[TRELA 1101.651(b)] Further, a business entity that receives compensation on behalf of a license holder must be licensed as a broker. TREC's jurisdiction over real estate inspections is limited to inspections performed for a buyer or seller of real property in connection with a transaction. At a minimum, bathrooms and water closets that that do not have an operative window must be reported as deficient if they lack an exhaust fan that vents to outside air. I think my inspector was negligent in performing the inspection. Now What? When can an agent say that they sold a property in an advertisement? In response to the 2nd question, an inspector must keep in mind that his role is primarily to document the condition of the home at the time of the inspection per 535.227(b)(1). If a licensed professional inspector is conducting a commercial inspection, is he or she required to use the inspection report form promulgated by TREC? [TRELA 1101.002(6)] In addition, a person may not engage in business as a residential rental locator (apartment locator) unless the person is licensed as a real estate broker or sales agent. Do the Standards of Practice require inspectors to determine the headroom clearance on stairs or to report inadequate clearance as a deficiency? Another name that indicates a brokers line of business, e.g. Our discussion is mostly focused on picking which brokerage she will work with. In general, no. A brokers name alone is okay. A TREC-specific Hard Card must be obtained from TREC because it contains coding required by the DPS and FBI. Yes. The name on your government issued photo ID must match the name on your real estate license application. Is a TREC inspector required to report the presence of CSST as a deficiency? You'll have 150 minutes to complete 110 questions during the Texas real estate license exam. Neither I nor anyone in my company is a licensed wood destroying insect inspector, but we recommend or provide one if requested by the client. Yes, as long as the ad complies with Rule 535.155 (effective May 15, 2018), which requires the consent of the party the license holder represents in a transaction. Are the disclosure and statutory information requirements applicable to commercial transactions, new home sales, farm and ranch sales or transactions other than residential sales? Is a link to the IABS form required on my website? An inspector who meets all other renewal requirements but does not show proof of insurance will receive an inactive license (which does not permit the inspector to perform inspections). Will Your Criminal Record or Disciplinary History Keep You from Getting Licensed? Does Texas have reciprocity with any other state? [Rule 535.146(b)(1)]. Texas Remedial . They are only required to conduct a visual inspection of the property, and buried gas lines are not required to be inspected. In some instances, the inspector will only be able to report that he or she was not able to determine whether the door was fire-rated or that the door appeared to be (or did not appear to be) fire-rated. [TRELA 1101.652(b)(1)] Typically, sign ordinances prohibit placing a sign on a utility pole, traffic signal box, or in a road median. Paying the deferral fee allows you to continue to be active in real estate activities and provides an additional 60 days from your expiration date to complete your CE. Is a license holder acting as a principal required to provide a party with written information relating to agency? Pursuant to the general limitations in the Standards of Practice, inspectors are not required to determine the presence of Chinese drywall or to report its symptoms or risks. Licensing Exam Sites Re-Opening | TREC Copy the temporary password from the email message you received when you registered. Does TREC consider a sign on a building to be an advertisement? [TRELA 1101.652(b)(18)]. [Rule 535.144(b)] The disclosure is required even if the license holder is on inactive status. The buyer may, however, seek to be released from the buyer representation agreement. What can unlicensed office personnel or an unlicensed assistant do? 5 Steps to Follow Congratulations on passing your real estate exam and obtaining your license. If a license holder is convicted of a felony or a criminal offense involving fraud it is a violation of section 1101.652(a)(1) of the License Act. All of our Texas real estate practice exam questions are specifically written for the state of Texas, and are structured exactly like the Texas real estate exam. (2) a meeting is with a party currently known to be represented by another license holder; or The Information About Brokerage Services (IABS) representations disclosureis not required when: All sites continue to enforce social distancing measures and safety requirements in line with local jurisdictions. A license holder is required to notify the Commission not later than the 30th day after the final conviction or the entry of a plea of guilty or nolo contendere. Frequently Asked Questions | TREC Check out our conversation about what her next steps are. The final exam is closed-book and administered via ChampionsLive! Inspectors are free to use or not use a contract. Please note that an inspector is not required to designate a condition as safe. She didnt state that she sold it but an average person reading the card could surely and reasonably imply an erroneous claim of involvement. 2. a required reporting item? While this configuration does not comport with current codes, the Standards of Practice do not require inspectors to inspect to todays code. Under the current law, a broker must agree to act as an intermediary in accordance with the statute if the broker agrees to represent more than one party in a transaction. If it is not visibly apparent whether proper fire separation is present, the inspector mustmake clear to the client that he or she was not able toascertain whether proper fire separation was in place. Section 535.230(2)(J)(vi)(I)of the Standards of Practice requires inspectors to report as deficient, in gas HVAC units, deficiencies in combustion, and dilution air. If the broker refuses to release you from your buyer representation agreement, you should seek the advice of a private attorney. CE must include 4 hours of Legal Update I, 4 hours of Legal Update II, 3 hours of Contract-Related coursework, and 7 hours of elective CE courses for a total of 18 hours. TREC partners with Pearson VUE to offer licensing examinations. State section - There are 30 questions that must be answered in 45 minutes. If you were to perform an inspection in connection with a transaction in which your broker was involved, your broker would need to disclose your relationship (as the brokers sponsored agent), and if you were paid or received compensation or anything of value from anyone in your office in connection with the inspection, you would also need to disclose this fact and obtain the clients prior permission. Please Note - This method is only available for real estate QE/SAE/CE and some home inspection courses. Shouldnt the inspector have noted this problem on his report? Yes, unless the person is an employee of the owner of the apartments or otherwise exempt, residential rental locators are required to be licensed as either a real estate broker or sales agent. [Rule 535.154(a)(5)]. Texas Real Estate - Pearson VUE Will Your Criminal Record or Disciplinary History Keep You from Getting Licensed? I already have a license. Inspectors are not required to inspect to trade or industry association standards. Do the Standards of Practice require inspectors to report copper gas lines as deficient? Paying the deferral fee allows you to continue to be active in real estate activities and provides an additional 60 days from your expiration date to complete your CE. What do I do? A brokers name alone is okay. Before a broker or sales agent sponsored by the broker can represent both the buyer and seller in a transaction, all of the following steps must occur: Under Rules 535.154 and535.155 (effective May 15, 2018), an advertisement is defined asany form of communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services and includes, but is not limited to, all publications, brochures, radio or television broadcasts, all electronic media including email, text messages, social media, the Internet, business stationery, business cards, displays, signs and billboards." I passed my Real Estate Exam! What now? - YouTube Click on the "Next" tab after reading the information on the"Manage my Sponsorship (Sales)" introduction page. Give them 5-7 days to process your paperwork. No. You can be exempt from taking the National portion of the exam if you hold an active license in a state that participates in the National exam accreditation with ARELLO. You cannot use either company name because each implies that Sally, a sales agent, is in charge. Here's how it works: Within your Aceable account there will be a final exam page with an option to schedule your exam. Mechanical components like dishwashers can and will break down. Yes. You can contact them at www.dshs.texas.gov/mold for information on the requirements to obtain a license to inspect for mold. I am an attorney who is interested in becoming a real estate broker. The answer to the first question is No. CE must include 4 hours of Legal Update I, 4 hours of Legal Update II, 3 hours of Contract-Related coursework, and 7 hours of elective CE courses for a total of 18 hours. [Rule 535.147(b)], The intermediary may delegate to another license holder the authority to appoint license holders. No. Step 1: Find a sponsoring broker who is a good fit In real estate, brokers are almost always agents with years of experience and a broker's license. Pursuant to Section 535.227(b)(3)(C)(i) of the Standards of Practice, inspectors are not required to report manufacturer requirements except as specifically required by the Standards. Can the intermediary delegate to another license holder the authority to appoint license holders associated with the broker intermediary? This site requires javascript. Is the absence of weather-strip on the door a required reporting deficiency? See https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml, Evidence of registration of the assumed business name with the Secretary of State or in the county or counties where the broker does business is adequate proof of authority to do business under that name. Do the Standards of Practice require inspectors to report double-tapped neutral wires on a panel box terminal as deficient? Is the inspector required to determine the presence of Chinese drywall? What is the difference between an assumed business name and a team name? When does a license holder dealing in property in the license holder's own name have to disclose the fact that they have a real estate license? I am a sales agent, Sally White. Texas Real Estate License | StateRequirement Background Checks [Rule 535.154(d)], No. The brokers name in at least half the size of the largest contact information for any sales agent, associated broker, or team name contained in the advertisement. You may want to have a private attorney create a contract for you, or you may check with some of the inspector trade associations to see if they provide templates of pre-inspection contracts. Yes. The Standards of Practice do not address tamper-resistant receptacles. [TRELA 1101.351(c)] Thus, a sales agent may not work for a broker who is not the sales agents sponsoring broker or work for another broker or out of another broker's office. If there are any deficiencies due to fire or other causes, those deficiencies must be reported. Yes. [Rule 535.155(b)(1)], Yes. In Texas, any person who reports on wood destroying insects in a home must be licensed by the state as a wood destroying insect inspector. Fill out the profile for your Examity account. Get fingerprinted and pass a background check Complete 180 hours required pre-license courses Pass the Pre-License Course Final Exam Remember -- all these types of names must be registered with TREC before use in advertising. As the question suggests, it is sometimes also possible to use a digital camera to see in areas that are not otherwise accessible and there are multiple means of detection of gas leaks in existence, such as through the use of hand held detectors (however, these would be considered specialized tools and are not required to be used in performing inspections). TREC does not review a sales agents advertising. Section 535.231(a)(3)(D)(iii) does not require inspectors to inspect inaccessible gas supply system components for leaks. Will I need to take both sections of the exam when I reapply? Inspectors are not required to measure the headroom clearance of every flight of stairs. The processing dates provided below are updated every Monday by 3:00 PM Central Time . Also, please review the advertising rule for inspectors found at Rule 535.221. Section 535.227(b)(3)(H) further provides that inspectors are not required to review installation instructions. As an example, if corrosion to copper tubing lines or copper wires were found, that could in the opinion of the inspector constitute a deficiency, the inspector is not required to determine or report the cause of the corrosion, such as from Chinese drywall.". Is the inspector required to inspect to trade or industry association standards? Is an egress window with a sill greater than 44 inches from the floor a required reporting item and deficient? Can an attorney get a broker license without first being licensed as a sales agent? How do I request inactive status for my sales agent license? Is the inspector required to warn or advise of the alleged risks if TREC determines the panel is not required to be reported as deficient? Under Section 1102.303 of the Texas Occupations Code, an inspector may not act in a transaction in the dual capacity of inspector and either (1) broker or sales agent or (2) an undisclosed principal. A TREC licensed inspector may perform inspections on commercial property, as long as no other laws prohibit the inspector from doing so (please check with the Texas Board of Professional Engineering to determine when a Professional Engineer license is required). I already have a license. Online Services is not accepting my temporary password. But there may be additional steps you need to take. A: Yes. The Standards of Practice require inspectors to inspect attic ventilators and report deficiencies but do not require that they be operated. [See TRELA 1101.355 and Rules 535.50(5) and 535.53(a)]. The unlicensed person may share in the income earned by a real estate brokerage if the person engages in no acts for which a license is required. Can a sales agent be the owner of a property management company? One simple way to accomplish this is to put sales agent next to the agents name. Due to social distancing requirements, exam sites are operating at a much lower capacity than before and there will likely continue to be delays in scheduling examinations as any backlog is addressed. The sales agent must turn all money received over to the sales agent's sponsoring broker. Paste it into the Online Services Login and Registration web page when you log in. IABS 1-0, that license holders must use to comply with the statute. Can I advertise that I will rebate a part of my compensation to the buyer? Although this is not mandatory, it may still be placed on a sign. Submit a license history from the state in which you are licensed when you file your application so we can determine if you are exempt. Can I broker real estate located in another state? [TRELA 1101.558(b-1)]. What is the definition of an accepted industry practice? What do I do? License holders must meet Continuing Education (CE) requirements during each two- year license period. Does TREC consider promotional items and sponsorships to be advertising? Can TREC give me information about what codes the inspector is referring to? [Rule 535.154(d)]. Any name used by an individual sales agent, other than the name on the license or a registered alternate name, is considered a team name under TREC rules and must meet the team name requirements. If a residential service company contract is part of the transaction but you do not receive a fee from that specific company, you do not need to provide this form. Texas Real Estate License Proctored Exam Requirements IdentoGO by IDEMIA has details on how a Texas Non-resident can complete the fingerprinting process using a Hard Card. (1) a transaction is for a residential lease less than one year and a sale is not being considered; May a license holder who is a rental locator advertise that they will pay a prospective tenant a portion of their fee received from an apartment complex if the tenant uses the locator's services? Can a broker be the designated broker for more than one business entity? Are inspectors required to mark and or comment as deficient the absence of tamper resistant receptacles? Thank you guys so much for tuning in, I just want to say this is going to be an amazing journey for all of us and I just want to make sure that I'm. This section gives the Commission authority to suspend or revoke a license holder that has entered a plea of guilty or nolo contendere or has been convicted of a felony or any criminal offense that involves fraud (including misdemeanors). However, a license holder may rebate all or a portion of the fee or commission to the party being represented in the transaction, or, with consent of the party being represented, the license holder can also pay all or a portion to a party the license holder does not represent in the transaction. [Rule 535.147(d)]. Team names must end in team or group and cannot contain the words brokerage, company, associates or other similar terms. if hired for that purpose. No. In addition, an inspector must retain sufficient records of professional liability insurance coverage, or any other insurance that provides coverage for violations of Subchapter G of Chapter 1102, to document to the commission continuous coverage for the preceding two year license period. There are many different codes that can figure into the construction of a house, depending on when it was built and local amendments. If yes, is the inspector required to inspect 100% of the materials under the edge of the roof? What qualifies as proof of ownership of the business entity? Probably not. Please see the Texas State Board of Plumbing Examiners (TSBPE) website to determine whether any of your activities may be in violation of their statutes or rules governing plumbers, such as advertising that you specifically inspect aspects of plumbing systems that may require a license from the TSBPE. An inspector may request inactive status in writing at any time. both the buyer and seller are presented with the Information About Brokerage Services by their respective sales agent at the time of the first substantive communication; the seller executes a Listing Agreement or other written document with the broker that authorizes the broker to act as intermediary and specifies in conspicuous bold or underlined print the conduct that is prohibited under TRELA 1101.651(d);and. Shouldnt the inspector have told me this unit was about to fail? Can an individual broker use an assumed business name in advertising? You can apply for your license online or via mail. Our Texas real estate practice exams are written by a Licensed Real Estate Instructor and are up to date with the latest 2022 rules and regulations. property management or commercial, is also an assumed business name of the broker, even though it may not be available for use by all sponsored agents and associated brokers. In those instances, if any additional information is needed concerning your application, you will be contacted directly by our enforcement division. The Standards of Practice do not require double-cylinder deadbolts to be reported as deficient unless such a deadbolt would impede functional emergency escape from a sleeping room. If the inspection you are proposing is not in anticipation of a purchase or sale, then TREC's requirements would not apply, and the parameters of the inspection would be governed by the agreement between the inspector and his or her client. Inspectors are not required to inspect anything buried, hidden, latent, or concealed. Are signs permitted which display the word "broker" or "agent?". Accordingly, inspectors are not required to report mere evidence of a past fire or the presence of paint in the attic. If you participate in a transaction and hold more than a 10% interest in the corporation or other business entity, you are subject to the disclosure requirements. How to Pass the Texas Real Estate Exam - Study.com Can a listing broker share a portion of the listing brokers commission with an attorney who represented the buyer in a real estate transaction? The fee for this application is $205. Section 535.228(e)(3)(A) of the Standards of Practice states that inspectors are not required to report cosmetic damage or the condition of floor, wall, or ceiling coverings. [TRELA 1101.355(c)]. We are unable to provide a general definition. The associated broker could use associated broker, broker associate or associate broker, since that distinguishes his or her role. I am not currently performing inspections, but I'd like to maintain my license. Include your name as it appears on the application, a copy of your government-issued photo ID, and your telephone number to TREC. Both the State and National sections of the exam must be passed before the application expiration date. TREC only handles the licensing and discipline of real estate inspectors, you would need to contact the state agency in charge of collecting state sales tax which is the Texas Comptroller of Public Accounts. TREC does not determine what constitutes "procuring cause" or who is entitled to a commission or other compensation. [TRELA 1101.351(c)]. If so, what is the minimum distance the damper should be open? A license holder should fully complete and provide the Disclosure of Relationship with Residential Service Company (RSC-3) when the license holder will receive a fee from a residential service company because a party to the transaction purchases a contract from that company. However, under the home inspector license issued by TREC, the inspector MAY NOT comment on whether termite infestations exist. Under Actions for the sponsoring broker, click "Terminate" and then click "Next". Yes. Can a sales agent own his or her own real estate business entity? If a license holder is convicted of a felony or a criminal offense involving fraud it is a violation of section 1101.652(a)(1) of the License Act. Applicants, including those who were scheduled to take an examination prior to Pearson VUE closing sites in March, whose scheduled time was subsequently canceled, are encouraged to log into the Pearson VUE registration tool regularly at www.pearsonvue.com to check test center availability. Section 535.228(c)(3)(D) of the Standards of Practice requires inspectors to report as deficient deficiencies in flashing details. Texas does not have reciprocity with any state. My real estate application was filed with a name that is different than the name on my government issued ID. Is an inspector required to determine if a light fixture is approved for its location over a bathtub or shower? 2. We don't know, since you will be governed by the laws in that state. TREC and Pearson VUE announce licensing exam centers to slowly re-openaround the state after swift closure in March in response to the COVID-19 pandemic. If I am buying, selling or leasing property for a relative, do I need to disclose that I have a real estate license? I have completed several courses for my law degree. No. Copy the temporary password from the email message you received when you registered. [Rule 535.144(b)]. A resolution, minutes or other official record of the business entity. Exam results for each section of the exam are valid for one year from the passing date. Is there a way for me to do that without going to the expense of obtaining insurance? If a broker does not have a written agreement to represent the buyer, what recourse does the broker have if another broker steals a client? Yes. The lack of a damper clamp is required to be reported as a deficiency when a gas appliance or artificial gas logs (but not merely a log lighter pipe) is present. Will this prevent me from taking the exam? Question is not clear. Yes. If a sales agents last name is contained in the brokers licensed or assumed business name, how can the sales agent let the consumer know the agent is not the broker? Javascript is disabled in your browser. Can I use Sallys Spectacular Properties or White Real Estate for my business name on my advertising? No, but a license holder is required to provide a written notice to the other party that the license holder is licensed as a real estate broker or sales agent before entering into a contract, including a lease. TREC Processing Dates | TREC For further information, please see Sections 1102.001 and 1102.002 of the Texas Occupations Code and Rule 535.223. Is a screen combustion air opening a required reporting deficiency? the buyer executes a Buyer Representation Agreement or other written document that authorizes the broker to act as intermediary and specifies the conduct that is prohibited under TRELA 1101.651(d) in conspicuous bold or underlined print. Pearson VUE operates both company-owned exam sites and third party sites. Can I be exempt from taking the National portion of the exam? I passed the Texas state and national exams on November 11th, 2021. 3. unsafe? This notice must be in writing. We assume you are referring to composition shingle roofing. Requirements for an assumed business name and team name are set out in Rule 535.154. Therefore, it would violate Section 1102.303 for you to inspect any property your broker has listed or where you were personally involved. Is a keyed deadbolt on the interior of an exterior egress door deficient and a required reporting item per TREC? If you are not being paid a fee by a residential service company, you do not need to provide this form. No. Section 1101.652(a)(7) of the License Act provides that if you have entered a plea of guilty or nolo contendere or have been convicted of a felony or any criminal offense that involves fraud (including misdemeanors), you must disclose this to the Commission not later than the 30th day after the final conviction or the entry of a plea of guilty or nolo contendere. The damage from the termites has cost me thousands of dollars to repair. What are the agency disclosure requirements for a real estate license holder? Placement of signs in violation of city ordinance could be considered an act of negligence or incompetence that authorizes disciplinary action against the license holder as well as subject the license holder and possibly even their principal to enforcement actions by the appropriate authorities. No. Is removal of the blanket required by TREC for inspection reasons? I am renewing my license for the first time. I am also a licensed real estate sales agent. [TRELA 1101.351(c)], Yes, as long as the broker has the legal authority to use that name in the State of Texas and it is registered with TREC before it is used in advertisements. An advertisement cannot in any way imply that a sales agent is the person responsible for the operation of a real estate brokerage. The broker is responsible for accounting for the interest and disbursing it to the person whose money is held by the broker. Provider Exam Passage Rates for Inspectors, Texas Real Estate Inspector Examination Study Materials. I Failed My Texas Real Estate Exam - What Do I Do Now? - The CE Shop A buyer representation agreement is intended to be a legal and binding contract. Can a sales agent receive or pay a commission to a party in a real estate transaction? The practice tests coincide with the current, general test outline. The Texas Occupations Code, Real Estate Inspectors, Chapter 1102, 1102.303 specifically prohibits an inspector from acting in the capacity of an inspector and real estate agent in the same transaction. It appears that the inspector who inspected my home before my purchase missed major termite infestation. No. A broker or designated broker of a business entity who sponsor one or more sales agents or a delegated supervisor of one or more license holders must complete the six-hour Broker Responsibility Course as part of the 18-hour CE requirement. I am renewing my license. If the intermediary authorizes another license holder to appoint associated license holders to work with the respective principals, that license holder cannot designate himself/herself as one of the appointed license holders. A licensed attorney will need to meet all the standard requirements, including education, examination and experience, for issuance of first a real estate sales agent license and then a broker license.