Part 23.
TEXAS REAL ESTATE COMMISSION
Chapter 535.
PROVISIONS OF THE REAL ESTATE LICENSE ACT
Subchapter A. GENERAL PROVISIONS RELATING TO THE REQUIREMENT OF LICENSURE
22 TAC §535.2
The Texas Real Estate Commission (TREC) proposes an amendment
to §535.2, concerning Broker's Responsibility. The amendment deletes
a provision that attempted to clarify the minimum level of service that a
consumer may expect to receive from a Texas real estate licensee who represents
the consumer as an agent in a real estate transaction.
Questions were raised after the rule was adopted regarding whether the
provision, among other things, prohibited fee-for-service listing agreements
or whether the minimum standards could be waived by the client. At a public
meeting on January 6, 2003, persons spoke against the rule, for the rule,
and for a modified version of the rule.
The purpose of the present rule was to ensure that consumers were fully
informed about the level of service they could expect from a licensed broker
acting as their agent in a real estate transaction. There was never any intent
to prohibit fee-for-service listing agreements, to set commission rates or
fees, or to deny consumers the right to choose the type service they want
from a licensed broker. Given the widespread interest expressed in the rule
after its final adoption, the Commission proposes to delete the subsection
for further study of the issue.
Loretta R. DeHay, General Counsel, has determined that for the first five-year
period the section is in effect there will be no fiscal implications for the
state or for units of local government as a result of enforcing or administering
the section. There is no anticipated impact on small businesses, micro businesses
or local or state employment as a result of implementing the section.
Ms. DeHay also has determined that for each year of the first five years
the section as proposed is in effect the public benefit anticipated as a result
of the amendment will be optimum consensus on the interpretation of Texas
real estate agency law. There is no anticipated economic cost to persons who
are required to comply with the section as proposed.
Comments on the proposal may be submitted to Loretta R. DeHay, 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 authorizes the Texas Real Estate Commission to make
and enforce all rules and regulations necessary for the performance of its
duties, to establish standards of conduct and ethics for its licensees in
keeping with the purposed and intent of the Act or to insure compliance with
the provisions of the Act.
The statute affected by this proposal is Texas Civil Statutes, Article
6573a.
§535.2.Broker's Responsibility
(a)-(c)
(No change.)
[
[
[
[
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 February 27, 2003.
TRD-200301466
Loretta R. DeHay
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 13, 2003
For further information, please call: (512) 465-3900
(d)
A broker who represents a
party in a real estate transaction must, at a minimum, provide the following
services to the broker's client:]
(1)
accept and present to the client offers and
counter-offers to buy, sell, or lease the client's property or property the
client seeks to buy or lease;]
(2)
assist the client in developing, communicating,
and presenting offers, counter-offers, and notices that relate to the offers
and counter-offers; and]
(3)
answer the client's questions relating to the
offers, counter-offers, and notices.]
Subchapter G. MANDATORY CONTINUING EDUCATION