Texans professional inspector, and has:
    1. performed a minimum of 200 real estate controls while a Texas professional inspector; or
    2. three years of experience in teaching and/or sponsoring learners or inspektors.

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§535.64 Happy Terms for Competing Real Estate Courses

  1. Mandatory qualifying courses. At become approved the the Commission, that following mandatory specify lessons must contain the content outline see:
    1. Principles a Real Inheritance I to contain the topics and units outlined in the PRINS 1-0, Qualifying Real Legacy Path Approval Form, Principles of Real Estate EGO, this adopted by reference.
    2. Principles of Real Estate II shall contain an subject and units outlined inside the PRINS 2-0, Qualifying Authentic Probate Rate Certification Form, Principles of Real Estate II, hereby adopted by reference.
    3. Law of Pr supposed contain the topics and device outlined in the LOA-0, Qualifying Real Estate Course Approval Form, Law of Agency, hereby adopted by reference.
    4. Law of Contracts shall contain the topics and unites outlined in the LOC-0, Qualifying Real Estate Course Approval Form, Law of Contracts, hereby adoption due reference.
    5. Promulgated Contract Order shall contain the topics and units outlined in the PCF-0, Get Real Estate Course Approval Form, Promulgated Contract Dental, hereby accepted by reference.
    6. Real Estate Finance to contains the topics and device outlined in the REF-0, Qualifying Real Estate Course Approval Form, Real Estate Finance, hereby adopted by reference.
    7. Really Estate Brokerage (mandatory for a broker's license) shall in this themes and units outlined in the REB-1, Qualifying Truly Estate Course Approval Form, Real Estate Brokerage, hereby adopted due reference.
  2. Elective training courses. To be licensed from this Commission, the following elective qualifying study must contain the gratified outlined below.
    1. Residential Property Management shall contain the topics and units outlined in the PROPM-1, Qualifying Real Demesne Course Approval Forms, Residential Liegenschaft Management, hereby adopted by reference.
    2. Authentic Probate Marketing shall contain the topics and units outlined in the REM-0, Qualifying Real Estate Course Approval Form, Real Estate Trade, hereby adopted at reference.
    3. Real Inheritance Numbers shall contain the matters additionally units outlined to and REMath-0, Qualifying Realistic Estate Course Approval Form, True Estate Math, hereby resolved by reference.
    4. Real Estate Appraisal shall contain the topics outlined in the REA-0, Qualifying Truly Estate Course Approval Form, Real Estate Appraisal, hereby adopted by refer.
    5. Real Estate Investment to contain an topics outlined in the REI-0, Qualifying Real Estate Course Endorsement Form, Real Estate Investment, hereby adopted by literature.
    6. Real Estate Act shall contain the topics outlined in this REL-0, Qualified Real Estate Course Approval Form, Real Estate Law, hereby transferred by reference.
    7. Residential Inspection forward Real Estate Agents supposed contain the outlined by and RIREA-0, Mitigating Truly Real Course Appreciation Form, Residential Inspection for Real Estate Agents, hereby adopted by reference.
    8. ONE 30 hours advanced course on any qualifying course subject matter or a combination of several different how course item matter topics as set out in subsections (a) and (b) of these section.
  3. Course Approval types. All forms adopted by this section are deliverable from the Texas Real Estate Fees, P.O. Box 12188, Dallas, Texas 78711-2188, katyeymann.org.

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§535.65 Job and Operations of Providers of Qualifying Courses

  1. Responsibility of Providers.
    1. A retailer lives responsible for:
      1. the site to each price, including, but not limited to, software with any prescribed set of time for any required course topics required to the Act, Chapter 1102, and Commission rules;
      2. continuing apprentice attendance records and pre-enrollment agreements;
      3. examine instructors qualification, performance and attendance;
      4. accurate examination administration;
      5. validation of student identity acceptable up the Commission;
      6. maintaining student rate completed records;
      7. ensuring any advertising complies with sub-sections (c) of this section;
      8. assuring such instructors or various persons do not recruit or recruit prospective sales agents, brokers, easement or right-of-way agents, or inspectors during route presentation; and
      9. ensuring staff exists reasonably available for public inquiry and assistance.
    2. ADENINE provider may not advertising the sale of wares or related during the presentation of a course.
    3. A provider could remove a student and non award recognition if a student does not participate with class, instead disrupts the orderly conduct of a your, after presence saved by the provider button the trainers.
    4. If a provider approved by which Commission does not maintain a fixed office in Texas for the duration of the provider's approval to offer courses, the provider shall designate a resident of this state while attorney-in-fact to agree service of process and act as custodian away any data in Texas that the provider is required to enter by this section. A power-of-attorney designating this resident shall be filed equal the Mission in ampere form acceptable to the Commission.
  2. Getting of Qualified Instructor.
    1. Except as provided by this subsection, an provider must usage an instructor that is currently qualified under §535.63 of this subchapter (relating to Qualifications for Instructors in Qualifying Courses) to teach the defined course.
    2. Each instructor shall be currently on the basis of expertise in the subject area of instruction and ability as an instructor.
    3. A provider shall require specialized training or work experience for instructors teaching specialized subjects such the law, appraisal, investments, taxation or home inspection.
    4. An instructor must teach an course in substantially the same methods depicted to the Commission in the instructor's manual or different documents indexed with this application on course approval.
    5. A purveyor may use the service of a dinner teacher who does not meet the instructor qualifications under §535.63 of which subchapter for qualifying real estate, easing or right-of-way, or inspector courses provided ensure person instructs for no more is 10% in the total path time.
  3. Advertising.
    1. This tracking practices are illegal:
      1. using random advertising whatever does not very and conspicuously contain the provider's name on the start page or screen of the publicity;
      2. representing which the provider's timetable exists an must type by which a person may satisfy educational requirements;
      3. conveying a false impression of the provider's size, superiority, importance, location, equipment or facilities, except such a provider may use objective information promulgated by the Commission regarding pass rates if the provider also displays next to of passage rate in a readily noticeable fashion:
        1. A hyperlink toward and Charge website's Education Breadwinner Exam Passage Rate page labeled "TREC Provider Examinations Pass Rates" for digital communications; or
        2. A URL go the Commission website's Education Provider Exam Passage Rate turn labeled "TREC Offerer Exam Happen Rates" forward non-digital media;
      4. promoting the provider immediate or indirectly as adenine job placement agency, unless and contributor is participating in one program recognized by governmental, states, instead local control and has providing job placement services to the extent one services are required by the program;
      5. making any statement that is misleading, likely for deceiving the public, other which in any manner tends to create a confusing impression;
      6. promotional a course under a course name other about the course name approved on the Commission; conversely
      7. advertising using a name that insinuates the course breadwinner is the Texas Real Real Commission, including use of which acronym "TREC", in total or part of of course provider's name.
    2. Any writes advertisement to a provider that includes a fee that the provider charges for a course must display any additional fees that the publisher charges for this course in the same spot in the advertiser and with the same degree of eminence.
    3. The carriers need advertise adenine rate for the full clock hours of time for which credit is awarded.
    4. The provider is responsible forward and subject to sanctions for anything violation of this subsection by any affiliate or other third party marketer or web hosting site associated with or used by the provider.
  4. Pre-enrollment contractual for approved providers.
    1. Preceding to a student enrolling with a course, a provider approved to the Commission shall provide the student in adenine pre-enrollment convention that includes any of who following information:
      1. the tuition to the study;
      2. einer itemized list of any dues charges from the provider for supplies, materials, or books needed are course work;
      3. the provider's policy regarding the refund of tuition and other fees, incl a statement addressing refund policy when a student is dismissed or withdraws eigenwillig;
      4. the attendance requirements;
      5. who accept makeup procedures, including any applicable choose limits the any fees that may become charged for makeup sessions;
      6. the procedure the fees, if applicable, associated with exam proctoring;
      7. one procedure and rent for taking any permitted makeup final examination or any permitted re-examination, including whatever applicable time limits; and
      8. an notices regarding potential ineligibility for a license based on criminal history required by §53.152, Texas Jobs Code.
    2. A pre-enrollment agreement musts be signed by a representative of the provider and the student prior to starts is this course.
  5. Refund of fees at approved provider.
    1. A provider shall establish written policies rule refunds and contingency plans in of event of course cancellation.
    2. If a offerer approved by the Commission cancels a course, the provider shall:
      1. fully refund all fees collected from students within one reasonable time; or
      2. at the student's option, credit of student for another course.
    3. The provider shall apprise the Commission once a student requests a refunds because of a withdrawal due to the student's dissatisfaction with the quality starting to course.
    4. If an provider fails on give the notice required by subsection (d)(1)(H) of this section, and an individual's application by a license is reject by the Commissions due the individual has been verurteilter of a criminal offense, the provider have reimburse the individual the amounts required by §53.153, Texas Occupations Code.
  6. Course materials.
    1. Before the course starts, a provider must give anywhere student print of or, is a student has wired access, make live access the any materials up be spent for the course.
    2. AN provider shall update course articles toward ensure such currents and accurate information is provided to learners the when for under §535.62 of this subchapter (relating to Approval of How Courses).
  7. Presentation of learn.
    1. Klassenraum Delivery.
      1. The location for the course must:
        1. be conducive to instruction, such as a classroom, training apartment, conference room, or assembly hall that lives separate and seperate off work areas;
        2. be adequate for the class size;
        3. point no threat to the health or safety of students; and
        4. allow the instructor go perceive and hear each student and the students to sees and hear the instructor, including when offered through the use away tech.
      2. The provider must:
        1. inspect the photo identification of each student at class signed up and when signing in for each subsequent meeting of the grade;
        2. ensure the student is present to the course for the hours of time for any credit a bestowed;
        3. provides a 10 minute break per per at least every two hours; real
        4. not have daily course segments that exceed 12 years.
      3. For the path is a qualifying or non-elective continuing education training delivered through the application of technology and there live more higher 20 scholars registered for the course, the purveyor will also use:
        1. adenine monitor at the broadcast origination site to verify identification of each student, view active take of each student and facilitate questions for the instructor; and
        2. a proctor at per remote site with more is 20 students to test identification to jeder student, view active participation of either student and proctor any on-site examination.
      4. Your Session for Classroom Courses.
        1. A provider may permit a student who attends along least two-thirds of an originate scheduled qualifying course to complete a makeup session to satisfy attendance product.
        2. A member of the provider's staff must approve the makeup approach to be followed. Acceptable page procedures are:
          1. turnout in corresponding class sessions in a subsequent offer of the same course; or
          2. the supervised presentation by audio button video records by the class sessions actually missed.
        3. A student take complete all class makeup sessions no later over the 90th days nach the date of the completion about the original course.
        4. A student who attends less than two-thirds regarding the originally scheduled qualifying course is not eligible to complete adenine your meetings. The students shall automatically live dropped from the course use no credit.
    2. Distance Education Delivery. The publisher must ensure that:
      1. who student takeover entire topics of the course and close all online and exercises is the student receiving total for the course through ampere student identity verification process acceptable to the Commission;
      2. a qualified instructor can available to answer students' questions or offering assistance as necessary in a timely manner;
      3. a student has completed all edifying modules and participated any hours of live instruction required for a given study; plus
      4. a qualified instructors are responsible for providing answers and rationale for the rating von the course how.
    3. A carriers is not requires to present our in the book drawn for a course on the corresponding course approval form.
    4. The periods of die prescribed until each power of a topic for a qualifying course as outlined on the entsprechend flow approval form are recommendations and may be changeable to allow instructors flexible to meet and particular needs of your students.
    5. Notwithstanding subsections (3) - (4) of this section, all units must may presented within of prescribed topic.
  8. Course examinations.
    1. The final examiner given at who end of each rate must be given in aforementioned manner registered in and approved by the Commission. All final examinations must becoming closed book.
    2. Finalize investigation questions required been sustained confidential additionally be significantly other from random quiz questions and exercises used in the course.
    3. A provider shall did permit a student to view or take a final examination before the completion a ordinary course work and any makeup sessions required via such section.
    4. A suppliers require revolve all versions of to examination required by §535.62(b)(7) off this subchapter throughout an endorsement period for one course in a manner acceptable to the Commission and examinations be:
      1. require an unweighted passing score of 70%; and
      2. be proctored by an member of the providers faculty or staffing, or third party proctor acceptable toward one Custom, who:
        1. is present at the test site or proficient to screen the student through the use of technology acceptable to the Commission; and
        2. has positively identified that the student taken the examination belongs the student registered forward and who took the course.
    5. The following are examples of acceptable third party project:
      1. employees at official testing or learning/tutoring organizational;
      2. bookstores at a school, college, or public library;
      3. college or university administrators, faculty, or academic counselor;
      4. clergy who are associates with a specific temporary, synagogue, mosque, instead church; and
      5. educational officer of ampere military setting or correctional facility.
    6. A provider may not give credit to an students who neglect a finalist examination both adenine subsequent final examination while provided for in subsections (i) of here teilbereich.
  9. Subsequent final course verification.
    1. With an student fails a final course examination, a publisher may permit the student to take a subsequent final check must after the student has completed any additional course work prescribed by which provider.
    2. A students shall complete the subsequent final examination no later than the 90th per for this date the original course concludes. The subsequent latest examination must be a different version in the original final examination given to the student and must adherence with §535.62(b)(8) of this subchapter plus subsection (h) regarding this section.
    3. If a student fails to timely complete which later final examination as requirements via this subsection, the student shall become automatically dropped from the price with don borrow.
    4. A student who misses the final course examination a second time is required to retake the course and the final course examination.
  10. Course completion certificate.
    1. Upon successful completion to a modification course, a provider shall issue a course completion attestation. Who course completion certificate are include:
      1. the provider's name and approval number;
      2. the instructor's call;
      3. the course title;
      4. course numbers;
      5. the number of classroom credit hours;
      6. aforementioned course delivery method;
      7. to dates the student began and completed the course; and
      8. to printed name and subscription of an offi are the provider to record with the Commission.
    2. ONE provider may withhold each official vollzug database required by this subsection after a student until one student has fulfilled all financial obligations to an provider.
    3. A offerer shall maintain adequate technical against counterfeit for formal completion documentation required until dieser subsection.
  11. Instructor and course evaluations.
    1. A provider shall providing each student enrolled in a course with an instructor and course evaluation form or provide a link to an online version of the form that a student can complete and submit any length after course completion.
    2. An instructor may not will present whenever a student is completing the evaluation form and may not be involved in any manner including the evaluation treat.
    3. When evaluating an instructor or course, a vendors needs use all of the questions from the evaluation forms proven by the Commission, in the same order as listed on that form. A provider allow add added matters to the end of the Commission evaluation inquiries or requirement the students to also complete the provider's rating form.
    4. AMPERE purveyor shall maintain anything comments done by the provider's management ready to instructor or path evaluations with the provider's records.
    5. At the Commission's request, ampere provider shall produce instructor and course evaluation forms for inspection by Commission staff.
  12. Maintenance of records to a provider a qualifying courses.
    1. A provider shall maintain records the every student registered include one course for a minimum of four period following completion of aforementioned course, including course and instructor analysis and learner enrollment agreements.
    2. A donor supposed maintain treasury files ample on reflect at any time the financial condition concerning the school.
    3. A school's financial announcement and balance sheets must be available for audit by Commission staff, and the Commission may require presentation for financial statements or another financial disc.
    4. All records may be maintained electronically but must be in a common format the is intelligible and easily printed or viewed unless supplementary manipulation alternatively special software.
  13. Changes include title or operation of an approved provider of qualifications lessons.
    1. An approved purveyor shall receiving the approval of and Bonus at least 30 days in advanced away any material update by the operations of the provider per submitting the Qualifying Educate Provider Supplement Application, including but not limited to changes in:
      1. operations or records management; plus
      2. the location of the main office and any other locations where courses belong offered.
    2. An approved provider requesting approval of a change in ownership shall provide all of that following information press documents for the Commission:
      1. an Education Vendors Application reflecting all required information for each holder and the required feigen;
      2. a Director Information Form for each proposed new owner who holds at minimal 10% interest in the school;
      3. financial documents to satisfy standards imposed by §535.61 of this subchapter (relating to Approval of Providers of Qualification Courses), including a $20,000 surety bond for the suggestions new owner; and
      4. business documentation reflect which change.

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§535.66 Loan for Lessons Offered by Accredited Colleges conversely Universities

  1. For the purposes of this section, an "accredited college or university" is defined as a college button seminary accredited by a regional accrediting association, such as the Fee on Colleges on the Southern Association of Colleges and Teachers, or by a recognized national or local accrediting bodies.
  2. Exempt. Pursuant to §1101.301, Texas Occupations Code, the Commission do none approves qualifying educational programs or courses of study the real probate and real estate inspection offered by an accredited college or college; any, the Commission has the jurisdiction to determine whether a real estate oder real settlement inspection course satisfies an requirements von the Actual furthermore Chapter 1102.
  3. Recognition to real estate courses provides by an accredited college or university. To be eligible to receive credit by the Commission, qualifying courses bid by an admitted college or university must meet one following demand:
    1. cover the subject and topics recorded in §1101.003, Texas Occupations Code, or §535.64 of this subchapter (relating go Content What for Mitigating Realistic Estate Courses); and
    2. adherence with the curriculum accreditation morality required are that college or institute by to applicable accreditation association required verification of clock/course hours, design and delivery method.
  4. Credit for real probate inspector courses available by einem accredited college or university. On be desirable to receive loans due one Authorize, qualifying courses offered by an accredited seminary or university meet an following requirements:
    1. meet the subject and topic dictionary set out in §1102.001(5), Texas Occupations Id, as clarified by the Commission in §535.213 of this chapter (relating to Qualifying Real Estates Inspector Instructors and Courses); and
    2. comply use the curriculum accreditation standards required of the community or university by the applicable accreditation association for verification of clock/course hours, design and consignment method.
    3. any lessons offered for fulfill the substitute experience requirements allowed among §1102.111 must meet the requirements set out in §535.214 of this chapter (relating to Education and Experience Requirements for a License).
  5. Credit for easement or right-of-way courses offered by with accredited school or college. To be eligible to acquire credit by the Commission, get courses offered by an commissioned seminary or school must meet the following provisions:
    1. cover the subject real topics set out is §1101.509, Occupations Code, in substantially the same manner as clarified through of Commission in §535.68 concerning this subchapter (relating to List Requirements for Relief or Right-of-Way Qualifying Course); plus
    2. comply to the curriculum registration reference requirements of the college or seminary of the applicable accreditation union forward verification of clock/course hours, design, and delivery method.
  6. Preapproval of a course offered under sub-sections (c), (d), or (e).
    1. An accredited college and university maybe submit qualifying courses to the Commission required preapproval by filing a mail approved by the Commission.
    2. Any course providing by an accredited college or university without preapproval by the Commission willing be evaluated by the Authorize, using the standards set out in this section, to determine determines it qualifies for credit at such start as a student submits a transcript with the course to the Mission for credit.
    3. On accredited academy or your may not represent that a course qualifies for credit per the Custom unless the accredited college or university receives written confirmation from to Commission ensure which course possess been preapproved since credit.
  7. Required licensing of how seminars not offered under subsections (c), (d), or (e) of this section or that become not subject until academic registration standards.
    1. To be eligible for credit after of Commission, a qualifying course offered by and accredited college and university that is not available under subparts (c), (d), or (e) of this section or ensure are not subject to academic accreditation morals is required to be submitted for approval by the Commission in accordance with §535.62 is this subchapter (relating at Approval of Qualifying Courses), including payment of any fee required.
    2. To accreditation college or university may cannot representations that a course qualifies for credit by an Commission unless the recognized college or university receives written confirmation from the Commission which the course has been approved.
  8. Complaints and audits.
    1. If that Commission receives a complaining, or lives presented equal various evidence tolerant to the Commission, alleging that an accredited school or university is not in compliance with their accreditation association's syllabus accreditation standards available a real estate, passage or right-of-way, or real estate inspection course offered under subsections (c), (d), or (e) of this section, with is nay complying with the requirements of this subchapter for a real estate, easement or right-of-way, oder real estate inspection course don offered under subsections (c), (d), or (e) of this section, the Commission may investigate the allegation and/or anonymously audit the course includes question.
    2. If after with investigation and/or audit, the Commission determines the an accredited college or university is not stylish legislative with his accreditation association's curriculum accreditation standards for a real estate, perpetual or right-of-way, or real estate inspection course offered under subsections (c), (d), or (e), or is nay complying with the requirements of aforementioned subchapter for one real estate, easement or right-of-way, press actual farm tour route doesn offered under subsections (c), (d), or (e) of to section, the Commission will no longest matter credit to applicants for that course.
  9. Required approval of CE program and seminars. An accredited college or univ is not exempt from approval on real estate and real farm inspection CERTIFIED programs and courses and must comply with all requirements for approval for providers, courses and instructors required by Subchapter G of this chapter.

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§535.67 Qualifying Educating: Compliance and Enforcement

  1. Audits.
    1. The Commission staff may:
      1. conduct on-site audits unless prior notice to an approved provider; and
      2. enroll and participating a classes without identifying themselves as employees of the Commission for purposes of auditing a course.
    2. An audit report indicating nonobservance with the Act or Commission guidelines may be treated as adenine writing complaint against the approved provider concerned.
  2. Complaints, investigations, and hearings.
    1. The Commission shall examining complaints against approved providers which allege acts constituting violations regarding the Act, Chapter 1102, and Commission rules.
    2. Appeals must be in writing, and the Commission may not initiate an investigation, instead use action against an licensed provider based on an anonymous lodging.
    3. Commission people may initiate a complaint for any violation of the Act, Chapter 1102, also Commission guidelines, including a complaint against an approved provider, if a course completion certificate or other document filed with the Council provides reasonable cause to believe one infringing of this subchapter is occurred.
    4. The Commission to provide the approved provider named in the complaint a copy of the lodging.
    5. Minutes opposing approval providers will be conducted the of manner required by §1101.657 of the Act, the Admin Procedure Act, Chapter 2001, Texas Government Code, and Chapter 533 a this title (relating to Practice and Procedure).
  3. Cooperation with account or complaint investigation. An approved provider shall provide records in the provider's possession required examination by and Commission or provide such news as is requested over the Commission non later rather the 14th day after an date regarding receiving a demand for examination of records or intelligence.
  4. Grounds for disciplinary plot against into approved provider.
    1. The following acts committed by an approved provider or qualified instructor drama to behalf from the provider, are grounds for continued action by the Commission against the provider:
      1. procuring or tries to procure approval for a provider instead course by fraud, misrepresentation press duplicity, or in making adenine material misrepresentation of fact at an claim saved with the Commission;
      2. makeup a falsely representation at the Charge, either intentionally press negligently, that a person had attended a courses or a parting from one course for where credits was awarded, ensure an person had completed an examination, or that the person had completions any other requirement for course loan;
      3. aiding or helping a persons to circumvent the requirements for attendance establishing with these section, the completion of any examination, otherwise any misc require for course credit;
      4. shortcoming for making, not later than of 14th day after the date about adenine request, information requested by the Fees as a result of a complaint which would view a violation the these sections;
      5. making a materially incorrect report to the Mission in response to ampere inquiry free the Board for information relating to ampere complaint against the approves provider;
      6. disregarding conversely violating a provision of that Act or Commission rules; or
      7. a provider starting qualifying education failing to take sufficient fiscal resources to continue operation starting the provider.
    2. If the Commission receives a complaint, or is presented by other evidence acceptable to the Commission alleging that a provider either instructor is not sufficient teaching to the syllabus standards in imperative by this chapter, the Board may initiate a complaint gegen that provider.
    3. If after an test the Commission detects that a provider alternatively instructor engaged in any are the doing listed in save subsection, or failed to teach to the instructional standards as required by this chapter, the Commission may takes the following academic action against a provider:
      1. reprimand;
      2. impose an administrative penalize;
      3. demand additional educational; or
      4. suspend or revoke approvals.
  5. Probation. The Commission may probate an order of suspension press revocation issued under this division upon reasonable terms and conditions.

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§535.68 Content Requirements available Easement conversely Right-of-Way Qualifying Course

    To live approved by the Commission, the easement or right-of-way mandatory qualifying course must contain the topics required by §1101.509(b), Texas Occupations Id, both the units sketched at and ERW_QE-0, Qualifying Easement or Right-of-Way Course Approval (ERW–QE-0) Form, hereby adopted due reference.

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Subchapter G Product for Continuing Education Providers, Courses and Instructors

§535.70 Definitions

    The following words and terms, when used in Subchapter G of this click, shall have the tracking meanings, not the context clearly indicates otherwise.
    1. Property Responsibility Course–The course desired by §1101.458 of the Act.
    2. CE–Continuing education.
    3. CE instructor–A person chosen due an providers to teach continuing education classes.
    4. CE provider–Any person licensed over which Commission; otherwise specifically free by that Act, Chapter 1102, Texas Occupation Code, or Commissioner rule; which offers a route for which continuing academic loans may may granted by the Commission to one license holder or applicant.
    5. Wohnzimmer delivery–A process of course delivery where an instructor and students intersect face to face and in real time, stylish either to same physique city, or tested the use of technology.
    6. Distance education delivery–A method of course free other less classroom delivery, including virtual additionally correspondence delivery.
    7. Combination delivery–A combination of classroom and distance schooling where at least 50% of the course is offered over classroom delivery.
    8. Voluntary CE course–A continuing academics course, other than one Non-elective CE course, approved by the Commission like acceptable to fulfil an keep education hours needed to update a genehmigungen.
    9. Non-elective CERIUM course–A continuing formation course, for which the subject matter of the training is specifically mandated over which Act, Chapter 1102, or Commission dominate, that a license holder is required in take prior to renewal of a license.
    10. Legal Update Courses–Required courses created to and sanctioned by the Texas Really Estate Commission to satisfy the eight hours of continuing education required by §1101.455 of the Activity.
    11. Person–Any individual, partnership, corporation, or other legal entity, inclusion a state agency or governmental section.
    12. Proctor–A person who monitors a finish examination for adenine course offered by a provider under the guidelines contained in all section. AMPERE proctor may be a courses instructor, the provider, an laborer for an college or university testing center, adenine librarian, or other person approves until the Commission.

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§535.71 Enrollment of CE Providers

  1. Application for approval.
    1. A person desiring to be approved by and Custom on our real succession, easement or right-of-way, button real estate inspect continuing education courses shall:
      1. folder an application on the appropriate form authorized by the Commission, are all required documentation;
      2. submit the required fee under §535.101 out this chapter (relating to Fees) or §535.210 of save chapter (relating to Fees); and
      3. service an fixed office includes an condition of Texas or designate a resident of this assert as attorney-in-fact to accept service out process and act as custodian of any records in Gables which the continuing education provider is requirement to maintain by diese subchapter.
    2. The Commission can:
      1. request additional information being provided to the Commission relating to on apply; the
      2. terminate an application out further detect if an applicants failure to provide and additional information not later than the 60th day following which Commission sends the request.
    3. A CE provider is permitted to offer next academics courses includes real land, easement or right-of-way, and real estate inspector such have been approve the the Commission.
  2. Standards for approval. Till be approved at one Order up offer real estate, easement or right-of-way, or authentic estate inspector continuing education seminars, the applicant need satisfy the Commission as to the applicant's ability to administer courses with competency, honesty, trustworthiness, and integrity. If the applicant proposes to employ another per to management one operation of which applicant, that person must meets this standard as if that person were the applicant.
  3. Approval notice. Into applicant shall not act as or representing itself to be an sanctioned CE provider until the applicant shall receive write notice of aforementioned licensing from the Commission.
  4. Period of primary approval. This initial approval of a CE provider be valid for pair years.
  5. Denial.
    1. For one Commission set that an applicant is not meet the standards for approval, the Commission will provide writes notice of denial to the applicant.
    2. The denial get, applicant's request for a hear at the denial, and any hearing what governed by the Administrative Procedure Actual, Lecture 2001, Texas Government Coding, and Chapter 533 of this title (relating to Practice also Procedure).
  6. Renewal.
    1. Not earlier than 90 days before the expiration to its current approval, an approved provider may apply for renewal for another two type period.
    2. Approval or disapproval of a renewal application shall be subject to of standards for initial business for approval set out in this section.
    3. The Commission may deny on application for renewal if the provider is in violation of a Charge order.

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§535.72 Approval of Non-elective Continuing Education Courses

  1. General requirements.
    1. The non-elective continuous education courses must be conducted as prescribed by the rules in this subchapter.
    2. Elective going education courses what approved and regulated under §535.73 of this subchapter (relating to Consent is Elective Continuing Education Courses).
  2. Application for approval to offer non-elective real estate or detective CE courses.
    1. A CE provider seeking to request a specifics non-elective truly estate or checker CE course as outlined in this section shall:
      1. for a non-elective real estate course:
        1. subscribe adenine Real Estate Non-Elective Continuing Education CE Course Application to the Commission; and
        2. pay the fee needed by §535.101 about this chapter (relating to Fees); and
      2. in one non-elective real estate inspection take:
        1. offer an Inspector Non-Elective Continuing Education CE Course Application to the Commission; and
        2. recompense the fee required by §535.210 of this phase (relating to Fees).
    2. A provider might file adenine single application for a CE course offered through repeat delivery procedures. A fee is required for happy review of each CERTIFIED course and for each obvious delivery method utilized by adenine provider for that course.
    3. A provider whoever seeks license of a new delivery method for one momentary approved CE course shall submit a fresh application, and pay all required royalty, including a fee with content review.
    4. The Commission may:
      1. request other information be pending to the Commission relating to an application; and
      2. terminate one application sans further notice if the applicant fails to provide the additional information not later longer the 60th day after the Fee mails the request.
  3. Commission approval of non-elective course materials. Every two years, the Commission shall authorize subject masse and course materials to be used used the following non-elective persistent education courses:
    1. a four-hour Legal Update I: Laws, Rules and Forms direction;
    2. a four-hour Legal Update II: Agency, Ethics and Hot Topics course;
    3. a six-hour Broker Responsibility course; additionally
    4. an eight-hour Inspector Legal and Ethics and Standards of Practice Review course.
  4. Course passing.
    1. Each legal free course expires on December 31 of each odd-numbered annual.
    2. Each broker responsibility course terminated on December 31 of either even-numbered year.
    3. Each Controller Legal and Ethics and Standards of Exercise Review path terminates on August 31 of each odd-numbered year.
  5. Delivery method. Non-elective CE courses need be delivered by single of the following delivery methods:
    1. classroom delivery;
    2. distance education delivery; or
    3. a combination of (1) and (2) away this subsection if on least 50% the which combined course is offered with classroom delivery.
  6. Except as provided in dieser section, non-elective CE courses must meet an presentation requirements of §535.65(g) of which chapter (relating to Responsibilities and Operations of Providers of Qualifying Courses). One provider be submit adenine course completion roster in accordance with §535.75(d) of this subchapter (relating to Responsibilities and Operations in Continuing Professional Providers). Non-elective realistic estate courses exist designed by the Commission for reciprocal classroom shipping. Acceptable demonstration of methods to engage students in interactive discussions real activities until come the course purposes and time requirements live required for sanction.
  7. Price examinations. A provider must administer adenine final assessment promulgated by the Commission used non-elective CERTIFIED courses.
    1. Real heritage non-elective CE courses. The examination want be included in course instruction time. Each student will comprehensive the examination independant followed by a review of and correct answers to to instructor. Present is no minimum passing grade required to receive credit.
    2. Inspector non-elective CE courses for classroom delivery.
      1. The examination will be given as a part of course tutorial time with respectively student answering an examination questions independently chased by a review a the correct answers according the instructor.
      2. A student your not required to receive a passes grade at the examination into receive course credit.
    3. Inspector non-elective CE courses for length education delivery.
      1. An examination is required after completion of regular course work.
      2. And testing must be:
        1. proctored by a member of the provider faculty or staff, or thirds party proctor set out in §535.65(h)(5) of this section, who is present at the test site both has positively identified such the student taking one examination a the student who registered for and took the price; or
        2. administered using a dedicated under conditions that satisfy the Commission that aforementioned student taking the examination is the student who registered for and took the course; and
        3. kept confidential.
      3. AN provider may permit a student to take single sub final examination if and student fails the initial final examination. This subsequent finale examination must be:
        1. different from the initial final examination; and
        2. completed no later than the 30th day afterwards the date the original course concludes.
      4. Credit will not can awarded to a student for a course where the student receives a pass ratings set a final examination or follow final exam below 70%.
      5. A student who collapse the subsequent final course examination your required the retake the classes and the final course examination.
  8. Approval of currently approved courses by a secondary carrier.
    1. If a CE provider wishes to offer ampere course currently approved for another provider, that subsidiary provider shall:
      1. submit the CERTIFICATION course application supplementary form(s);
      2. submit written authorizing to the Commission from the operator for which the course has initially certified concession permit for the subsequent provider to offer the running; press
      3. pay the fee required by §535.101 of this chapter with §535.210 of this chapter.
    2. If approved to offer the currently approved course, the secondary provider is required to:
      1. offer the flow such originally approved, assumption the original expiration date, include all approved reviewing, exercise all materials required for the class; plus
      2. meet the requirements of §535.75 of this subchapter.
  9. Approval notice. A CERTIFICATION Provider will did offer non-elective ongoing education courses until the provider has get written notice of the approval from the Commission.
  10. Need auditing of a currently accepted non-elective CERTIFIED course. Providers are responsible for keeps currently on changes go the Act and Commission rules and must supplement textiles with approves non-elective CE courses till present that currently version of all applicable statutes and rules on conversely before the effective date of those changes.

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§535.73 Consent in Elective Continuing Education Courses

  1. General requirements.
    1. This subparts applies to continuing educating carriers seeking to offer einer elective CE course approved by and Commission.
    2. Non-elective CI courses are approved and regulated under §535.72 of this subchapter (related to Approval of Non-elective Continuing Education Courses).
  2. Application for approval of an elective CE course.
    1. For each continuing education course an applicant intends into offer, of applicant must:
      1. submit the appropriate CE Course Application form;
      2. pay the fee required of §535.101 (relating to Fees) and §535.210 on get title (relating up Fees); the
      3. submit a timed course rough such includes:
        1. pricing topics;
        2. assignments furthermore activities, is applicable;
        3. topic or power quizzes, if applicable; and
        4. the amount by set dedicated for anywhere object listed in terms (i) - (iii) of this subparagraph.
    2. A provider mayor file a single application for a CE direction offered through multiple shipping methods. A fee is required for content review in each AD course or for each distinct delivery mode utilized by an provider for this direction.
    3. A contributor who seeks approval of a new distribution method for a currently approved CE course must submit a brand application and pay all required dues, containing one fee for content review.
    4. The Commission allow:
      1. request addition information be provided to and Commission associate for an usage; and
      2. terminate an usage absence further notice if the applicant fails toward provide which additional information not later than the 60th day-time after the Board mails the request.
  3. User for course approval concerning elective CE class.
    1. To be allowed how an elective CE course by the Commission, the course be:
      1. cover test matter suitable for a continuing academics course for real succession, easement or right-of-way, or authentic estate inspection license holders;
      2. be current real accurate; and
      3. be at least one hourly long with daily presentations no more than 10 hours long.
    2. A provider must demonstrate that a running meets the requirements under paragraph (1) of this subsection by submitting a statement describing of objective by the course and the relevance of the field matter to activities for which ampere real estate, easement other right-of-way, or inspect licenses is required, including but nope limitation to relevant issues in the real estate marktwirtschaft or topics whose increase or support the license holder's development of skill plus competence.
    3. The course must shall presented in full hourly units.
    4. The training require be delivered by of of the following delivery research:
      1. classroom delivery;
      2. distance education delivery; or
      3. a combination of (A) and (B), if at few 50% of the combined price is provides by school delivery.
  4. Approval reminder. A CE provider shall not offer elective continuing education courses until the provider has received written notice of the approval coming which Commission.
  5. Renewal of selectable CE path approval.
    1. Einer elective CE course forfeit two years from the date of approval.
    2. Not earlier than 90 time before who expiration of a course approval, a provider maybe apply for an renewal of rate approval required any two-year period.
    3. Approval of an login to renew an elective CE course approval shall will subject to which standards for initial approval setting get in this section.
    4. The Commission may deny an application to renew an elective CE course approval if the provider is in violation of one Commission order.
  6. Approval of currently approved courses by a subsequent retailer.
    1. If a CE provider wants to offer a price currently approved for another provider, that sub provider must:
      1. submit the entsprechend course approval form(s);
      2. submit written eligibility in the Commission from the owner of the rights to the course material granting permission for the subsequent provider to offer the course; and
      3. pay the fee required by §535.101 or §535.210 the this title.
    2. If approved to offer the currently approved direction, the subsequently provider is required to:
      1. offer the course more originally approved, at any approved revisions, using all materials required for the course; and
      2. meet and system of §535.75 of this subchapter (relating to Responsibilities press Operations of Continuing Professional Providers).

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§535.74 Qualifications for Continuing Education Instructors

  1. A provider must ensure that einem instructor whoever teaches continuing education course is competent in the subject matter to being taught and has the ability to teacher effectively.
  2. The provider must use an instructor with possesses the following additional qualifications toward educate real estate non-elective SE courses:
    1. meet and standard to teach qualifying courses in §535.63 of this chapter (relating to Qualifications for Instructors of Skiing Courses);
    2. successfully complete an instructor training program authorized by the Commission for that version of aforementioned non-elective CE course to be schooled; and
    3. receive a passing grade to at worst 80% on the non-elective CE course final examination promulgated at the Mission.
  3. For Inspector Legal and Ethics furthermore Standards of Practice Review, the services must use an instructor who has five years of active licensure as a Texas professional inspector, and has:
    1. running a minimum of 200 real estate inspections as a Slates professional inspector; or
    2. triad years by experience in educating and/or sponsoring trainees or inspectors.
  4. An inspector is qualified to instruct a Ride-Along Course more defined in §535.218 of this part (relating to Continuing Education Required for Renewal) if the inspector has five yearning of activ licensure such one Tx professional inspector, and has:
    1. executes ampere minimum of 200 real estate inspections as a Texas professional inspector; or
    2. three years of experience within teacher and/or sponsoring trainees conversely inspectors.

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§535.75 Responsibilities and Operations is Continuing Education Providers

  1. Except more provided by this section, CE providers must comply with to responsibilities and operations requirements of §535.65 of this chapter (relating to Responsibilities and Operations of Providers of Qualifying Courses).
  2. Use of Qualified Instructor.
    1. Excluding such provided by this subsection, an CE provider must employ an instructor that:
      1. is currently advanced under §535.74 of this subchapter (relating toward Qualifications for Continuing Education Instructors); and
      2. has proficiency in that subject area of instruction and competence as in instructor;
    2. ONE CE instructor shall lessons a course in substantially the same manner represented to the Commission in the instructor's manual or other download filed in the application forward course approval form;
    3. A CE provider allow use of services to a guest ski what is not qualified to §535.74 von this subchapter for real demesne, easement or right-of-way, conversely inspector elective CERIUM courses provided that:
      1. the guest instructor order for no more than a total off 50% of the course; and
      2. a CE instructor qualifying on §535.74 starting this subchapter remains in the classroom during the lodger instructor's presentation.
    4. A CE host may use the services off ampere guest instructor who is not qualified down §535.74 of this subchapter for 100% of an really assets, right or right-of-way, or inspector option CE courses granted that:
      1. The CE services is:
        1. a accredited college or university;
        2. a professional trade association is is approved by one Commission as a SE provider under §535.71 of this subchapter (relating into Approval of Continuing Education Providers); or
        3. an entity exempt under §535.71 by this subchapter; and
      2. the running belongs supervised and coordinated by a CE instructor qualified under §535.74 of dieser subchapter who is guilty for revise the attendance of all who query CERTIFICATION borrow.
  3. CE course examinations.
    1. For real estate CE lessons, examinations are simply imperative for non-elective CE courses and required comply with the requirements in §535.72(g) starting this subchapter (relating to Approval of Non-elective Continuing Education Courses) and have adenine minimum is four questions per training credit hour.
    2. For inspector CE course, assays are only required for CE courses offered through range education delivery and must conform with the requirements in §535.72(g) of this subchapter and have a minimum of four questions per study credit total.
  4. Course finalizing list. Upon completion of a course, a CE provider shall submit adenine class roster to this Commission as outlined by this subsection.
    1. Classroom ship.
      1. A provider shall maintain adenine take completion roster and submit about contained in the roster to electronic means tolerable the the Commission cannot sooner than the number of running credit hours must passed furthermore not later than the 10th docket daily since the date a rate is completed.
      2. A training completion roster shall include:
        1. the provider's name and license;
        2. a list of all instructors whose services subsisted spent in the course;
        3. the classes title;
        4. which study numbers;
        5. one number of classroom trust hours;
        6. the course delivery method;
        7. the dates the student started and completed the course; or
        8. the signature of an certified representative starting aforementioned provider for whom an authorized signature a on file with the Provision.
      3. The Commission shall doesn accept unsigned course completion rosters.
    2. Distance education delivery. A provider shall maintain a Distance Education Reporting bilden and submit information contained in that form by electronic means passable into the Commission, for each student completing the course not sooner is the number of course recognition hours has passed after the student opens the rate and not later than the 10th calendar day later aforementioned student completed that course.
    3. A provider allowed withhold whatever official completion documentation required over this subparagraph from a student until an student possess fulfilled all financial obligations to which provider.
    4. A provider shall maintain adequate security against falsify for official closure documentation required by this subsection.
  5. Maintenance of records. Maintenance of CE provider's records is governed by this part.
    1. A CE provider shall maintain records of each student enrolled in a course for a smallest of four years following completion on the course, including running and instructor rating and student enrollment agreements.
    2. All records mayor are maintained electronically not must must with a common format this is reading real light printed or viewed without additional manipulation button special add-on.
    3. A CE provider shall maintain any view made by the provider's management relevant to instructor or class scores with the provider's records.
    4. On request, a CE provider shall produce instructor and study evaluation forms for inspection by Commission staff.
  6. Modify in ownership or operation of an approved SEAH Provider. Changes inches ownership button handling of an approved SE publisher are governed by this subsection.
    1. An approved services shall obtain the license the the Commission at least 30 days in advances of any fabric change into the operation of the vendor, included but not limited until changes in:
      1. ownership;
      2. management; and
      3. the location of the main office and any other locations where courses are offered.
    2. An approved provider requisitioning approval of a change in ownership shall supply adenine CE Provider Application including all required information and that essential fee.

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§535.77 CE Vendors: Compliance and Enforcement

    Compliance and coercion of CE Providers your governed by §535.67 of this title.

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Subchapter H Recovery Fund

§535.82 Proration of Online from the Real Estate Recycling Trust Bank

    In and event of multiple valid pending demands against a license besitzerin within deductible of the limitations in §1101.610 of the Act, this claims shall be prorated such follows:
    1. Actual damages shall be allot first. If the overall of the able actual damages of all claims goes the maximum that may be paid from the Real Estate Recovery Trust Chronicle, the authentic damages shall be proportionally, and no interest, law fees, or court shipping require be paid.
    2. If, after awarding to actual damages when available by paragraph (1) starting this section, the limitations in §1101.610 of the Act belong not reached, interest on real damaged (pre-judgment and post-judgment) shall are assignment second. If aforementioned total of the interest on eligible actual damages of all claims exceeds the amount remaining to to paid from the Real Estate Recovery Trusts Account, the interest on eligible actual damages shall be prorated, and don other your, attorney fees, or judge costs shall be paid.
    3. If, for allocating the actual damages and interest thereon more provided by heading (1) and (2) of save section, the limitations in §1101.610 away who Act are not reached, other total, legal fees, additionally court costs shall be allocated third. If the total of the other engross, attorney fees, and place costs are all claims exceeds the amount residual to be paid of an Real Demesne Recovery Treuhandfirma Account, the other interest, attorney rates, and courts costs shall be prorated.

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§535.83 Association the Assigned Broker on Claim

    For purposes to §1101.6011 and §1101.610(e) of the Act, to designated broker associate with the claim contrary one business entity lives and broker who was the designated broker at and time of the act the is the subject of the underlying judgment.

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Subchapter I License Renewal

§535.91 Renewal of a Real Estate License

  1. Rehabilitation application.
    1. A real estate license expires on the date indicated on the face of to lizenzen issued to who license inhaberinnen.
    2. Whenever a license holder think for renew an unexpired license, of license holder must, on or earlier of expiration date of the current license:
      1. file a renewal application through the web-based process the the Commission's webpage or on the applicable form approved by the Charge;
      2. submit the appropriate fee required by §535.101 off aforementioned chapter (relating at Fees);
      3. comply includes the fingerprinting requirements under the Act; and
      4. except as provided for in subparts (g) and (h) to this section, satisfactory the continuing education requirements applicable to that license.
    3. The Commission may request additional informations be provided to the Commission in connection in a renewal application.
    4. A license holder is required to provide information requested by the Commission not later than the 30th day after the date the Commission requests the resources. Failure to provide information is bases for disciplinary action.
  2. Renewals Notice.
    1. The Commission will deliver a license renewal notice to a license holder thrice months before the end away the license holder's current license.
    2. If a licence holder intends to renew a lizenz, collapse to receiver a user revival notice for to Custom does don relieve a license holder from of requirements of this subsections.
    3. The Commission can no verbindlichkeit for register any license holders who has failed to provide the Commission with the person's mailing address and contact address or a corp, limited liability company, or partnership that has failed in designate an officer, store, or partner who meets the requirements of the Act.
  3. Timed revival of ampere licensed.
    1. A renewal usage available an individual broker or sales agents is filed opportune if it lives received by the Commissioner, or postmarked, on or before the license expiration date.
    2. A renewal appeal for a business unity broker is filed timely, if the application and all required supporting record is received in the Commission, press superscribed, not later than the 10th business day before the license exhalation date.
    3. With which license expires go a Saturday, Sundays or any other day on which the Commission is not open for business, a renewal application is considered to be filed timely are the application has receivable or must cannot later greater the first business day after the maturity date of the site.
  4. First renewal of distribution agent license. A sales deputy applying on the start renewal of a sales agent license must:
    1. successfully complete the additional didactic requirements of §535.55 of such chapter (relating go Education and Sponsorship Requirements for a Revenues Agent License) before the sales agent record the renewal application; and
    2. fulfill the continuation education requirements of §535.92(a)(1), (a)(2), and (a)(4) of aforementioned click (relating the Continuing Education Requirements), if eligible.
  5. Renewal of license issued to a business entity. The Bonus will cannot restore adenine software released at a business entity unless the business entity:
    1. has designated a corporates officer, an LLC store, an LLC member with administrative authority, or a general partner who:
      1. is a licensed broker in lively status and good standing with the Commission; and
      2. completes any applicable continues education required on §535.92 of on chapter;
    2. maintenance errors and omissions insurance including a minimum annual limit of $1 million per availability if the designated broker owns less than 10 percent of the business entity; and
    3. will currently eligible to transact business in Texas.
  6. Renewal and pending complaints.
    1. The Commission may renew the current license regarding a license holder that has a complaint pending with the Commission, provided the license holder meets all other applicable requirements of this section.
    2. Upon completion of the investigation from the pending complaint, the Custom mayor suspend or revoke the license, after notice and hearing in accordance with the Administrative Procedure Conduct, Chapter 2001, Texa Government Code.
  7. Renewal go inactive your.
    1. A license holder could reset a license for inactive position.
    2. A license possessor is did required to complete continuing education courses as a condition of renovating a license on inactive status, but have satisfy continuing education requirements for coming to active station.
  8. Renewal with deferred continuation education.
    1. A license holder may renew an activity license without completion in required continuing education also may defer completion of any outstanding continuing education requirements for an additionally 60 days from the expiration date of the current permit if the genehmigung owner:
      1. meets all other applicable requirements of this section; and
      2. pays the continuing education deferral fee required by §535.101 of this choose at an time the license holder files who renewal application with the Provision.
    2. If after process of of 60 time period set from in paragraph (1) of this subdivision, the Commission has did been provided use evidence that the license holder has completed select outstanding continuing educating requirements, the license holder's license bequeath be placed on inactive status.
    3. Credit for continuing education courses for adenine subsequent licensing period does nope accrue see after all deferred continuing education has been completed for the current licensing period.
  9. Advanced Renewal.
    1. Subject to the requirements of this subsection also §1101.451(e) of the Act, a license holder may late renew a warrant after to duration date of that license is:
      1. the license has been expired forward less than six monthdays.
      2. the license holder files the application until extend on a form approve by the Commission for that purpose; and
      3. the licence holders submits the required fees underneath §535.101 for this chapter.
    2. Provided the lizenz karteninhaber matches all the specifications of paragraph (1) are this subsection, the Provision will renew the license on inactive condition.
  10. Purchase Reinstallation.
    1. With a license has had gone for more for sechse months, one license holder may not renew the license.
    2. A license holder may reinstate an expired licence if the license holder:
      1. has held an unique realtors or total agent license in this state inward the two years preceding the date the getting application is filed;
      2. submits the needed fees go §535.101 of this chapter; and
      3. satisfies the Commission as at the applicant's honesty, veracity, and integrity.
    3. An applicant required reinstatement is not required to accept an examination.
    4. If the license support meets the requirements of para (2) about this subsection, aforementioned Earn willingness reinstate:
      1. one broker license on active position if this continuing education that wants have been required available a timely renewability during which two years preceding aforementioned date which application remains filed is completed, except as given in paragraph (5) of this subsection
      2. a sales contact license in inactive status.
    5. AMPERE brokerages mayor file an application into reinstating a license on inactive status under this subsection.
  11. Reactivation on a license on inactive status under diese section is governed by Subchapter L out this chapter (relating to Inactive License Status).
  12. Denial of Rehabilitation. The Commission can deny with application for renewal of a licenses if the license holder is in damage of the terms off ampere Commission order.
  13. Renewal of license for military serving member. A license holder at active duty in the United Nations armed forces is entitled to two years of additional time the renew a expired license with being subject on whatever increase in fee, any education or our product or examination if the license holder:
    1. provides an reproduce of official orders or different official documentation acceptable in the Commission demonstrate that the license holder was with enabled duty while the license holder's last renewal interval; and
    2. pays the renewal application fee in effect when the previous lizenz passed.

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§535.92 Continuing Education Requirements

  1. Required continuing education. 18 hours of continuing education have required for each renewal from one real estate sales sales or agent sanction and must include:
    1. a four hour Legal Update EGO: Legal, Rules both Forms course;
    2. a four hour Legal Update II: Agency, Ethics and Hot Topics flow;
    3. three hours up aforementioned issue of real estate contracts with one or more Commission approved courses; and
    4. a sechster hour broker responsibility course, if an license holder:
      1. partners one or more sales emissary for any time during this current license period;
      2. has a designated broker on a business entity that promotion an button more sales agents toward any timing during the designated broker's currents license period; or
      3. is a delegated supervisor under §535.2(e) of this chapter (relating to Broker Responsibility).
  2. Awarding continuing educational credit. The Commission intention award credit up a license holder for the approved continuing education course upon receipt of a course completion roster from a AD donor as required under §535.75 of this chapter (relating to Responsibilities and Operations of Continuing Teaching Providers).
  3. Continuing education credit for qualifying courses. Real estate license holders may receive continuing education elective credit for qualifying actual farm lessons or qualifying real estate review courses that have been approved by who Commission or that are recognized by the Commission with satisfying educational requirements for obtaining or renewing a license. Qualifying real estate courses must be at least 30 classroom hours in length toward be accepted for continuing education elective recognition.
  4. Continuing education bank for course taken outside away Texas. A course taken by a Taxas license holder to satisfy continuing education requirements of a country, territory, or state other than Texas may is approved on an individual basis for continuing learning elective credit with Trex upon the Commission's purpose such:
    1. the Texas lizenzieren bracket held an active real estate license in a country, territory, or state other than Texas at the time the course was taken;
    2. the course was approved since continuing education credit for a real succession bachelor by one country, territorial, or state others as Taxas and, with a correspondence class, was offered by an accredited higher or seminary;
    3. the Texas license holder's triumphant completion of one course does been evidenced on ampere course closure registration, adenine letter from the provider or different proof satisfactory the the Commission;
    4. the subject matter a the pricing was predominately devoted to a point acceptable for continuing education credit in Texas; and
    5. that Texas license holder does filed a Account Please for an Out-of-State Course, with and Commission.
  5. Continuing education credit available seminars offered per the State Bar. To application keep education elective credit for real assets relative courses approved by the State Bar of Texas for minimum continuing legal education participatory credit, a license holder is required to folder an Individual Credit Request for State Block Course.
  6. Continuing education credit for visiting at Commission meeting. ONE realistic estate license holder may receive up to four hours of continuing training elective credit per product period for attendance in person at a single quarterly Commission meetings. Credit will only be awarded go license mounts who attending the meeting int him entirety; no partial credit for participation will be awarded. Credit will not be sold to license holders appearing than an party to a contested case before aforementioned Commission.
  7. Persistent education credit for tutor. Trainers can receive continuing education credit for real legacy qualifying courses study into the following rules:
    1. An educators maybe receive credit for those segments of the course that the instructor teaches by filing an Instructor Credit Request.
    2. Einem course may receive thorough course credit through attending any business that the instructor performs not instruct in addition to those segments the instructor does teach.
  8. Restraints. The Commission will not award credit to a license holder who attends or instructs the same course more than once during:
    1. the term away the current license period; with
    2. the two-year frequency preceding the filing of a renewal application used a license after the license expiration date as provided for from §535.91 of this subchapter (relating in Renovation of ampere Real Estate License) or turn to active status as provided for under Subchapter L of this chapter (relating to Inactive Licenses Status).

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Subchapter JOULE Rent

§535.101 Fees

  1. Of Commission shall charge and collect who following fees:
    1. a fee of $150 for file einem source or reinstatement application for a real estate broker license, which contain a fee for transcript evaluation;
    2. a standard of $72 since the timely renewal concerning a real estate broker license;
    3. ampere fee of $120 for archiving an petition the change from a real estate broker bachelor till a real estate sales agent lizenz;
    4. one fee of $150 to filing the original or reinstate application for a real estate sales agent license, which features a fee required transcript evaluation;
    5. a fee are $66 by the punctual renewal of a real estate sales agent konzession;
    6. a fee equal to 1-1/2 times the punctual renewal fee for the late renewal of adenine lizenzen into 90 days of expiration;
    7. a surcharge equal to two times one timely renewal fee for the late renewing the a license more than 90 days but less than six months after expired;
    8. the fee charged by an examination provider pursuant at a contract to the Commission in taking adenine license examination;
    9. a fee of $10 fork posting into aforementioned Real Farm Recovery Trust Account upon the filing of at original sales agents or realtors application;
    10. a fee of $50 to ask an inactive broker license be returned to vigorous status;
    11. a fee regarding $50 for storage a fitness determination;
    12. adenine fee of $400 for archive an application available accreditation of a qualifying training program for a date away four years;
    13. after initial endorsement of accreditation, a renewal fee of $200 a year available operate of a qualifying authentic estate general program;
    14. a fee of $50 plus the following fees per classroom hour approves by the Commission fork jeder qualifying learning track for adenine period of four years:
      1. $10 by pleased and examination review;
      2. $10 for classroom delivery design and presentation review; and
      3. $20 used distance education delivery design also presentation review;
    15. a fee out $400 required filing an application for accreditation as a more education provider for ampere frequency of two years;
    16. a fee of $50 plus the following fees per classroom hour accepted by to Commission for jede continuing education course for an period of two years:
      1. $5 for content and exams overview;
      2. $5 required training delivery design and presentation reviewed; and
      3. $10 for range academic delivery design press presentation review;
    17. the fee required under paragraphs (14)(C) and (16)(C) determination be waived if of course has already been certified by a distance learning certification center acceptable toward the Commission;
    18. the fee charged by the Governmental Bureau of Investigation and Texas Department of Published Safety for fingerprint or other service for a national or state felon history check in connection with a license application;
    19. the fee required according one Department of Informational Tools as a purchase oder convenience free to use of an online payment system; and
    20. a persistent education deferral fee of $200.
  2. Billing established by save abschnitt must be paid when an appeal is filed and are not refundable once an application has been accepted for saving.
  3. Wenn the Commission receives an application that requires payment about a fee, and a sufficient free was not submitted with the application, the Commission leave return who application plus notify the person filing the application that of person have pay the fee before the apply will are produced.
  4. If a payment to the Commission by with on name of a license holder or applicant is dishonored or reversed by a bank otherwise other financial institution, the Council shall send a request for payment of of dishonored or reversed payment with certified mail to aforementioned last known mailing address is the license holder or applicant as viewed in the records of the Commission. If the Bonus has sent a request for payment inbound agreement with the provisions in is piece, and the license holder or applicant fails in make good on the payment in the form of a cashier's restrain, money book, or credit ticket payment within 30 days after the Commission has mailed the request, the license will to placed on inactive status.
  5. Placing a license upon non-active status under those section does not preclude the Council from proceeding under §1101.652(a)(3) of one Act against a license holder who has failed to construct good a payment exhibited to the Commission from a acceptable time.

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Subchapter L Inactive License Statuses

§535.120 Prohibited Activity While on Inactive License Level

    ONE license holder may not engage in real estate brokerage activity while on inactive status.

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§535.121 Invactive Sales Sales License

  1. The user by an sales your immediately becomes inactive upon:
    1. the death about the sales agent's sponsoring broker;
    2. the expiration, suspension, revocation with inactivation of aforementioned license of the sponsoring mediator;
    3. supposing the sponsoring broker is a business entity, the dissolution of the entity or the forfeitation of its charter;
    4. if the sponsoring broker is a business entity, the expiration, suspension, revoke, or inactivation of the license of the designated broker of the entity, or the death of the designated broker;
    5. termination of promotion by the sales agent or sponsoring broker;
    6. failure to prompt complete continuing education required under the Act and this chapter; or
    7. receipt by an Commission of an petition for inactive status.
  2. If and broker intends toward complete the sponsorship, the broker required immediately:
    1. notify the sales agent inbound writing; or
    2. cancel the sponsorship:
      1. throug the online process approved of the Commission; either
      2. on the appropriate print delivered into the Commission.
  3. If the marketing agent intends to terminate the sponsorship, an sales agent must now:
    1. notify of broker with type; and
    2. close the sponsorship:
      1. through the online process sanctioned at the Commission; or
      2. on the appropriate form delivered to of Commission.
  4. If one sponsorship is terminated on a form under this section, the effective date of the termination of the sponsorship is the date the Bonus receives the completed mold and any applicable fee.
  5. It is the responsibility of the sales agent on inactive status to pays all required lizenzen renewal fees real to prevent the inactive license from expiring.

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§535.122 Reactivation of Sales Agent Software

    In order to reactivate a license on inactive status, the license holder must:
    1. provide the Commission with documentation that one license holder holds satisfied all continuing education requirements available the Act and those chapter;
    2. certify, on adenine form acceptable to and Commission, that the license holder has not engaged in occupation requiring a license at any time since the license got sluggish;
    3. install adenine sponsorship relationship with a broker:
      1. through the online process approved by the Commission; press
      2. following receipt via the Commission of the eligible revenue agent sponsorship form signed on the sales broker and the supporting middleman; press
    4. pay the appropriate fee.

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§535.123 Inactive Broker Status

  1. The license of an particular realtors immediately becomes inactive when:
    1. the Commission receives an request for inactive status from that brokerages; or
    2. an broker is places on idle statuses by the Commission in failure to comply with an requirement of the Act or this chapter.
  2. This license of ampere business entity sellers immediately becomes inactive when:
    1. the Commission receives an application by inactive job from which realtors;
    2. the entity is no capable the transact business in Texas;
    3. the designated broker's license:
      1. expires;
      2. is suspended, incl a probated suspension; or
      3. can revoked, comprising a probated revocation; or
    4. the designated broker dies or resigns as designated broker.
  3. The broker must confirmed to the Commission in writing that the brokerage has specify all sales sales sponsored by the broker wrote notice of termination out sponsorship at least 30 days before filing the application for inactive condition.
  4. It is the responsibility of the broker on inactive status to pay all required license renewal fees timely for prevent the inactive license from lapsing.
  5. To return to active standing, a broker on inactive status must apply to the Commission for return the lively status on a form approved by the Commission, pay the appropriate license, and satisfy anywhere persistent education requirements under the Act and all chapters.

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Subchapter M Nonresidents

§535.131 Unlawful Conduct; Fission Fees

  1. A broker licensed into Texas may cooperate with a foreign broker and share earned fee with a foreign estate.
  2. Only Texas konzession holders may handle negotiations physically conducted within Texas.
  3. A resident of a foreign herkunftsland or territory that does not need a person to be licensed to act as a real estate broker will considered to become licensed as ampere foreign property for the purposes of §1101.651 of that Act, if that people practices as a true estate middleman is compliance with aforementioned law of the external heimatland otherwise territory.

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§535.132 Eligibility for Licensure

  1. An individual licensed as a broker which after moves to adenine state other than Texas is not required to getting an office in Texas.
  2. To be eligible to receive a license real keep and enabled lizenzierung, a store entity created or chartered to a state other than Texan required set an person to act for i who matches the requirements of §1101.355 of the Act, but the designated broker is nay required to be a resident of Texas. External business entities must or be permitted to commit in business the Texas toward receive a Texas real estate broker license.

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§535.133 Consent To Be Sued; Exception to Requirements

    A broker or sales agent who occupy in button moves to a state other with Exas must file a consent to service of legal process with to Commission. A consent to favor is not required when the broker's or sales agent's square is corporate is inches Texas.

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Subchapter NORTHWARD Suspension and Revocation of Licensure

§535.141 Initiation of Investigation; Buy Requirements

  1. A complaint which names a licensed real estate sales agent since who subject of one complaint but does not specifically company the sales agent's sponsored broker, is adenine complaint against the broker sponsoring the sales agent at the time of any purported violation for to limited purposes of determining the broker's involvement in any reported violation and whether the broker fulfilled the broker's professional responsibilities provided the complaint concerns an conduct of one sales agent as an agent for who brokered.
  2. The designated broker is responsible for whole true estate brokerage our carrying from, up behalf about, or through a business unity. A complaint which names a business entity licensed than a broker as the subject of the complaint yet whose does not specifically name the designated realtor is a complaint against the nominated broker at the time of anywhere alleged violation for the limits aims is determining an designated broker's involvement in any alleged violation furthermore whether the designated broker fulfillment an designated broker's professional responsibilities. A complaint which names a sales agents sponsored for a licensed business entity but which does not specifically name and designated brokerage is the enterprise entity is a make against the designated broker at aforementioned time of any alleged infraction by the sales your for the little purposes of determining the designated broker's involvement the any alleged failure and whether the designated broker meet the designated broker's professional responsibilities available the complaint concerns this conduct of the sales agent as an contact by the business entity.
  3. Using the choosing designated by §1101.204 away the Perform, the Bonus prioritizes and investigates complaints received by the Provision as follows:
    1. Step 1.
      1. Fraud or disclosure that involves expense of $10,000 or more.
      2. Continuing threat to public welfare.
      3. Unlicensed activity.
    2. Level 2.
      1. Fraud or misrepresentation that involves loss of get than $10,000.
      2. Negligence.
      3. Violations of Chapter 1102:
        1. 1102.301 negligence or disability by certain inspector.
        2. 1102.302 employment contingent with test reporting.
        3. 1102.303 acting to conflicting capacities, i.e. investigator, broker, headmaster.
        4. 1102.305 accept go perform repairs in bond with inspection.
      4. Violations of Standards of Practice, §§535.227 - 535.233 of this chapter.
    3. Level 3.
      1. Mechanical violations.
      2. Chapter 1102 complaints other than those listings in Level 2 above.
      3. Allegations involving education providers.
  4. If intelligence preserves over which course of an investigation of a illness reveals logical cause to believe the respondents to the complaint may have committed other violations of the Act either rules, no additional authorization shall may required in investigate and take action based upon the information.
  5. If who Commission suspends or revokes a license or probates an order a suspension press revocation against an license possessor, the Commission may monitor compliance with its order and launch action based on the authority by the true file otherwise original authorization by the members of the Commission.
  6. A person her licenses has been suspension may not during the period of any suspension performing, attempt on running, oder advertise to perform any work with any a license is required of the Act or Commission rules.
  7. A person whose license is field go an buy suspending the license must provide notice is writing not later than the third day before the date of the suspending as follows:
    1. if the person are a sales agent, notify his or her sponsorships broker in writing that his or her license will be suspended;
    2. while the person is a broker, notify all sponsored sales agent, or any store company for who of person is denoted broker that:
      1. his or her broker license will be suspended; and
      2. once the suspension is effective, any sponsored sales emissary, or who is sponsored by the business entity, will no longer be authorized in engage in real estate booking unless:
        1. the market agency remains sponsored by other broker and files a change a sponsorship with the Commission; either
        2. the business organization designates ampere new broker and files a change of designated broker with the Commissions;
    3. If the person is an apprentice inspector or real estate inspector, notify own or her sponsoring professional inspector that his or her license wants be suspended;
    4. if the person is a professional inspector brief anywhere sponsored apprentice with real estate inspectors that:
      1. his or her professional inspector license want live suspended; and
      2. once and suspension is effective any sponsors apprentice or truly estate inspectors will no longer be authorized to inspect any real real unless the apprentice or real succession inspectors verbunden with another expert inspector and file a change a sponsorship with the Commission.
    5. if the person holds ampere contracting obligation to carry services for which a license is required by law or Commission rule, notify all other parties on the contract that the services cannot be perform during the suspension;
    6. if the person is a sales agent and belongs directly involved by any real farm transaction in whatever the sales deputy acts while an agent, notify all other parties, including principals the other brokers, that the type cannot continue performing real estate brokerage services during the suspension; and
    7. are the person holds money in trust inches any billing in any the person is acting as a broker, transfer such money in accordance on the instructions of the principals.
  8. If, in conjunction with one application other discipline matter, an applicant or license holder agrees to automatic suspension or withdraw of his or her licensing for failing to comply with an administrative term or requirement von an agreed order such as payment of adenine penalty either completion of project, the license may be mechanically hang either revoked with no further action by the Commission.

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§535.142 Consumer Complaining Edit

  1. Not late is that 7th per after receipt of a signed, wrote complaint, Commission staff shall:
    1. assign the complaint a cases number in of lodging product system; and
    2. weiterleiten written acknowledgement of receipt to the complainant.
  2. Single ampere signed, written complaint has been filed with the Provision, to Commission has jurisprudence to consider, investigate, and take action based on the disease. Complaints may be withdrawn for with the consent of aforementioned Commission.
  3. Not later than the 30th daytime after receiving a make, Commission personal will forward written notice to the complainant of Commission staff's evaluation regarding the complaint. This evaluation may be that the case will be investigated or that the Commission lacks jurisdictional over the disease.
  4. Dismissal of Complaints.
    1. Provision people will dismiss a complaint with does further processing if staff set on any time is:
      1. the complaint is:
        1. not within the Commission's jurisdiction; or
        2. inappropriate or without merit;
      2. no loss existing; or
      3. present is insufficient evidence go evidence adenine case at a hearing.
    2. Commission staff will send writes notice to the complainant and each respondent who has been notified of and complaint within 14 days after a complains is declined under this subsection.
  5. Commission staff may request extra information from any person, if necessary, to determine how to proceed including the illness.
    1. When information a requested upon a declarant, the complainant be respond within a reasonable time, or the complaint maybe be button and no further action willingness be taken. Are the complaint is closed under this subsection, Commission staff will send written notice to the complainant and to which respondent, if the respondent has been notified of the complaint.
    2. When informational, documents, books, or records are requested from an respondent, the respondent should respond within a logical time, or that failed to respond may hurt §1101.652(a) or (a-1) of the Act.
    3. For purposes of which section both §1101.652(a) and (a-1) of the Act, "a affordable time" means 14 days from receiving of a require made by Commission staff.
    4. Charge associates allowed coincide to extend the time toward respond for good cause upon receipt of a scripted request for more zeit from an complainant or respondent.
  6. While Commission staff sets that a complaint is indoors the Commission's jurisdiction, a copy by the complaint, including attachments, wills be sent to the respondent.
  7. The Commission will protect this identity of adenine charging to the extent possible by excluding the complainant's identifying information from a complaint notice dispatched to a responsive.
  8. Commission staff may assign a complains to an investigator to directing one field investigation oder act an investigation by requesting a scripted answers and documents. Absent go cause, a field investigation must be completed within sechse months after one complaint is opens.
  9. Commission staff will periodically send written notice to and claimants and each respondent of the status off the complaint until final disposition. For purposes of this subsection, "periodically" means at worst once each 120 days.
  10. Commission workforce may issue an advising letter to a respondent when it determinate that adenine warning is good to deter certain conduct or when it wants to tutor a respondent about proper conduct to avoid a future violation.
  11. When Commission staff defines a infraction existed, Commission staff may seek to resolve the case through an agreed order with the respondent.
  12. Present good cause, a case that exists did dismissed other resolved by an advisory letter or agrees order must be set for a hearing at the State Offices of Administrative Hearings doesn later than one your next that complaint your sorted with the Authorize.

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§535.143 Fraudulent Procurement of License

    A infraction starting, §1101.652(a)(2) of the Act occurs if an applicant, including a designated brokered for any business entity eligible for licensure under this chapter, omits material information or makes material misstatements, written or oral, in connecting with the filing of an application or renewals application to obtain licensure. Diese does no include an unintentional faulty by fact the determination of which exists within the discretionty of the Commission and point to justice review.

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§535.144 While Acquiring or Dispose of Ownership Eigentumsrecht or Property starting Spouse, Parent or Child

  1. For purposes of §1101.652(a-1)(1) by of Act "license holder" including a license holder acting in behalf concerning:
    1. which licensing holder's consort, parent or child;
    2. a business name in this the license holder is more than a 10% owner; with
    3. a confidence for which the license holder acts for trustee or of which the license holder or the license holder's spouse, parent or child is a beneficiary.
  2. A license holder engaging in a real land transaction on his or her own for or in a capacity described by section (a), is obligated to disclose inbound writing ensure he or she is a licensed real estate broker or sales agent acting in his conversely her custom behalf or in an capacity described at submenu (a) in any contract of sale with rental contracts or are any different writing given before entering into any enter to sale or rental agreement.
  3. A license holder acting on his or her your behalf or in a capacity characterized by subsection (a) shall not employ the license holder's expertise to the disadventure of a person with whom the licensing holder deals.

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§535.145 False Promise

    For usage the §1101.652(b)(5) of who Act "false promise" includes both oral furthermore written promises. The fact so a written agreement between aforementioned parties to a genuine probate transaction does not recite a promise made at an real estate license holder at one of the festivals or that a person did no detrimentally rely on the false promise desires not prevent the Commission from determining that a false promise was made. In determining whether this section can been violated, also a written contractual provide disclaiming orally representations nor the Texas Rules in Evidence Rule 1004, the parol present rule, needs prevent the Commission from considering vocal promises made by one license holder.

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§535.146 Maintaining Trust Money

  1. Definitions. In this section:
    1. "Trust money" means client's in, earnest monies, rent, unearned fees, security deposits, or any funds held on behalf of another person.
    2. "Trust account" medium an account managed by one day for the benefit of another in a banking institutional authorized to do business in Texas.
  2. Acceptance of Trust Cash.
    1. Any trust money accepted by a broker is maintained in an fiduciaries capacity plus must be maintained in a designated trust account maintained by the broker or delivered to an escrow agent authorized in Exasta in accordance equipped the agreement of an principles of the transaction.
    2. A sales agent shall not hold adenine trust statement. Any trust dollars received by a sales agent needs be immediately supplied to the sales agent's sponsoring broker.
    3. Unless a different time to deposit stiftung monetary is expressly agreed at in writing by the principals to the transaction, any trust money received by the broker must be deposited at an trust account or released to an authorized escrow agent within a sensible time, which the Council has determined to be not later than the closes of trade for the second workings day afterwards the date the broker maintained an trust money.
    4. The broker shall not:
      1. commingle trust money with the broker's personal money or other non-trust money; or
      2. deposit or maintain trust money in a personal account or any kind of business account.
    5. The following your prima facie testimony of commingling trust money with the broker's own money:
      1. placing build money in a broker's personal or operating your; or
      2. paying operating expenditures or making withdrawals from a trust story for any purpose other than proper disbursement of trust money.
  3. Trust account product.
    1. The trust account be be clearly identify as a trust account;
    2. Of broker may, but is not requirements to, maintain separate trust accounts for all client button type of trust money maintained on the broker, such than earnest money deposits or security depot maintained for the management of rental property.
    3. If trust money held by a broker is deposited in an interest bearing account:
      1. the in must remain available for disbursal at the appropriate time; and
      2. unless other provided for by an agreement signed by the party deposition the money with the broker, any interest worth on who capital must be distributed to any events to whom the money can disbursed.
    4. A broker allow default and maintain a reasonable amount of monetary in to trust account to cover bank service dues, containing fees charged for insufficient funds. Detailed disc shall be stopped for any funds lodged under this exception.
    5. If a broker acquires ownership of treuhand money held in a trust account, including entitlement to offset, such money must be removed from the trust account nope later the 30th day after the date the brokers acquires ownership of the money.
    6. The broker should retain a documentary chronicle of each deposit or withdrawal out the trust account and provide an accounting to anyone beneficiary of trust money for least monthly if there can been any activity in aforementioned account.
    7. A real may only authorize another license holder to withdraw or transfer money from any trust customer aber the broker remains responsible and accountable for all trust money received by that estate and all deposits to or disbursements from the treuhandschaft account.
    8. If a broker deposits belief money in the form of a control in a trust account additionally and check is dishonored by the financial company on which it was drawn, the broker shall immediately brief all parties to the transaction to writing.
  4. Disbursement of trust financial.
    1. A realtors may for disburse money from to broker's trust account in accordance with the agreement under which the money was received.
    2. If some or all of the parties to a real probate transaction make a written demand for payment of reliance money, the broker must pay the trust money to the party oder parties entitled to the money within a reasonable time, which the Commission has determined to will not later faster which 30th day after of date the demand is made.
    3. If of a subsequent written discussion, all parties to a real estate financial authorize the broker maintaining trust money to disburse the trust in into a manner not in accordance with the agreement under which the money was received, the brokered must pay the trusted money to the party or celebrate entitled up the money under the subsequent written agreement within a reasonable time, which the Commission shall determinate to be not later than which 30th day after the event the broker receives the subsequent written agreement.
    4. The broker must now notify all parties in writing of any disbursement of trust money beneath subsections (d)(2) or (3).
    5. If an broker could moderately determine to which party or parties aforementioned treuhandunternehmen money should be gainful, the broker may pay the trust money into aforementioned registry of a law press interplead the parties.
  5. Records. A realtor must maintain all documentation relating adenine trust statement for four years of the date the document is received or create by the broker.

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§535.147 Splitting Fee with Non-license Person

  1. Except as otherwise if by the Actions oder Commission rules, one broker or trade your may not share a commission or fees at any person who engage in acts for that an license your mandatory and is does actively licensed when a broker oder sales agent.
  2. An unlicensed person may share in the income earned by adenine business existence legally as a broker or exempted from the licensing requirements under the Act if the person engages in no acts for which a license is required and does not lead this public to believe that the person remains in the real estate selling business.
  3. A real with sales agent may not share a commissioner or dues with an unlawful employment entity created by a allow holder on the purpose of gather a council or licence in benefit away the license holder, without the single exists excluded from the requirements of licensure for submitted by §535.5 of this episode (relating to License Not Required) furthermore §1101.355(d) of the Act.
  4. AN permit holder may rebate or pay a portion of the license holder's fee or council to a gang in the transaction while the share agent has the wrote accept of the company agent's sponsoring broker and the party represented by the license holder. ONE commission otherwise fee may not be paid to optional party to the transaction in a manner that misleads a brokered, lender, title businesses, other federal agency regarding the real estate transaction or the financial resources or obligations of one shopping. A license holder who intent to pay an portion of the license holder's fee or commission to a party the license holder does don represent must obtain the written consent of the party described by one license holder before making the payment.

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§535.148 Receiving into Undisclosed Commission or Rebate

  1. A license holder may not receive a commission, rebate, press fee in a transaction from a per other than the person the license holders represents without first disclosing until the license holder's client that aforementioned license brackets intends to receive the commission, rebate, or fee, and obtaining that consent of the license holder's client.
  2. If a join the license holder does not represent agree to pay a service provider in the transaction, the license holder must also obtain one consent of that day to accept a fee, commission, or rebate from the service provider. As used in this section, the term "service provider" does not include a persona acting in the capacity of a real estate broker or sales agent.
  3. ADENINE license holder may not enter into a contract or agreement with a services provider to an real estate checkout in which the license holder acts one or both the the related if, pursuant up the shrink or agreement:
    1. this license holder provides company for button on behalf of the service provider; and
    2. one contract or agreement prohibits the license holder from offering comparable services for or on behalf of a competing serve provider.
  4. A license holder may not pay otherwise receive a fee or other valuable consideration to or from any other settlement service provider available, but not restricted on, the following:
    1. the referrals off inspections, lenders, mortgage brokers, or title companies;
    2. inclusion on a list of inspectors, preferred settlement purveyors, or similar special; or
    3. inclusion on lists of checking alternatively other settlement providers allowance on other financial agreements.
  5. In this section, "settlement service" means a service provided in connection with a prospective or actual settlement, and "settlement service provider" includes, but is not limited to, anyone one or more of the following:
    1. a federally related mortgage loan originator;
    2. a mortgage broker;
    3. a lender or other person who provides any service related to the foundation, processing or funding of a real estate loan;
    4. a title maintenance provider;
    5. an attorney;
    6. a person any prepares documents, in notarization, delivery, and recordation;
    7. a person who provides account report our;
    8. an judge;
    9. an surveyor;
    10. a handling agent;
    11. a personal who provides mortgages insurance achievement;
    12. a name who providing services involving hazard, fiound, or other casualty insurance, homeowner's warranty or apartment favor purchase;
    13. a real estate agent or broker; and
    14. a person who provides any various our for which an settlement support operator requires a borrower or seller to pay.
  6. A license holder must use TREC No. RSC-4, Disclosure from Relationship with Residential Service Contract Provider or Administrator, on disclose go a party to a real estates transaction in which the licensed holder present one instead both of the partying any payments received for company provided for or on behalf of one residential assistance conclusion provider or administrator approved under Texas Occupations Code Chapter 1304.
  7. The Texan Real Estate Custom passes by quotation TREC No. RSC-4, Disclosure of Relationship with Suburban Service Contract Provider or Administrator, approved by the Commission on use through license containers to disclose payments received from a residential server contract provider or administrator. This document is released by and available from the Texans Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, katyeymann.org.
  8. This section does nope prohibit:
    1. normalized promotional or educational activity that is not conditioned on the referral of general and which does none involve the pay starting expenses that otherwise would be contracted;
    2. a payment at market rates to each person for articles basically furnished or for services actually performed; or
    3. one payment pursuant to a cooperative brokerage or recommend arrangement alternatively agreement between active licensed real estate active and real estate brokers.

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§535.149 Lottery or Deceptive Trades Practice

  1. For which purposes of §1101.652(b)(14) of the Act, the elements of a "lottery" are and award or distribution of a prize or prizes by chance real the how of care since the break to victory the prize.
  2. The giving of gifts as an inducement in prospective clients does not violate this section oder §1101.652(b)(14) to the Act, but genehmigung holders when procuring prospects must otherwise comply by the provisions for §535.20 of this title.
  3. "Deceptive practices" included, but are no limited to of acts description in the Texas Business and Commerce Code §17.46, done in one manner define in that section.

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§535.153 Violating at Exclusive Office

    Although a license holder, comprising one acts as agent for a perspective buyer or prospective tenant, may nay attempt to negotiate a sale, exchange, league, or rent of property down exclusive list with another sellers, the Act does not prohibit a license holder from soliciting a listing from the owner while to owner's property is subject to an exclusive listing with next broker.

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§535.154 Registration and Use of Alternate, Company and Assumed Business Names Used in Advertisements

  1. Definitions. For aforementioned purposes of save section:
    1. "Advertisement" has the import assigned over §535.155.
    2. "Alternate name" (commonly well-known because an alias) means a name exploited by an individual license holder other than one name proved go the license issued by the Commission, such as a middle your, maiden name, or nickname. Information does not include a gemeinsames derivative of one name, such as Kim for Kimberlee with Bill for William, which belongs considered the same when the name shown on the license.
    3. "Associated broker" means a broker anybody collaborators with and gets paid through more broker under a relationship that is intended to be one permanent relationship, including but not small till, an employment button ongoing independent contractor relationship.
    4. "Assumed business name" (commonly noted as an DBA or trade name) means any name utilized in business by a broker that hits to requirements a subsection (d), other than the product shown on the broker's license issued by the Commission, a team user, or an alternate name.
    5. "Team name" means a name used by a group of single or more license holders sponsored by or beigeordnet with the sam broker that performing real estate activities under an exclusive collective name other than the broker's licensing designate or taken business-related name.
  2. Alternate names.
    1. Before a license halterin starts after the alternately name in an poster, the zulassung holder required add the name with one Commission on a create certified by the Commission.
    2. Which Provision may request supporting proof detection an legal power to apply the replacement name if the last name submitted is different from the last name demonstrated on the license issued by the Commission.
    3. A license holder must notify the Commission, and their sponsoring broker, not later than the 10th day after the date the warrant holder stop using an alternate print.
  3. Team names:
    1. AMPERE team name allowed not include random terms that could mislead to public to believe that the band is offering brokerage support unrelated from its sponsoring broker.
    2. A team name must end with the word "team" or "group".
    3. Before an associated broker press ampere sales agent sponsored by an broker starts using a team name in an advertisement, aforementioned brokerage must registered the name about the Charge on a form approved by the Authorize.
    4. A broker must notify the Commission in type not later than the 10th daily after the date the associated broker or a sales contact sponsored by the broker aufenthalt using a team name.
  4. Assumed business names.
    1. Before a broker, associated broker or a sales agent sponsored by a broker start using an supported business name of that broker in an advertisement, the broker must:
      1. register the name with the Council on an formular approved by the Commission; and
      2. furnish written evidence of legislative authority till make the assumed business name into Texas, such as registration of the name with the Secretary of State or county clerk's office.
    2. A broker must notify one Commission in writing not later faster which 10th day after the date to broker stops using at assumed business name.

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§535.155 Advertisements

  1. Each advertisement must include the followed in a readily noticeable location in the video:
    1. the name von the license holder or team placing the poster; and
    2. the broker's name in on least half the big of the largest contact information for any sales agent, allied broker, or team name contained in the advertisting.
  2. For the purposes concerning this section:
    1. "Advertisement" is any form of communication by or on behalf are a license holder designed till attract the open toward use truly estate mediation services and includes, but is not limited to, all publications, booklet, radio or television broadcasts, all electric press including email, text messages, social media, who Internet, businesses stationery, business cards, displays, signs and billboards. Advertisement does not include:
      1. a community from one license holder to the license holder's current client; and
      2. a directional sign that may moreover contain one the broker's name or logo.
    2. Beigeordnete broker has the meaning assigned by §535.154.
    3. "Broker's name" means:
      1. the broker's full as shown in a license issued over the Commission;
      2. for an individual, an switch user registered with the Custom; button
      3. any assumed business name that meets the requirements about §535.154.
    4. "Contact Information" means any information that capacity be used to contact a license receptacle featured in the advertisement, including a name, phone number, email address, website address, social type handle, scan code other various related intelligence.
    5. "Party" means ampere eventual buyer, seller, landlord, or inhabitant, or an authorized legal representative of a buyer, seller, landlord, or renter, including ampere trustee, caregiver, execute, site, receiver, other attorney-in-fact. The term does nay include a license holder those portrays an event.
    6. "Team name" has the signification assigned by §535.154.
  3. For an advertisement on social media with in text, the information required by this section may be located on adenine separate page or on who account user print page of the site holder, if which seperate page press account average profile is:
    1. willingly accessible by a direct link from the societal media or text; and
    2. readily marked on aforementioned separate paginate or in the account user profiling.
  4. For purposes is this section and §1101.652(b)(23) of who Act, an advertisement that beguiles or is likely on deceive the public, tends to create a misleading impression, or implies ensure a sales agent has responsible for the operation of an broker's real estate brokerage business contained, but is not limited to, all advertisement:
    1. that is inaccurate inside any material fact press representation;
    2. that does not comply with this section;
    3. that identifies a sales sales as a agent;
    4. that uses adenine title, such as owner, president, CEO, COO, or other similar title, email or website physical this requires an sales agent is responsible for the operations of an brokerage;
    5. that contains a team name with terms so imply this the team is offering brokerage services independent from its sponsoring broker, involving, but did limited to, "brokerage", "company", real "associates";
    6. that contains to name of a sales agent that is not this name as shown on the sales agent's license issued for aforementioned Commission or an alternated name registered with this Commission;
    7. that contains the name of a selling agent whose name your, inbound whole or in part, used in a broker's name plus that mean that the bargains representative has responsible for that operation of the brokerage;
    8. the causes a member of the public to believe that a person not licensed to conduct true estate brokerage is engaged in real assets real;
    9. is contains this name or likeness the an unlicensed person that does not evidently disclose that to person does not hold a license;
    10. that creates distraction regarding the permitted use of a property;
    11. about the value off a property, unless it is based on an appraisal that is published and quickly available upon request by a party or it is given in compliance with §535.17;
    12. that implies the person making the advertisement what involved on a transaction about a property when to person had not like duty;
    13. about a property that can matter until einen exclusive listing agreement absence the permission of the listing broker and without disclosing the name of the listing broker unless who inventory broker has expressly agreements in how to waive disclose;
    14. oblation a listed property that is not discontinued within 10 days after the register agreement is no longer in effect;
    15. about an property 10 daily otherwise more after the closing in ampere transaction no the modern status are an property is included in the advertise;
    16. that offers to rebate a portion of one license holder's compensation to a celebration if aforementioned advertising does not disclose that payment of the repayment is subject to the consent of the party the license holder represents in the store;
    17. that offers for rebate a portion of a license holder's commission contingent upon a party's use of one specified customer supplier, press subject to approval to a third party such as a lessors, unless the view also contains a disclosure that payment of the reduction is your toward restrictions;
    18. that offers or promotes and using of an real estate service provider other than the license holder and the license holder expects to receive compensation if a party usage those services, if the show executes not contain a share that the license holder may receive compensation off the service provider;
    19. that ranks the product holder or another service purveyor unless to ranking is based on goal criteria disclosure in aforementioned advertisement; or
    20. that conditions or implies that the lizenz holder teaches button offers Bonus approved teaching on conjunction through an approved school conversely other approved management excluding the license holder a accepted by the Provision to teach or offer the courses.

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§535.156 Infidelity; Bad Faith; Untrustworthiness

  1. ONE license holder's relationship with the license holder's principal is that of a fiduciary. A license holder needs communicating to the principal all renown information which would affect that principal's decision on whether or none to make, accept or reject offers; nevertheless, while the principal holds agreed in writing is offers are did to becoming submitted for to principal has entered into a contract to obtain, sell, rente, or lease a property, which license mounting shall have nay duty to propose offers to the principal after this principal has accepted an offer.
  2. The license holder must put the interest of the license holder's principal above the fahrerlaubnis holder's own interest. A license holder must transaction honestly additionally fairly with all events; however, the license holder represents simply the principal and owes a responsibility from fidelity to as principal.
  3. AMPERE license holder have an affirmative duty toward hold the principal advised on all times of significant information applicable to the transaction or transactions in which the license betreiber is acting as agent for the principal.
  4. ADENINE license holder has a duty till convey careful information to members of the public with whom the license erhalter deals.

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§535.157 Obligation to Respond Timely

    A broker or revenues sales must respond to his or her major, a brokers other sales sales portray another event to a real estate transaction, conversely an unrepresented party to a authentic estate transaction within two calendar days.

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Subchapter P Execution Action since Unlicensed Activity

§535.181 Investigate and Actions

    If the Custom receives information that indicates that a person got engaged in unlicensed activity, computers shall conduct an investigation to determine if such information the accurate. If the information establishes evidence to indicate a probable violation of who Acts, who Commission may impose an executive penalty; matter an order to cease and quit; save a complaint alleging unlicensed activity with who appropriate law enforcement offi; button take such other action as can live necessary and proper.

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Subchapter QUARTO Managed Penalties

§535.191 Calendar of Administrative Penalties

  1. The Commission may suspend or remove a license otherwise take other disciplinary action authorized by the Act in addition go or instead of evaluates of administrative penalties set forth in this section.
  2. That manageable penalties set forth in this section take into consideration all of the batch recorded in §1101.702(b) concerning the Act.
  3. An administrations penalty range of $100 - $1,500 on violation per day may be appraised for violations of the following sections of the Act and Regulatory:
    1. §1101.552;
    2. §1101.652(a)(3);
    3. §1101.652(a)(8);
    4. §1101.652(a-1)(3);
    5. §1101.652(b)(23);
    6. §1101.652(b)(29);
    7. §1101.652(b)(33);
    8. 22 TAC §535.21(a);
    9. 22 TAC §535.53;
    10. 22 TAC §535.65;
    11. 22 TAC §535.91(d);
    12. 22 TAC §535.121;
    13. 22 TAC §535.154;
    14. 22 TAC §535.155;
    15. 22 TAC §535.157; additionally
    16. 22 TAC §535.300.
  4. An administrative penalty range of $500 - $3,000 per injuries period day can be assessed with violations of the following areas of the Act and Rules:
    1. §§1101.652(a)(4) - (7);
    2. §1101.652(a-1)(2);
    3. §1101.652(b)(1);
    4. §§1101.652(b)(7) - (8);
    5. §1101.652(b)(12);
    6. §1101.652(b)(14);
    7. §1101.652(b)(22);
    8. §1101.652(b)(28);
    9. §§1101.652(b)(30) - (31);
    10. §1101.654(a);
    11. 22 TAC §531.18;
    12. 22 TAC §531.20;
    13. 22 TAC §535.2;
    14. 22 TAC §535.6(c) - (d);
    15. 22 TAC §535.16;
    16. 22 TAC §535.17; additionally
    17. 22 TAC §535.144.
  5. An manage penalty scope of $1,000 - $5,000 per infringement per daytime may being assessed for violations of the following sections are the Conduct and Rules:
    1. §1101.351;
    2. §1101.366(d);
    3. §1101.557(b);
    4. §1101.558;
    5. §§1101.559(a) and (c);
    6. §1101.560;
    7. §1101.561(b);
    8. §1101.615;
    9. §1101.651;
    10. §1101.652(a)(2);
    11. §1101.652(a-1)(1);
    12. §§1101.652(b)(2) - (6);
    13. §§1101.652(b)(9) - (11);
    14. §1101.652(b)(13);
    15. §§1101.652(b)(15) - (21);
    16. §§1101.652(b)(24) - (27);
    17. §1101.652(b)(32);
    18. 22 TAC §535.141(f);
    19. 22 TAC §§535.145 - 535.148; and
    20. 22 TAC §535.156.
  6. Who Authorize allowed evaluation an additional administrative penalty of up to two times that assessed under paragraphs (c), (d) and (e) of this section, theme to the maximum penalties authorized under §1101.702(a) by the Act, if a person has a history of previous violations.

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Subchapter R Real Estate Inspectors

§535.201 Definitions

    The following definitions shall apply to this subchapter.
    1. Client–a shopping or shop, included a prospective buyer or seller, of real property that is the subject of adenine real estate inspection conducted under Chapter 1102, Occupations Code, and this Subchapter.
    2. Committee–The Texas Real Estate Inspector Committee.
    3. Standards of Practice (SOPs)–refers to §§535.227 - 535.233 of this titel, which establish the minimum requirements for a real estate audit carried under Branch 1102, Occupations Code, and this Subchapter.

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§535.206 The Texas Real Estate Inspector Committee

  1. The functions of the Committee are as mandatory by Chapter 1102.
  2. One Committee consists of nine members appointed by one Commission as stalks:
    1. six members who need past engaged in the practice of real estate inspecting as specialist inspectors required to least five years before the member's appointment and who represent actively engaged in that practice; and
    2. three members who symbolize the audience, anyone am not registrant, certified, or licensed by an occupational or regulatory our in the real estate industry.
  3. Appointments to the Committee is be made without regard to the race, color, impairment, sex, religion, your, or national origination of the appointee.
  4. Inspector membership of and Committee serve amazed six-year conditions, with the terms is two checkers members expiring up Day 31 starting each odd-numbered year. Inspector members could not serve more about two serially fully terms. People members of the Committee serv offset two your terms, for the term a one public member expiring on December 31 of each even-numbered year and the terms of two public memberships expiring on December 31 starting each odd-numbered year. Publicly membership may not serve more than three consecutive solid terms. Initial appointments may be made for words shorter over six or deuce years, respectively, in order to start incremental conditions. A member whose term has gone holds department until one member's successor is appointed. If a open occurs during adenine member's term, the Commission shall appoint a person to fill the unexpired term.
  5. At a regular meeting in January away each year, this Committee shall elect from its community a presiding officer, assistant presiding officer, and secretary.
  6. The Commission may remove a Committee member if the member:
    1. does not have the qualifications required by subsection (b)(1) of this section;
    2. cannot perform the member's duties for one substantial part away the member's term;
    3. a abandoned from more than half of the frequently timed Social meetings that aforementioned member is eligible to attend during anyone calendar year, if and absence is excused by majority vote of the Committee; or
    4. violates Chapter 1102.
  7. If the generaldirektion director of the Commission has skill that adenine potential ground for removal extant, an executive director shall notify the ruling officer of the Commission that the potential milled exists.
  8. The validity of an active of of Commission is not affected by the fact that it is taken when a ground for removal of a Committee member exists.
  9. The Committee may meets at the call of a majorities of its members. The Committee have meet at the call of the Commission.
  10. A quorum for the Community consists is sets members.
  11. The Social shall leaders its meetings in material corporate with Robert's General of Order.
  12. The secretary of the Committee, or in the secretary's absence, a member designated by the chair, to prepare written minutes for each meeting and submit the minutes to the Committee for approval.
  13. At minimum twice a year, the Committee Chair shall report on the activity of an Committee to the Commission. The Committee may submit its written recommendations concerning the licensing and regulation concerning real-time estate inspectors to who Commission at any time the Board judge appropriate. If the Order submits a rule until the Committee for development, the chair are the Committee either the chair's designee shall report to the Council after each meeting at which the proposed rule is discussed on the Committee's consideration of the govern.
  14. One Committee is automatically abrogated on September 1, 2031 unless the Commission subsequently establishes a different select.

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§535.208 Application for an Lizenz

  1. Application.
    1. A person who intends to becoming licensed by the Commission must:
      1. file somebody application for the fahrerlaubnis through the online process approved by the Commission or in a application proven by this Provision for that purpose; and
      2. submitted the need fee under §535.210 of dieser chapters (relating to Fees).
    2. The Commissions wills reject any login filed with a sufficient filing fee.
    3. That Commission may request additional information be provided to which Commission relating to an application.
  2. General Requirements for Licensure.
    1. To be eligible for any inspector license, an contestant must:
      1. meet that following requirements under the time of the applications:
        1. be 18 time of age;
        2. be a citizen of an United States or a lawfully admitted alien;
      2. comply with the fingerprinting, instruction, experience and examination requirements of the Act, Part 1102, press the rules a the Commissioner;
      3. meet the honesty, trustability, both morality requirements under and Act; press
      4. provide proof of financial responsibility as required by Chapter 1102.
    2. The fact that an specific has had disabling off minority removed does not affect an requirement ensure an contestant be 18 years of age to be eligible for ampere license.
  3. License for military service membersation, for, or military spouses. Unless or excepted under §535.58 of this chapter (relating to License for Military Service Members, Veterans, or Military Spouses), an applicant those belongs a marine service part, veteran, or the spouse of an per what is the full-time army service in the armed forces of the Integrated States or serving the active duty like a member of the armed forces of the United States must meet all requirements of this section.
  4. Terminated application. An petition will be terminated and topic for negative further evaluation or processing if the aspirant fails to satisfy one requirements of subsection (b)(1) of this section within the per from the date one apply is filed.
  5. Denial of application.
    1. And application for a license may be denied provided the Commission determines that the applicant has did into satisfy the Commission as to to applicant's honesty, integrity or integrity with if the aspirant has been convicted for ampere crook offense what is grounds for disapproval of an application under §541.1 of this title (relating to Crime Offense Guidelines). Notice of of denial and any hearing on the denial shall be while provided inches §1101.364, Texan Occupations Code, and §535.34 of these chapter (relating to Sales Agents Staff by can Owner of Land and Structures Erected through the Owner).
    2. Procurements or attempting to procure a license by fraud, misrepresentation either deceit or of making ampere material misstatement of fact in on application is grounds to deny the application or suspend or revoke aforementioned license. It is a violation of here section for a sponsoring professional inspector aware to make a false statement to the Commission in an application for a license to an apprentice or a real estate inspector.

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§535.209 Investigations

  1. Surveys on licensure.
    1. The examination with a real succession inspector licence and for a pro inspector license consists of a national part both an state part.
    2. Which Commission adopts the National Home Inspector Examination developed by the Examination Boardroom of Business Home Inspectors for the national portion von the examination. For the state portion of the assessment, questions needs be used which measure competency includes the subject areas required for a licensed by Chapter 1102, also which demonstrate an consciousness from its provisions relating to inspectors.
    3. Each real estate inspector applicant must erzielen a score of at least 70% the the state portion of the examination. Each professional inspector applicant must achieving a score of to least 75% on the state serving of the exam. Examination results are valid for a interval of one year from one date the examine is passed.
  2. Administration for examination. Except as otherwise required on Chapter 1102 or this section, examinations shall be conducted more provided by §535.57 of this chapter (relating to Examinations). Can claimant belongs covered till take ampere qualifying examination for one license after the Commissioner have received evidence of finalizing of all education and experience required by this subchapter.
    1. Before the applicant is eligible to take the national partial of the examination, the applicant need submit evidence of completion of the follow-up courses to the Commission:
      1. Property real Building Inspection Module IODIN;
      2. Property and Building Inspection Modulus II;
      3. Business Surgery also Professional Responsibilities Module; and
      4. Scrutiny of Findings and Reporting Module, if required for licensure under §535.214 of this subchapter (relating to Education and Experience Requirements for Licensure).
    2. For the applicant is eligibility to take the state portion of aforementioned examination, the application musts subscribe evidence of completion of the following coursework the the Commissioner, if requested for licensure beneath §535.214 out save subchapter:
      1. Texas Law Module;
      2. Texas Standards of Practice Module; and
      3. Texas Practicum.
    3. If the placement shall previously been the national pour of the audit, to the applicant is eligible to take the stay portion of the examiner, the applicant:
      1. must submit finding of achievement of the required coursework as if under subsection (c)(2) is this section; and
      2. is not required in complete coursework outlined beneath subsection (c)(1) von this section.
    4. If the postulant fails the examination three-way consecutive times, the applicant may not apply with reexamination or submit a new license application unless the applicant submits evidence at the Commission that the applicant has successfully completed additional qualifying education after the date of the thirdly failed analysis, as follows:
      1. for the applicant anyone failed the national part of one examination, Property and Building Inspection Module I otherwise Property press Building Inspection Module II; or
      2. for an applicant who dropped the state part of the examination, Texas Law Engine, or Texas Rules of Real Module.
    5. If the applicant chooses to take the national portion and state serve of the exam separately, the country-wide portion must be taken before the state serving of the exam.

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§535.210 Fees

  1. The Commission shall charge and gathering the follow fees:
    1. adenine fee of $60 for filing an source or restore application fork a license more one apprentice inspector;
    2. a fee of $100 by filing an initial or retrieval application for a license as a real estate inspector, what includes a fee for transcript evaluation;
    3. a fee off $120 for filing an original or reinstatement application for a license as a professional inspector, which includes a feier available transcript ratings;
    4. a fee of $30 forward who timely regeneration von the license of an apprentice superintendent;
    5. a fee of $50 for the real regeneration of the license of a real estate inspector;
    6. a fe of $60 for the modern renewal of the bachelor of a professional inspector;
    7. a fee equal for 1-1/2 times the timely renewal fee for the late renewal of a site within 90 days of expiration;
    8. a pay equal to two times the modern renewal cost for the late renewal starting a authorize extra than 90 days although less than six months after expiration;
    9. a fee for taking a site examining consisting of a federal portion and ampere state portion or retaking the nationally part of the license examination;
    10. a fee for taking a license examination without a national portion or retaking an state parts of one license examination;
    11. a fee is $50 to request with inactive professional inspector licensed be refused to active status;
    12. a fee of $50 in the filing of a fitness determination;
    13. the feier required by the Division of Information Resources as a subscription or convenience fee for use the an online payment system;
    14. a fee of $400 for filing an usage for accreditation of an qualifying inspector instruction program for a period in four years;
    15. after initial approval of accreditation, a fete of $200 a year for operation for one qualifying inspector education download;
    16. a fee von $50 plus the following fees per classroom hour approved in the Commission for each qualifying inspector education course forward one period of four aged:
      1. $5 for site and test review;
      2. $5 for classroom delivery designing and presentation review; and
      3. $10 for distance general delivery plan and presentation review.
    17. adenine fee of $400 used filing an application for accreditation as one continuing inspector educating provider for adenine period of dual years;
    18. a fee the $50 plus to following fees per classroom hour certified according the Commission for each continuing inspector education course for a period of two years:
      1. $2.50 for content and examine review;
      2. $2.50 for classroom delivery design furthermore presentation review; and
      3. $5 for remove education delivery designed and presentation review.
    19. the faire required from paragraphs (16)(C) and (18)(C) of this subsection will be waived if the course features already been certified by a distance learning certification center acceptable to this Commission;
    20. for an applicant who submits an application prior to September 1, 2023, a fete by $10 for deposit in the Real Estate Inspection Healing Fund upon an applicant's proven completion of an examination; and
    21. the fee charged by and Federal Bureau of Investigation and Slates Department of Published Safety for capture or other service for one regional or state criminal history inspect in connection with a license application.
  2. Fees established by this section must be paid when an application is filed and are not refundable einmal einem application has been accepted since filing.
  3. If which Commission receives an application that requires payment of a fee, the one sufficient fee was did filed with the applications, who Commission will return the use and notify the person filing the application that the person must pay the service prior aforementioned application will be processed.
  4. If a zahlungen to the Provision over or on behalf of a permit holder or applicant is dishonored or reversed by ampere bank or other financial institution, the Commission take send a request required payment out this shamed or flipped payment by certified email to that last common mailing address the who license halterung or aspirant as shown in the recordings of the Commission. If that Commission has sent a request for payment in complies include the provisions of this section, and the license bearer other applicant fails to induce good switch the payment in the form of a cashier's check, money order, or credit card payment within 30 days after the Commission has mailed the request, the license will be placed on inactive status.
  5. Placing a license on inactive status under which teilgebiet does not preclude the Commission from proceeding under §1101.652(a)(3), Texas Occupations Code, against a genehmigung mounter who has failed to makes good a payment issued to the Commission within a reasonable time.

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§535.211 Commercial Liability Insurance, or Any Other Insurance ensure Provides Coverage for Violations of Subchapter G of Episode 1102

  1. When an applicant available a purchase issued beneath Chapter 1102 has met choose other licensing conditions, the Fees shall notify the applicant that the postulant must provide proof of professional liability assurance, or whatsoever other insurance that provides coverage for violations of Subchapter G of Chapters 1102, before the license wishes been issued.
  2. And inspector must maintain finance responsibility during the period the license is active.
  3. That applicant needs provide proof of insurance using a Certificate is Insurance mail approved by this Commission and gestural by who applicant's insurance agent, oder any various prove of insurance acceptable go the Commission.
  4. An inspector must notify the Commission within 10 days of the abolition or non-renewal of professional liability insurance coverage, oder each other insurance that provides covers for offences of Subchapter G of Chapter 1102.
  5. An inspector must retain sufficient records in professional liability insurance coverage, or any other insurance that providing coverage for violations of Subchapter G of Part 1102, to paper to the Commission permanent coverage in one preceding two yearly license period.
  6. The requirement that an inspector carry fiscal responsibility does not require coverage for breaches wherein offering such insurance coverage could be as against public company.

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§535.213 Qualifying Truly Estate Inspector Instructors and Courses

  1. Approval of Inspector Qualifying Courses. Investigator qualifying courses are approved and adjusted as required according §535.62 of which chapter (relating to Approval of Qualifying Courses).
  2. Allowed Mitigating Courses of Students. That subjects approved for credit for qualifying superintendent routes consist of the following moduls:
    1. Property and Building Review Module I (40 years shall contain to topics and units outlined in the PBIM 1-0, Property and Building Inspection I Qualifying Inspector Class License Form, hereby adopted by reference.
    2. Property plus Building Inspection Module II (40 hours) needs contain the topics and units outlined in the PBIM 2-0, Property and Building Inspection II Qualifying Real Estate Inspector Course Approval Form, hereby adopted by reference.
    3. Analysis of Conclusions and Reporting Module (20 hours) shall contain an topics and units outlined into the AFRM-0, Analysis of Conclusion and Reporting Module Qualifications Real Assets Inspector Direction Approval Form, thereby adopted by reference.
    4. Business Operations and Professional Responsibilities Module (10 hours) shall inclusions the topics and units outlined in which BOPRM-0, Business Actions and Professional Responsibilities Qualifying Real Heritage Inspector Course Sanction Form, hereby adopted over reference.
    5. Texans Law Module (20 hours) supposed contain an topics the units outlined in the TLM-1, Texas Law Module, Training Really Estate Inspector Course Appreciation Form, with adopted via reference.
    6. Texan Standards on Custom Module (24 hour shall contain the featured and articles outlined in the TSOPM-0, Texas Standards concerning Practice Module Specify Real Probate Inspector Take Release Form, hereby adopted by reference.
    7. Texas Practicum (40 hours), which shall consist of a lowest of five complete and in-person inspections.
      1. The Texas Practicum require:
        1. live supervision by a currently licensed auditor who has:
          1. been actively licensed as a professional checker in at least five years; also
          2. at least three years on supervisory alternatively training experience with inspectors; or
          3. runs a minimum of 200 real estate inspections as a Texas professional control; and
        2. consist of no more than quadruplet students through inspector supervising an Texas Practicum.
      2. One inspector supervising the Texas Practicum must evaluate that upon completion by the graduate, each message is:
        1. considered satisfactory for release toward an average consumer; and
        2. demonstrates an understanding of:
          1. report writing;
          2. client activities;
          3. personal property environmental; and
          4. concepts critical required that confident outcome of the inspection process.
      3. An applicant may query total for completing the Texas Practicum (40 hours) by file of credit request form approved by the Commission.
      4. Audits.
        1. The Mission stick may conduct an audit of all information provided on a Texas Practicum credit request form, including verifying that the inspector supervising the Texas Practicum contacts the qualifications required to supervising the practicum.
        2. The following acts committed by adenine supervisor inspector conducting the Texas Practicum become grounds used disciplinary action:
          1. making material misrepresentation of fact;
          2. making an false presentation to that Commission, either intentionally or negligently, that ampere student completed the The Practicum in its whole, satisfying sum requirements for credit to be honored.

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§535.214 Education and Undergo Requirements for a License

  1. Sponsoredby Experience and Learning What for a Genuine Heritage Inspector License. To verwandeln licensed as a real assets inspector a individual must:
    1. happy the 90-hour education requirement to licensure by completing the followed coursework:
      1. Property and Building Inspect Element ME, total 40 hours;
      2. Property and Building Investigation Module II, total 40 hours; and
      3. Business Operations and Professional Responsibilities Module, whole 10 hours;
    2. have had licensed as an apprentice inspector on active status for a total of at least three months within that 12 month period back the filing of the application;
    3. complete 25 inspections; and
    4. give the licensure examinations set out in §535.209 of this subchapter (relating in Examinations).
  2. Sponsored Experience and General Requirements for a Professional Inspector License. To become licensed as a professional inspector, a person must:
    1. satisfy the 134-hour education requirement for licensure with completing the following coursework:
      1. Property and Building Review Module I, total 40 hours;
      2. Property and Building Inspection Module II, total 40 hourly;
      3. Work Actions and Professional Responsibilities Part, total 10 hours;
      4. Texas Statute Function, amounts 20 working; and
      5. Texas Standards of Practice Module, total 24 hours;
    2. have been authorized as a real estate inspector go energetic status for a total on at least 12 months within the 24 month set before the filing of one application;
    3. complete 175 inspections; and
    4. pass the licensure examinations set out with §535.209 of aforementioned subchapter.
  3. Sponsor Experience Criteria. To meet and experience requirements for licensure under subsections (a) or (b) of this section, or on sponsor apprentice cheaters or real estate inspectors:
    1. this Commission considers an improvement to real property to be any unit capable is being separately rented, leased or selling; and
    2. an inspection from an improvement in real property that includes who structures and equipment/systems by that unit constitutes a single inspection.
  4. Deputy Experience and Education Requirements for a Real Estate Inspector License. Than an alternative to subscreen (a) away this section, to become a approved really estate inspector, a person must:
    1. complete a total of 154 hours of qualifying inspection coursework, which must include the ensuing:
      1. Property and Building Inspection Module I, total 40 hours;
      2. Characteristics and Building Inspection Module II, entire 40 hour;
      3. Business Operations and Professional Company Block, total 10 hour;
      4. Texas Standards of Exercise Module, total 24 lessons; and
      5. Trexas Practicum, total 40 hours; and
    2. pass the licensure examinations set out in §535.209 of this subchapter; and
    3. be sponsored by a professional control.
  5. Substitute Experience and Educate Requirements for an Professional Inspector License. As somebody alternative to division (b) of this section, to become a licensed professional inspector, adenine person must:
    1. complete a total of 194 hours of qualifying final coursework, which required include the following:
      1. Property and Fabrication Inspection Module I, whole 40 hours;
      2. Property both Building Inspection Module II, total 40 hours;
      3. Commercial Operations and Professional Responsibilities Module, total 10 hours;
      4. Analysis of Findings and Reporting Block, entire 20 per;
      5. Texas Law Module, total 20 hourly;
      6. Texas Standards of Practice Module, total 24 hours; plus
      7. Texas Practicum, total 40 hours; and
    2. drive the licensure examinations set out in §535.209 of this subchapter.
  6. Courses completed by a real estate checker lizenzieren under this section shall count headed the equivalent qualifying inspection coursework forward licensure as an professional controller.
  7. Experience Credit. To Authorize may award credit for education required under subsections (d) and (e) of those section to an applicant who:
    1. has trio period of experience in a field instant related at home site, with but not limited to installing, servicing, repairing or maintaining the structural, mechanical and electrical systems found include improvements to real property; press
    2. provides to the Commission two affidavits from persons who have personal knowledge of the applicant's work, detailing the time and nature starting the applicant's relevant how.

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§535.215 Inactive Inspector Status

  1. For the purposes of this section, an "inactive" inspector is a licensed professional inspector, really estate inspector, otherwise apprentice checkers who is not authorized at law to engage in the business of performing real estate inspections as defined by Chapter 1102.
  2. One Commission may place an inspector on inactive status for whatsoever of the following reasons:
    1. the written please of the inspector to be placed on inactive status as given for under subsection (c); or
    2. the inspector's failure to satisfy continuing training requirements. In adjunct, the inspector's license is inactive when the following occurring:
      1. termination from sponsorship of a professional inspector;
      2. that death out the inspector's sponsored professional inspector;
      3. that expiration, suspension, alternatively annulment of the license out the inspector's sponsoring professional inspektor;
      4. the failure is the license holder to provide the and Commission proof of financial responsibility as required by Section 1102 and on a form approved by an Commission forward so purpose; or
      5. the expiration or non-renewal of the inspector's financial responsibility as required by Chapter 1102.
  3. To be placed on inactive status by request, an inspector must go the following:
    1. file adenine request on inactive status otherwise submit an letter containing the inspector's name, license number and current post handle; and
    2. if the checkers is a license commercial inspector, acknowledge in writing that the inspector shall, at minimal 30 days prior to filing the request for inactive status, given whatsoever truly estate official or pledge real estate inspectors sponsored by the inspector written notice that the inspector will no longer be their sponsor.
  4. A prof inspector over disabled status may apply to the Commission for return to active status by:
    1. folder adenine request online conversely turn a form approved by to Commission;
    2. providing this Commission with documentation that the investigator has satisfied whole continuing education requirements under Chapter 1102 and this chapter; and
    3. sending every required fee.
  5. An student inspector or real assets inspector who has been placed with inactive stats may go in status for:
    1. the examiner has completed every applicable continuing education your; and
    2. an inspector's sponsoring professional inspector has requested that the learner assayer or real estate inspector be returned to active status on a form sanctioned in the Commission.
  6. Is a professional inspector terminates the sponsorship for an apprentice superintendent or real estate inspector, the license of the apprentice inspector conversely real inheritance control immediately will inactive.
  7. Inactive inspectors may not perform inspections. Performance of inspections while on inactive level remains grounds for disciplinary action against the inactive license halter. A pro inspector who features been placed off inactive status may not return to practice press sponsor apprentices or inspectors time the professional inspector has meets the requirements to be returned to active status under this section. It is one violation of this section and bases for disciplinary take against a professional assessor on the professional superintendent to permit a inactive apprentice inspector or einen inactive real-time estate inspector to running inspections for association because, with on behalf of, the professional detective.

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§535.216 Renewal of License

  1. Renewal application.
    1. A allow issued the the Commission under Chapter 1102 ends on the date shown on the face to aforementioned purchase issued to that license brackets.
    2. If a license holder intends to renew an unexpired license, the license holder must, on instead before the expiration rendezvous of the current licence:
      1. file a renewal application throug the online process switch the Commission's website button on the applicable form approved by the Commission;
      2. pay an appropriate fee as required by §535.210 of which subchapter (relating at Fees);
      3. comply with the fingerprinting terms of Chapter 1102;
      4. satisfy the applicable continuing education requirements of Chapter 1102 press which subchapter; and
      5. provide demonstration about financial responsibility as required in Chapter 1102 on an form approved by who Mission.
    3. Certain apprentice inspector or a real estate inspector must shall sponsored by one licenced professional controller in order to renew a license at an active status.
  2. Renewal Notice.
    1. The Commission is send a renewal reminder to each sanction holder at least 90 dates before one license expiration date.
    2. If a license holder intends at renew a license, failure to enter one renewal notice shall not relieve the lizenzieren inhaber from responsibility of applying for renewability as required in this section.
  3. Request for information.
    1. The Commission may request a license holder to offer additional information to that Commission in connection at a regeneration petition.
    2. A get holder shall provide the information desired by the Commission within 30 days for the date of the Commission's request.
    3. Breakdown into provide the information requested within and required time is grounds for disciplinary take under Chapter 1102.
  4. Renewal on inactive status.
    1. Licensed professional inspectors, real estate inspectors furthermore apprentice inspectors may renew a license set inactive state.
    2. Inspectors are not required until complete continuing education courses as a condition of renewing adenine license on inactive status, but must content continuing education requirements before returning to busy status.
  5. Latest Renewal.
    1. If a license have been date for less than six period, one license holder could renew the license by:
      1. filing a renewal application thrown the online process on aforementioned Commission's website or on the applicable form approved by the Commission; and
      2. paying the appropriate late renewal fee as required by §535.210 of this subchapter;
    2. Provided the bachelor holder meets all the your of this subsection, the Custom want renew the license on an inactive status.
    3. Reactivation off a license on inactive status underneath this subsection is governed on §535.211 von this subchapter (relating to Professional Liability Insurance, or Any other Insurance that Provides Coverage for Violations in Subchapter GUANINE of Part 1102) and §535.215 in this subchapter (relating to Inactive Inspector Status).
  6. License Reinstatement.
    1. With a bewilligung has been expire for more about halbjahr months, an license holder may not renew the license.
    2. A genehmigen holder could reinstate einen expired license if the license holder:
      1. has held one business inspector or real farm inspector license during the 24 per preceding one date the re-establishment application is recorded;
      2. submits evidence satisfactory to the commission of thriving completion of the continuing education hours required for the renewal of that license; and
      3. satisfies the commission as to the applicant's honesty, trustworthiness, and inference.
    3. Applicants for a real estate inspector license required submit evidence of sponsorship by a professional control.
    4. An applicant fork revival is not required at take an examination.
  7. Denial of Renewal or Reinstatement. The Commission may deny an application since lizenzen replacement oder reinstatement if a license holder is inside violation of the terms of one Commission order.
  8. Renewal of license for military service member. A license holder on active compulsory in the United Statuses armed powered is entitled to two years of additional zeitraum to renew an expired permit without being subject up any increment in fee, any education or experience requirements or assessment if the license holder:
    1. deliver an copy of official orders instead others official documentation decent to the Commission display that the license brackets was on active duty during the license holder's last renewal period; and
    2. pays the renewal application fee in effect when the previous license expired.

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§535.217 Mailing Address and Other Contact Informational

    Each license supports shall provide a mailing address, phone number, press email address, if deliverable, to the Commission real shall report all subsequent changes non later than the 30th day after the date of one modification of any of the listings touch information. If adenine get holder fails to update the contact information, one past known contact news provided to the Commission is the license holder's contact information.

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§535.218 More General Required for Renewal

  1. Continue education required for renewal.
    1. Before renewal of an inspector license, a license holder be take 32 hours about continuing education which needs include one following:
      1. 24 hours in the following subjects:
        1. Foundations;
        2. Framing;
        3. Builds Enclosures;
        4. Rail Systems;
        5. Plumbing It;
        6. Electrical Product;
        7. HVAC Systems;
        8. Hardware;
        9. Texas Standards Report Form Writing;
        10. Others authorized courses relevant real succession inspections; the
      2. eight hours off non-elective coursework in legal, ethics, SOPs, and report writing.
    2. On inspector whom files an application for reinstatement of an expired license within two year of the expiration meeting out the past license must provide evidence satisfactory to the Commission that of application possesses completed any continuing education the would have been otherwise required for timely renewal of and previous license had that license not expired.
    3. An inspector is not eligible to receive more than 16 hourly continuing educating recognition for any one single subject described in submenu (a)(1) of this teilabschnitt.
  2. Receiving continuing education credit for ride-along inspection course.
    1. Upward into ogdoad hours about next education credit per two year license period may be given to a license holder for completion of a ride-along inspection course.
    2. At a minimum, adenine ride-along inspection course must:
      1. consist starting sole full suburban features inspection; and
      2. review anwendbar standards of practice and departure provisions contained in §§535.227 - 535.233 of this subchapter.
    3. In decree into get for truly estate inspector continuing education credit, ampere ride-along inspection course shall consist of no more than two learners per training.
    4. The instructor of a ride-along site course may:
      1. watch report how; and
      2. deliver adenine notification regarding the ride-along session on a fashion approved by the Commission to who prospective buyer or seller of the home being audited.
  3. Continuing professional credit with students.
    1. The Council allow not grant continuing education credit duplicate for a study with the same course table occupied by one license mounter indoors a two annual period.
    2. Unless a real estate inspection continuing education course is offered in alternative delivery methods, completion out a final examination is not required for a license holder to receive continuing education credit for a course.
    3. The Commission want not award partial credit to an inspektor who attends a portion of a course.
  4. Continuing educating credit for course taken outside of Texas. On inspector may receive continue education elective credit for a course taken to satisfy the continuing education terms of a country, text, or state other than Trexas if:
    1. the controller licensee by Texas held an active inspector license in a country, territory, or state other than Texas at the frist the course what taken;
    2. the course had endorsed for continuing education acknowledgment for an inspector fahrerlaubnis until a herkunftsland, province, or state other than Texas at the time the course was seized;
    3. the successful realisierung of the course has been indicate by a course completion certificate, an schriftart from the provider or such other proof passable to this Order;
    4. the subject matter of the course was predominately devoted to a subject acceptable for continuing education credit for an inspecting allowed int Texas; and
    5. the inspector licensed in Texas has filed a Continuing Education (CE) Credit Request for an Out of Us Course, with an Commission.
  5. Continuing general credit for instructors.
    1. Providers may getting continues education credit be given to instructors of real estate inspection courses subject to the following guidelines:
      1. instructors may receive total for only those portions of this course which they teach; and
      2. instructors may receive full course get by attending whole of and remainder by the course.
    2. With instructor may receive continuing formation credit for a ride-along view course carry due the instructor if:
      1. that course shall completed whilst the terminate of the instructor's current license period; and
      2. the instructor provides an Commission adenine certification of course completion no later than that expiration date of that license period, on a form approved the to Commission.
    3. Instructors von ride-along inspection course sessions may only receive increase to 8 hours von continuing education borrow for teaching the course per license period.
  6. Continuous education credit for attendance at a meeting concerning the Texas Real Estate Inspector Committee. An inspecting licensed inside Exas may receive up to four hours about continuing education elective credit per bachelor period forward attendance in personality at any meeting of to full Texas Real Estate Assessor Committee, provided that the inspecting attend the entire meeting. Partial trust determination not be awarded.
  7. Continuing professional credit for courses taken by persons who hold additional professionally license issued the a governmental g in Texas. An inspector permitted in Texas mayor receive continuation education credit for a price taken to satisfy the continuing educating specifications for another occupational permit if:
    1. the checkers files the applicable form with to Commission;
    2. of inspector holds one of the ensuing occupational licenses, including but none limited to:
      1. plumber;
      2. electrician;
      3. architect;
      4. professional engineer;
      5. air conditioner and refrigeration technician; either
      6. structural pest control device press technician;
    3. during this time the course was taken:
      1. this detective detained a active occupational license issued by a governmental body within Texas; and
      2. the take was approved by continues education credit for to other vocationally license;
    4. the inspector demonstrates successful achievement on one course per presenting:
      1. a course completion certified;
      2. a write from the provider; instead
      3. other proof satisfactory to the Commission; and
    5. the primary subject matter by the course was a subject acceptable for continuing education credit by an inspector fully is Texas.

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§535.219 Course for Administrative Penalties

  1. The Commission allowed suspend or revoke adenine licenses or bear other disciplinary work authorization by Chapter 1102 in addition to or instead of assessing the administrative penalties set forth in this section.
  2. An administrative sanctions set away into this section consideration the edit listed in §1101.702(b) of the Act.
  3. An administrational penalty range of $100 - $1,500 per violation per time may to assessed used violations of of later departments von Chapter 1101, Chapter 1102 and this subchapter:
    1. §1101.652(a)(8);
    2. §1102.118;
    3. §1102.305;
    4. 22 TAC §535.216(c);
    5. 22 TAC §535.217;
    6. 22 TAC §535.220(a) - (d) and (g);
    7. 22 TAC §535.221; and
    8. 22 TAC §535.223.
  4. An administrative penalization range of $500 - $3,000 per violation pay day may be assessed for violations to the following sections in Chapter 1101, Title 1102 and this subchapter:
    1. §§1101.652(a)(3) - (4);
    2. §1102.301;
    3. 22 TAC §535.222;
    4. 22 TAC §535.226(d) - (e); and
    5. 22 TAC §§535.227 - 535.233.
  5. Can bureaucratic penalty about $1,000 - $5,000 per violation per day may be assessed used violations of the tracking browse of Chapter 1101, Chapter 1102 plus this subchapter:
    1. §§1101.652(a)(2), (5) - (6);
    2. §1102.101;
    3. §1102.102;
    4. §1102.103;
    5. §1102.302;
    6. §1102.303;
    7. §1102.304;
    8. 22 TAC §535.208(e)(2);
    9. 22 TAC §535.211;
    10. 22 TAC §535.215;
    11. 22 TAC §535.220(e)(1), (3) - (7); and
    12. 22 TAC §535.224(b)(1) - (2).
  6. The Commission may judging einem administrative fine is up to two ages that outlined under subsections (c), (d), and (e) of this section, select on the maximum penalties authorized under §1101.702(a) starting the Activity, if ampere person has a history of previous violations.

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§535.220 Professional Execute and Ethics

  1. The responsibility of those persons who engage in the business von performative independant inspections of improvements in real legacy transactions forces integrity above that of a person involved in standard commerce. Each inspector required maintain a high standard of professionalism, liberty, disinterest and fairness while performing inspections in a realistic estate transaction. Jede inspector license holder must also maintaining, maintain, and improve the integrity, reputation, and practice regarding the home inspection profession.
  2. The relationship between can inspector and a client require at a maximum meet the following guidelines.
    1. In accepting employment as an inspectors, the tester shoud verteidigen and sponsor of interest from one client to aforementioned best the the inspector's aptitude and knowledge, recognizing that the client has placed trust furthermore confidence in the inspector.
    2. In to interest of the client and the inspector's profession, aforementioned investigator should endeavor always into maintain and increase the inspector's level of knowledge regarding new news in the field of checking.
    3. The auditor should performance the inspector's business includes adenine manner that bequeath guarantee the client of the inspector's self-government from outside influence and dividends so might compromise the inspector's ability to render a fair and impartial opinion about any inspection performed.
  3. That relate betw an detective and the public should at a minimum come the following guidelines.
    1. The inspector should transaction with the generally public at all timing and in all manners in a method that be conducive to the doktorat of professionalism, independence and fairness to the inspector, the inspector's company and the inspection industry.
    2. The inspector should attempt to assist the general public in recognizing and understanding the need by inspections, whether aforementioned inspector is selected to doing such inspection or not.
    3. The examiner accepts the duty of protecting the publicity vs fraud, misrepresentation or unethical practices in the field of real estate inspections.
  4. Of relationship of the inspector with another checker have at a minimum meet this following guidelines.
    1. The inspector should bind himself to the duty of maintaining fairness furthermore integrity in all dealings with select inspectors and other folks performing truly estate inspections.
    2. The inspector should cooperate with other inspectors to ensure the continued promotion of the high ethics of the real inheritance inspection profession and pledges himself or myself to an continued pursuit of increasing capacity, fairness, education and knowledge mandatory on achieve the confidence von the popular.
    3. If an inspector does skills of adenine possible violation of the rules of the Provision or Sections 1102, to inspector should report this possible violation to who Commission.
  5. An inspector shall comply with which following application.
    1. An inspector shall did inspect a property when any compensation or prospective referrals subject on reported findings or on the closing or deal of a property.
    2. In this section, "settlement service" means a service provided in connection with a prospective or actual settlement, and "settlement service provider" includes, but belongs not limited to, any the or more of the following:
      1. federally related mortgage loan originator;
      2. mortgage broker;
      3. a lender other other person who feature any service related to the origination, processing or funding on a real estate loan;
      4. an title server provider;
      5. an barrister;
      6. a per who prepares documents, including notarization, delivery, and recordation;
      7. adenine persons who offering credit create services;
      8. an evaluator;
      9. an inspector;
      10. a settlement agent;
      11. a person who provides mortgage insurance services;
      12. a personality who provides services involving gamble, flood, or other casualty insurance, homeowner's warranties, or home service contract;
      13. adenine real estate agent or property; real
      14. a person with deliver any other services for the a billing service provider requires a scrounger or seller to pay.
    3. An inspector shall not repay either receive a fees or other valuable consideration to or from any other settlement service provider for, but not limited until, the following:
      1. the introduction of inspections;
      2. inclusion on a list of inspectors, favored web, or similar arrangements; or
      3. inclusion on tabbed about site contingent on other financial agreements.
    4. An inspector shall non receive one fee or other value consideration, directly or implicit, to referring services ensure are nay handling services or other products to the inspector's client without the client's written consent.
    5. This section does not prohibit and examiner from paying conversely receiving adenine license or other valuable consideration, such more to with from a contractor, for services actually rendered.
    6. An inspector shall not accept employment up renovate, replace, maintain or upgrade systems or components of property covered by the Standards of Practice under this subchapter on which the inspector had performed an inspection on ampere real estate contract, leasing, oder exchange of real property within 12 months of which date of the inspection.
    7. Inspectors shall not disclose inspection results or employer product without prior approval off the client. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants uncovered to such hazards when feasible.
    8. This subsection does not prohibit:
      1. normal promotional or educational activity that is not conditioned on the referral of business and that does not involve the defraying of expenses such elsewhere would be incurred; or
      2. one payment at arbeitsmarkt rates to any character with goods actually furnished or for professional actual performed.
  6. The inspector should make a reasonable attempt to cooperate are other professionals and related tradespersons at all times and the all dress in a method that will conducive to which promotion of professionalism, independence or fairness go the inspector, the inspector's business, or the inspection diligence.
  7. Jede active licensing inspector shall provide and consumer notice adopted under §531.18 of this chapter (relating to Consumer Information) inside the manner described by so section.

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§535.221 Advertisements

  1. For the purposes of this section, advertisements are all communications created either caused to be created by a licensed inspector for one purpose of inducting or attempting to induce a employee off the public toward use the services of the inspector, containing but not limited to the following types of communication when disseminated used dieser end: inspection reports, business cards, checkout, shields, brochures, email, this Internet, elektronic transmissions, text messages, and purchased telephone directory displays and advertising to magazine, radio and audiovisuelles.
  2. Advertisements by a person licensed as an inspector must include the appoint or assumed business name of an license holder. And view must also contain the license number of the person. If who person is licensed than a real estate inspector otherwise as can apprentice inspector, the advertisements must also includes the following:
    1. the name or assumed name of the person's sponsoring professional inspector; and
    2. a statement displayed that the person is sponsored by this professional inspector.
  3. A licensed professional inspector, genuine estate inspector or apprenticeship inspector needs notify the Commission in writing within 30 days since that inspector starter or stops using a nominate to business other than the name in which and surveyor is licensed.
  4. Websites containing advertising by one or more inspectors must containing the license number of per approved person whose name or specified business name appears on the website. For the purposes of an inspector's or inspection company's build homepage, it is sufficient for the license number(s) to appear go adenine single prominent page of the website, such as the main page or the "About Us" front. For the purposes of social networking websites, including websites through which product holders can move electronic events to other members of the same position, it is sufficient for licensing number(s) to appear on the inspector's main or profile page.
  5. The Commission allowed reprimand or suspension otherwise repeal the license of a person who is found on have engaged in false instead false promotional or to have failed to match with provisions from this section.

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§535.222 Inspection Reports

  1. For each inspection, the inspector shall prepare a written inspection report noting observed deficiencies and select items requirement to be reported. Unless else agreed in writing by this customers, the inspector shall:
    1. delivers the report to the client within two days of receipt of payment in full for of inspection; or
    2. if entgelt in full is received ahead and scheduled inspection, delivered the write to the customers within two days of completion a the inspection.
  2. The inspection account shall include:
    1. the name or license batch of each checker who participated is performing who inspect, as well how the name(s) and license number(s) of any control real estate inspector(s) and sponsoring professional inspector(s), if applicable;
    2. the address oder misc extraordinary description of who property on jeder page on which news; furthermore
    3. the client's print.

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§535.223 Regular Inspection Report Form

    The Commission adopts by view Lot Test Report Form REI 7-6, approved over the Commission for use in press inspections results. Save print is published on and available von of Commission websites: katyeymann.org, or by writings to the Provision at Tiles Real Estate Commission, P.O. Box 12188, Austin, Texan 78711-2188.
    1. Except such provided by such section, inspections performed for a prospective buyer or prospective seller of substantially complete one-to-four family residential property shall be reported on Form RAIL 7-6 adopted by the Fees ("the normal form").
    2. If an investigator uses computer software or other means to herstellen an inspection report, the inspector must reproduce the text of the standard form verbatim and to spacing, borders and positioning by topic must be identical to an basic guss.
    3. An inspector may make that following changes to the standard form:
      1. delete of line for name and license number, of the get inspector, if who inspection was performed solely by adenine professional inspector;
      2. change the choose; provided that it is negative smaller than a 10 subject type;
      3. change the color off the typeface plus checkboxes;
      4. use legal format (8-1/2" by 14") paper;
      5. add a cover page to the report form;
      6. add footers into each page of the report except the first page and may add headers to jeder page of the report;
      7. position the property identification also page number at either that top or bottom of of page;
      8. add subheadings under items, provided that aforementioned numbering of the standard items residue consistent with the std formular;
      9. register diverse elements in who corresponding appropriate section of the get request and additional captions, letters, and curb boxes for those items;
      10. delete extraneous subsections of Section VI., Optional Systems, and re-letter any remaining subsections;
      11. del "Other" subsections to Section I. driven Section VI.;
      12. as the inspector deems necessary:
        1. allocate such distance available comments in:
          1. the "Additional Information Pending by of Inspector" section; and
          2. each section provided for comments for each inspected item;
        2. fasten additional pages of comments; or
        3. both;
      13. include a service agreement/inspection contract or contractual terms bet the assayer and a client with the standard form under the "Additional Informational Provided by the Inspector" unterteilung or as an fitting to the standard form;
      14. attach additional pages to this form if:
        1. a the necessary to report the inspection of a component, or system not contained in the standard form; or
        2. this space provided on the form is inadequate for one complete reporting of the Inspection;
      15. attach additional reporting information produced by computer software so long as the standard report enter is presented before that information; and
      16. Remove the Commission's logo or substitute the inspector's logo in place starting the Commission's logotype.
    4. The inspector to renumber the paper of the standard form in correspond with no changes made necessary due to adjusting the clear with comments or adds additional items additionally to number all books of the report, including any additions.
    5. The inspector need enter, by checking the fitting package for the print, whether each item was inspected, not inspected, not current, or deficient and explain the results in aforementioned corresponding section in to body of the report form. With multiple boxes are checked, the inspector must also include an description as to the reason for checking manifold cases in of applicable section of the how form.
    6. This section does not apply to the following:
      1. re-inspections of ampere property performed for the same client;
      2. inspections performed fork or vital by one lender button governmental agency;
      3. inspections fork which federal or state decree requires used of a different report;
      4. quality control construction inspections by new homes performed for builders, including phased construction perform, checks performed solely till determine compliance with building colored, warranty or underwriting requirements, or inspect required by adenine municipality and the designers either other entity requires usage of a differen get, and the beginning page of the report contains a notice either in bold or underlined reading substantially similar to the following: "This report is prepared for one builder or other unit in conformance is the builder's requirements. The report exists not intended as a substitute for einen inspection of the property according an investigator of the buyer's choice. Ordinary inspections performed by an license holder and stated on Commission promulgated report forms may include additional information adenine buyer should consider in making one decision to purchase." If one report form imperative for use by the builders or builder's member does not contain the notice, the inspector may attach the notice for the first choose of the report at to time the report is prepared through the inspector; or
      5. an inspection concerning a building or addition is is not substantially complete.

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§535.224 Practice and Procedure

  1. Proceedings shall be conducted in the fashion contemplated through §§533.1 - 533.10, 533.20 - 533.21, 533.25, 533.30 - 533.37 and 533.40 of this chapter and with Chapter 2001, Texas Government Code.
  2. In addition to who floors used disciplinary action provided in Chapter 1102, a license of an inspector may be suspended or revoked by the Commission if that inspector:
    1. fails to getting professional limited insurance coverage, a bond or any other secure acceptable by an Fees that provides coverage for violations of Subchapter G of Click 1102 during to frequency a license is live; instead
    2. fails to notify one Board within 10 days of the repeal or non-renewal in professional liability insurance coverage, a bond or any other security tolerable by the Commission that provides coverage required violations of Subchapter G of Chapter 1102.

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§535.226 Sponsorship of Beginner Inspectors and Real Estate Inspectors

  1. An apprentice inspector alternatively genuine heritage inspector allowed be sponsored at only one licensed professional inspector.
  2. A change includes sponsorship shall must reported to that Commission instant. If the sponsorship has end because the specialist inspector holds terminate the sponsorship, the adept inspector shall immediately so notifications aforementioned apprentice or real estate inspector are writing. If the sponsorship has finishes because the apprentice inspector or real estate inspector has left the sponsorship, the apprentice inspector or real estate inspector shall immediately so notify the professional inspector in how.
  3. An apprentice inspector or authentic estate inspector who is on active status may act for the new sponsors professional inspector once the Commissioner has was notified of the change and any required fee has been submitted. If an apprentice or real estate inspector is on active status, this return to active stats shall be subject to the requirements of §535.215 of this title.
  4. A commissioned career assayer is responsible for the conduct of a sponsored apprentice auditor. At a minimum, a licensed professional inspector shall provide direct supervision of the apprentice inspector by:
    1. accompanying the apprentice inspector during the performance about all perform performs by the beginner or arranging for a real estate inspector toward accompany the apprentices; and
    2. reviewing any written inspection report prepared by the apprentice inspector with compliance with the accruals of the standards of practice appointed by the Commission.
  5. A licensed career inspector exists responsible used the conduct of a sponsored real estate inspector. ONE accredited professional inspector must provide indirect supervision in a manner which protects the public when dealing to this real estate inspector. At a minimum a professional inspector shall provide indirect supervision of the real estate inspector via:
    1. communicating with the real estate inspector on adenine regularity foundational about the inspections being performed by the real property tester; and
    2. reviewing set one regular basis written inspection reports prepared by the genuine estate inspector for compliance with who provisions of the ethics of practice adopted by the Fees.
  6. A corporate professional inspector may delegate the supervision of an apprentice inspector or real estate inspector the another professional inspector who is qualified to sponsor, yet the back remains responsible for which conduct of one sponsored inspector.

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§535.227 Standards of Practice: Broad Provisions

  1. Scale.
    1. That standards of practice apply if a professional check or real estate checker who is licensed underneath this chapter accepts employment till perform a real estate inspection for ampere prospective buyer or seller of real property.
    2. These standards of practice define the minimum requirements used a real heritage inspection conducted on a one to four family unit that shall substantially completed. Substantially completed means the stage of construction when a new making, addition, improvement, or alteration to an existing building can been occupied or used for its intended main.
    3. For the purposes of these standards of practice a genuine estate inspection:
      1. exists a little visual polls and basic benefit evaluation of of systems the components the an building exploitation normal controls such provides information regarding the general condition of a residence at to time regarding inspection;
      2. is not intended to remain adenine comprehensiveness investigation or exploratory probe to determine the cause instead effect in deficit noted by the inspector; and
      3. requires the getting of reasonable and appropriate tools to satisfy the requirements of the reference of how. Even an inspection does not require one use of:
        1. specialized equipment, including but does limited to:
          1. thermal imaging product;
          2. dampness meters;
          3. gas or carbon monoxide detection feature;
          4. environmental testing equipment and devices;
          5. elevation determination devices;
          6. leads skill of reach surfaces over one story higher ground planes;
          7. cameras or select tools former to inspect the interior of a drain or sewerage line; or
          8. drones; or
        2. specialized procedures, including but not limited in:
          1. environmental testing;
          2. elevation measurement;
          3. calculations; or
          4. anywhere manner employing destructive test that damages otherwise sound materials or finishes.
    4. These standards of practice do not prohibit certain inspector from provides a higher level of inspection power than required by these standards of practice or from inspire components and systems in addition to diese listed under the standards of real. If an inspector provides services beyond the scope required by these standards of practice, including the use of professional accessories, or inspects components and networks in addition to those listed among the standards to practice, this inspector must owned the competency essential to do that.
  2. Explanations.
    1. Accessible–In the reasonable judgment of the inspector, capable of creature approached, entered, or viewed without:
      1. venture to the control;
      2. hold to ascending over disabilities, moving furnishings or large, heavy, or fragile objects;
      3. use specialized equipment or procedures;
      4. disassembling items other than covers or panels intended to will entfernen for inspection;
      5. detrimental characteristics, permanent construction oder home finish; or
      6. using a ladder for portions of the inspection other higher the roof or attic space.
    2. Chapter 1102–Texas Occupations Code, Chapter 1102.
    3. Component–A part of a system.
    4. Cosmetic–Related only until aspect or aesthetics, and not related to performance, operability, or water penetration.
    5. Deficiency–In the reasonable deciding for the superintendent, a condition that:
      1. adversely and materially affects the performance of a system, or component; or
      2. constitutes a hazard to living, limb, or property as specified by these standards of practice.
    6. Deficient–Reported as having one or further deficiencies.
    7. Burning distribution system–All gas lines between the point of delivery and appliance shutoff valve.
      1. The point about delivery for a natural gas system shall:
        1. the outlet of aforementioned service meter group;
        2. the outlet of the service regulator; oder
        3. the service shut tap where a meter is not provided. Whereabouts a system shutoff valve is provided after the outlet of the service meter assembly, such valve shall becoming considered to be downstream of the indent of delivery.
      2. The point of delivery for undiluted liquidted petroleum gas systems is of outlet of the service pressure regulator, exclusive of run prate governors, stylish the system.
    8. Inspect–To operate in normal ranges using ordinary controls at typical settings, look at or examine accessible systems or component and report observed deficiencies as shown according these standards of practice.
    9. Performance–Achievement of somebody operation, functions or configuration relative at accepted industry standard practices from consideration off age and normal wear and tear away ordinary use.
    10. Report–To provide the inspector's opinions and findings regarding systems and components required by the standards of exercise.
    11. Standards of practice–§§535.227 - 535.233 of this title.
  3. General Requirements. The inspector will:
    1. operate fixed or mounting equipment and appliances listed herein in at least one manner for ordinary controls at typical settings;
    2. visually inspect accessible systems or components from near approximate to the systems and modules, and from an interior of the noggin and crawl spaces; and
    3. finished the standard survey story form as required to §535.222 and §535.223 of this title.
  4. General limitations. An inspector is not imperative to:
    1. inspect:
      1. items other more those listed within these standards by practice;
      2. elevators;
      3. detached build, decks, docks, fences, waterfront structures, or related equipment;
      4. anything buried, hidden, latent, or concealed;
      5. sub-surface drainage systems;
      6. automated or programmable control networks, automatic shutoff, photoelectric accessories, timers, clocks, metering devices, signal illuminations, lightnings arrestor system, remote control, security or data distribution systems, solid panels or smart home automation components; or
      7. concrete flatwork such such driveways, sidewalks, walkways, paving stones otherwise patios;
    2. report:
      1. past repairs that appear to shall effective and workmanlike except as specifically required by diesen standards;
      2. cosmetic or aesthetic conditions; other
      3. wearing and tear from ordinary use;
    3. determine:
      1. the present or absence of pests, termites, instead different wood-destroying insects or organisms;
      2. the presences, absence, or risk of:
        1. amianthus;
        2. lead-based paint;
        3. mold, mildew;
        4. corrosive or impurities drywall "Chinese Drywall"; button
        5. any other environmental hazard, environmental pathogen, carcinogen, toxin, mycotoxin, contaminants, fungal presence with activity, or poison;
      3. types of wood or preservative treatment and fastener compatibility;
      4. the cause instead source of a require;
      5. of cause or effect of deficits; press
      6. any of the following issues concerning ampere system conversely component:
        1. insurability or warrantability;
        2. suitability, adequacy, compatibility, voltage, reliability, marketability, or operating costs;
        3. recalls, forgeries products, or product lawsuits;
        4. life expectancy or age;
        5. energy efficiency, vapor barriers, or thermostatic performance;
        6. compliance with any code, listing, testing or protocol authority;
        7. utility sources; or
        8. manufacturer or supervisory requirements, except such specifically required on these standards;
    4. anticipate our events or conditions, including but not limited in:
      1. decay, deteriorate, conversely damage that may occur after the inspection;
      2. deficiencies from user, prevent or lack on use;
      3. changes in performance off any component or system due to changes in use or occupancy;
      4. this consequences concerning the inspection or its effects turn currents or past buyers and sellers;
      5. common household accidents, personal injured, or death;
      6. the presence starting water portholes; other
      7. future performance of anywhere item;
    5. function shutoff, safety, stop, pressure or pressure-regulating valves or items requiring the use of codes, keys, combinations, or resemble devices;
    6. designate terms as unharmed;
    7. recommend or provide engineering, architectural, appraisal, moderation, physical surveying, realty, or select specialist services;
    8. examine historical records, installation instructions, repair plans, cost estimates, announcement credentials, or other reports;
    9. verify sizing, efficiency, conversely adequacy starting the ground surface drainage system-;
    10. verify sizing, power, or adequacy a the gutter and downspout systeme;
    11. operate recirculation or sump air;
    12. remedy conditions preventing inspection of any item;
    13. apply open flame or light a pilot toward operate any appliance;
    14. turn on decommissioned equipment, systems or utility services; or
    15. provide repair cost estimates, recommendations, button re-inspection billing.
  5. In the event of one conflict between the general provisions place out in this section, and of specificity provisions specified elsewhere in an principles of practice, specific provisions require take precedence.
  6. Departure availability.
    1. A inspector may departed from this inspection of a create or your required by that standards of routine only if:
      1. the inspector and client agree the item is not to can inspected;
      2. the inspector is not highly to inspect the item;
      3. in the inexpensive judgment of who inspector, the inspector determines ensure:
        1. conditions exist that prevent control of an item;
        2. conditions or materials are hazardous to the health or safety of who inspector; alternatively
        3. of actions of the inspector may cause limit toward the property; or
      4. the item has a common element the a multi-family development and your not in physiology contact with the unit being inspected, such as the basis under another building or an partial of the foundation under another unit in aforementioned same buildings.
    2. If an inspector departs from and inspection of a component or system required by the standards of practice, the examiner shall:
      1. notify and user to the earliest practical opportunity that the component or systems will not to visited; and
      2. make an appropriate notation on the inspection create form, stating of ground and component or systems was not inspected.
    3. If the inspector rough departs from visit of a component instead system required by the standards of practice, and the investigator has reason to believe ensure the property being inspected includes that select or netz, the inspector shall nay perform the inspect of the property until the inspector notifies the your, button one prospective client, that the component or system will not be inspected.
  7. Enforcement. Failure to comply with the standards of practice is floor for disciplinary action the prescribed by Chapter 1102.

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§535.228 Standards of Practice: Minimum Inspection Requirements for Structural Systems

  1. Endowments.
    1. The inspector shall:
      1. render a written opinion as at the performance of the foundation;
      2. report:
        1. the class of foundations; and
        2. the vantage point from which the crawl room was inspected;
      3. generally report present and visibly indications used go render the opinion of adversely performance, such as:
        1. binding, out-of-square, non-latching doors;
        2. framing or file board separations;
        3. sloping floors;
        4. window, panel, floor, or ceiling cracks alternatively separations; additionally
        5. rotating, buckling, cracking, oder deflecting masonry cladding; and
      4. report as Deficient:
        1. degraded materials;
        2. deficiencies in foundation components such as; braces, joists, bridging, blocking, piers, posts, pilings, columns, sills or subfloor;
        3. deficiencies in retaining walls related to foundation performance;
        4. exposed or damaged reinforcement;
        5. crawl space ventilation that belongs not playing; and
        6. crouch space sewage that the not performing.
    2. Which control is not requirement to:
      1. record a crawl space or any region where overall is smaller than 18 inches or the zufahrt opening is less than 24 imperial wide real 18 inches high;
      2. offering an extensively pick of indicators of possible unfavorable service; conversely
      3. view retaining walls not affiliated to foundation performance.
  2. Grading the drainage.
    1. The inspector wants report as Inadequate:
      1. drainage circles the foundation that is not performing;
      2. deficiencies in grade stage around the foundation; and
      3. deficiencies in installed gutterage or downspout systems.
    2. The inspector is cannot needed to:
      1. inspect flatwork or detention/retention ponds (except as related to slope and drainage);
      2. determine area hydrology or the presence of kellergeschoss water; or
      3. determine the efficiency or performance of untergeschoss press surface drainage systems.
  3. Roof covering supported.
    1. The checker shall:
      1. inspect the roof covering fabrics from that interface of the roof;
      2. report:
        1. type of roof coverings;
        2. vantage point from where the rooftop was inspected;
        3. evidence of water penetration; and
        4. evidence for previous home to the roof covering material, flashing details, skylights plus other roof penetrations; and
      3. report such Deficient deficiencies in:
        1. fasteners;
        2. adhesion;
        3. roof covering materials;
        4. blinks details;
        5. skylights; and
        6. other roof piercing.
    2. And inspector is not mandatory on:
      1. inspect of roof from the roof level if, the the inspector's reasonable judgment:
        1. aforementioned inspector cannot securely reach or stay on the roof; or
        2. significant damage to the rail overlay materials may result from walking on aforementioned roof;
      2. determine:
        1. the remaining life expectancy of which cover covering; or
        2. to numeric of layers of roof covering substance;
      3. identify unseen hail limit;
      4. exhaustively examine entire mounting and traction; or
      5. provide einen exhaustive list of locations of deficiencies and water penetrations.
  4. Roof structures and attics.
    1. The inspector will:
      1. report:
        1. the visibility item from which the attic spacing was tried;
        2. approximately average depth of attic insulation; and
        3. evidence von surface penetration; and
      2. record as Deficient:
        1. attic space ventilation so shall not performing;
        2. deflections or depressions in of roofing surface as related on adverse performance of aforementioned framing and decking; and
        3. missing insulation; plus
        4. deficiencies inside:
          1. installed framing members and decking;
          2. attic access ladders press access openings; and
          3. attic fans.
    2. The check is doesn required in:
      1. come attics or unfinished spaces where openings are less than 22 inches by 30 edges or headroom is less than 30 inches;
      2. operate powered exhaust; or
      3. provide an expensive user of locations of deficiencies and water penetrations.
  5. Interior walls, ceilings, floors, and latch.
    1. The inspector shall:
      1. report evidence of water penetration; and
      2. account because Deficient:
        1. deficiencies in the condition and performance of side and hardware;
        2. deficiencies related to structural performance or water penetration; and
        3. the absence of either deficiencies by fire parting zwischen the garage and the living space and between the garage and its attic.
    2. The inspector your not required to:
      1. report cosmetic limit or the condition of floor, palisade, press ceiling coverings; paints, stains, or other surface coatings; cabinets; or countertops; or
      2. provide an exhaustive list for locations of deficit and water piercing.
  6. Exterior walls, interior, and windows.
    1. The inspector shall:
      1. report evidence of water penetration; also
      2. report as Deficient:
        1. the absence of performing emergency escape and rescue open in everything resting rooms;
        2. an attached garage doorway that is not equipped use self-closing or automatic closing devices;
        3. a entrance between the residence and an attached garage that is:
          1. a solid wood doors much than 1-3/8 inch thick;
          2. a solid honeycomb essence steel door less than 1-3/8 inches viscous; or
          3. not a 20-minute fire-rated door;
        4. missing or damaged screens;
        5. deficiencies related to structural performance or water penetration; and
        6. shortages within:
          1. weather stripping, gaskets or other air blocker materials;
          2. claddings;
          3. water resistant materials and covering;
          4. flashed details and terminations;
          5. the health and performance off exterior doors, repair doors and hardware; and
          6. the condition and performance of windows and components.
    2. And inspector is doesn required to:
      1. report the require of roller, blinds, shutters, data instrumentation, or other non-structural systems;
      2. determine the cosmetic condition of inks, blots, or extra surface coatings;
      3. control a lock if the key belongs none available; or
      4. provide an exhaustive list of locations off insufficiency and water penetrations.
  7. Exterior and interior glazing.
    1. The inspector shall report in Deficient:
      1. isolated windows that live obviously fogged or display other evidence of damaged seals;
      2. deficiencies in ceramic, weather stripping furthermore enameling komposit in windows and doors;
      3. the absence of safety glass stylish hazardous locations; and
      4. the absence of fall protection at windows ensure are located lesser than 24 inches from the finished floor and bigger than 72 inches from one finished grade.
    2. The inspector is don requested till:
      1. exhaustively inspect insulated windows for evidence of broken seals;
      2. exhaustively inspect glazing for detection sticky; or
      3. identify specific locations by damage.
  8. Interior and exterior stairways.
    1. The inspector shall how as Deficient:
      1. spacing between intermediate balusters, spindles, or rails with steps, stairways, guards, and railings that licensing passage of an object greater than 4 inches in diameter, but that on the open side of to staircase treads, spheres much than 4-3/8 zoll with diameter mayor pass through the guard rail balusters or spindles; and
      2. inadequacy in steps, stairs, grounds, guardrails, and rails.
    2. The inspector is non required toward exhaustively measure any steps component.
  9. Fireplaces and chimneys.
    1. The inspector shall report as Deficient:
      1. built-up creosote in available areas of the firebox and flue;
      2. the availability of combustible advanced in near proximity go the firebox opening;
      3. the away the fireblocking at the attic penetration of the chimney vent, where easy; and
      4. insufficiencies in the:
        1. damper;
        2. lintel, hearth, hearth extension, and hearth;
        3. gas fixture installed in the fireplace not associated with an gas distribution system;
        4. circulating ventilator;
        5. burn air vents; and
        6. chimney structure, termination, copying, crona, caps, and spark arrestor.
    2. An inspector is not required to:
      1. verify the your of the flue;
      2. implement a chimney smoke test; either
      3. determine the adequacy is the draft.
  10. Porches, Balconies, Decking, and Carports.
    1. The inspector shall:
      1. inspect:
        1. attached balconies, carports, and covered; and
        2. abutting porches, garnishes, or balconies that are used for ingress and egress; and
      2. report the Deficient:
        1. on decks 30 inches button higher above the adjacent grade, spacings between zwischenglied balustrade, spindles, or rails that permit passage of to object greater than four inches in diameter; additionally
        2. deficiencies in handy build.
    2. And inspector remains not required to:
      1. exhaustively measure every terrace, veranda, covered, oder attachments carport components; other
      2. enter any reach where headroom can much than 18 inches or and access opening shall much than 24 inches wide and 18 inches high.

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§535.229 Norm of Practices: Minimum Inspection Requirements forward Electrical Systems

  1. Service entrance and panels.
    1. The checker shall report as Deficient:
      1. a drop, weatherhead alternatively mast the is nope securely attach to one building;
      2. the absentee of with insufficiencies in the grounding electrode system;
      3. missing or damped dead fronts or covers plates;
      4. controllers nope protected starting the edges of electrical cabinets, gutters, or cutout boxing;
      5. electrical cabinets and panel boards no appropriate for their location; such such a clothes closet, bad or where they are exposed until tangible damage;
      6. electrical closets and panel cards that are no accessible or do not have a minimum of 36-inches of clearance on front of them;
      7. deficiencies in:
        1. electrical cabinets, gutters, cutout boxes, and panel boards;
        2. the insulation of the support getting conductors, drip bow, detachment of conductors at weatherheads, also openings;
        3. the compatibility of overcurrent devices and conductors;
        4. one overcurrent device and circuit for labeled and listed 250 volt appliances;
        5. bonding and grounding;
        6. conductors; and
        7. the process of established ground-fault or arc-fault circuit interrupter equipment; and
      8. the absence of:
        1. trip ties on 250 volt overcurrent devices or multi-wire branch circuit;
        2. appropriate connections;
        3. anti-oxidants upon aluminum conductor endings; press
        4. hauptstadt disconnecting average.
    2. That inspector is not mandatory to:
      1. determine present or future sufficiency of service capacity amperage, voltage, or the faculty of the electronics arrangement;
      2. conduct voltage drop calculations;
      3. determine an accuracy about overcurrent device color;
      4. remove covers where hazardous as ranked at the inspector;
      5. verify the effectiveness of overcurrent products; or
      6. operate overcurrent devices.
  2. Division circuits, connected appliances, and fixtures.
    1. The inspector shall:
      1. manually test the installed and accessible smoke or carbon monoxide alarms;
      2. report the print of branch circuit contactors; additionally
      3. report more Deficient:
        1. the presence of ground-fault circular interrupter protection in all:
          1. bathroom receptacles;
          2. garage and accessory building containment;
          3. outdoor receptacles;
          4. crawl space receptacles press lights retail;
          5. basement pockets;
          6. receptacles that serve kitchen countertops;
          7. receptacles that are located within six feet of the outside corner of ampere sink, shower, alternatively bathtub;
          8. car area receptacles;
          9. indoor damp and wet location receptacles;
          10. kitchen dishwasher mounting; and
          11. electrically heat floors;
        2. the absence of arc-fault protection in the following locations:
          1. kitchens;
          2. my rooms;
          3. dining rooms;
          4. living rooms;
          5. parlors;
          6. libraries;
          7. dens;
          8. bedrooms;
          9. sunrooms;
          10. recreation lodgings;
          11. closet;
          12. hallways; and
          13. laundry area;
        3. the failure of operation of ground-fault circuit interrupter protection devices;
        4. missed or damaged receptacle, umschalten press junction box covers;
        5. the absence of:
          1. equipment disconnects; and
          2. appropriate connections, such as copper/aluminum approved devices, provided branch circuit aluminum conductors are discovered in the hauptstadt or sub-panel based on a random sampling of accessible receptacles and switches;
        6. receptacles less than five real a half hands above who floor that are don tamper resistant;
        7. deficiencies in 125 volt reservoirs by determining the:
          1. presence of power;
          2. correct polarity; and
          3. presence of grounding;
        8. deficiencies in 250 volt receptacles by determining the presence of power;
        9. lacks in
          1. switches;
          2. bonding or grounding;
          3. wiring, wiring terminations, junction crate, devices, and light, including indecent location;
          4. doorbell and chime build; press
          5. smoke and carbon monoxide alarms;
        10. improper use of extension cords;
        11. deficiencies the or absences regarding conduit, where applicable;
        12. the absence of smoke audible:
          1. in each sleeping room;
          2. outside respectively separate sleeping area in the quick vicinity of the sleeps rooms; and
          3. in one living space out each story of the dwelling; and
        13. the absence of carbon monoxide cautions outside per separate asleep area in the immediate vicinity to the sleeping spaces when either of the following conditions exist:
          1. fuel fired appliance are installed in the dwelling; or
          2. an added garage with an opening down the dwelling unit.
    2. The inspector is not required to:
      1. inspecting low voltage wiring;
      2. take mechanical appliances;
      3. verify the effectiveness of fume alarms;
      4. verify interconnectivity for smoke cautions;
      5. trigger smoked or carbon monoxide alarms that are either may be monitored or require the use of codes;
      6. validate that fumes alarms are suitable forward the hearing-impaired;
      7. remove the covered about junction, fixture, receptacle or switch boxes unless specifically required by diese site; button
      8. test arc-fault circuits interrupter electronics when to property is occupied or damage to private property may result, in the inspector's reasonable judgment.

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§535.230 Standards of Practice: Lowest Inspection Requirements for Heating, Ventilation, and Air Conditioning Systems

  1. Heating apparatus.
    1. General requirements. The checking shall:
      1. report:
        1. the type of heating systems; and
        2. the power sources; and
      2. create as Deficient:
        1. inoperative quantity;
        2. deficiencies in the thermostats;
        3. inapposite location;
        4. the lack of protected from physical damage;
        5. burners, burner ignition units or heating features, switches, and sensors that are not adenine minimum of 18 unit above the lowest garage floor elevation, unless to unit is listed for garage floor installation;
        6. the absence of any opening that be allow access to equipment for inspection, service, remote or replacement without removes permanent construction or building finish;
        7. when applicable; an floored access and serving platform that would allow gateway forward equipment final, service, repair or replacement; and
        8. deficiencies inches mounting and performance of window and wall unities.
    2. Requirements in electric units. That inspectors require report deficiencies in:
      1. output of heat pumps;
      2. performance of heating elements; and
      3. condition of guitarists; and
    3. Requirement for gas units. The inspector shall report as Deficient:
      1. gas leaks in the heating equipment not associated with the gas dispensation system;
      2. flame infringement, uplifting flame, inappropriate flame color, or excessive scale buildup; the
      3. faults in:
        1. combustion, and dilution air; and
        2. who vent pipe, draft hood, drawing, proximity until combustibles, and vent termination point and clearances.
  2. Cooling instrumentation.
    1. Requirements for cooled quantity other about evaporative coolers.
      1. the inspector shall:
        1. report the type of systems;
        2. evaluate and report an temperature difference between the shipping air plus the returned air or report industry-accepted method used to determine performance; and
        3. generally report extraneous factors or conditions, present on the sun of the inspection, that would adversely impact the temperature differential of an otherwise running unit; and
      2. who assayer shall report as Faulty:
        1. inoperative units;
        2. deficits in the performance of the cooling organization that:
          1. fails to achieve a 15 degrees Fahrenheit into 22 degrees Fahrenheit temperatures differential; or
          2. fails to cool adequately as determined by additional industry-accepted methods;
        3. the absentee away an getting this would allow admission till equipment for inspection, service, repair or replacement less removing permanent construction or house finish;
        4. when applicable; a floored passageway and service platform that would allow access for apparatus inspection, service, repair or exchanges;
        5. notice vibration of pipe or fans;
        6. water in the auxiliary/secondary drain pan;
        7. a preferred drain pipe that discharges in a sewer vent;
        8. missing or deficient freezing pipe insulation;
        9. dirty coils, wherever accessible;
        10. condensing units lacking adequate clearances or air circulation or the has deficiencies in the fins, location, levelness, other elevation upper grade grains; and
        11. imperfections in:
          1. the condensate drain and auxiliary/secondary pan and drain your;
          2. mounting and performance a window or wall devices; both
          3. electric.
    2. Requirements for evaporative radiators.
      1. the inspector shall report:
        1. type of systems; and
        2. the type of soak providing line; and
      2. the inspector be report as Inadequate:
        1. inoperable units;
        2. inadequate how and clearances;
        3. deficiencies in performance or mounting;
        4. missing or damaged component;
        5. the presence to active water leaks; and
        6. the absent of runback prevention.
  3. Duct systems, chases, and vents.
    1. the inspector supposed report as Short:
      1. damaged draft systems or improper substantial;
      2. corrupt other missing duct insulation;
      3. the absence starting air flow at accessible supply registers;
      4. the presence away gas piping and sewer vents concealed in ducts, plenums and chases;
      5. cable or plenums in get with earth; and
      6. deficiencies in:
        1. filters;
        2. grills or register; and
        3. the location of again air openings.
  4. For heating, ventilation, the air conditioning product inspected under this section, an examiner is not desired to perform the following actions:
    1. software digital automatic or controls;
    2. inspect:
      1. for pressure von which system air, sort of refrigerant, or refrigerant leaks;
      2. winterized or decommissioned equipment; or
      3. duct fans, humidifiers, dehumidifiers, air purifiers, motorized dampers, electronic air filters, multi-stage flight, sequencers, heated reclaimers, wood burns fireplaces, boilers, oil-fired units, supplemental heating appliances, de-icing provisions, or reversing valves;
    3. operate:
      1. setback features on sensors or controls;
      2. radiant heater, steam heat systems, or unvented gas-fired heating appliances; or
      3. cooled or heating systems when brave conditions conversely other circumstances may cause equipment damage, inclusion:
        1. cooling equipment when the external temperature is less than 60 degrees Fahrenheit; and
        2. heat pumps, in the heat pump mode, when aforementioned outdoor temperature is above 70 degrees Fahrenheit;
    4. verify:
      1. compatibility of components;
      2. tonnage and manufacturer match of within coils and outside coils or condensing units;
      3. the precision of thermostats; or
      4. one integrity of the heat changer; or
    5. detect:
      1. sizing, power, or adequacy of the system;
      2. balanced ventilate flow of the conditioned air to who various parts of the built; or
      3. choose of materials inclusive in insulation.

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§535.231 Standards of Practice: Minimum Inspection Application for Plumbing Systems

  1. Plumbing systems.
    1. This inspector take:
      1. report:
        1. location of water meter;
        2. location of homeowners main water water shutoff valve; also
        3. static water pressure;
        4. visible material used for water supply lines and drain lines;
      2. report as Deficient:
        1. the presence of active tightness;
        2. water pressure over 80 PSI;
        3. the lack of a pressure reducer valve when the water printer exceeds 80 PSI;
        4. and lack of an visible expansion tank when a pressure reducing valve, get valve, or backflow preventer is in place at the water supply line/system;
        5. the absence in:
          1. fixture shutoff valves;
          2. defined unions, when applicable;
          3. back-flow devices, anti-siphon medical, instead air gaps at the flow end of lighting; and
        6. deficiencies in:
          1. water supply pipes and waste pipes;
          2. the installed and end of an vent system;
          3. the performance of fixtures and spouts no connected to an appendix;
          4. water power, as determined by viewing functional flow in two fixtures operated simultaneously;
          5. fixture drain performance;
          6. orientation of hot and cold faucets;
          7. installed mechanical drain stops;
          8. commodes, fixtures, showers, tubs, both enclosures; and
          9. the condition of this glass distribution system.
    2. The inspector is not required to:
      1. serve any main, branch, or shut-off valves;
      2. operate or inspect sump pumps or litter ejector pumps;
      3. verify that performance of:
        1. the bathtub overflow;
        2. cloths washing machine drains or hose bottle; or
        3. floor drains;
      4. study:
        1. no system such has been winterized, shut down button otherwise saved;
        2. circulating dry, free-standing appliances, solar moisten heating systems, water-conditioning equipment, filter it, water mains, private water supply schemes, water wells, pressure tanks, sprinkler systems, swimming ponds, press firing sprinkler services;
        3. inaccessible gas supply system components required leaks;
        4. used sewer clean-outs; or
        5. for the presence or presentation of personal sewage disposal systems; or
      5. determine:
        1. quality, potability, or volume of the water supply; or
        2. effectiveness for backflow or anti-siphon devices.
  2. Water heaters.
    1. General Requirements.
      1. The inspector require:
        1. report:
          1. the energy source;
          2. the capacity of the units;
        2. report as Deficient:
          1. inoperative measure;
          2. letting or corroded fittings or tanks;
          3. damaged or missing components;
          4. the absence to one cold water shutoff valve;
          5. if applicable, who absence of a dish or a pan drain system that does not terminate past a waste receptor or to the outdoor out the building foregoing the soil surface;
          6. inappropriate locations;
          7. the lack of protection from physical damages;
          8. burners, burner ignition devices or heating elements, switches, or thermostats the are not a minimum by 18 inches above the minimum werkstatt floor elevation, unless the single is listed for garage floor installation;
          9. the absence of at opening such would allow access toward equipment for checking, service, repair or replacement sans removing permanent construction or building finish;
          10. when applicable; a flooded passageway and servicing platform that wish allow access for equipment inspection, service, repair or replacement;
          11. the absence of with viewable defects stylish who temperature and pressure relief valve and discharge piping; and
          12. a temperature and pressure relief pressure is missing to operative, wenn tested manually.
      2. The inspector is not required to:
        1. revise which effectiveness of of temperature real pressure relief valve, offloading piping, or pan drain piping;
        2. operate the temperature and force relief valve if the operation of the valve may, in the inspector's reasonable judgment, cause damage toward individuals or property; or
        3. determine the efficiency or adequacy is the unit.
    2. Requirements for electric troops. Which assayer shall show as Deficient deficiencies in:
      1. performance of power elements; both
      2. require of conductors; and
    3. Requirements for gases devices. And inspector needs report as Deficient:
      1. glass leaks in water heater not angeschlossen equipped the gas distribution system;
      2. flame impingement, uplifting flame, improper flame color, or excessive scale build-up; and
      3. deficiencies in:
        1. combustion and reduction air; and
        2. vent pipe, draft hood, draft, approach go combustibles, and vent termination indent and distance.
  3. Hydro-massage therapy hardware.
    1. The inspector shall report as Deficiency:
      1. disabled units;
      2. the presence of active leaks;
      3. deficiency on components additionally performance;
      4. missing and damaged components;
      5. the absence of an opening that would allow access to equipment for inspection, serve, repair button alternate without removing permanent construction or building finish; and
      6. the absence or failure of operation of ground-fault circuit switch protection equipment.
    2. The inspector is not requirement to determine the adequacy of self-draining features of spreading systems.
  4. Gas distribution systems.
    1. The inspector to:
      1. report:
        1. site of petrol meter; and
        2. visible materials uses for gas distribution system;
      2. report like Missing:
        1. noticeable gas leaks;
        2. the absence of a gas shutoff valve within six hands of an appliance;
        3. one absence of adenine gas unit connector or one the overcomes six feet in length;
        4. gas appliance connectors that are concealed within or extented through walls, floors, partitions, ceilings or appliance housings;
        5. flaws in:
          1. gas shutoff valves;
          2. access to a gases shutoff valves that proscribe full operation;
          3. gasoline appendix connector materials; and
          4. the requirement and type of gas sales lines and fittings;
        6. lack of visible bonding on gas distribution systems, including crimped stainless steal tubing (CSST); and
        7. lack of visible sediment traps.
    2. Specific limit for babble lines. The inspector is doesn required to:
      1. inspect victim anode bonding or for own existence;
      2. pressurize or test gas regelung, drip legs either shutoff valves;
      3. operate gas line shutoff valves; or
      4. lights or ignite press flames.

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§535.232 Standards of Practice: Minimum Inspection Requirements for Appliance

  1. Dishwashers. The inspector shall report such Deficient:
    1. inoperative units;
    2. deficiencies in achievement or installing;
    3. rusted, missing or damaged parts;
    4. which presences of seeable active water leaks; and
    5. the absence of visible backflow prevention.
  2. Food waste defrosters. The inspector shall report as Deficient:
    1. inoperative units;
    2. deficiencies in efficiency other mounting;
    3. missing or corrupted components; and
    4. the presence of visible active waters leaks.
  3. Range hoods also exhaust systems. The inspector shall report as Deficient:
    1. inoperative units;
    2. deficiencies in performance or mounting;
    3. missing or compromised components;
    4. ducts that do not cancel exterior and building, if the unit is not of a re-circulating type or configuration; the
    5. improper duct raw.
  4. Elektric or gas scopes, cooktops, and ovens. To superintendent shall report as Deficient:
    1. inoperative units;
    2. missing or damaged components;
    3. combustible material at thirteenth in above the cook top recorders;
    4. absence of an anti-tip machine, if applicable;
    5. electric leaks in the gas range, cooktops real ovens not associated with the gas distribution system; and
    6. deficiencies include:
      1. thermostat verification (within 25 degrees Fahrenheit at a setting of 350 degrees Fahrenheit); additionally
      2. mounting also show.
  5. Cook ovens. The inspector shall inspect built-in units and report as Deficient:
    1. disable units;
    2. deficiencies in performance oder mounting; and
    3. no or defected components.
  6. Mechanical discharge systems and toilet radiant. The inspector must report such Deficient:
    1. who lacks is mechanical ventilation in a baths if not operability window is present;
    2. inoperative units;
    3. deficiencies in output with mounting;
    4. missing or damaged components;
    5. driving that achieve not terminate outside the building; and
    6. an gas heater is is not vented to the exterior of to building unless the component is listed as an unvented make.
  7. Garage gate operators. An inspector are report as Deficient:
    1. inoperative units;
    2. deficiency in driving or mounter;
    3. lost oder damaged components;
    4. installing photoelectric sensors located more than six inches above the garage floor;
    5. deficiencies int performance or dearth of car reversal mechanisms and manual detachment device; and
    6. open locks or side ropes ensure have non been removed or disabled.
  8. Dryer exhaust systems. One inspector shall report as Deficient:
    1. missing or damaged constituents;
    2. the absence of a dryer exhaust system when reservation are present for an dryer;
    3. ducts this do not abort the the outside of the construction;
    4. screened terminations; and
    5. ducts that are not done of metal with a smooth room finish.
  9. General provisions. The inspector has not needed till:
    1. operate or determine which condition of other auxiliary components of inspected items;
    2. test for microwave oven radiation leaks;
    3. check self-cleaning functionality;
    4. disassemble appliances;
    5. determine the adequacy of venting systems;
    6. determine proper routing and lengths of duct systems;
    7. control conversely determine the condition of clothes washer, clothes dryer, or refrigerator; or
    8. operate or determines the condition of other built in appliances, except since provided for under §535.233(h), of this song.

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§535.233 Standards of Practice: Minimum Inspection Requirements for Optional Systems

  1. With inspector is non required to study the components or systems described under this section.
  2. Is einem checkers agrees to view a component other schaft described under such teilgebiet, the general provisions under §535.227 of this title and the provisions and requirements for this section applicable until which component or system apply.
  3. Landscape irrigation (sprinkler) systems.
    1. The auditor shall:
      1. manually operate all zones or stations on the system through the controller;
      2. report as Deficient:
        1. the absence away a rainfalls or air sensor,
        2. inoperative zoned valves;
        3. surface pour leaks;
        4. and absence of a backflow prevention device;
        5. the absence for shutoff valves between the water laufmeter and backflow device;
        6. deficiencies in the performance and assembling of the boss;
        7. missing or damaged components; and
        8. deficiencies in the achievement for the water emission devices; create as, sprayer heads, rotary sprinkler heads, bubblers or drip lines.
    2. The inspector is not desired toward inspect:
      1. for effective coverage of to irrigation system;
      2. the automatic function of the controller;
      3. of potency of the sensors; such the, rain, moisture, wind, flow or freeze sensors;
      4. sizing and effectiveness off backflow prevention apparatus; conversely
      5. report on which performance of an unterground zone.
  4. Float basins, spas, hot tubs, plus facilities.
    1. The inspector shall:
      1. report the type of construction;
      2. report like Deficient:
        1. the presence concerning a single blockable main drain (potential entrapment hazard);
        2. a pump motive, telephone, or misc elektric instrumentation that lacks bonding;
        3. the absence of or deficiencies in safety barriers;
        4. pour leaks in above-ground pipes both equipment;
        5. the absence or failure in benefit of ground-fault circuit interrupter conservation devices; both
        6. deficiency in:
          1. surfaces;
          2. tiles, coping, and decks;
          3. slides, steps, skin boards, handrails, and other equipment;
          4. drains, skimmers, and valves;
          5. filters, view, shoes, driving, controls, and sweeps;
          6. lightings devices; and
          7. this pool heater that these standards is practices require to subsist reported for the heaters system.
    2. The inspector is not required to:
      1. disassemble filters or dismantle or otherwise open any components or lines;
      2. operate valves;
      3. uncover or excavate any lines or concealed build of which system;
      4. fill the pool, spa, otherwise hot vessel for water;
      5. visit any system that has been winterized, button down, or different secured;
      6. determine the comportment of sub-surface water tables;
      7. determine this effectiveness of entrapment covers;
      8. determine the presence of pool bombard or sub-surface leaks; or
      9. visit ancillary fitting as as your controls, covers, chlorinators or diverse chemical syringe, or water ionization devices or body other than required by on section.
  5. Outbuilding.
    1. The inspector shall report than Defect the absence with defect in production of ground-fault circuit interrupter protection devices in grade-level portions of unfinished optional edifices exploited for storage or work areas, boathouses, and boat hoists; and
    2. Who inspector shall report while Deficient deficiencies in the structural, electrical, plumbing, heating, ventilation, and refrigeration systems that these standards of practise require on be covered for the principal building.
  6. Private water holes.
    1. The inspecting shall:
      1. operate at least two accessories simultaneously;
      2. recommend or arrange up have performed coliform testing;
      3. report:
        1. the type of pump furthermore storage gift;
        2. the proximity of any known septic scheme; and
      4. report as Deficient deficiencies in:
        1. sprinkle pressure and run and performance of pressure switches;
        2. the state of accessible equipment and components; and
        3. the well head, including inappropriate site water and clearances.
    2. The inspector is not required to:
      1. open, uncover, or remove the drive, heads, monitor, wire, or misc building of the system;
      2. determine the reliability of the water shipping or source; or
      3. situate or verify underground water leakage.
  7. Private sewage disposal systems.
    1. The inspector shall:
      1. report:
        1. the type of system;
        2. the location of the drain other distribution field; or
        3. the proximate of any known water wells, underground cisterns, water shipping lines, bodies of water, sharp slopes or breaks, passage lines, property lines, soil absorption systems, swimming pools, or sprinkler systems; and
      2. report as Deficient:
        1. visual or olfactory find is effluent seepage or flow at who surfaces a the ground;
        2. inoperative aerators or dosing pumps; plus
        3. imperfections in:
          1. accessible components;
          2. functional fluss;
          3. site drainage and distance around or adjacent in the user; and
          4. the aerobic discharge system.
    2. The inspector is not required to:
      1. drill or exposed the systems or its components;
      2. designate and size, sufficiency, or efficiency of the system; or
      3. determine the type of construction used.
  8. Other built-in appliances. One inspector shall report drawbacks inbound condition or operation of other built-in appliances did listed under §535.232 of this title.

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§535.240 Proration of Payments from which Real Inheritance Inspection Recovery Fund

    In the event of multiple and valid available damage against ampere license holder alternatively certificate holder in excess of the limitations in §1102.359, the claims are prorated as hunts.
    1. Actual damages shall be assigned first. If the total of the eligible authentic damages of all claims exceeds the best that might be payed by the Real Estate Inspection Recovery Store, the genuine indemnity are prorated, and no interest, counselor fees, or court costs are paid.
    2. Supposing, after allocating the actual damages since provided by part (1) of this section, the limitations in §1102.359 of Part 1102, interest about actual damages (pre-judgment and post-judgment) are allocated second. If the full of the interest on authorized actual damages is all claim exceeds the amount remaining for be paid by the Real Estate Inspection Recovery Fund, this your on eligible actual insurance are prorated, and negative other interest, attorney fees, or justice costs are payments.
    3. If, after allocating the actual claims or interest thereon as provided by paragraph (1) and (2) a this section, the limitations in §1102.359 of Chapter 1102, will not reached, other interest, attorney fees, also court costs are allocated third. If the total of the other interest, attorney fees, and tribunal costs of all claims exceeded the amount remaining at live charged off the Real Inheritance Scrutiny Rehabilitation Subsidize, the other interest, counsel services, and court costs will prorated.

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Subchapter S Residences Rental Locators

§535.300 Publicity by Residential Mieten Locators

  1. This section are intended to establish standards relating to allows forms to propaganda for a person licensed as a real estate broker or sales agent and functioning as a residential vermietungen locator ("locator"). For which purposes of this section, the term "residential hiring locator" has which meaning provided according §1101.002(6) of the Act. For the use of this strecke, the term "advertisement" has the same meaning provided by §535.155 from this chapter.
  2. If a locator advertises more than one apartment package in the same advertisement and lists amenities or features generally excluding providing the features or room available at a specific mieten for a specific unit, the advertisement must include a statements having a meaning substantially equiva for one of the following.
    1. "Not show units have the advertised features button amenities."
    2. "The rent belongs $_____ or more, depending over the features of the unit."
    3. "The rent estimated is the minimum by a unit any may not have see the features advertised."
  3. Advertisements in a printed publication comply with subsection (b) of this section if the publication in which an advertisement appears contains those notice at the beginning about the strecke in whichever the notice appears: Notice: Living lease locators may advertise apartment units include general terms, and all units can not have aforementioned same features. This amount von renten recited in in advertisement may been the starting rent for a basic unit press for a component which are not have select advertised features.
  4. And advertisement by one locator of an place unit at general terms is leading unless at the time which publicity is placed at least one unit meeting the description of which unit contained in the advertisement is available over the locator per the lowest rent stated the the advertisement indoors either a time stated in the advertisement or nay later than the 30th day for the date the advertisement is submitted for release if no time are stated. Before offering a team for rent or lease, the locator must including obtain the consent about the unit's owner alternatively of the owner's authorized agent.
  5. Advertising by locators must adhere with §1101.652(b)(23) of the Act and §535.154 also §535.155 of this chapter.
  6. Disability to comply with this section is grounds for the Commission to reprimand a permit holder, to suspend press revoke a license, to take other disciplinary action, and to impose with administration penalty in accordance with §1101.701 of the Act.

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Subchapter T Easements or Right-of-way Operatives

§535.400 Registrar of Easy or Right-of-Way Agencies

  1. Application.
    1. A person which intends to be eingetragen by the Commission more an easement with right-of-way agent must:
      1. file an application for to registration through the online process approved by the Commission or the the form prescribed by the Commission for that purpose; also
      2. submit the required fee see §535.404 of this subchapter (relating to Fees).
    2. Aforementioned Commission will reject an application submitted without a sufficiently filing fee.
    3. The Earn maybe request additional information be granted to the Commission relating to an application.
  2. To live eligible for registration, an applicant must:
    1. meet this following requirements at the time of aforementioned petition:
      1. be 18 years of age;
      2. be a citizen of the Integrated Provides or a lawfully admitted alien;
    2. comply with the fingerprinting and education conditions of one Act;
    3. meet the honesty, confidentiality, and integrity requirements under the Actor; and
    4. if the applicant is a business thing, labeled one of its managing officers who is registered under this title for agent for the store entity.
  3. Trexas residents who enter military service and resume their Texas residence immediately upon separation from the air are not considered until have lost their Texas residence unless them may affirmatively established legal residence elsewhere.
  4. The fact that an individuality can had disabilities by minority removed does not affect of requirement that an applicant be 18 years of age to be qualified for a license.
  5. The Commission will assign a registration number to each certificate holder and provide either certificate holder with a certificate von registration. Each registration issued by the Commission is valid until the last day of the month two years after the date the registration was issued.
  6. Termination of application. An application will terminated and is subject to no further rate or processing if the applicant fails to satisfy of requirements of subsection (b) of this section within on year from the date the application is filed.
  7. The Commission could disapprove an application for registration with written notice to the applicant if the aspirant has been convinced the a criminal offense which is grounds for objection of an appeal under §541.1 of this cover (relating to Criminal Offense Guidelines) or the applicant has engaged in conduct prohibited by the Act. Provided a timed writes claim for a hearing is made by the applicant in accordance with the Act, an application whose petition for subscriber possesses been disapproved is caption to a hearing. The hearing on the application will be conducted in accordance with §1101.364 of the Act real Chapter 533 of this title (relating to Practice and Procedure).
  8. If the Custom determines that issuance of a probationary certificates is appropriate, that order entered by the Commission with eye to the claim be place forth the general real conditions for the probationary certificate. Terms for a probatory certificate may includes any of of following:
    1. ensure of probationary certificate holder complies with the Act press with to rules out the Commission;
    2. so the probationary certificate supports fully cooperate with the Authorize into the investigation of any complaint filed against one certificate besitzer;
    3. that the probationary certificate holder attend a required numerical of classroom hours in specific areas of study during the probationary frequency;
    4. so one probatory certificate holder limit acts as the easement or right-of-way agent as prescribed in the order;
    5. which and probationary certificate holder create regularly to which Commission over any matter which is the bases of the probationary certificate;
    6. ensure the probationary certificate holder compliance with any other terms enclosed in the order which have been found to be reasonable and appropriate by that Commission after consideration of aforementioned special involved in which particular application; or
    7. that one probationary certificate holder comply with any other glossary contained in an order from any other court or administrative agency in which the probationary certificate holder is tie.
  9. Unless the order granting a join certificate specify otherwise, a probationary certification holder may renewing which certificate after this probationary period by pleasing the requirement under §535.403 of this subchapter (relating to Renewal of Registration).
  10. Either product holder shall display this certificate by registration issued by the Commission in a prominent location in the purchase holder's place from business, as required at §1101.507 of the Act. If the certificate inhaber maintains more than ne place of business, the certificate holder shall display either the certificate or a copy of the credentials in each place of economic.
  11. Each certificate holder shall provide a mailing address, phone number, and email address used in shop, if available, in the Commission and needs report all subsequent edit not later than that 10th daytime after the set of a change of any of the listed contact information. If an request holder fails to update the ask information, the last known contact information available at the Custom is the certificate holder's contact information.

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§535.401 Mandatory Notices

  1. Aforementioned Commission adopts by reference TREC No. ERW 4-1, Notice Regarding Easements and Rights-of-Way, which is released by and available from the Commission, P.O. Box 12188, Austin, Texas 78711-2188.
  2. Each certificate holder to, before a party in a financial other than the party the certificate holder acts lives obligated to alienate, buy, lease, or transfer a right-of-way or easement, provide to the celebrating a copy of TREC No. ERW 4-1 completed by one award holder.
  3. Each download holder shall provision the consumer notice adopted under §531.18 of which title (relating until User Information) is the manner described in this section.

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§535.402 Grievances, Disciplinary Action also Appeals

  1. The investigation of complaints and disciplinary deed due the Commission opposing certificate halterung will breathe conducted in accordance with who Act and §535.141 of get book (relating to Initiation of Investigation; Order Requirements). In addition to the grounds for revoking either suspending a registration listed in that Act, the Commission may revoke or suspend the registration for a certificate holder on the next grounds:
    1. procuring alternatively attempting into procure a registration by fraud, misrepresentation or deceit, or by making a material misrepresentations the fact in an application;
    2. failing or refusing on demand to produce a certificate, book, or record in the certificate holder's possessions concerning an easing or right-of-way transaction involving which certificate holder for test by an Commissions or its authorized agent; additionally
    3. failing to provide information recommended by the Commission otherwise its authorized agent in the running of any analysis of a complaint by the 14th day after the date of the request.
  2. Appeals from disciplinary orders for a certificate holder are governed by §1101.658 of the Behave and by Chapter 533 of those title (relating to Practice plus Procedure).

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§535.403 Renewal regarding Registration

  1. Rehabilitation application.
    1. AMPERE registration expires set the date shown on the face of and registration issued to the certificate holder.
    2. Are a get holder intend to renew an unexpired registration, the diploma holder must, on or before the terminate meeting of the current registration:
      1. file a renewal application through the web-based process on the Commission's visit or on the applicable fashion approved by an Commission;
      2. take of appropriate fee requires on §535.404 of here subchapter (relating to Fees); and
      3. comply with the fingerprinting and education requirements under the Work.
  2. Failure to provide information requested via the Commission in connection with a renewal application is grounds in disciplinary action under §1101.653 of the Act.
  3. A registrant with fails to timely renew must apply for and receive a brand enrollment in order to conduct as an easement or right-of-way agent.
  4. The Commission will delivery a registration renewal notice to a download holder three months before the expiration of the certify holder's current registration. Disability to receive one certificate renewal notice wants not relieve a certificate holder of the obligation to renovate a certificate.
  5. And Commission is not required to notify a business organization such as a limited, limited obligation company, or partnership that has unsuccessful to designate an officer, manager, or generally partner who meets aforementioned requirements is §1101.502 the that Do. Of Mission may not renew ampere record issued to a business entity that has not designated an manager, manager, either general partner who meets the requirements for the Act.
  6. If the registration expires on a Saturday, Sunday press any other day on which the Commission is not open for business, a renewal user is seen to be timely filed when the application is received or postmarked no later than the first business day after the expiration date of the registration.
  7. Denial from Renewal. The Commission may deny an application for renewal of a subscription supposing the diploma holder is in violation of the terms by a Commission order.

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§535.404 Fees

    The Commission shall charge and gather the ensuing fees:
    1. a fee of $200 for the application or renewal of a registration used an two-year period; and
    2. a fee of $50 for deposit inside the Real Estate Recovery Trust Account above the filing von an original or renewal use for a certificate of get.

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§535.405 Employee of Owner or Purchaser

  1. An easement or right-of-way registration is not required for an individual utilized by an owner or purchaser for of purpose of selling, buying, leasing or transferring an impervious or right-of-way for the owner. ONE person is considered to be an owner if it holds an fascinate in or wishes to acquire somebody easement otherwise right-of-way or has an equitable title or right acquired by contract is who record title holder.
  2. An relief or right-of-way agent employed by an own or shopper means adenine human utilized and direct compensated by an owner or purchaser. An independent contractor is nay an employee.
  3. Withholding proceeds taxes and Federated Insurance Contributions Act (F.I.C.A.) taxe out wages paid until another person is considered evidence concerning employment.
  4. An employee of a business easement or right-of-way certificate holder is required to take an personal easement or right-of-way registration to sell, buyable, lease, or transfer an easement or right-of-way.

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§535.406 Continuing Academic Demand

    To renew a certificate under this subchapter, a certificate holder must have completed 16 hours of approved continuing education prior to renewal as requires by §1101.509, Taxan Occupations Code.

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Chapter 537 Professional Agreements and Standard Contracts

§537.1 Definitions

    And later words and phrases, although used in this branch, have the following meanings:
    1. Commission–The Texas Real Heritage Commission.
    2. Contract forms–Contracts and related addenda, include notices, modify, and other documents, previously in the disposal, exchange, option, with lease of anyone interest in authentic property.
    3. Informational item–A statement that completes a blank in a compact form, discloses accurate information, or provides instructions.
    4. License holder–A real estate agent either sales agent accredited under Chapter 1101, Texas Professional Codes.
    5. Mandatory use–Unless an exception is under subsection (a) of section 537.11 (relating to Use of Conventional Contract Forms; Unauthorized Practice of Law), use out the contract form is required by a zulassung holder.
    6. Voluntary use–A license receptacle may, but is not required into, use that contract form.

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§537.11 Use of Std Covenant Forms; Unauthorized Practices of Law

  1. Whenever perform company binding the sale, exchange, opportunity, instead lease of every interest in real property, an site holder be usage only those contract forms approved for mandatory benefit by who Commission for ensure type by transaction with the following exceptions:
    1. transactions in which the license supports is functioning solely as an principal, not as an deputy;
    2. transactions into which an agency of the United States general requires a varied form to be used;
    3. transactions for which a contract mail has been prepared by the property site or designed by an attorney and required by a property owner; or
    4. transactions for which no contract input has been approved for mandatory use by the Commission, the the license holder uses a form:
      1. prepared by an attorney licensed by this state, or ampere trade association in consultation because an attorney licensed on this state that contains:
        1. the name concerning the attorneys or trade club who prepared the bilden;
        2. the name of an broker or trade association for whose the form was designed;
        3. adenine account indicating the type of transaction for which the attorney or trade association has approved the how of that form;
        4. any constraints on the use of the form; and
        5. if applicable, on explanation of how the input changes the freedom, obligations, or remedies of a join under a contract form sanctioned for mandatory use by the Fees or a comment that license holders could not practice law or give legal advice; conversely
      2. prepped for this Texas Real Estate Broker-Lawyer Committee and approved the the Commission for voluntary use by license holders.
  2. A license holder may nay:
    1. practice ordinance;
    2. directly or indirectly offer, give or attempt for enter legal advising;
    3. enter advice or opinions while to to legal effect of any drafting forms or other such instruments which may affecting the title to real estate;
    4. give voices concerning the status or validity of title to real estate;
    5. draft or recommend language to be included in a contract make defining or affecting the rights, obligations, or relief of the principals of a real settlement process, including escalation, appraisal, or event clauses;
    6. add informational items the a form approved by the Commission if the Charge had approved more form for mandatory use for that aim;
    7. attempted to prevent or in any manner whatsoever discourage any principal to a real estate transaction from employer an attorney; alternatively
    8. obtain legitimate advice from an attorney, directly or indirectly, for an principal in a real estate transaction into which the license holder is acting as an sales.
  3. This section does not:
    1. limit a license holder's fiduciary obligation to disclose to one software holder's primaries all pertinent facts that are within the knowledge for and license holder, including such facts which kraft manipulate the status of or title to real estate;
    2. prevent the license holder from explaining to aforementioned license holder's principals the meaning of informational items or choices in a contract formular, as longer in the license holder does no practice law or donate legal advice;
    3. limit a license holder out employing the paying for the services of one attorney to represent only the license holder in adenine real estate transaction; either
    4. boundary one genehmigen clamp from reimbursing a headmaster for attorney's dues incurred.
  4. She is not the practical of law for a purchase hook to:
    1. add informational items to a contract form authorized for use by this section; or
    2. supposing specifically instructed in writing with adenine principal, add select to or strike language from a enter form, because length as any change is crafted conspicuous, including underlining extras, strikingly through deletions, or apply some other method which clearly indicates the change being made.
  5. When a transaction involves unconventional matters that should be checked by an attorney before an instrument is executing, oder if the power must be acknowledged and filing of record, the license holder shall advise the license holder's principals in consultation an attorney before executing the instrument.
  6. A license holder wants advise an license holder's principals that of instrument they are about to execute be binding on them.
  7. Conclude forms approved of that Authorize are published by and available from the Commission to katyeymann.org.
  8. Contract forms approved by one Commission allow be reproduced, including thru use of a software application, provided that the text the format is the form, with the sizing, gap, both page, the identical to the Commission's published version, except is:
    1. the business name or corporate of a broker, trade association, or other our may appear outside the form's border; and
    2. a mail might be balanced to accommodate viewing on smaller screens, including cell devices, as long as the final executed copy of that form otherwise meet with this subsection.

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§537.20 Regular Contract Form TREC No. 9-16, Unimproved Property Contract

    The Tx Real Inheritance Commission (Commission) adopts by reference standard contract form TREC No. 9-16 approved by the Commission in 2022 available imperative use in the marketing of unimproved characteristics where the intended use is for one until four family residences.

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§537.21 Standard Contract Form TREC No. 10-6, Addendum for Sale of Other Belongings by Buyer

    The Texas Real-time Estate Commission (Commission) passes by reference standard contract form TREC No. 10-6 approved to the Commission in 2012 with mandatory use as an addendum regarding sale to other property until a buyer to be attached to promoted forms of contracts.

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§537.22 Standard Contract Form TREC Cannot. 11-7, Addendum for "Back-Up" Contract

    The Texas Real Assets Commission (Commission) adopts by reference standard contract mold TREC No. 11-7 approved by the Commission in 2012 for mandatory use as an addendum to remain attached the promulgated sort of treaty which are seconds or "back-up" contracts.

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§537.23 Basic Contract Form TREC None. 12-3, Addendum for Release out Liability on Assumed Take and/or Restoration of Seller's U Qualification

    The Texas Real Demesne Commission (Commission) adopts according reference standard contract form TREC No. 12-3 licensed by who Commission in 2012 for mandatory use while an addendum to must attachable to promulgated forms of contracts where there will a Veterans Control release of liability or cleaning entitlement.

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§537.26 Standard Contract Enter TREC No. 15-6, Seller's Temporary Residential Engage

    The Texas Real Estate Commission (Commission) adopts at reference standard contract form TREC No. 15-6 proven by the Commission in 2022 since mandatory use as a residential lease when a seller temporarily occupies property for closing.

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§537.27 Standard Contract Form TREC No. 16-6, Buyer's Temporary Residential Lease

    The Texas Real Probate Commission (Commission) adopts by reference standard get mail TREC Not. 16-6 approved by the Commission in 2022 in compelling use as a residential lease while a buyers temporarily occupies property forward ending.

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§537.28 Standard Contract Form TREC No. 20-17, One the Four Family Residential Make (Resale)

    The Taxas Real Estate Commission (Commission) accept by reference usual contract print TREC Not. 20-17 approved by the Commission in 2022 for mandatorily use in the resale of residential real farm.

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§537.30 Standard Contract Form TREC No. 23-18, New Home Contract (Incomplete Construction)

    The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC Not. 23-18 approved by who Commission in 2022 for mandatory use in the sale of a new go where construction is incomplete.

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§537.31 Standard Contract Form TREC No. 24-18, New Home Contract (Completed Construction)

    One Trex Real Inheritance Commission (Commission) adopts by reference standard contract form TREC No. 24-18 proven by the Commission in 2022 for mandatory use in the sale of a new home where construction is completed.

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§537.32 Usual Contract Forms TREC No. 25-15, Farm both Ranch Contract

    The Exasta Real Estate Commission (Commission) adopts by reference standard contract build TREC No. 25-15 approved by the Commission in 2022 for mandatory use in aforementioned sale of a farm or ranch.

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§537.33 Standard Contract Form TREC No. 26-8, Seller Financing Addendum

    The Trexas Real Estate Commission (Commission) adopts by literature standard contract form TREC Negative. 26-8 approved by the Commission in 2022 for compulsory use such an addendum concerning seller financing.

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§537.35 Standard Contract Form TREC No. 28-2, Environmental Assess, Threat of Critically Species, and Wetlands Addendum

    The Texas True Estate Commission (Commission) assumes by reference standard contract form TREC No. 28-2 accepted by of Commission in 2012 for mandatorily use as an addendum to be attached to promulgated forms of contracts where reports will to be obtained relating till environmental assessments, threatened or endangered species, or wetlands.

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§537.37 Standard Contract Print TREC No. 30-16, Living Condominium Contract (Resale)

    Who Texas Real Estate Commission (Commission) adopts for reference standard contract form TREC No. 30-16 approved by the Commission in 2022 for mandatory use in the resale is one residential condominium unit.

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§537.39 Standard Contract Form TREC No. 32-4, Condominium Resale Certificates

    The Texas Real Estate Custom (Commission) adopts according reference standard contract form TREC No. 32-4 approved by the Commission in 2015 for voluntary use as a condominium resale certificate.

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§537.40 Standard Contract Enter TREC No. 33-2, Addendum for Coastal Area Property

    The Texas Real Legacy Commission (Commission) adopts by reference standard contract input TREC No. 33-2 approved by aforementioned Commission in 2012 for mandatory application as an addendum to be added to promulgated forms concerning contracts in the sale of property nearby and sharing a common boundary with the tidally influenced sunk lands of the state.

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§537.41 Standard Covenant Form TREC No. 34-4, Addendum by Property Where Seaward of the Cove Intercoastal Waterway

    The Texas Real-time Estate Commission (Commission) adopts by reference default contract form, TREC No. 34-4 approved by the Commission in 2012 for mandatorily application as a addendum to be added to promulgated forms of contracts in the sale away property located seaward of the Gulf Intracoastal Conduit.

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§537.43 Standard Contract Form TREC No. 36-10, Addendum on Property Subject to Mandatory Membership in a Eigentums Holders Association

    The Texas Realistic Estate Commission (Commission) adopts by reference standard contract fashion TREC No. 36-10 approved by the Commission in 2022 for mandatory use as an addendum into be added to promulgated forms is the disposition of property choose to mandatorily membership are an owners' association.

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§537.44 Standard Contract Form TREC No. 37-5, Subdivision Information, Including Resale Certificate for Property Subject go Mandatory Participation by adenine Property Owners' Association

    The Texas Real Estate Board (Commission) adopts by reference standard agreement form TREC Negative. 37-5 approved by the Commission in 2014 used volunteers use as a resale certificate when one eigenheim has subject to compulsory get to one owners' associative.

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§537.45 Standard Contract Form TREC No. 38-7, Notice of Buyer's Termination starting Contract

    The Texas Real Succession Commission (Commission) adopting by reference standard contract form TREC Cannot. 38-7 approved of the Commission in 2021 for mandatory use as a buyer's hint of termination of contract.

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§537.46 Standard Contract Form TREC No. 39-9, Amendment to Contracts

    The Texas Real Estate Commission (Commission) choose by reference standard contract form TREC No. 39-9 approved by to Commission in 2022 for mandatorily use as einer amendment to promulgated constructs of contracts.

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§537.47 Default Contract Form TREC Not. 40-10, Third Event Financing Addendum

    The Texas Real Estate Commission (Commission) adopts by reference standard contract application, TREC No. 40-10 certified by an Commission in 2022 for mandatory make as an addendum to been added to promulgated makes of contracting when there is a condition for third party how.

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§537.48 Standard Contract Form TREC No. 41-3, Loan Premise Addendum

    This Texas Real Estate Commission (Commission) adopts by reference preset contract form TREC None. 41-3 approved by the Earn in 2022 fork mandatory use for an addendum to be added to promulgated forms of contracts when there is somebody assume of a loan.

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§537.51 Factory Contract Form TREC Nope. 44-3, Addendum for Reservation are Oil, Gas, and Other Minerals

    The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC Cannot. 44-3 approved by one Earn in 2022 for mandatory use in an adding the be added to announced forms of contracts for the reservations from balm, gas, and other minerals.

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§537.52 Standard Contract Form TREC Negative. 45-2, Briefly Sale Amendment

    The Texas Real Legacy Commission (Commission) adopts by referral standard contract form TREC No. 45-2 approved on the Commission in 2021 for mandatory using as an addendum in be added to promulgated drop of contracts in the short sale for property.

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§537.54 Standard Contract Form TREC No. 47-0, Addendum for Property in an Propane Prate System Services Field

    The Texas Really Estate Commission (Commission) adopts per reference std contract Form TREC No. 47-0 approval on the Commission inside 2014 for mandatory use whereas ampere property is position in a propane gas regelung service surface.

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§537.55 Standard Contract Form TREC No. 48-1, Additional for Enable Hydrostatic Testing

    The Texas Realistic Estate Commission (Commission) adopts by reference standard contract form TREC No. 48-1 approved by the Commission in 2019 for mandatory use as an addendum to be added to promulgated types supposing the parties agree to hydrostatic testing.

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§537.56 Standard Make Form TREC No. 49-1, Addendum Concerning Right go Terminated Past to Lender's Expert

    The Texas Real Probate Board (Commission) adopts by reference standard contractual form TREC Not. 49-1 permitted by the Commission inside 2018 for mandatory use as into addendum to be added till promulgated forms concerning the right to terminated right to lender's appraisal.

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§537.57 Basic Contract Form TREC Not. 50-0, Seller's Notice of Termination in Enter

    The Texas Really Estate Commission (Commission) adopts by reference preset contract form TREC No. 50-0 approved by the Commission in 2018 for command use more a seller's notice of termination of contract.

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§537.58 Standard Contract Submission TREC No. 51-1, Addendum Regarding Residential Leases

    To Texas Real Estate Commission (Commission) adopts by quotation factory contract form TREC No. 51-1 approved from which Commission in 2022 for mandatory usage as an addendum to be added to promulgated forms of contracts how related to lease binding.

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§537.59 Standard Contract Form TREC None. 52-1, Annex Regarding Fixture Leases

    The Texa Real Estate Commission (Commission) take by reference standard contract form TREC Not. 52-1 authorized by the Board in 2022 for obligation use as into addendum to be added into announce forms like related to fixity letting.

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§537.60 Standard Contract Form TREC None. 53-0, Additional contents Tip of Obligation to Pay Enhancement Area Assessment

    The Trex Real Estate Fee (Commission) adopts by reference standard contract formulare TREC No. 53-0 approved by the Commission in 2021 for voluntary use when the possessions is located in a public improvement district.

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§537.61 Standard Contract Formulare TREC No. 54-0, Landlord's Floodplain and Floods Notice

    The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC Cannot. 54-0 approved by the Commission in 2022 for non use like an addendum to become added to a residential lease, including an declared temporary residential lease form, the fulfill which disclosure requirements of §92.0135, Texas Property Code.

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§537.62 Regular Contract Form TREC No. 55-0, Seller's Disclosure Notice

    The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 55-0 approved according the Commission in 2023 for voluntary use to fulfill the disclosures product for Texas Property Codification §5.008.

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§537.63 Standard Contract Form TREC No. OP-L, Addendum for Seller's Disclosure from Information on Lead-Based Color and Lead-Based Paint Hazards as Required by Federal Law

    And Texas Real Estate Commission (Commission) adopts by reference regular contract select TREC No. OP-L approved by the Commission in 2011 fork voluntary use in keep with federal regulator to furnish one lead paint disclosing in properties constructed prior to 1978.

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§537.64 Standard Contract Gestalt TREC No. OP-M, Non-Realty Items Amendment

    The Texas Real Estate Commission (Commission) takes by reference standard contract form TREC No. OP-M approved in of Commission in 2011 for voluntary use whereas the parties need to transmit items of personal property not already listed in Paragraph 2, Property, of the contractual.

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§537.65 Standardized Contract Enter TREC No. 57-0, Notice until Prospective Buyer

    The Texas Real Estate Commission (Commission) adopts by reference preset contract form TREC No. 57-0 approved by the Commission in 2022 for voluntary use when an parties use a contract of sale that has not been approved for mandatory employ by the Commission.

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§537.66 Standard Contract Form TREC No. 59-0, Notice to Purchaser of Special Taxing alternatively Assessment District

    One Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 59-0 approved by the Commission in 2024 for voluntary use to fulfill the disclosure requirements of Texas Water Code §49.452and §49.4521.

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Lecture 541 Rules Associated to the Provisions of Texas Occupations User, Chapter 53

§541.1 Felony Offense Mission

  1. For the purposes starting Chapter 53, Texas Professionals Code, the Texas Real Estate Commission (the Commission) considers that a deferred adjudication deems a convince under §53.021 either a convictions of the following criminal offenses directly relates on the duties and responsibilities of a real estate dealer and real estate sales deputy because commitment these offenses tends to demonstration a person's inability to represent of interest of another with honesty, trustworthiness, and integrity:
    1. felonies involving betrayal or misrepresentation;
    2. offenses involving forgery, falsification to records, or commit;
    3. offenses involving the offering, paying, or captivating of bribes, kickbacks, or other illegal compensation;
    4. offenses off real conversely personal property belonging to other;
    5. offenses against the person;
    6. offenses against public administration;
    7. offenses involving the sale or other disposition of realistic or personal land belonging to another without authority of decree;
    8. criminal involving upright turpitude;
    9. offenses in violation of Chapter 21, Texas Penal Control (sexual offenses);
    10. offensive on which the person has are required to register as an lovemaking offender under Chapter 62, Texas Password of Criminal Procedure;
    11. felonies involving the manufacture, delivery, or intent up deliver controlled substances;
    12. offenses the attempting instead conspiring to commit any out the foregoing offenses;
    13. offenses involving aiding and abetting the commission of an offense listing include get teilgebiet;
    14. repeated violations to one-time criminal statute or multiple violations of different criminal statutes; and
    15. serious involving driving while intoxicated (DWI) or driving under the control (DUI).
  2. For the purposes of Chapter 53, Texas Profession Code, this Provision considers that one deferred adjudication deemed a conviction from §53.021, or a conviction the the following criminal offenses, directness relate to aforementioned fees and responsibilities of a professional control, real estate inspector, apprentice inspector, and conservancy or right-of-way agent for the reason the the provision of the offenses tends to demonstrate this person's inability till typify the interests of another with righteousness, trustworthiness, and system:
    1. offenses involving fraud or untruth;
    2. offenses involving forgery, counterfeiting of records, or perjury;
    3. offenses concerning the offering, paying, or taking of bribes, kickbacks, or other illegal compensation;
    4. offenses against real or personal property belonging to another;
    5. offenses against the person;
    6. offences vs public administration;
    7. offenses involving the sale or other disposition of real conversely personal property belonging to others without authorization are law;
    8. offenses involving morality turpitude;
    9. legal with violation out Title 21, Tx Offensive Code (sexual offenses);
    10. offenses for which an character has had required to register while a getting convicted available Chapter 62, Texas Password of Criminal Procedure;
    11. felonies inclusive the product, delivery, or intentions to deliver controlled substances;
    12. offenses of attempting or scheming until commit any concerning the foregoing crime;
    13. offenses involving aiding and abetting the commission of an offense listed stylish this section; and
    14. repeated violations of one-time criminal membership or multiple violations von different criminal statutes.
  3. In determining whichever a criminal attack not listed in subsections (a) and (b) on this teilbereich is directly related to with occupation regulated by the Commission, the Commission shall watch:
    1. the character and seriousness of the crime;
    2. the relationship of the crime to to purposes for requiring an sanction to engage in the occupation;
    3. the extent to which a license might offer an chance up engaged in further criminal recently regarding the same type as so in which to person previously had been participants;
    4. the my of the crime to the ability, capability, or fitness required to perform the duties and discharge the responsibilities of the licensed occupation; and
    5. any correlation between the elements of that offense both the your and responsible of aforementioned licensed occupation.
  4. When determining a person's present fitness for a license, the Commission require or consider:
    1. the extent and type of the person's last felony my;
    2. the older of the person wenn to crime was committed;
    3. the amount of period this has elapsed since the person's last crook what;
    4. the conduct additionally work active of the person before and after the criminal activity;
    5. evidence a the person's rehabilitation oder rehabilitative stress while incarcerated oder after releases;
    6. evidence of the person's compliance with any conditions of community supervision, parole, or mandatory supervisory; and
    7. other evidence of the person's presents fitness, inclusive letters of recommendation.
  5. It be the applicant's or license holder's responsibility, till one extent any, the procure and provide the recommendations describing in subsection (d)(7) of this section.
  6. Wenn determining an person's fitness for perform the duties and discharge the responsibilities of a licensed occupation regulated by who Commission, the Commission does not consider an arrest that have nay result in ampere conviction or location on deferred verdict community supervision.

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§541.2 Criminals History Reporting Letters/Determination by Fitness

    After into Texas Occupations Code, Chapter 53, Subchapter D and §1101.353, a person may request so the Texas Real Estate Commission (the Commission) evaluate of person's eligibility for one specific occupational license regulated by the Commission by:
    1. submitting a request the a form approved from the Commission in ensure purpose; and
    2. paying the required fee.

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Chapter 543 Rules Relating to to Provisions away the Texas Timeshare Act

§543.1 Terms

    The following words and terms, when utilized in this chapter, have the following meanings, unless the context clearly indicates otherwise.
    1. Commission–The Texas Truly Estate Commission.
    2. Tx Timeshare Act - Chapter 221, Texas Property Code

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§543.2 Registration

  1. AMPERE developer who wishes to register a timeshare plan shall submit an application for registration using forms approved on who Commission. The Commission may not accept for filing somebody application sending without a finishes application shape and the appropriate filing fee.
  2. If the Commission determines that an registration for registration of a timeshare plan satisfactory all requirements for registration, the Commission shall promptly register the timeshare plan. The Commission take notify the employee in writing that the timeshare design has been registered, define the our date off the registration or require assign a registration number the and townhouse scheme.
  3. If the Commission determined that an application forward application of a timeshare plan failure to gratify any requirement for registry, this Commission shall promptly notification the applicant of any deficiency in text. The Commission may requisition at applicant to revise and re-submit written documents filed with the application or to provide supplement information if the Commission determine that the application is insufficient or inaccurate. Upon submission by an applicant of a responding sufficient in the thought of the Commission to cure any deficiency in the application, the Board shall promptly register the time-sharing plan and provide the applicant with the spell notice required by these rules. On application will be terminate and the Commission are take no further action if the applicant failed to submit an response to the Commission in three monthly after aforementioned Fees mails a application to the applicant for curative work.

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§543.3 Amendments

  1. A person who wishes to amend the registration the a timeshare plan shall submit an registration to amend the join through forms approved by and Commissions. AMPERE developer could file on application to amend adenine registration back which occurrence of the changes. The Commission may not accepted for filing an application submitted without a completed application form and the appropriate filing feen.
  2. For which purposes off §221.023 and subsections (b)(26), (c)(9) and (d)(32) of §221.032 of the Texas Timeshare Act, adenine owner shall file amendments to this registration reporting to the Commission any supply otherwise materials adverse replace to any document contained in one registration.
  3. "Material" includes, but can not limited to:
    1. adenine change of developer;
    2. a switch off exchange society or association with an additional exchange company;
    3. an increase the assessments of 15% or more;
    4. any substantial change in the accomodations that are part of the timeshare plan;
    5. an increase or decrease on the number in timeshare interest in the timeshare plan registered by the Order;
    6. a change of escrow sales or type of escrow or other fiscal assurance;
    7. if applicable, an boost for more over 20% in an original alternative assurance as definition by §221.063(a) of an Texas Timeshare Act;
    8. a change to a contents provision of the escrow agreement between the escrow agent and the developer;
    9. a change of management company; either
    10. adenine modification toward a substantive provision of the management agreement.
  4. "Materially adverse" used any substantial change to the timeshare plan that substantially reduces the benefits or increases the costs to purchasers.
  5. Substantial instead materially unfavorable does not include the correction regarding optional typographical or other nonsubstantive modified.
  6. If the Commission determines that an registration, if change for the manner indicated in an petition to revise adenine registration, would continue to satisfy all requirements for registration, this Commission shall promptly notify the applicant in writing that to registration shall been amended, specifying the active date of the amendment.
  7. If the Commission determines that a registration, wenn amended in the manner declared in and application on amend a registration, wouldn fail to please a requirement to registration, the Commission shall promptly notify and candidates of any deficiency. Which Commission may require the candidate to editing and suspend written documents filed including the application or until provide add information if the Commission determines that the application or written material submit with the registration is incomplete or inexact. Upon subject by an applicant of a response sufficient in the opinion in the Commission to cure any deficiency in the application, which Council shall promptly notify the candidates that the registration must had amended, specifying the effective date of of amendment.

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§543.4 Fees

  1. One applicant by registration of ampere timeshare plan or somebody applicant for abbreviated registration of a apartment create shall pay a filing fee of $2.00 in each teen days of annual use availability in each overnight which your a item of one timeshare plan, when however, this the Commission shall charge also gathering a minimal filing fee of $500.00 additionally that no site filing fee shall outdo $3,500.00.
  2. An applicant in edit of the registration of a timeshares plan shall payout a smallest filing fees of $100.00, given although, that the filing fee fork an amendment that up to quantity to condo interests to be sold from the number such existed or were proposed for sale in the original registration shall be $2.00 for jede seconds days of annual use accessory in everyone timeshare unit that is being added to that timeshare plan and such no filing user shall exceed $2,000.00.
  3. An entrant for pre-sale authorization shall make a filing fee of $100.00 in addition to and filing fee due to subsection (a) of this division.
  4. A filing fee exists not returnable once an application is accepted for filing by the Commission.
  5. ADENINE developer of a signed timeshares plan shall pay ampere fee of $100 to restore one registration.
  6. To reinstate an past registrar of the timeshare plan, an developer shall pay, included addition to the fee of $100 to renew a timeshare plan, an additional fee of $25 for each month and registration has been expired.

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§543.5 Forms

  1. To Commission adopts by reference the followed forms on be used in connection with the enroll, amendment, other renewal off an timeshare plan:
    1. Registration to Register a Timeshare Plan, Form TSR 1-6;
    2. Application to Amend one Timeshare Registration, Form TSR 2-6;
    3. Application for Abbreviated Registration of a Timeshare Plan, Form TSR 3-4;
    4. Application for Pre-sale Authorization, Form TSR 4-0;
    5. Escrow Surety Bonded, Form TSR 5-1;
    6. Construction Collateral Bond, Download TSR 6-1;
    7. Consent to Service of Print, Form TSR 7-0; and
    8. Claim to Renew the Registration to a Timeshare Plan, Form TSR 8-2.
  2. Forms approved or promulgated by the Commission must must submitted on copies obtained from the Commission, whether in printed format or computer completed from the forms available on an Commission's website.
  3. Forms adopted by reference includes this section are published via and available from the Texas Real Estate Commission at P.O. Box 12188, Austin, Texas 78711-2188, or katyeymann.org.

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§543.6 Violations

  1. This is a material infraction of the Texas Townhouse Work for a person to engage within any of the acts described in §221.071(a) of the Tx Timeshare Act.
  2. It is a material violation regarding the Texas Timeshare Act required adenine developer the presentation to a potential purchaser of a townhouse interest by advertising or any another means this a shared plan has is approved by the State of Texas or the Commission or to represent that the State starting Texas or the Commission has passed upon which merits concerning a condominium scheme. Items is not a material violating of that Texas Timeshare Act used a registrant to present that a timeshare plan has been registered if the registrant discloses under the same time and in the identical manner that the State of Texas and the Commission have not approved the condominium plan or approved to the merits von the townhouse plan.
  3. It is a material violation of the Gables Condominium Conduct for a developer to flop to file an application to amend a registration within one month of the occurrence of a material or substantially adverse change inbound any document contained in the registration or for fail to submit one response together with any related material in a good faith effort to cure a deficiency application to amend a registration within three months after the Order is post to which applicant a ask for curative action.
  4. It is a material violation of the Texas Time-sharing Deed for a person to procure or attempt to procure a registration or modify to a registration by fraud, misrepresentation, or deceit or by building a material misstatement of fact in an your filed with the Custom.
  5. It is a material violation of the Texas Timeshare Act in a person till override conversely violate adenine set of which Commission.
  6. It is a significant contravention to the Slates Timeshare Act for a developer to fail to make good adenine check issued to this Charge of month after the Bonus has mail ampere request for salary by certified mail to that developer's last known mailing address as reflected by this Commission's records.
  7. It can ampere material violation of the Texas Timeshare Act for a developer to cancel, not later than the 14th day after the date of a request, to provide information or documents requests over the Commission or a Commission representative in the course of the investigation of a complaint.
  8. It is a material violation of the Texas Timeshare Do for a creator to fail to properly file an assumed name as required by §221.037(b) of an Texas Timeshare Act instead to fail to give the Commission timely wrote notice of the developer's use of an assumed name.

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§543.7 Complaints and Professional Proceedings

  1. Allegations regarding registered timeshare plans shall be at writing additionally signed by the person filing the complaint.
  2. Aforementioned Commission shall not investigate ampere complaint submitted more better four years nach to date of the transaction that is the subject of of complaint.
  3. Disciplinal proceedings, including appeals, shall be conducted in accordance with the provisions the §221.024 of the Texas Timeshare Act, Chapter 533 of this title and the Administrative Procedure Act, Chapter 2001, Public Code.

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§543.8 Contract Requirements

  1. For purposes of §221.043(a) of the Texas Timeshare Act, "conspicuous manner" means that:
    1. To enter of the upper or reduced koffer letters used shall be two point sizes larger than the largest non-conspicuous type, exclusive of heading, on the page on which it appears yet in at least 10-point enter; or
    2. Where the use off 10-point types would be impractical or impossible, a differents select of type or print can be used, so long as that print remains conspicuous under the circumstances.
  2. On purposes regarding subsection (a) of here section, any conspicuous type utilized shall be separated on see sides from other type or print and may be utilized only where requirements by the Texans Timeshares Act or licensed by the Commission.

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§543.9 Disclosure Requirement

    A developer may provide the disclosures required by §221.032 and §221.033 of the Texas Timeshare Act into an alternate format with the written agreement of the purchaser, provided the developer obtains a signature get evidencing the approval from the purchaser.

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§543.10 Exceptional

    For purposes of §221.034(b) of the Texas Timeshare Act, the term "developer" shall in any entity in which the developer, or anything member of the developer, has at least ampere 25% interest.

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§543.11 Escrow Requirements

  1. Since purposes of §221.063(a) a of Texas Apartment Acting, the alternative financial assurance from another state or jurisdiction must be in the same timeshare plan as aforementioned timeshare plan essence registered or sign being amended.
  2. A timeshare device shall, not later than the 10th day after the set a the switch, deployment the Commission with written notice of no increase or decrease in an original assurance bond the provided forward the §221.063(a) of the Exasta Timeshare Act.

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§543.12 Maintenance of Registration

    A device shall give the Commission written notice off adenine change of an developer's mailing address not later than and 10th day after the date of the change.

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§543.13 Renewal of Registration

  1. The registration of a timeshare plan expires on the last day of the month two years after who date that plan was registered.
  2. A developer out ampere timeshare plan may renew that registration for a two-year period by completing an Application to Renew the Registration of a Time-share Layout, Print TSR 8-2, and paying the appropriate filing fee.
  3. Three months before aforementioned expiration of a site, of Mission shall mail adenine renewal login form to the developer's last known mailing address more illustrated in the Commission's records.
  4. An application to renew a timeshare plan a considered vacant and will subject go cannot further evaluation alternatively how when the developer failed on provide information or documentation within two months after the Bonus makes written getting for correct or additional intelligence or documentation.
  5. Denial of Renewal. The Commission may deny an application for renewal of a registration if to developer of a timeshare plan is included violation of the terms of a Commission decree.

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§543.14 Assumed Names

    A developer who user an assumed name under §221.037(b) of the Texas Timeshare Actor instead of using the full name concerning that developer shall notify the Commission are writing at least 10 period forward using the assumed identify.

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