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) adopts amendments
to §535.2, concerning broker responsibility without changes to the proposed
text as published in the March 14, 2003, issue of the
Texas Register
(28 TexReg 2214) and will not be republished. The amendment
effectively deletes subsection (d) 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 former 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 former rule, for the
former rule, and for a modified version of the former rule.
The purpose of the former 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 former
rule after its final adoption, however, the Commission adopts the deletion
of the subsection for further study of the issue. The effect of the amendment
will be optimum consensus on the interpretation of Texas real estate agency
law.
There were eight comments received by the Commission during the notice
and comment period. Six persons stated that they were against the former rule
as adopted and recommended repeal of the former rule. One person stated that
she was in favor of the former rule as adopted. One person filed a Plea in
Intervention in the pending litigation involving the former rule. The Plea
in Intervention was filed to put on record the person's opposition to the
relief sought in the plaintiff's original petition filed against the former
rule.
The amendment is adopted 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 adoption is Texas Civil Statutes, Article
6573a.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 28, 2003.
TRD-200302679
Loretta DeHay
General Counsel
Texas Real Estate Commission
Effective date: May 18, 2003
Proposal publication date: March 14, 2003
For further information, please call: (512) 465-3900
Subchapter G. MANDATORY CONTINUING EDUCATION