22 TAC §535.217, §535.223
The Texas Real Estate Commission (TREC) proposes amendments
to §535.217, concerning dishonest conduct as grounds for disciplinary
action, and §535.223, concerning standard inspection reports.
The proposed amendments to §535.217 would require that licensed inspectors
disclose to all parties to the transaction and obtain the written consent
of the client that the inspector intends to receive a fee or other valuable
consideration from a person other than the inspector's client. The amendment
would also require that the licensee disclose to and obtain the written consent
of the client that the inspector is paying a fee to a service provider or
a participant in the transaction. The amendments propose to adopt by reference
a Fee or Other Valuable Consideration Disclosure Form for required use by
licensed inspectors to comply with the disclosure requirements.
The amendments to §535.223 revise the requirements regarding the use
of the standard inspection report form and permit an inspector to use additional
space on page two of the form for commentary that may not fit on page one.
Loretta R. DeHay, General Counsel, has determined that for the first five-year
period the amendments are in effect there will be no fiscal implications for
the state as a result of enforcing or administering the amended sections.
There are no anticipated fiscal implications for units of local government.
There is no anticipated impact on small businesses, micro businesses or local
or state employment as a result of implementing the amendments.
Ms. DeHay also has determined that for each year of the first five years
the amendments as proposed are in effect the public benefit anticipated as
a result of enforcing the amended sections will be a better informed consumer
due to the required written disclosure of fees paid to or by licensed inspectors.
There is no anticipated economic cost to persons who are required to comply
with the proposed amendments, other than the costs of obtaining a copy of
the form, which would be available at no charge through the TREC web site
at www.trec.state.tx.us, and available from private printers at an estimated
cost of $7.50 per set of 50 copies.
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 Occupations Code, §1101.151,
which authorizes the Texas Real Estate Commission to make and enforce all
rules and regulations necessary for the performance of its duties and to establish
standards of conduct and ethics for its licensees in keeping with the purpose
and intent of the Act to insure compliance with the provisions of the Act.
The statute affected by this proposal is Texas Occupations Code, Chapter
1102. No other statute, code or article is affected by the proposed amendments.
§535.217.Dishonest Conduct as Grounds for Disciplinary Action.
For the purposes of Texas
Occupations Code §1102.302
[
Civil Statutes, Article 6573a, (the Act), §23(1)
], the commission
deems the following conduct by a licensed inspector to be dishonest and grounds
for disciplinary action:
(1)
accepting a fee or other valuable consideration in a
real estate
transaction from a person
or entity
, other than
the inspector's client, without first disclosing to all parties in the
real estate
transaction that the inspector intends to receive the fee
or other valuable consideration, and obtaining the
written
consent
of the inspector's client.
(2)
paying a portion of any fee received by the inspector to
a service provider or a participant in a real estate transaction, other than
the inspector's client, without the
written
consent of the inspector's
client.
(3)
The Texas Real Estate Commission adopts
by reference the Fee or Other Valuable Consideration Disclosure Form, REI
7B-0, approved by the Commission in 2004 which is published by and available
from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.
(4)
A licensed inspector must use the Fee
or Other Valuable Consideration Disclosure Form or identical terminology in
a pre-inspection agreement to comply with paragraphs (1) and (2) of this section.
The inspector may select the type and size of the fonts, provided the fonts
are no smaller than those used in the Fee or Other Valuable Consideration
Disclosure Form.
§535.223.Standard Inspection Reports.
(a) - (c)
(No change.)
(d)
When using form REI 7A-0, the inspector may make the following
changes.
(1) - (3)
(No change.)
(4)
The inspector may select other information to be inserted
in the space on the first page of the report
and may allocate additional
space on page 2
[
reserved
] for that purpose; provided the
caption "Additional Information Provided By Inspector" is not deleted.
(5) - (10)
(No change.)
(e) - (h)
(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 May 11, 2004.
TRD-200403193
Loretta DeHay
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: June 27, 2004
For further information, please call: (512) 465-3900