TITLE examining-boards

Part XXIII. Texas Real Estate Commission

Chapter 537. Professional Agreements and Standard Contracts

Professional Agreements and Standard Contracts

22 TAC §537.11, §537.42

The Texas Real Estate Commission (TREC) proposes amendments to §537.11, concerning use of standard contract forms, and §537.42, which adopts by reference an agreement for mediation. The amendment to §537.11 would modify the list of standard contract forms promulgated by TREC to include a revised version of an agreement for mediation. The agreement for mediation has been revised by the Texas Real Estate Broker-Lawyer Committee to clarify that the agreement survives the closing of the real estate transaction, enabling the parties to rely upon the agreement before resorting to litigation. The agreement for mediation also has been rewritten to reflect nonsubstantive changes in voice and style used in more recently promulgated contract forms. The amendment to §537.42 adopts the revised agreement for mediation by reference. Adoption of the amendments is necessary to clarify that the agreement for mediation also applies to disputes which may arise after closing and to make the agreement for mediation consistent with other forms promulgated by TREC.

Mark A. Moseley, general counsel, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. There is no anticipated impact on local or state employment as a result of implementing the sections.

Mr. Moseley also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be a possible increase in the use of mediation in real estate transactions as an alternative to litigation. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Civil Statutes, Article 6573a, §5(h), which authorize the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties.

The statute that is affected by these sections is Texas Civil Statutes, Article 6573a.

§537.11.Use of Standard Contract Forms.

(a)

Standard Contract Form TREC Number 9-3 is promulgated for use in the sale of unimproved property where intended use is for one to four family residences. Standard Contract Form TREC Number. 10-2 is promulgated for use as an addendum concerning sale of other property by a buyer to be attached to promulgated forms of contracts. Standard Contract Form TREC Number 11-3 is promulgated for use as an addendum to be attached to promulgated forms of contracts which are second or "back-up" contracts. Standard Contract Form TREC Numbere 12-1 is promulgated for use as an addendum to be attached to promulgated forms of contracts where there is a Veterans Administration release of liability or restoration entitlement. Standard Contract Form TREC Number 13-1 is promulgated for use as an addendum concerning new home insulation to be attached to promulgated forms of contracts. Standard Contract Form TREC Number 15-2 is promulgated for use as a residential lease when a seller temporarily occupies property after closing. Standard Contract Form TREC Number. 16-2 is promulgated for use as a residential lease when a buyer temporarily occupies property prior to closing. Standard Contract Form 20-3 is promulgated for use in the resale of residential real estate where there is all cash or owner financing, an assumption of an existing loan, or a conventional loan. Standard Contract Form TREC Number 21-3 is promulgated for use in the resale of residential real estate where there is a Veterans Administration guaranteed loan or a Federal Housing Administration insured loan. Standard Contract Form TREC Number 23-2 is promulgated for use in the sale of a new home where construction is incomplete. Standard Contract Form TREC Number 24-2 is promulgated for use in the sale of a new home where construction is completed. Standard Contract Form TREC Number 25-2 is promulgated for use in the sale of a farm or ranch. Standard Contract Form TREC Number 26-2 is promulgated for use as an addendum concerning seller financing. Standard Contract Form TREC Number 28-0 is promulgated for use as an addendum to be attached to promulgated forms of contracts where reports are to be obtained relating to environmental assessments, threatened or endangered species, or wetlands. Standard Contract Form TREC Number 29-0 is promulgated for use as an addendum to be attached to promulgated forms of contracts where an abstract of title is to be furnished. Standard Contract Form TREC Number 30-1 is promulgated for use in the resale of a residential condominium unit where there is all cash or seller financing, an assumption of an existing loan, or a conventional loan. Standard Contract Form TREC Number 31-1 is promulgated for use in the resale of a residential condominium unit where there is a Veterans Administration guaranteed loan or a Federal Housing Administration insured loan. Standard Contract Form TREC Number 32-0 is promulgated for use as a condominium resale certificate. Standard Contract Form TREC Number 33-0 is promulgated for use as an addendum to be added to promulgated forms of contracts in the sale of property adjoining and sharing a common boundary with the tidally influenced submerged lands of the state. Standard Contract Form TREC Form Number 34-0 is promulgated for use as an addendum to be added to promulgated forms of contracts in the sale of property located seaward of the Gulf Intracoastal Waterway. Standard Contract Form TREC Number 35-1 [ 35-0 ] is promulgated for use as an addendum to be added to promulgated forms of contracts as an agreement for mediation. Standard Contract Form TREC Form Number 36-0 is promulgated for use as an addendum to be added to promulgated forms in the sale of property subject to mandatory membership in an owners' association. Standard Contract Form TREC Form Number 37-0 is promulgated for use as a resale certificate when the property is subject to mandatory membership in an owners' association.

(b)-(j)

(No change.)

§537.42. Standard Contract Form TREC Number 35-1 [ 35-0 ].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 35-1 [ 35-0 ] approved by the Texas Real Estate Commission in 1998 [ 1994 ]. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 8, 1998.

TRD-9800273

Mark A. Moseley

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: February 23, 1998

For further information, please call: (512) 465-3900

Part XXV. Structural Pest Control Board

Chapter 595. Compliance and Enforcement

22 TAC §595.16

The Texas Structural Pest Control Board proposes new §595.16, concerning Approval of Products. The rule establishes an approval procedure for products and devices used by licensees of the agency. It defines what must be included in a request for approval, exempts mechanical traps, glue devices and insect monitoring stations from the approval process and sets out a procedure for appeal of an agency decision.

Benny M. Mathis, Executive Director has determined that there will be fiscal implications as a result of enforcing or administering the rule. The effect on state government for the first five-year period the rule will be in effect is an estimated additional cost of $30,000,000, no estimated reduction in cost and an estimated loss in revenue as there is currently no source of revenue for this proposal. There will be no effect on local government for the first five-year period the rule will be in effect.

Roger B. Borgelt, General Counsel has determined that for each year of the first five years the rule as proposed is in effect, the public benefits anticipated as a result of enforcing the rule will be that licensees will only be using products or devices that have been determined to be effective for control of pest problems. The anticipated economic cost to individuals who are required to comply with the rule as proposed will be the delay in use while awaiting approval and the cost of compiling a request for approval.

Comments on the proposal may be submitted to Roger B. Borgelt, General Counsel, Structural Pest Control Board, 1106 Clayton Lane #100LW, Austin, Texas 78723.

The new section is proposed under Article 135b-6, which provides the Structural Pest Control Board with the authority to license and regulate persons who provide structural pest control services.

The following is the (statutes, articles, or code) that are affected by this rule: Rule Number Statute, Article or Code, Texas Civil Statutes Annotated, Article 135b-6.

§595.16 Approval of Products

It will be illegal to use materials, products and/or methods for structural pest control that are not approved by the Board.

(1)

Each pesticide product or device registered by the United States Environmental Protection Agency and/or the Texas Department of Agriculture for structural pest control may be approved by the Board as long as the product is applied according to the instructions on the label or labeling and efficacy has been demonstrated.

(2)

Products or devices not subject to the Environmental Protection Agency or Texas Department of Agriculture registration may be approved by the Board if the manufacturer or a licensee submits a request for approval by the Board. The request should contain the following information:

(A)

the name and address of the applicant and the name and address of the person whose name shall appear on the product label or device, if not the applicant's;

(B)

the name of the product or device;

(C)

a complete copy of all labeling or use instructions to accompany the product or device and a statement of all claims to be made for it, including directions for use;

(D)

the complete formula of the product, including active and inert ingredients; if any;

(E)

a full description of all tests known to the applicant and the results of the tests on which product efficacy claims are based. These tests should be made by a recognized testing agency or institution and support, to the Board's satisfaction, the efficacy and safety of the product or device when used as directed; and

(F)

all available toxicological and safety information, including any antidotes or effective treatments for problems associated with use of the product.

(3)

The following types of devices are exempt from this regulation: mechanical traps and glue-based devices used for rodent or small animal control, insect monitoring stations which may provide incidental control.

(4)

Requests for approval must be filed with the Executive Director of the Structural Pest Control Board. Not later than 60 days after a complete request is filed, the Executive Director shall make a recommendation to the Board regarding approval. The Executive Director may consult with academic institutions, governmental authorities and industry experts regarding the recommendation. The recommendation may include modifications or limitations on the use of the product or device. Upon receipt of the Director's recommendation, the Board may approve, deny or modify the request for approval. If the requestor disagrees with the Board's action, the requestor may request a hearing before the State Office of Administrative Hearings (SOAH). The request for hearing must be submitted within 30 days of the date of the Board's action on the request. The hearing will be governed by the Administrative Procedures Act (APA) and the regulations adopted by SOAH and the Structural Pest Control Board for conduct of administrative hearings. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas December 9, 1997

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 9, 1998.

TRD-9800374

Benny M. Mathis, Jr.

Executive Director

Structural Pest Control Board

Earliest possible date of adoption: February 23, 1998

For further information, please call: (512) 451-7200


Part XXIX. Texas Board of Professional Land Surveying

Chapter 661. General Rules of Procedure and Practices

Applications, Examinations, and Licensing

22 TAC §661.95

The Texas Board of Professional Land Surveying proposes new §661.95, concerning failures of respondent to appear for hearing. This proposed new rule specifies that respondents failing to appear for hearings will result in allegations against the respondent being admitted as true.

Sandy Smith, Executive Director, has determined that for the first five-year period this rule is in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering this rule.

Ms. Smith also has determined that for the first five-year period this rule is in effect the public benefits anticipated as a result of enforcing the section as proposed will be reduced costs for hearings where the respondent fails to appear. There will be no effect or economic cost to small or large businesses or persons who are required to comply with this rule.

Comments may be submitted to Sandy Smith,Texas Board of Professional Land Surveying, 7701 North Lamar Boulevard, Suite 400, Austin, Texas 78752.

This rule is proposed under Article 5282c, §9, Texas Civil Statutes, which provides the Texas Board of Professional Land Surveying with the authority to make and enforce all reasonable and necessary rules, regulations and bylaws not inconsistent with the Texas Constitution, the laws of this state and this Act.

The Texas Civil Statutes, Article 5282c, is affected by this proposed amendment.

§661.95.Failure to Attend Hearing: Default Judgment.

(a)

If a respondent fails to appear in person or by legal representative on the day and at the time set for hearing regardless of whether an appearance has been entered, the Administrative law Judge, upon motion by the petitioner, shall enter a default judgment in the matter adverse to the respondent who has failed to attend the hearing.

(b)

For purposes of this section, default judgment shall mean the issuance of a proposal for decision against the respondent in which the factual allegations against the respondent contained in the Complaint shall be admitted as prima-facie evidence and deemed admitted as true, without any requirement for additional proof to be submitted by the petitioner.

(c)

Any default judgment granted under this section will be entered on the basis of the factual allegations contained in the Complaint and upon the proof of proper notice to the defaulting party opponent. For purposes of this section, proper notice means notice sufficient to meet the provisions of the Government Code, §§2001.051, 2001.052 and 2001.054 and §661.75 of this title (relating to Notice and Hearing); such notice also shall include the following language in capital letters in boldface type; FAILURE TO APPEAR AT THE HEARING WILL RESULT IN THE ALLEGATIONS AGAINST YOU SET OUT IN THE COMPLAINT BEING ADMITTED AS TRUE.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 9, 1998.

TRD-9800358

Sandy Smith

Executive Director

Texas Board of Professional Land Surveying

Earliest possible date of adoption: February 23, 1998

For further information, please call: (512) 452-9427