TITLE 22.EXAMINING BOARDS

Part 23. TEXAS REAL ESTATE COMMISSION

Subchapter F. EDUCATION, EXPERIENCE, EDUCATIONAL PROGRAMS, TIME PERIODS AND TYPE OF LICENSE

The Texas Real Estate Commission (TREC) proposes amendments to §535.61, concerning Examinations and §535.63, concerning Education and Experience Requirements for a License. The amendment to §535.61 authorizes the commission to waive the national portion of the examination for an applicant who has passed a comparable national examination that has been certified by a nationally recognized real estate regulator association. The amendment to §535.63 requires a salesperson subject to annual education (SAE) requirements to furnish documentation to the commission of successful completion of appropriate courses 10 business days prior to the day the salesperson renews the salesperson's license. The amendment to §535.63 is necessary to implement on-line renewal of a salesperson's license subject to SAE.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendments are is 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 amended sections.

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 acceptance of national test results from other states with comparable examinations and facile implementation of on-line renewal requirements. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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 purposed 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 1101. No other statute, code or article is affected by the proposed amendments.

§535.61.Examinations.

(a) - (f) (No change.)

(g) The commission may waive the national portion of the examination of an applicant for a broker or salesperson license if the applicant has passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association.

§535.63.Education and Experience Requirements for a License.

(a) - (b) (No change.)

(1) In order to maintain a license, a salesperson subject to annual education requirements shall furnish documentation to the commission of successful completion of appropriate courses no later than 10 business days prior to the day the salesperson files an application with the commission to renew the salesperson's license.

(2) (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 5, 2006.

TRD-200602514

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 18, 2006

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

Subchapter R. REAL ESTATE INSPECTORS

22 TAC §535.217

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Real Estate Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Real Estate Commission (TREC) proposes the repeal of §535.217, concerning Dishonest Conduct as Grounds for Disciplinary Action. The repeal is proposed because the subjects addressed in this section will be covered in the proposed amendments to §535.220 TREC is simultaneously proposing as part of the Real Estate Inspector Committee recommendations regarding Professional Conduct and Ethics. As the new subsection will comprehensively address the subjects of the proposed repealed rule as well as implement the recommendations, repeal of the rule is necessary to avoid confusion and repetition.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the repeal 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 repeal. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the repeal.

Ms. DeHay also has determined that for each year of the first five years the repeal as proposed is in effect the public benefit anticipated as a result of enforcing the repeal will be clarification of inspector standards of real estate inspector professional conduct and ethics. There is no anticipated economic cost to persons who are required to comply with the proposed repeal.

Comments on the proposed repeal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The repeal is 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 statutes affected by this proposal are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the proposed repeal.

§535.217.Dishonest Conduct as Grounds for Disciplinary Action.

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 5, 2006.

TRD-200602515

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 18, 2006

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

22 TAC §535.220

The Texas Real Estate Commission (TREC) proposes amendments to §535.220, concerning Professional Conduct and Ethics. The Texas Real Estate Inspector Committee has recommended that the Commission amend the rule to prohibit contingency arrangements in cases where compensation depends on specific findings or on closing or settlement; to prohibit an inspector from paying a fee to or receiving a fee from a "settlement service provider" as defined in the rule for the referral of inspections, for inclusion on a list of preferred providers, or for inclusion on a list of inspectors contingent on other financial agreements; to prohibit an inspector from accepting a fee for referring services that are not settlement services or other products to the inspector's client without the consent of the inspector's client; to clarify that an inspector may pay or receive a fee for services actually rendered; to prohibit an inspector from conducting repair for a fee of any systems or components of property covered by the Standards of Practice on which the inspector has performed an inspection under an earnest money contract, lease, or exchange of real property within 12 months of the date of the inspection; and to prohibit an inspector from disclosing inspection results or client information without prior approval from the client, except for observed immediate safety hazards to occupants exposed to such hazards.

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 or for units of local government as a result of enforcing or administering the amended section. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the amended section.

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 amendments will be full transparency and disclosure of the cost of obtaining a real estate inspection in connection with the purchase or sale of real property. While there may be an economic cost to licensed persons who currently rely on a business model that encourages payment or acceptance of referral fees, such impact is difficult to calculate as such information is generally only disclosed to the client. Those licensees whose business models are inconsistent with the proposed amendments may need to reassess their business models to comply with the proposed amendments. However, since federal law already prohibits referral fee arrangements except in very limited circumstances, it is anticipated that few licensees should be affected in that regard. Those licensees will be unable to either pay or accept fees for referrals from settlement service providers.

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 statutes affected by this proposal are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the proposed amendments.

§535.220.Professional Conduct and Ethics.

(a) The responsibility of those persons who engage in the business of performing independent inspections of improvements in real estate transactions imposes integrity beyond that of a person involved in ordinary commerce. Each inspector must maintain a high standard of professionalism, independence , objectivity and fairness while performing inspections in a real estate transaction. Each inspector licensee must also uphold, maintain, and improve the integrity, reputation, and practice of the home inspection profession.

(b) - (d) (No change.)

(e) An inspector shall comply with the following requirements.

(1) An inspector shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the closing or settlement of a property.

(2) In this section "settlement service" means any service provided in connection with a prospective or actual settlement, and "settlement service provider" includes, but is not limited to, any one or more of the following:

(A) Federally related mortgage loan originator;

(B) Mortgage broker;

(D) Attorney;

(E) A person who prepares documents, including notarization, delivery, and recordation;

(F) Appraiser;

(G) Inspector;

(H) Settlement agent;

(I) A person who provides mortgage insurance services;

(J) A person who provides services involving hazard, flood, or other casualty insurance or homeowner's warranties;

(K) Real estate agent or broker; and

(L) A person who provides any other services for which a settlement service provider requires a borrower or seller to pay.

(3) An inspector shall not pay or receive a fee or other valuable consideration to or from any other settlement service provider for, but not limited to, the following:

(A) The referral of inspections;

(B) inclusion on a list of inspectors, preferred providers, or similar arrangements; or

(4) An inspector shall not receive a fee or other valuable consideration, directly or indirectly, for referring services that are not settlement services or other products to the inspector's client without the client's consent.

(5) This section does not prohibit an inspector from paying or receiving a fee or other valuable consideration, such as to or from a contractor, for services actually rendered.

(6) An inspector shall not accept employment to repair, replace, maintain or upgrade systems or components of property covered by the Standards of Practice under this subchapter on which the inspector has performed an inspection under an earnest money contract, lease, or exchange or real property within 12 months of the date of the inspection.

(7) Inspectors shall not disclose inspection results or client information without prior approval from the client. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants exposed to such hazards when feasible.

(f) [ ~~(e)~~ ] The inspector should make a reasonable attempt to cooperate with other professionals and related tradespersons [ ~~tradesmen~~ ] at all times and in all manners in a method that is conducive to the promotion of professionalism, independence and fairness to himself, his business, and the inspection industry.

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 5, 2006.

TRD-200602516

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 18, 2006

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

22 TAC §535.223

The Texas Real Estate Commission (TREC) proposes an amendment to §535.223, concerning standard inspection report forms. The amendment would adopt by reference a standard inspection report form. TREC has a statutory duty to adopt standard inspection report forms and to adopt rules requiring licensed inspectors to use the report forms under Senate Bill Number 1100, 75th Legislature (1997).

The proposed revisions to the report form, Inspection Report Form REI 7A-1, have been recommended by the Texas Real Estate Inspector Committee, an advisory committee of nine professional inspectors appointed by TREC, to correspond to proposed revisions to the inspector standards of practice that are otherwise explained in this issue of the Texas Register .

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended section. 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 amended section except to the extent that a licensed corporation or limited liability company that engages in professional home inspecting for buyers and sellers in Texas would be required to pay the $10 fee every two years to renew its professional inspector license.

Ms. DeHay also has determined that for each year of the first five years the amendment as proposed is in effect the public benefit anticipated as a result of enforcing the amended section will be clarity in the implementation of the statutory requirements for licensing and renewal, and to assist interested person in the application process. The anticipated economic cost to persons who are required to comply with the proposed amendments is the $10 fee every two years to renew a license.

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 statutes affected by this proposal are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the proposed amendments.

§535.223.Standard Inspection Report Forms.

(a) The Texas Real Estate Commission adopts by reference Property Inspection Report, REI 7A-1 [ ~~7A-0~~ ], approved by the Texas Real Estate Commission in 2006 [ ~~1998~~ ] and published and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

(b) Except as provided by this section, inspections performed for a prospective buyer or prospective seller of one-to-four family residential property must be reported on Form REI 7A-1 [ ~~7A-0~~ ] ("the form"). Licensed inspectors shall complete the applicable portions of the form and provide the report within a reasonable period of time to the persons for whom the inspection has been performed. If necessary to report the inspection of a part, component or system not contained in the form, or space provided on the form is inadequate for a complete reporting of the inspection, such as when the inspector provides a higher level of inspection performance than that required by the standards of practice adopted by the commission, the inspector may attach additional pages to the form. When providing comments or additional pages to report on items listed on a form, the inspector shall arrange the comments or additional pages to follow the sequence of the items listed in the form adopted by the commission. If a part, component or system contained in the form is present in the property and has not been inspected under the departure provisions of §535.227 of this title (relating to Standards of Practice: General Provisions), the inspector shall make an appropriate notation on the form, clearly indicating the reason the part, component, or system has not been inspected.

(d) When using form REI 7A-1 [ ~~7A-0~~ ], the inspector may make the following changes.

(1) - (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 5, 2006.

TRD-200602517

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 18, 2006

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

22 TAC §§535.232 - 535.238

The Texas Real Estate Commission (TREC) proposes new §§535.232 - 535.238, concerning inspector standards of practice. TREC will consider proposing the repeal of existing rules to be replaced by these proposed rules as part of the Real Estate Inspector Committee comprehensive review and recommendations regarding inspector standards of practice. The proposed new rules divide the standards of practice for inspectors into seven sections by providing two additional sections and contain a number of substantive changes recommended by the Texas Real Estate Inspector Committee, an advisory committee of nine professional inspectors appointed by TREC.

Generally, the proposed new sections rearrange the current standards of practice, listing the systems, components and items in a home which the inspector must include in an inspection unless the inspector’s client agrees to limit the scope of the inspection.

New §535.232 addresses standards of practice: general provisions which include definitions, the scope, and the departure provisions of an inspection. New §535.233 addresses inspection guidelines for building systems, including the foundation; site conditions; exterior surfaces; interior surfaces; fireplace and chimney; roof covering; roof framing and attics; and balconies, steps, porches, decks and carports. New §535.234 addresses inspection guidelines for heating ventilation and air conditioning systems.

New §535.235 address inspection guidelines for plumbing systems. New §535.236 addresses inspection guidelines for appliances. New §535.237 addresses inspection guidelines for electrical systems. New §535.238 addresses inspection guidelines for optional systems.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the sections are 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 sections. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections.

Ms. DeHay 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 new sections will be more streamlined inspector standards of practice that are similar in scope to standards in other jurisdictions and within the private industry. There is no anticipated economic cost to persons who are required to comply with the proposed new sections.

Comments on the proposed new sections may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The new sections 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 statutes affected by this proposal are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the proposed new sections.

§535.232.Standards of Practice: General Provisions.

(a) Definition of terms. The following words have the following meanings, unless the context clearly indicates otherwise.

(1) Accessible--Can be approached, entered or viewed without moving items, probing, using specialized tools, damaging property or disassembly, and without physical limitation or danger to the inspector.

(2) Deficiency--A condition adversely and materially affecting the performance of a system or component, as judged by the inspector. General deficiencies include but are not limited to: Inoperability, material distress, interior water penetration, damage, deterioration, missing parts and unsuitable installation.

(3) Inspect--To observe accessible systems or items in a non-exhaustive manner and report apparent deficiencies. Equipment listed herein shall be operated in at least one mode with ordinary controls at typical settings.

(4) Performance--Achievement of an operation, function or configuration consistent with accepted industry practice.

(5) Report--To provide the inspector's opinions and findings on the approved TREC form.

(6) Representative--Sampled according to homogenous use, age and design. Representative samples include sufficient repeated inspection to provide reasonable confidence as to the condition of similar items.

(7) Specialized Tools--Equipment other than ladders, flashlights, receptacle testers and ordinary hand tools.

(8) Verify--To closely inspect or test for one or more specific characteristics.

(b) Scope.

(1) These Standards of Practice define the minimum levels of inspection required for substantially completed residential improvements to real property up to four dwelling units. A real estate inspection is a limited survey and basic operation of the systems and components of a building using normal controls. The purpose of the inspection is to provide the client with information regarding the general condition of the residence at the time of inspection.

(2) Precedence. In the event of a conflict between specific provisions and general provisions in the Standards of Practice, specific provisions shall take precedence.

(3) General Requirements. The inspector shall:

(A) inspect accessible systems or components as listed herein;

(B) complete the standard inspection report form as applicable (under §535.223 of this title); and

(4) General Limitations. The inspector is not required to do the following.

(A) Inspect:

(i) items other than those listed herein;

(ii) anything buried, hidden, latent or concealed;

(iii) cosmetic or aesthetic conditions; or

(iv) automated or programmable control systems, automatic shut-off, photoelectric sensors, timers, clocks, metering devices, signal lights, lighting arrestors, remote controls, security or data distribution systems.

(B) Report:

(i) past repairs that appear to be effective and workmanlike; or

(ii) finish damages that are unlikely to affect performance or unrelated to water penetration.

(i) conditions prior or subsequent to inspection;

(ii) insurability, warrantability, habitability, adequacy, capacity, reliability, marketability, operating costs, recalls, life expectancy, age, insulation characteristics, energy efficiency, thermostatic operation, code compliance, utility sources, manufacturer or regulatory requirements;

(iii) presence or absence of pests or wood-destroying organisms;

(iv) presence, absence or risk of any environmental pathogen, carcinogen, toxin or poison; or

(v) types of wood, preservative treatment or fastener compatibility.

(D) Warrant:

(i) absence of leakage; or

(ii) future performance of any item.

(E) Operate:

(i) items requiring use of codes, keys, combinations or other such devices; or

(ii) shut-off, safety or stop valves.

(F) Designate conditions as hazardous or safe.

(G) Recommend or provide engineering, architectural, appraisal, mitigation, physical surveying, real estate brokerage, or other specialist services.

(H) Review historical records, installation instructions, repair plans, cost estimates, disclosure documents, or other reports.

(I) Verify drain systems, recirculation or sump pumps.

(J) Test pressure or pressure regulation.

(K) Remedy conditions preventing inspection of any item.

(L) Apply open flame to operate any appliance.

(M) Turn on decommissioned equipment, systems or utility services.

(5) Care and Custody.

(A) The inspector shall practice reasonable care and custody when performing the inspection.

(B) The inspector is not responsible for discovered defects or consequential damages resulting from inspection as required by these Standards.

(C) The inspector is not responsible for the behavior or care of persons other than those employed or sub-contracted by the inspector.

(6) Departure. Items listed herein may be excluded from inspection provided the client is advised in a timely manner and such exclusions are stated in the written report. These exclusions are permissible where one or more of the following apply:

(A) the inspector and client agree the item is not to be inspected;

(B) the inspector is not qualified to inspect the item;

(D) the item is a common element of a multi-family development or shared by more than one dwelling.

(7) Enforcement. Failure to comply with provisions herein (§§535.232 - 535.238 of this title) is grounds for disciplinary action under Chapter 1102, Texas Occupations Code.

§535.233.Standards of Practices: Inspection Guidelines for Building Systems.

(a) Foundation.

(1) Describe:

(A) The type(s) of principal foundation(s).

(B) Representative indicators associated with adverse performance, such as:

(i) open or offset concrete cracks;

(ii) exposed or damaged reinforcement;

(iii) binding doors;

(iv) framing separations;

(v) out-of-square wall openings;

(vi) sloping floors;

(vii) wall, floor and ceiling cracks;

(viii) rotating, buckling, or deflecting masonry veneer panels;

(ix) separating of walls from ceilings or floors; and

(x) deteriorated materials.

(2) Slab Foundations. Inspect slab surfaces.

(3) Pier and Beam/Raised Floor Foundations.

(A) Describe the method used to inspect the crawlspace.

(B) Inspect:

(i) crawlspace ventilation;

(ii) crawlspace moisture conditions; and

(iii) the raised floor assembly:

(I) post/pier supports;

(II) beams and girders;

(III) joists; and

(IV) subfloor.

(4) Specific limitations. The inspector is not required to:

(A) enter a crawlspace or any area where headroom is less than 18 inches, or the access opening is of a size less than 24 inches wide by 18 inches high or is obstructed; or

(B) provide an exhaustive list of distress indicators.

(b) Site Conditions.

(1) Inspect adjacent surface grading.

(2) Specific limitations. The inspector is not required to:

(A) determine area hydrology or presence of ground water; or

(B) inspect flatwork condition, retaining walls or detention/retention ponds.

(iii) burglar bar releases.

(2) Specific limitations. The inspector is not required to:

(A) inspect awnings, storm doors, screen doors, or shutters; or

(B) exhaustively observe glazing or identify specific locations of damage.

(d) Interior Surfaces.

(1) Inspect:

(A) walls, floors and ceilings;

(B) doors;

(D) glazing.

(2) Specific limitations. The inspector is not required to inspect cabinetry or countertops.

(e) Fireplace and Chimney.

(1) Inspect:

(A) chimney exterior;

(B) firebox;

(D) surround and hearth extension;

(E) flue interior; and

(F) gas supply connections and shut off.

(2) Specific limitations. The inspector is not required to:

(A) Inspect:

(i) fireplaces in use; or

(ii) stoves, inserts, door, screens or mantels.

(B) Determine draft characteristics.

(f) Roof Covering

(1) Describe:

(A) representative covering type(s); and

(B) method used to inspect roof.

(F) other roof penetrations; and

(G) guttering system.

(3) Specific limitations. The inspector is not required to:

(A) determine number of layers; or

(B) identify latent hail damage.

(g) Roof Framing and Attics.

(1) Describe:

(A) method used to inspect attic; and

(B) approximate depth of attic insulation.

(2) Inspect:

(A) framing system;

(B) ventilation;

(D) fireblocking around flue penetration(s).

(3) Specific limitations. The inspector is not required to:

(A) enter attics or unfinished spaces where openings are less than 22 inches by 30 inches, headroom is less than 30 inches or walkways are not provided; or

(B) operate powered ventilation.

(h) Balconies, Steps, Porches, Decks and Carports.

(1) Inspect:

(A) balconies;

(B) attached decks;

(D) stairs, rails and guards; and

(E) attached carports.

(2) Specific limitations. The inspector is not required to enter any area where headroom is less than 18 inches, or the access opening is of a size less than 24 inches wide by 18 inches high or is obstructed.

§535.234.Standards of Practices: Inspection Guidelines for Heating, Ventilation and Air Conditioning Systems.

(a) Heating Systems.

(1) Describe energy source.

(2) Inspect:

(A) heating operation;

(B) unit housing;

(i) gas supply connections and shut-off,

(ii) venting,

(iii) clearances, and

(iv) combustion air provisions;

(D) electric units:

(i) electrical supply provisions, and

(ii) presence of disconnect.

(3) Specific limitations. The inspector is not required to

(A) inspect:

(i) boilers, radiators or oil-fired units;

(ii) supplemental heating appliances;

(iii) electric elements, multi-stage controllers or sequencers;

(iv) reversing valves or de-icing provisions; and

(v) humidifiers or unvented gas appliances;

(B) verify integrity of heat exchangers; or

(b) Direct Exchange Cooling Systems.

(1) Inspect:

(A) cooling operation;

(B) electrical supply provisions and presence of disconnect;

(D) evaporator enclosure;

(E) condensate disposal provisions;

(F) attic overflow provisions; and

(G) refrigerant lines.

(2) Specific limitations. The inspector is not required to:

(A) inspect window units or through wall-systems;

(B) identify types of refrigerants;

(D) verify:

(i) integrity of coils; and

(ii) sizing or component matching.

(1) Inspect:

(A) cooling operation;

(B) electrical supply provisions and disconnect;

(D) water supply provisions; and

(E) interior components.

(2) Specific limitations. The inspector is not required to verify system capacity, sizing or compatibility.

(d) Conditioned Air Distribution Systems.

(1) Inspect:

(A) plenums;

(B) filters;

(D) representative supply registers; and

(E) return grills.

(2) Specific limitations. The inspector is not required to inspect:

(A) zone balancing, duct leakage or sizing;

(B) motorized dampers or heat reclamation equipment; or

§535.235.Standards of Practices: Inspection Guidelines for Plumbing Systems.

(a) Inspect:

(1) representative supply and, drain and vent piping;

(2) enclosure surfaces in bathtub and shower areas;

(3) representative gas piping or tubing; and

(4) connections, flow and drainage of fixtures, faucets and fittings at:

(A) bathtubs;

(B) sinks;

(D) toilets;

(E) clothes washer valves and drains; and

(F) hose bibs.

(b) Specific limitations. The inspector is not required to:

(1) Inspect:

(A) fixtures without a functional receptor or attached to an appliance;

(B) drain without a functional fixture;

(D) hose bibs not immediately adjacent the residence.

(2) Verify:

(A) clothes washer valves or drains;

(B) shower pans or surrounds;

(D) anodic protection.

(3) Winterize.

(1) Describe energy source.

(2) Inspect:

(A) heating operation;

(B) tank housing and covers;

(D) temperature and pressure relief valve and piping;

(E) overflow pan;

(F) electrical supply provisions and presence of disconnect in electric units; and

(G) gas units:

(i) gas supply connections and shut-off;

(ii) venting;

(iii) clearances; and

(iv) combustion air provisions.

(3) Specific exclusions and limitations. The inspector is not required to:

(A) Inspect:

(i) units used for space heating; and

(ii) Sacrificial anodes, dielectric unions or electric heating elements.

(B) Change the setting of a thermostat or measure water temperature; or

§535.236.Standards of Practices: Inspection Guidelines for Appliances.

(a) Kitchen Appliances.

(E) cooktop, range or oven; and

(F) microwave oven.

(2) Specific limitations. The inspector is not required to:

(A) operate appliances in all modes or self-cleaning cycles; or

(B) inspect appliances in use.

(b) Built-In Appliances Other than Kitchen.

(1) Inspect:

(A) garage door openers;

(B) hydrotherapy equipment; and

(2) Specific limitations. The inspector is not required to inspect integral bathtub water heaters.

§535.237.Standards of Practices: Inspection Guidelines for Electrical Systems.

(a) Describe branch conductor material(s).

(b) Inspect:

(1) Service equipment:

(A) service entrance; and

(B) mast and weatherhead:

(i) presence of grounding electrode conductor; and

(ii) main disconnection means.

(2) Distribution panelboards:

(A) enclosures;

(B) feeders; and

(3) Branch circuit wiring and devices:

(A) lighting fixtures;

(B) ceiling-suspended fans;

(D) ground fault circuit interrupters; and

(E) representative:

(i) boxes;

(ii) conductors;

(iii) receptacles; and

(iv) switches and dimmers.

(1) Inspect:

(A) exterior or landscape lighting,

(B) power conditioning, or

(2) insert anything into electrical enclosures;

(3) operate or verify overcurrent protection devices;

(4) remove covers where hazardous as judged by the inspector;

(5) trace circuits or verify label accuracy;

(6) verify appliance feed capacities; or

(7) verify the grounding continuity or methods.

§535.238.Standards of Practices: Inspection Guidelines for Optional Systems.

(a) Lawn Irrigation Systems. Inspect:

(1) zones and spray heads;

(2) control box and wiring; and

(3) presence of back flow prevention provisions and shut-off.

(b) Swimming Pools, Spas and Hot Tubs.

(1) Inspect:

(A) vessel surfaces;

(B) air blowers;

(D) diving boards and slides;

(E) electrical provisions;

(F) gas provisions;

(G) pool barriers;

(H) pool cleaning equipment;

(I) pumps, air blowers and filtration equipment;

(J) skimmers and drain covers;

(K) underwater lights and ground fault circuit interrupter protection;

(L) valves and above grade piping; and

(M) water heating equipment.

(2) Specific limitations. The inspector is not required to:

(A) determine diving and slide clearances;

(B) inspect automatic controls;

(D) inspect ancillary equipment such as computer controls, covers, chlorinators, chemical dispensers, ionization devices or conditioners.

(d) Water Well Equipment.

(1) Inspect:

(A) well head site conditions;

(B) functional flow;

(D) pressure switch; and

(E) electrical supply provision and disconnect.

(2) Specific limitations. The inspector is not required to determine water quality, reliability or capacity.

(e) On Site Private Sewage Facility.

(1) Inspect in accordance with accepted industry practices.

(2) Specific limitations. The inspector is not required to:

(A) excavate or remove tank covers;

(B) verify tank or leach field integrity;

(D) inspect water conditioning equipment.

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 8, 2006.

TRD-200602522

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 18, 2006

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