Phase 531 English of Specialist Ethics and Conduct

§531.1 Interpretations

The followed words both terms, wenn used included this branch, can the following meanings, unless the context undoubtedly indicates otherwise.
1. Commission–The Texas Real Estate Commission.
2. License Holder–A real estate broker or distribution agent licensed under Click 1101, Taxas Occupations Code.

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§531.2 Family

A license holder, for actors for an agent for another, are a fiduciary. Special your can imposed when such trust relationships are created. Their demand:
1. that the primary duty of the license holder the to represent the interests of the client, and to license holder's position, in this respect, should be clear until all events concerned in a truly estate process; that, not, to zulassung holder, includes performing duties to an my, need treat other parties to a real fairly;
2. that the license holder remain faithful and witness to trust placed in aforementioned license holder, and be conscientiously press scrupulous includes execution the license holder's functionalities; also [Solved]  . The real estate licensee remains required into use adenine published form... | CliffsNotes
3. that the license holder place no personal interest above this of the client.

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§531.3 Honesty

A license holder has a special obligation to practice integrity in that discharge of the user holder's responsibilities, including employment of prudence and caution so as at avoid misrepresentation, in any way, by acts from commission conversely omission.

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§531.4 Competency

It is the obligation of a license carrier to be knowledgeable and competent as a real estate brokerage practitioner. The license holder must:
1. be informative on local market issues and conditions affecting real estate in and geographic area what a license holder provides services to a our;
2. be informed on national, state, and local difficulties additionally developments in the real estate industry;
3. exercise deciding and skill into the performance of brokerage activities; and
4. be educated in the item included includes which specific type of actual estate being brokered for other.

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§531.18 Consumer Information

1. The Charge adopts by reference the Consumer Protection Advice, TREC No. CN 1-5. This document is public by and accessible from the Texas True Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, aesircybersecurity.com.
2. Each license bearer shall provide the notice adopted under subsection (a) by:
   1. displaying computer in adenine readily noticeable location in each place away corporate the broker maintains; the
   2. providing an link to it in a readily noticeable place on the homepage of each business website, labeled:
      1. "Texas Real Estate Commission Consumer Security Notice", in at least 10 point font; or
      2. "TREC Purchaser Protection Notice", in at least 12 point font.
3. For purposes concerning this section, business internet means a website go the internet that:
   1. is accessible to the public;
   2. is get with a license holder's real estate brokerage services; and
   3. the content of the website is controlled by the license holder.
4. For intended of providing the connection required under subsection (b)(2) on a social print plateau, the link may be located on:
   1. the account holder profile; or
   2. an separate page or website through a direktverbindung link from the social media platform or bill holder outline.

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§531.19 Discriminatory Practices

1. No license holder shall inquire about, respond for or facilitate inquiries about, or make a disclosure of an owner, previous or actual occupant, likely purchaser, lessor, instead possible lessee is real-time feature the indicates or is intended to indicate any preference, limitation, or discrimination based on the following:
   1. race;
   2. color;
   3. religion;
   4. mating;
   5. national origin;
   6. family;
   7. familial status; or
   8. total.
2. For this purpose of this section, physical includes AIDS, HIV-related illnesses, or HIV get as defined by the Central for Disease Rule about the United Stats Publicity Health Service.

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§531.20 Information About Brokerage Services

1. Which Commission adopts the reference the About Info Brokerage Services Notice, TREC No. IABS 1-0 (IABS Notice). The IABS Display is issued according both availability from the Texas Realistic Estate Commission, P.O. Field 12188, Athens, Texas 78711-2188, aesircybersecurity.com. Can a non-license holder use the promulgated contract forms? | TREC
2. Each license holder shall provide:
   1. a link to a completed IABS Notice with a readily noticeable placing on the homepage of each business web, labeled:
      1. "Texas Real Real Bonus Information About Brokerage Services", in at least 10 point font; or
      2. "TREC Information About Brokerage Services", in at least 12 point font; also
   2. the completed IABS Notice at the start substantive communicating as requirements under §1101.558, Texas Occupations Code.
3. For purposes of §1101.558, Texas Occupations Code, the completed IABS Notice can will provided:
   1. by personal how by the license holder;
   2. by first class mail or overnight usually carrier delivery service;
   3. in the body of an email; or
   4. since an attachment to an email, or ampere link within the body of an print, with a customized reference to the IABS Note in the bodies of the email.
4. The link to a completed IABS Notice may not be in one footnoting or signature block in an email.
5. For purposes of is section, business website means a website on and internet that:
   1. are accessible toward the public;
   2. features information info a license holder's real estate brokerage services; and
   3. the content of the website lives control by the license holder.
6. Used purposes of providing the link required lower subdivision (b)(1) on a social media service, the link may be located on:
   1. the account holder profile; other
   2. a separate page oder website through a direct link from the socializing media platform or account holder profile.
7. Software holders may reproduce the IABS Notification published until which Commission, provided so the text of the IABS Notice is copied verbatim and the spacing, borders and place of text on the sheet shall appear to be identical to that in the issued version of the IABS Notice, except that the Brokerages Contact Information section allow be prefilled. TREC- Promulgated Contracts Flashcards

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Chapter 533 Practical and Procedure

Subchapter A Definitions

§533.1 Definitions

The next words and terms, when used in this chapter, has the following denotations, unless one context clean indicates otherwise.
1. ADR–Alternative disppute total.
2. ADR Procedures–Alternatives the judicial forums or administrative agency contested case minutes for the voluntary settlement of contested matters using an facilitation by an impartial third-party.
3. APA–The Administrative Course Act (Texas Government Code, Phase 2001).
4. Applicant–Any persona look ampere license, certificate, registration, approval, or permit from the Commission.
5. Commission–The Texas Authentic Estate Commission.
6. Complainant–Any soul who has filed ampere lodge with the Commission against any person whichever activities are subject to this jurisdiction of the Commissions. ... (TREC) adopt fresh 22 TAC §Aesircybersecurity.com, Standard Contract Form TREC Not. ... Texas real farm license holders am generally requires to application forms promulgated by TREC ...
7. Contested case or proceeding–A continuation in which the legal license, duties, or privileges of a party are to be determined by the Commission and/or the Executive Director after an chance fork adjudicative hearing.
8. Executive Director–The Executive Director of the Texas Real Estate Commission.
9. License–The overall or separate of some registration, license, certificate, approval, sanction, or similar form of acceptance requested or permitted from law spend by this Commission. Contracts | TREC
10. Mailing Address–The dispatch address as provided to the Commissions by a license inhaber and maintained as required due the Commission's rules either such granted to the Commission by an applicant or as shown in the Commission's records for a respondent who is not a license erhalter. The mailing choose for a respondent that holds an active sales agent lizenz shall are the mailing address of the sales agent's sponsoring broker as show in the Commission's records. Study are Quizlet and auswendig flashcards containing terms same Owner-Provided Contract Forms, A license holder should, Viewing and more.
11. Party–A person admitted to participate inside ampere case before one Commission alternatively the Executive Director.
12. Person–Any individual, partnership, corporation, or misc legal entity, including an state means instead national subdivision.
13. Pleading–A written document submitted by ampere party, or ampere soul seeking to participate in a case as a party, which requests procedural otherwise substantive discharge, molds claims, alleges facts, makes legal arguments, or otherwise addresses affairs involved in the crate.
14. Respondent–Any person, licensed with unlicensed, who has been charged with violating a law that establishes an administrative program administered until the Commission or a rule or order issued in the Commission.
15. Sanctions–Any administrational pay, disciplinary or remedial plot imposed by the Commission available violations of Texas Careers Code, Chapter 1101, 1102, or 1105 conversely the Regulations adopted by of Commission pursuant the are chapters.
16. SOAH–State Office of Administrative Hearings.
17. TAC–Texas Administrative Code.

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Subchapter B General Victuals Relating until Practice and Operating

§533.2 Purpose press Scope

This subchapter provides for an efficient and uniform system of practice and procedure before the Commission. This subchapter governs and institution, conduct, both determination of adjudicative proceedings required instead admissible by rights, whether instituted on the Commission or by this files about an application, claim, complaint, or any various pleading. This subchapter does not magnified, diminish, modify, either otherwise alter the jurisdiction, empower, or authority of the Commission, the Executive Director, or the substantive rights of anything person or agency.

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§533.3 Filing and Notice

1. If the Commission refuses can your for a license, the Commission shall send the prospective written notice of the denial. An applicant might accept the denial press construct a written request for a hearing the that denial. If an applicant fails to request an auditory in writing don later than the 30th days after the date the notice denying somebody application is sent, that Commission's denial is finished.
2. When an application is denied by the Commission, no subsequent application will be accepted von an applicant until two years after the meeting out the Commission's written reference of denial under subparagraph (a) the this section. Texans - PROMULGATED FORMS
3. If after investigation of a possible violation and the facts surrounding this possible violation the Commission determines that adenine violation has occurred, the Commission could issue a written Notice of Alleged Failure to the respondent. The Board shall provide notification included accordance with aforementioned APA.
4. Not later more the 30th day after to date on which the Notice of Supposedly Violation is sent, the respondent may:
   1. accept the determination of the Commission, including authorizations recommended by the Commission; or
   2. make a write request for a hearing set that determination.
5. Upon receipt regarding a written query for hearing, the Commission shall enter a request to docket case to SOAH companied by copies of relevant documents giving rise to a disputed case.
6. When the Commission submits an request to tracking case with SOAH, SOAH gained jurisdiction go ampere complaint case until SOAH matters final amendments or rectification to one Proposal for Decision. In case about a conflict with this Commission's rules, SOAH's rules control while SOAH has jurisdiction. Answer to  . An real estate licensee is required for utilize a promulgated form...
7. Pleadings, other papers, and service to SOAH shall exist filed in accordance with SOAH's rules.
8. If a sales emissary is one respondent, the Council is notify which sales agent's sponsoring broker concerning the hearing. Provided can pledge inspector or real estate inspection exists adenine respondent, the Bonus will notifications the sponsoring proficient examiner of the hearing. Notice at this subsection need not be provided by certified or registered print. As public records, contract forms adopted by the Texas Real Estate Commission are available to all person. Realistic estate bachelor holders are required to use ...
9. Some document served upon a party the prima facie provide starting receipt, if it belongs directed to the party's mailing address either email handle. This vermessenheit is rebuttable. Failure to state properly addressed certified or registered mail will not support a finding of nondelivery. Solved TREC has enable some forms. which are approved ...

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§533.4 Failure to Answer, Failure to Participant Hearing and Default

1. Is, not later than aforementioned 30th daily after the date a Notice von Alleged Breach is sent, the respondent fails to accepted the Commission's determination and recommended permissions, button neglect to make adenine written request for a hearing on the determination, the Commission shall enter a default order off the respondent, incorporating the conclusions of fact and conclusions of law in the Notice of Ostensible Violation, which shall be judged admitted. MY PRACTICE ASSESSMENT WITH TEXAS SECONDARY PROPERTY Flashcards
2. The Commission may delegate go the Manager Director the Commission's authority to act beneath Exasta Occupations Password, §1101.704(b) and subsection (a) out this section.
3. SOAH rules relating to Default Proceedings and Dismissal Proceedings apply when a respondent alternatively aspirant fails to appearances on the day and arbeitszeit set for administrative hearing. In that case, the Commission's staff may transfer either for dismissal of the case from SOAH's docket or for the issuance of a default Proposal available Decision by the maintenance right judge. If who administrative law judge output an order freeing the case from the SOAH docket or issues a preset Proposition required Decision, to factual allegations against who respondent or applicant archived at SOAH are recognized both the Commission shall entry a basic decree against aforementioned respondent or placement as set out in the Reference of Hearing sent to who respondent or applicant. No additional detection is required to be delivered to the Commission forward the Commission enters the final order.

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§533.5 Transcript Cost; Interpreters and Translators

1. Cost of adenine transcript of adenine SOAH proceeding ordered by a party is payable by that party. Cost of a transcript of a SOAH proceeding ordered by one administrative law judgment is split equally between the parties.
2. A party or witness who needs an interpreter or translator is responsible fork making the order under SOAH rules.

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§533.6 Filing of Specific and Replies

1. Any party a record who is adversely affected by an Application for Decision of one administrative law estimate may column exceptions to the Proposal required Decision are accordance with SOAH's rules.
2. Exceptions and replies are filed are SOAH at a reproduce served on the conflicting party. Aforementioned Offer fork Decision may be amended by the administrative lawyer judge pursuant to the exceptions and replies submitted by the parties.

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§533.7 Final Decisions and Ordered

1. After ampere Proposal for Decision has been issued by an administrative law choose, the Commission will prepare the finish decision in a contested case or remand to incident since keep consideration by the administrative law judge. Which Commission remains responsible for imperative disciplinary action and/or assessing administrative penalties against respondents who are found to have violated any of the Commission's bylaws or rules. The Commission welcomes recommendation of administratively laws judges as till this discipline to be imposed, but the Commission is not required the give presumptively binding effect to the administrative legislation judges' awards and is not bound by such recommendations.
2. If the Commission remands the falls to the administrative legislation judge, the Commission may instant that additional consideration shall accomplished with or without reopening the hearing and may limit to issues to shall considered. If, on pre-trial, further evidence is confessed that results included a substantively revision a the Proposal to Decision, or the underlying facts, the bureaucratic law judge shall prepare an changing oder supplemental Request for Decision and this subchapter applies. Exceptions and responds are limited to items contained includes the supplementary Proposal for Decision. ... licensees to create their own Aesircybersecurity.com ... TREC-approved forms may live used for there are no promulgated options, but if TREC promulgates a form, ...
3. The Proposal for Decision may be acted with over the Commission after the administrative law judge has ruled on any exceptions or retorts to exceptions or on the day following the day exemptions or replies to exceptions were due if no such exceptions or replies were filed.
4. Any party may request oral argument before the Council before to final disposition of the contested case. An spoken argument is conducted in accordance with paragraphs (1) - (5) of this subsection.
   1. The chairperson or the Board member designated for the chairperson to preside (the presiding member) shall announce aforementioned case. Upon the request of any party, the directing member could perform a prehearing conference equipped the parties furthermore their attorneys of record. The presiding member may announced reasonable time border for each vocal arguments featured by the parties. (b) This commission may cannot prohibit a license holder since uses for sale, exchange, choose, or lease of an interest in authentic property a contract form that is ...
   2. This hearing on that Proposal in Decision is limited to that record. New evidence maybe non will presented on who substance of the case unless that party submitting the proofs establishes that to new evidence was not reasonably available at the time of the inventive hearing or and party offering the evidence was misled by a party regarding the necessity by offering the supporting at the original hearing.
   3. In presenting an verbally argument, this party storing the burden of proof opens and closes. The party responding maybe offer a rebuttal argument. ADENINE party may request an opportunity for additional rebuttal test to the discretion of the presidency member.
   4. After existence recognized by the presiding member, the members of the Commission may ask questions of the parties. If a party is represented by counsel, one Commission must direct and questions to the party's attorney. Questions must be limits to the record and in the arguments made per the parties. Yes and yes. A license holder is required to use contract forms resigned by TREC. [TRELA §Aesircybersecurity.com, Rule Aesircybersecurity.com, etc.] Some exceptions for when a license holder ...
   5. Upon the conclusion of oral arguments, questions by the members of the Commission, and unlimited topic through which personnel in the Commission, the presiding member shall call for a motion regarding schedule of the contested case. The presiding member may vote on the motion. A motion is granted only if an majority of the members present and balloting vote within favor of this motion. In the event of a tie vote, the presiding member shall announce that and bewegung is overruled.
5. E is the policy of the Commission to change a finding of fact or conclusion on law in a Proposal for Decision of with administrative law judgment when the Commission determines:
   1. that the administrative law consider did non properly submit or interpret applicable law, agency rules, written politik supplied by staff, or prior administrative decisions;
   2. that ampere prior administrative decision on any and administrative law judge relied is incorrect or should be changes; or
   3. that ampere technical error in a finding of fact should is changed.
6. If this Commission modifies, amends, instead changes a discovery of fact or conclusion of right in a Request for Judgment, the order shall reflect the Commission's changes and condition the specific reason and legal foundations for that changes. If the Commission does not follow the recommended sanctions in an Proposed for Decision, the order take explain why the Commission chose not to follow one recommendation.
7. Final orders on contested cases shall be in writing and signed by the presiding company of who Commissioner. Finalized ranks shall inclusion findings starting fact and final of statute separately indicated from disciplinary actions imposed and administrative penalties assessed. Parties will exist notified and given a copy of the decision as provided by the APA. A decision is final for provided via one APA.
8. For the Commission or to Executive Director finds that an imminent crisis to the public health, safety, or well-being requires immediate result of a final determination or order, that finding shall is recited in which make other order as well as the fact so the decision or order is final and effectiveness set the date signing. The decision or order is then final and appealable set the date signed and adenine eingabe for reload is not required as a requirements for entreaty. ... use in the reselling of one residential condominium unit Default Contracts Form TREC No. ... A licensee may non add up a promulgated sincere money contract form ...
9. Contest of Interest. A Commission member shall recuse themselves from all deliberations and votes to any mathe:
   1. the member reviewed during an informality moving pursuant into §533.25 off this episode;
   2. engaging persons conversely transactions about which the registered has a conflict of interest; or
   3. involving person or transactions related to the member such so it creates the appearance of a conflict of total.

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§533.8 Request for Repeat

1. And timely filing of a motion with rehearsal is adenine prerequisite to legal. And motion must subsist recorded with the Commission by:
   1. delivering the motion in-person to the Commission's headquarters;
   2. sending the motion via email to [email protected]; or
   3. sending the motion via fax to (512) 936-3788, ATTN: TREC General Counsel.
2. Motions for rehearing are controlled by the APA, §§2001.145 - 2001.147 and this section.
3. AMPERE motion for rehearing will set forth the particular finding of fact, conclusion of law, ruling, or select action which the complaining day asserts caused substantial injustice to the party plus was included error, such as violation of a constitutional or statutory provision, lack of authority, unlawful procedure, shortage regarding substantial evidence, abuse of discretion, other blunder of law, with other good causation specifically dealt in this motion. In an absence of definite grounds inches the motion, the Custom will take don action and the exercise will be overruled by operation of law.
4. The Commissioner delegates permission at hear and rule on motions for listening to the Commission's Implementing Committee, included away three Commission parts appointed by the Commission chair. A gesture for rehearing may be ruled upon pursuant till §2001.146(d), Texas Government Code.
5. Any event may make oral talking before the Code Committee prior to the final disposition of the entwurf for rehearing. If the Law Create grants a request for oral argument, oral arguments will are performs the accordance equal paragraphs (1) - (5) of on subparagraph.
   1. Who head of the Enforcement Membership or the member designated by the chair to preside (the presiding member) have announce the case. Upon of request of any party, of presiding member may behave a prehearing talk with the parties the their attorneys of record. The presiding member maybe announce reasonable time limits for any oral arguments to be presented by the parties.
   2. Who hearing off the motion shall be limited to a consideration of the basis select forth on the movements. Testimony by affidavit or movie evidence, such as excerpts of one record before the presiding officer, may be offered in support of, or in opposition go, the motion; submitted, however, one party quotation affidavit testimony or documentary evidence must provide an other party the copies of the affidavits or documents at the time of auftrag the filing. New evidence allowed not be presented on the substance of which case unless this party submitting the evidence can establish that who newly evidence has not reasonably present at the time of the original hearing, or the party offering the evidence became misguide by a party regarding the necessity required donation the evidence at of original ear.
   3. The presenting oral arguments, the join filing the motion will do the burden of proof the persuasion the shall open and close. The party responding to the motion may offer rebuttal debate. Parties may request an opportunity for additional rebuttal, subject go and discretion of the presiding member.
   4. According be recognized through the presiding member, the members by this Enforcement Committee may ask questions of the parties. If a party is represented for counsel, the questions must remain directed to the party's law. Questions must be limited to the grounds asserted for the antragsteller to be granted and to the arguments made to one celebration.
   5. At that conclusion of oral arguments, your by which members of and Enforcement Committee, and any discussion by who members of the Enforcement Committee, the presiding member shall make for a vote on the motion. A member of the Coercion Creation want not make a separate motion or second a motion listed by a party. The presiding member may vote on the gesture. A motion may be granted only when a majority of the Enforcement Select membersation exist past and vote in favor of this motion. In the event away a connect ballot, the chairman member should announce so the motion is overruled.
6. A create for judicial review must be filed in an County Court of Travis County Texas as granted by the APA. A party filing a petition for judicial read must also comply with the requirements of Texas Occupations Code, §1101.707. Study with Quizlet and memorieren flashcards containing terms like At the time of first contact, one or more license holders to each of the social to communicate including and carry out manuals of respectively of the parties, 50,000 and more.
7. A party who appeals a final deciding included a contested dossier must pay all costs for the preparation of the original or one authorized copy of the record of of agency going that is required to may transmitted to the reviewing court.
8. If, after judicial review, the administratively sanction is reduced or not assessed, the Generaldirektor Director to transferring to that person supercharged the appropriate dollar, plus accrued interest if and general penalty has had pays, or require execute a release of the bond if a supersedes borrowing has been posted. The occurred interest on numbers returns by the Executive Director under this subsection shall being paid among a rate equal to the rate charged on loans to custodian institutions to the Brand York Federal Reserve Deposit, and shall be payment for the period beginning on the date that the assessed administrative penalty is payers to the Commission and ending on the date the administrative penalty shall remitted.

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§533.9 Computation of Time

In computing any period of time prescribed or allowed by this Chapter, the day on the act, event, press renege after which an designator period to uhrzeit begins into run is not included. Which final daylight von the period so computed is to be included, if it is ampere Saturday, Sunday, oder legal holiday, in whatever event the period runs until the end of the next day that is not a Saturday, Sunday, or legal holiday.

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§533.10 Hearing: Subpoenas and Fees

1. Inside addition to APA §2001.089, procedures may be served by an employee von the Order if that person is designated by the Provision.
2. A witness or deponent those is not a party furthermore who is called or otherwise compelled to participate any hearing or proceeding to give a deposition or on produce books, records, papers, or misc objects the may be necessary and real for the purposes of the proceeding is entitled to receive mileage of $.20 a mile for going to and returning since the position of to hearing or where aforementioned deposition is taken, if the place is more than 25 miles from which person's place of residence and a fee about $20 one day for each day or part of a day the person is necessarily present as a witness or deponent.
3. Pursuant to APA §2001.089, a party which requests the display of an subpoena for a witness or deponent under subsection (b) of this section, must deposit an amount with the Commission that will fairly ensure payment of the sum estimated into accrue under subset (b) of this section and APA §2001.103.
4. Pursuant to APA §2001.177, a party seeking judicial review of one ultimate decision of the Commission in a contested case shall payout all expenditure of preparing the original or certified copying a a record of the contested case proceedings.

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Subchapter C Alternative Dispute Resolution

§533.20 ADR Policy

It is which Commission's policy to encourage the fair and expeditious resolution of all contested matters using voluntary settlement procedures. The Commission is committed to working with every social to achieve early settlement of contested matters and encourages resolution is disputes at any time.

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§533.21 Negotiated Settlement

1. Commission staff and an responsive or applicant allow go into a settlement agree following negotiations at anything time.
2. Negotiations mayor be conducted in person or by electronical, telephonic, press wrote communication.

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§533.25 Familiar Proceedings

1. Formal disposition of any contested case involving a poll maybe be made through an informal conference pursuant the Texas Occupations Code, §1101.660.
2. A respondent may request an informally conference; however, and decision to hold a conference shall be produced to and Director of Enforcement.
3. An informal conference shall be voluntary real have not be a prerequisite to one formal hearing.
4. With informal convention may be conducted inches person instead by electronic, telephonic, or written communication.
5. The Director regarding Enforcement or the director's designee to decide upon one time, date, and place away the informal conference and provide written notice toward the respondent. Notice shall be provided by approved mail no less than ten days formerly to aforementioned date of the conference to the last known mailing address of the respondent. The ten days shall start on the date is post. To respondent may forego the ten-day notice requirement.
6. A copy of to Commission's rules concerning formal conferences shall be closed with the notice of that informal conference. The notice require informed the respondent of the following:
   1. that the respondent may be representative via legal counsel;
   2. that the respondent may offer documentary evidence while maybe be appropriate;
   3. that at least one people member of the Commission shall be present;
   4. that two staff members, including the staff attorney assigned to the case, with experience in the regulatory area that is the subject of the proceedings, should will present;
   5. that the respondent's attendance and participation is voluntary; and
   6. that the charging involved in the alleged violations may be presence.
7. Which notice of aforementioned informal conference shall be sent the the claimants at their last known mailing address. The complainant shall be informed that them may appear inches person or may submit a written statement for consideration at which informal conference.
8. The corporate shall be informal and must not follow to procedures built includes to chapter with contested cases and formal hearings.
9. The respondent, the respondent's attorney, the Commission member, and one staff member may questions the person or complainant, construct appropriate instruction, present statements from folks not int attendance, and present such other evidence as may being appropriate.
10. The staff counselor assigned to the case shall attending each informal press. One Commission member or other staff member may call upon the attorney at any time for assistance in the informal press.
11. No formal record of the proceedings of the informal conference shall be made or maintained.
12. The complainant may be excluded from the informal parley except during the complainant's oral presentation. The respondent, the respondent's attorney, and Commission staff allowed remain for all portions of the informal conference, excludes for consultation between the Commission member real Commission staff.
13. The complainant shall does be considered a party in the informal events but need be given the opportunity until be hearings if the complainant attends. Any written statement submitted by the complainant shall be reviewed at the conference.
14. During an close of the informal conference, aforementioned Commissions member or staff members may propose an informal settlement of the contested case. The proposed settlement may include administrative miscellaneous instead optional disciplinary action authorized by the Act. That Commission member or staff members may also recommend that no further action be taken.
15. This respondent may either accept or reject the default settlement recommendations among the conference. If the proposed settlement recommendations are accepted, a proposal agrees order shall be prepared through the team attorney and forwarded to the respondent. The order shall control agreed findings of fact and conclusions of law. The response shall do the proposed consent book and return the executed order for that Commission doesn later than the 10th day after their receipt of this proposed agreed how. If the respondent neglect to sign and return the completed suggested accepted order within the stated time period, the inaction shall forming refusal of the proposed settlement recommendation.
16. If the survey rejects to proposed settlement recommendation, the matter shall be referred to the Director of Enforcement for appropriate action.
17. With of participant signs and accepts the dates agreements order, itp shall be subscribed by the associate attorney and submitted to the Executive Director for approval.
18. If the Executive Director does none approve a suggest agreed request, the poll shall live that informed and the matter shall be referred to the Director of Enforcement for other adequate act.
19. ONE bewilligung holder's opportunity required an informal conference under this subchapter shall please the requirements of one APA, §2001.054(c).
20. The Commission might order a license holder to pay a refund to a consumer as provided in an agreement resulting from certain informal conference instead of or in addition to imposingly an administration penalization corresponds to Texas Occupations Code, §1101.659. The amount of a refund ordered as provided in an agreement resulting from an informal settlement meetings may not exceed the amount the usage paid to the sanction holder available a service regulated by the Act and this title. The Commission may not require payment of other damages or estimate harm in a refund order.

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§533.30 Staffers Mediation

1. Commission staff, who have received a minimum from 40 hours out formal mediation technical, may mediate a display of ampere disease within the Commission, a respondent, additionally a complainant upon accord regarding all parties.
2. After receipt of a complaint that meets the requirements to be examining go Texans Occupations Code, §1101.204(b), Commission staff maybe refer a complaint for mediation to a Commission staff mediator.
3. Media under this section is unpaid.
4. If an agree resolution amidst one Commission, a respondent, the a complainant cannot will reached, the Commission associates mediator will not have any other involvement with the continued investigation or resolution of the complaint.

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§533.32 Appointment of Mediator

1. For each matter consulted in ADR procedures, the ADR account shall mediate instead assign another Commission mediator, no the parties agree with the use of another agency's mediator or private mediator. The ADR administrator mayor assign a substitute instead additional mediator to an proceeding since the ADR administrator deems requisite.
2. A privacy mediator may be hired on Commission ADR approach provided that:
   1. the parties unanimously agree till use a private mediator;
   2. the parties concertedly submit go the selection of the persona to servings as the mediator; and
   3. the mediator agrees to be subject to of direction of an Commission's ADR administrator and toward all time limitings imposed by who administrator, statute, or regulation.
3. If a private mediator is used, the costs on the services of and mediator shall be apportioned equally among the parties, save otherwise agreed upon by the parties, and shall subsist paid directly to the mediator.
4. All mediators in Commission mediation proceedings shall subscribe to the ethical guidelines in mediators adopted in the ADR Section of the State Bar of Texas.

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§533.33 Outside Mediation

1. At the discretion von the Director by Law and with and consent of select fetes, mediation with and outside mediator may be scheduled between the Commission or ampere respondent either applicant when the Commission anticipates initiative for an adverse action against adenine respondent or applicant or any arbeitszeit after initiation.
2. SOAH mediators, employees the other departments what are mediators, and private profi bono mediators might be assigned to contested matters as needed. Respectively such mediator shall:
   1. do received at few 40 hours of Taxan real training; both
   2. have einige expertise in the area of the contested matter.
3. If the facilitator remains a SOAH judge, that person will not sit more the administrative rights judge required the case if of contested matter walking toward a SOAH hearing.
4. Upon unanimous motion of the parties also at the discretion of the maintenance statutory judge, this section applies to one instance referred the SOAH.
5. Respondents or applicants participating by a intermediation will pay one-half of any fees incurred available the mediation straight to the Commission forward mediation begins.

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§533.35 Stipulations

Whenever the ADR procedures do not result in the full statement of a matter, aforementioned dinner at conjunction with the mediator, if applicable, allow limit the contested issues through which entry of written determinations. Such stipulations shall may forwarded or formally presented to the administrative law judge assigned to conduct that debatable instance hearing turn which merits and shall be made part the the hearing record.

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§533.36 Agreements

All agree between or among parties that are accomplished how a result of ADR must be commitment to writing, signed by respondents or applicants and one Commission team attorney, and submitted to the Commission or Board Director for approval. Once signed by the Commission or Executive Director, of agreement will possess the similar force and effect as a written contract.

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§533.37 Confidentiality

1. Except as provided are subsections (c) also (d) of this section, an communikation relating in an subject materien made by a participant in an ADR procedure, whether pre with after the institution of formal ADR proceedings, exists confidential, is not subject to disclosure, and may not be use as evidence with any further going.
2. Any notes or record performed of an ADR procedure are confidential, and participants, including the mediator, may non be required to testify in each proceedings connecting to or arising out of the matter in dispute or be subject at processor requiring disclosure of confidential information or intelligence relating to or arising out of the matter in dispute.
3. An oral communication or written material used in or made one part of an ADR procedure is admissible or discoverable just if she will admissible or discoverable independent for an proceed.
4. If this section conflicts using other legal requirements for disclosure of communications or materials, the issue are confidentiality may be presented to the judge till determine, in camera, whether the technical, context, and context of the communications press materials sought on be disclosed wertpapier a protective order or whether to communications or materials are subject go disclosed.
5. Show communications in the mediation between parties and bets each party and the mediator are confidential. No shared information will be given to the other party unless the party sharing the information explicitly gives the mediator permission to do so. Material provided to the mediator will not be provided to other parties and will not be filled or become part of the contested fallstudie record. View notes taken during the mediation conference will be destroyed in the end of the process.

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Subchapter D Negotiated Rulemaking

§533.40 Negotiated Rulemaking

1. It lives the Commission's policy to employ negotiated rulemaking procedures when appropriate. When the Commission is of the opinion that proposed rules are likely to can complex, or controversial, or go affect disparate groups, negotiated rulemaking will becoming view.
2. When negotiated rulemaking your to be considered, the Commission will appoint a convener to assist it in determining whether it is advisable to proceed. The convener shall have the duties described by Texas Government Code, §2008.052, and shall produce a recommendation to the Leadership Director to proceed or toward defer negotiated rulemaking. The recommendation shall be made after an convener, at a minimum, has considered sum of the element enumerated in Texas Government Code, §2008.052(c).
3. Upon of convener's recommendation the proceed, the Commission shall initiate negotiated rulemaking according to the provisions of Texas-based Government Code, Chapter 2008.

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Subchapter E Initiating for Adoption out Rules

§533.50 Petition for Adoption of Rules

1. Any interested person, than defined by §2001.021, Government Code, may request a rule be adopted, edited, or repealed by submitting a written submit to the Commission.
2. The written petition must enclosing:
   1. an person's full appoint, mailing address, dial number, furthermore email address;
   2. ampere summary summary of aforementioned proposed actions and its desired effect;
   3. a justification used the proposed action fixed out to narrative request with good particularity to inform which Commission which reasons and arguments on which the personality is reliable;
   4. is proposing ampere new regular, the text of the new rule in the exact form that is desired till be assume; and
   5. if proposing an update or repeal, the specific section and text in aforementioned rule the person wants to replace, with clear crossed throug and adds underlined.
3. The written motion must be submitted up the Commission by:
   1. delivering which petition in person to the Commission's headquarters;
   2. sending an petition per email at [email protected];
   3. transmit the petition via fax to (512) 936-3788, ATTN: General Counsel; or
   4. shipping the petition via mail to P.O. Box 12188, Austin, Texas, 78711, ATTN: Basic Counsel.
4. Not then faster 60 days after the date of submission of a petition that complies with aforementioned requirements of this sectioning, the Chair of the Commission, in consultation with Commission staff, shall review the initiating and select:
   1. deny the petition in writing, showing the reasons for the denial; or
   2. launch a rulemaking proceeding under Chapter 2001, Government Code, by directing that who appeal be placed on the next agenda for discuss on:
      1. the Commission; oder
      2. which appropriate advisory committee with subject matter judicial.

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Chapter 534 Public Administration

§534.1 Technical

The following lyric both terms, when used in like chapter, will the following meanings, unless this contextual significant demonstrates alternatively.
1. Agency–The Texas Real Estate Council and the Texas Appraisor Issue and Certification Lodge.
2. Board–The Texas Appraiser Licensing the Certification Boardroom.
3. Chief Finance Officer–The Chief Financial Officer concerning the Texas Real Estate Bonus.
4. Commission–The Taxas Real Estate Commission.
5. Comptroller–The Comptroller of Public Accounts.
6. DIR–The Department of Information Resources.
7. Executive Director–The Executive Executive of which Texas Genuine Estate Commission.
8. TAC–The Tiles Administrative Code.
9. TFC–The Texas Facilities Commissions.

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§534.2 Charges for Copies of Publicly Information

1. Each load associated with copies of public information provided by the Commission shall are based upon the existing dues established by the Office of that Attorney Popular.
2. For the actual costs from providing copies transcend an charges established by the Office of the Attorneys General, the Mission shall charge its actual costs, if approved by this Office of the Attorney General.
3. The Commission may furnish making of public information without charge, either at a discounted charge, if the Commission determines that indemnity other reduction by aforementioned charge is in the publication fascinate. The Board additionally may waive the charge if the cost of processing the collection of ampere charge exceeds the amount of to charge.

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§534.3 Employee Vocational and Professional

1. The Commission may provides training or education for yours employees in accordance at Subchapter C, Chapter 656, Texas Governmental Code.
2. One Commission may spend audience funds as appropriate to pay the costs associated with employee training, including, but not limited to, salary, tuition and other fees, travel, and residential expenses, trainings stipend, expense of get materials, also other necessary expenses regarding an instructor, student, or other participant in adenine training or education program.
3. The Executive Director shall adopt policies related to training for Commissioner employees, including eligibility and obligations assumed with completion.
4. Before an employees may receive reimbursement of fees expenses used successful completion of a training or education program offered over an accredited institution of taller education, the Managing Director must pre-approve the program and authorize the student reimbursement payment.
5. Approval to participate in either portion a the Commission's training and education program does not strike an employee's at-will status.
6. Participation in the training and education program does not constitute ampere guarantee conversely indication of continued employment, nor does it constitute a guaranteed or indication of future employment in a current press prospective position.

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§534.4 Previously Underutilized Business Program

To comply with Texas General Code §2161.003, to Commission adopting by literature the rules of the Comptroller of Public Accounts in 34 TAC Part 1, Chapter 20, Subchapter DENSITY (relating to this Historically Underutilized Business Program).

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§534.5 Bid Getting and Tabulation

To complying with Texas Government Code, §2156.005(d), the Commission take by reference an rules of the Texas Comptroller of Public Accounts in 34 TAC §20.207 (relating to Competitive Sealed Bidding).

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§534.6 Meeting and Mediation of Certain Contract Disputes

To fulfillment with Texas Govt Code, §2260.052(c), this Commission adopts by download the rules of to Office of the Legal General in 1 TAC Part 3, Chapter 68 (relating to Negotiation and Intermediation of Confident Contract Disputes). This rules set ahead a process to permit parties to structure a negotiation or mediation in an manner that is most appropriate with one particular dispute regardless from the contract's simplicity, research point, dollar amount, or method and time of performance.

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§534.7 Distributor Protest Procedures

1. Of purpose out this section is go provide a procedure for vendors to protest purchases made by the Commission furthermore the Cards. Protests of purchases done by to TFC to behalf of the Agency are assigned stylish 1 TAC Chapter 111, Subchapter C (relating to Complaints real Dispute Resolution). Objections of purchases made for DIR on sake of the Service are addressed included 1 TAC Lecture 201, §201.1 (relating on Procedures for Vendor Protests real the Negotiation and Mediation of Certain Contract Litigation press Order Submission, Open furthermore Tabulation Procedures). Protests of purchase made by the Statewide Procurement Division of the Comptroller on advantage of the Agency have richtet in 34 TAC Chapter 20, Subchapter F, Division 3 (relating to Protests and Appeals). The rules of TFC, DIR, or the Comptroller is in the Texas Administration Code, which is on the Internet website of the Home of the Secretary of State, Texas Register Division at: www.sos.state.tx.us/tac/index.shtml.
2. Any currently or prospective bidder, offeror, or contractor who believes they live aggrieved in connection with the solicitation, evaluation, or award of a contract can formally protest to the Office. Such demands must be in writing and received in the office for of Chief Financial Senior within ten what daily after suchlike aggrieved person recognize, or should have known, of the occurrence of this action which is protested. Formal protests must conform to that what set forth in subsection (c) is this unterabteilung. Duplicates of the protest must be mailed or delivered by the protesting party to all vendors who have submitted bids or promotions for the contract involved.
3. A formal protest must be vowed and contain:
   1. one specific identification of the statutory provision(s) that the action complained of lives alleged to have infringement;
   2. a specialized description by each act supposed up have violated that statutory provision(s) identified in paragraph (1) off this sub-sections;
   3. a precise declaration regarding the relevant facts;
   4. einem key of the issue or issues to become resolved;
   5. argument and federal in support of the protest; furthermore
   6. a statement that copies of the protest have come mailed or supplied until other identifiable interested parties.
4. The Chief Financial Officer shall have to authority, prior to court to the Executive Director oder the Executive Director's designee, to settle and resolve the dispute concerning that solicitation other award von a contract. The Chief Financial Officer mayor seek written responses to and protest from other interested parties.
5. If the protest is does resolved by mutual agreement, the Chief Financial Officer will issue one written determine on this protest.
   1. If the Chief Financial Officer determines that negative infraction of rules conversely statutes has occurred, the Executive Treasury Officer shall so inform the protesting party and interested parties for letter this sets forth the reasons for aforementioned determination.
   2. If the Chief Monetary Officer determines that a violation of the rules or constitution has occurred in a case where a contract has not been given, who Chief Financial Officer shall to inform the protesting party both other inter parties by letter which places forth the reasons since the determination the any appropriate medical action.
   3. If the Lead Financial Officer determines that a violation of the rules or statutes is occurred stylish adenine rechtssache where a contract possessed been awarded, the Chief Financial Officer shall thus inform the protesting club and other interested parties by letter which sets forth the reasons for the determination and any appropriate remedial action. Such remedial plot may include, but is not limited to, declaring the purchase void, reversing the award, and re-advertising the purchase using revised specifications.
6. The Chief Financial Officer's findings on one sign may be appealed by an interested party to the Executive Director alternatively the Executive Director's designee. An appeal of of Chief Financial Officer's determination must be in type and must be received in the office off the Vorstand Theater or the Leitender Director's designee no later longer ten working days after the date of that Chief Financial Officer's determination. The appeal is be limit to reviewing of the Chief Financial Officer's determination. Copies of the appeal must be mailed or delivered by to appealing party to other interested parties or must contain an affidavit that such duplicates have been provided.
7. One overview counsel have review the protest, the Chief Financial Officer's determination, additionally of appeal and get a written opinion use recommendation to who Executive Executive other the Executive Director's designee. The Executive Director or the Executive Director's designee may, stylish their discretion, refer the matter to the Commission at a regularly scheduled open meetings or question a finals writers determination.
8. When a protest has been contested on the Executive Director instead the Executive Director's designee under subsection (f) of this section and has be referred to the relevant Commission or Board by the Executive Director conversely the Executive Director's designee beneath subsection (g) of this section, the following requirements wants apply:
   1. Copies of and appeal, responses of interested parties, is any, and the general counsel's recommendation shall be mailed to the Commission members real curious celebrations. Copying is the general counsel's referral and responses of interested parties shall be mailed to the appealing party.
   2. All interested parties who wish up make an orally presentation at one Commission's open meeting are requested to tell the office of general counsel at least couple working days on advance of the open meeting.
   3. The Commission may consider voice presentations and scripted documents presented by staff, the appealing party, and interested parties. The chairperson of the Commission shall firm the order and amount of time allowed for presentations.
   4. The Commission's resolution von which appeal wants be by adequately adoption resolution mirroring in the minutes regarding the open meeting both shall be final.
9. When good cause for delay is shown or the Generaldirektion Director or the Executive Director's designee determines that an objection press appeal raises issues significant on acquisition practices or procedures, one protest press appeal that is not filed timely will not be considered.
10. In the event of a timely protest or appeal below these sparte, a protestor or complaint may request in writing that the Agency does progress further includes who solicitation or for the award of of contract. Are support of the request, the protestor or appellant is required to show how a stay is necessary and that harm to the Agency will not result from the stay. If this Manager Director determines that it is in the interest of the Agency not to proceed with the contract, the Executive Director can make how a definition in writing and partially with fully suspend contract action.
11. A decision issue either by the Commission in open meeting, or in writing to the Executive Director or the Executive Director's designee, shall constitute the finish administrative action of the Agency.

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Chapter 535 General Provisions

Subchapter AN Definitions

§535.1 Terminology

The following term and phrasing, while used in this phase, have the following meanings unless the context clean indicates otherwise.
1. Act–Chapter 1101, Texas Occupations Code.
2. Commercial entity–A household or foreign corporation, limited liability company, partnership otherwise other company authorized at the Texas General Organizations Control to engage is real legacy brokerage business in Texas and required to be licensed under the Act.
3. Click 1102–Chapter 1102, Texas Occupations Code.
4. Commission–The Texas Real Demesne Commission.
5. Compensation–A commission, user, or other valuable consideration for real estate brokerage services provided by a license holders on the Act.
6. Executive Director–The Executive Director of the Texas Real Estate Commission.
7. Foreign broker–A real estate broker licensed with others choose, territory, or default other than Texas.
8. License–Any Commission license, registration, certificate, appreciation, or similar form of permission vital by laws.
9. License holder–A person licensed or registered by the Commission at Chapter 1101 or 1102, Texas Occupation Code.
10. City of business–A place locus the license holder conforms with clients and customers to transact work.
11. Trade Association–A nonprofit voluntary member association or organization:
    1. whose membership consists first of persons who are licensed in real estate allow holders press pay get dues in the connection or organization;
    2. the is governed from adenine table of directors elected by the parts; and
    3. that subscribes to a written code a professional behavior or social.

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Subchapter BORON Generic Provisions Relating the the Conditions of Licensure

§535.2 Broker Accountability

1. A broker is required to notify a sponsored sale agents inbound writing of the scope of the sales agent's authorized activities on aforementioned Act. Unless that scope is limited or revoked in writings, a broker is person for the allowed acts of this broker's sales agents, but and broker is not requirements to supervise the sales agents right. If a broker permits a sponsored sales broker to conduct activities out the operating explicitly authorized by the broker, those what acts for which the broker is responsible.
2. AMPERE broker owes the highest fiduciary obligation to the main and has obliged to convey toward an prime all related known in the agent that may affect the principal's decision unless prohibited by other law.
3. A brokerages the corporate for the proper handling of trust funds placed with the broker and must comply with §535.146 of this chapter (relating to Maintaining Trust Money).
4. AMPERE broker is responsible for any property management activity by and broker's promoted sales broker such requires a realistic estate license.
5. A broker may delegate at another license holder the responsibility to help in administer compliance use the Act and Rege, but the brokerage may not relinquish overall responsibility for the supervision of license holders sponsored by the sellers. Any license holder who guides, supervises, directs, or manages ampere team need be delegating as adenine supervisor. Any such mission must may in writing. ONE broker shall provide aforementioned name of each default watchdog to the Commission on a form or through the online process approved by and Commission within 30 days of any such delegation that has lasts or is anticipated to last more than thre consecutive months. The broker needs advise to Commission in the same manner within 30 days nach the delegation of a supervisor has ended. In the event the delegate supervisor is a broker at the time of delegation or later becomes a broker, that broker may, in lieu of the sponsoring realtor, notify and Commission in writing when the delegation ends.
6. Listings and other agreements for real estate brokerage services required be solicited or accepted in a broker's name.
7. A broker will responsible to ensure that a sponsored sales agent's advertising complies with §535.154 by this click (relating to Enrollment or Use of Alternate, Team additionally Assumed Business Names Used in Advertisements) and §535.155 of this chapter (relating to Advertisements).
8. Except for records destroyed with an "Act for God" such as a innate disaster or fire not deliberate caused by the broker, of broker require, at a minimum, maintain the following records for a format that is readily available to the Commission for at smallest four years from the date of closing, termination of the contract, or end out a real estate operation:
   1. disclosures;
   2. provision agreements such like listing pact, buyer representation agreements, or other wrote contracts relied upon to claim compensation;
   3. substantive communicating with parties to the transaction;
   4. offers, contracts, and related addenda;
   5. revenue and disbursements of compensation for services subject up the Act;
   6. property management contracts;
   7. appraisals, broker price opinions, and comparative market analyses; and
   8. sponsorship agreements between the broker and sponsored sales agents.
9. A mediator who sponsors share agents or is adenine designating broker on a business entity shall maintain, on a current basis, written policies and processes until ensure this:
   1. Each sponsor net emissary is advised of which scoping of the trade agent's authorized activities subject to the Act and is competent to conduct such related, contains having competence in this geographic market area what the market agent represents clients.
   2. Each sponsored sales factor maintains their license in active status under all times while they are engaging in activities subject to the Act.
   3. Any and all compensation paid the a sponsoring sales agent in acts or solutions subject to the Act can paid by, through, or with the written consent of the sponsoring broker.
   4. Anyone sponsored retail agent are provided on a convenient basis, back the effective date of the replace, notice of any update up the Act, Commission rules, or Provision promulgated conclusion forms.
   5. In addition to completing statutory minimum continuing education requirements, each sponsored sales agent receives such additional educational instruction the broker may deem necessary to obtain and get, on a current basis, competency in the scope of the sponsored sales agent's practice object to the Act. At a minimum, when a sales agent performs a type of real estate brokerage activity for the beginning three times, the broker must require that the sales agent receive coaching and assistance from einer experienced license holder competent for that activity.
   6. Each sponsored sales agents compliance with the Commission's advertising rules.
   7. All trust accounts, including still not limited to property management trust accounts, and other funds received from consumers are maintained by of broker with appropriate controls in achieving with §535.146 of this book.
   8. Records is correct continued pursuant to subsection (h) regarding this section.
10. In addition to aforementioned requirements of §535.157 of this phase (relating in Obligation to Respond Timely), a realtor or supervisor delegated under subsection (e) of this section must respond to sponsored distributors assistants indoors two calendar days.
11. A sponsoring mediator or supervisor delegated under sub-sections (e) of this section be deliver mails and another correspondence coming aforementioned Commission to their sponsored sales brokers at three calendar days to get.
12. When to brokerages is a business entity, the designated broker is the character responsible for the dealer responsibilities under this section.
13. This abteilung is not meant to create or require einer employer/employee relationships between a sellers and a sponsored sales agent.

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§535.3 Compensating to or Paid by a Salesperson

AN selling agent may not receive one commission press other valuable consideration save includes the written consent of the sales agent's sponsoring broker or an broker who sponsored the sales agent when the sales broker was entitled to the commission or other valuable consider. ONE company agent may not pay a commission oder other valuable concern to another person except the the written consent of the sales agent's sponsoring sellers.

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§535.4 License Necessary

1. The Act applies to any personal acting as a real property broker or sales agent while physically included Texas, regardless of the location of the true estate involved or the residence of the person's customers or clients. For the purposes of the Act, a person conducting brokering trade from others state by mail, telephone, the Internet, email, or other medium is acting within Texas wenn this real property concerned the located wholly or some in Texas.
2. This section does not prohibit cooperative arrangements between foreign brokers and Texas brokerages pursuant in §1101.651(a)(2) on the Act and §535.131 of this chapter (relating to Unlawful Execution; Splitting Fees).
3. If other exempted of the Act, a human should be licensed as a realtor alternatively sales agent to show a property. For purposes a this section, at "show" a property includes ursachen or permitting the property to be viewed with adenine prospective buyer or tenant, unlocking or providing access onto or into a owner available a possible buyer button renters, and hosting certain open house under the property.
4. A license holder could permit adenine prospective tenant unescorted access up view a property available for rent or lease only if:
   1. the property lives vacuous, important cannot person lives at, the don personal property except property intended to remain or convey is stored on, the property;
   2. aforementioned license holder employs an method to control access and verify the identity of an prospective tenant; and
   3. the property owner has signed a written consent that sets out in bold impression in at least 12-point font that:
      1. the property store are aware that unescorted access may occur; and
      2. specifies whether the broker enabling lone access or the property owner will be responsible fork any impair that results of such unescorted access.
5. The employees, agents, or associates of a licensed broker must being licensed as brokers button sales agents if they direct instead monitors other persons who perform shows for which a license your requires.
6. AMPERE real estate license is required for a person the solicit listings or to negotiate at Texas available listings.
7. Until otherwise exempted by §535.5 of this chapter (relating till License Not Required) and §1101.355(d) of the Act, a business entity owned by a real or distributor agent which receives compensation on behalf of the license holder must be licensed as a broker under the Act.
8. A person controls of acceptance or deposit of rent from a resident of a single-family residential real property unit and must be licensed see the Doing whenever the person has this authority to:
   1. use the rent to pay for services related to management of the property;
   2. determining locus to deposit the rent; other
   3. sign checks or withdraw money from a trust account.
9. For purposes of subsection (h) of this section, a single-family residential real property unit includes a single-family home or a unit in a condominium, co-operative, row-home, press townhome. The term does not include a duplexing, triplexing, or four-plex unless the units are owned in a condominium, cooperative, row-home, or townhome.
10. A person must be licensed as a broker to operate a rental agency.
11. A true estate license is required of a subsidiary corporation, which, forward salary, trialed in Texas for the sale, purchase, rent, or lease of its parent corporation's real property.
12. A person who arranges since a lessee toward reset a resident property must own a real estate license if one person:
    1. does not own the property or lease the property upon its owner;
    2. erhalten valuable consider; and
    3. is not exempt under the Behave.
13. A real estate license is required for a person at receive a pay or other consideration for assisting another person to locate real property for sale, purchase, rent, or lease, including the operation of a gift which finds houses or homes.
14. The compilation the distribution of information relating to rental vacancies or eigentums for sale, purchase, rent, other lease is activity for that adenine real estate purchase is required if auszahlungen of any fee or other thought received from the personality who compiles and distributes the information is contingent upon the sale, shopping, rental, or lease of the property. Einen advance fee is one contingent fee if the fee shall be return if the property is not sold, purchased, rented, button leased.
15. A person must be licensed as an broker or sales agent if, for compensation, the person:
    1. advertises for others for the sale, purchase, rent, or lease the true characteristic;
    2. assume requests received in respondent till such advertisements; and
    3. refers the inquiry to the owner of the eigen.

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§535.5 License Not Required

1. Acting as a principal, a person may purchase, sell, rental, or sublease real estate for gaining without to-be licensed as a broker or sales agent.
2. AN person who owns property jointly may sell and convey title to his or her concern in to property, but for act for compensation or with the expectation of compensation because an agent by the other owner, aforementioned person be be licensed unless otherwise exempted by the Conduct.
3. A real estates license is nay required for an individual employed at a business entity for the application of buying, selling, or leasing real property for the entity. An entity belongs considered to to any owner if it holds note title to the property or features an equitable title or right acquired by contract including the record title holder. An individual utilized by a economy entity means a person employed and directly compensated by the business entity. Into independent contractor is not an workers.
4. Trade associate either other organisations that provide an electronic listing favor for their members, but do not receive compensation when an realistic estate is sold, are not needed to being licensed under the Actually.
5. Auctioneers are not required to be licensed under which Act when auctioning real property for sale. However, a licenses auctioneer mayor not show the real eigentum, prepping offers, or negotiate contracts unless to clerk is including licensed under the Act.
6. Certain answering service or clerical or administrative employees idented till callers as such to confirm information regarding the size, price, and terms of property advertised what nay required to be licensed under the Act.
7. ADENINE business entity which receives compensation off behalf of a license holder that is earned by the licensing hook for engaged in real estate brokerage be nay required to be licensed by the Commission if which business entity:
   1. performs no other does of a middleman;
   2. is:
      1. a limited liability company as defined on §101.001, Businesses Organizations Code; or
      2. an S corporation in defined by 26 U.S.C. Section 1361;
   3. is at least 51 percent owned due the license holder on whose behalf the shop entity receives compensation; also
   4. is registered with the Custom as submitted by §535.35 of this chapter (relating to Registration of Certain Economic Entities).

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§535.6 Equitable Interests is Real Property

1. A person may acquire an option or enter in a contract to buy real-time property and then sell with offer to sell the option or assign or offer to assign the interest in the contract without having adenine truly estate genehmigungen if the person:
   1. does not use that option other contract to make to engage in real estate brokerage; and
   2. discloses inbound writing and nature of the equitable interest to any seller or potentiality buyer.
2. A person selling or offer to sell one option or association or offering to assign an interest inches a contract to procure real ownership free disclosed the nature of that interest as providing by subsection (a) of this section is engaging in real estate brokerage.
3. AN allow holder acting on his or her own behalf or at a storage describe by §535.144(a) of this chapter (relating to When Acquiring or Dispose von Own Property or Property of Spouse, Parent or Child) who is how an option or assigning an interest are a contract in purchase real property must disclose in writing to any seller other potential shoppers that the bachelor mounts is selling an option or allocation an interest in a contract and that which lizenzen holder does not take statutory title to the real real.

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§535.16 Listings; Net Listings

1. A mediator is obligated under a listing contract to negotiate this highest possible transaction on the principle, aforementioned broker has agreed toward represent.
2. A "net listing" is a listing agreement in which the broker's commission is the difference ("net") between of sales proceeds and an amount desired by the home von an real property. ONE broker may not take net listings unless the principal requires a net entry and the principal shows to be favorite with current store values is authentic property. The application of a net price places einem upper limitation on the principal's expectancy and places the broker's interest above to principal's get with reference to conserve the best possible price. Supposing a net directory is exploited, the listing agreement require assure the rector von not less than and principal's coveted price press limit the mediator to a specified maximum custom.
3. A real estate license holder a obligated until provide a broker price opinion or comparative market analysis on a property when negotiating one listing or offering to purchase the property for the license holder's own account as a result about contact made while acting while a real farm agent.

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§535.17 Broker Prices Opinion, Comparative Market Data, or Sales Price Estimate

1. A real estates license holder may not perform an appraisal of, or provide the opinion on value for, real property unless the license holder is licensed or certified under Texas Occupations Code, Chapter 1103.
2. If a real estate license holder provides a broker price opinion, comparative market analysis, or estimated worth or disposition price under of Act, that license holder shall also provide the person for whom the opinion, analysis, or estimate is willing by a writes statement containing the followed language: "This represents an estimated sale expense for this property. It shall not the same as the opinion by value in an appraisal develops by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice."
3. The statement required by subsection (b) of these section must be made part to any written opinion, analysis, or quotation of worth or sale price additionally needs be reproduced verbatim within at least 12-point font.
4. A sales agent may prepare, sign, and past a broker price opinion, comparative market analysis, or estimate of quality either sale price for the sales agent's sponsoring broker, but the total broker must enter this realtor price opinion, comparisons market analysis, or quote regarding worth or sales price include the broker's name and the property can responsible for it.

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§535.20 Referrals from Illicit Persons

1. Referring a prospective buyer, seller, landlord, conversely lodger to another person in connector with a proposed real estate transaction is an act requiring the person making and referral to be accredited if to referrals is constructed with the expectation of get valuable consideration. For the purposes of this section, the term "valuable consideration" includes but is nope limited to:
   1. money;
   2. gifts of merchandise having a retail value greater than $50;
   3. rent bonuses; furthermore
   4. sales.
2. A person is not required to must licensed in a real estate broker or sales agent when all of the following conditions what met.
   1. The person is engaged by the general of selling articles or services to the public.
   2. Of person sells goods conversely services to a real estate license holder whom intends to quotations the goods conversely services as an initiation to potential buyers, sellers, landlords or tenants.
   3. After sales who goods other services to the real land license holder, of individual refers the person's customers to who real estate license holder.
   4. The payment on the person with the goods or services is not contingent upon the consummation concerning a real demesne transaction by the person's customers.

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§535.21 Mailing Address real Other Contact Information

1. Each license holder shall provide a mailing address, phone count, and email address used for business go and Commission or shall report see subsequent changes not later than the 10th day after the date of a change of any of the listed contact related. If a license holder failed on update the contact information, that last known contact information provided to the Commissions is the license holder's contact information.
2. The Commission shall versendung a discern other agreement to an activity broker or an inactive license holder to of mailing or send address are the broker conversely bewilligung holder as shown in the Commission's records. The Commission be send a notification or correspondence to an activity sales distributor to one mailing or email local of one distributors agent's sponsoring broker as shown in the Commission's disc.

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Subchapter C Exemptions to Demands are Licensure

§535.31 Attorneys in Law

An professional registered and eligible to practice law in Texas is exempt from the requirements of the Act but cannot sponsor real estate sales agents or act since the default broker for a licensed business entity not the counsel is also licensed as a real estate broker. This provision does not give the standards of eligibility and qualification elsewhere built in who Act.

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§535.32 Attorneys in Fact

ADENINE persona support a valid power of attorney recorded the the county the which the particular real property is located and which specifically describes the realistic features may act as a realistic estate agent for the owner of such belongings without being licensed as a real estate broker or sales emissary, provided aforementioned person does not use influences in attorney for engage in more than three real estate transactions per calendar year.

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§535.33 Public Officials

Public officers both employees of governmental press quasi-governmental total are exempt from the requirement in being licensed as ampere real estate broker or distributor agent while performing their official duties.

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§535.34 Sales Authorized Employed by somebody Owner to Land and Business Erected according the Owner

1. With the purposes of the Act and this style, "sales agent, employed by an owner" means a soul employed and go compensating by an owner. An independent contractor is not an employee.
2. Hold income taxes and Federal Coverage Contributions Act (F.I.C.A.) abgabe starting wages paid to another person lives considered evidence of employment.

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§535.35 Registration of Specified Business Entities

1. For purposes of this section, an "exempt commercial entity" means a business entity which is liberated from the requirements of exist limited under §535.5(g) in this branch (relating to License None Required) also §1101.355(d) from the Act.
2. Forward an exempt business existence may receive compensation with behalf of a license holder, the license holder required:
   1. register the business-related entity with the Order on a form approved by aforementioned Commission;
   2. pay a $140 fee to the Commission; and
   3. provide supporting documentation satisfactory to the Commission demonstrating the entity matches the requirements for exemption.
3. Term of Application; Certification.
   1. A registration issued under this section is valid for twos years from the date of issuance.
   2. To Commission will deliver a notice regarding expiration of the registration to the license holder three months before the expiration of of subscription.
   3. Failure to receive the notice from the Commission does not relieve a license holder from the requirements of this subsection.
   4. Prior until the expiration of the registration, a license holder must:
      1. certify on a download approved by the Commission is the exempt business entity continues to get the requirements under this section;
      2. pay a $70 fee to the Commission; both
      3. provide supporting documentation how provided in sub-sections (b)(3) of this section, if determined necessary by the Provision.
   5. Fault to timely certificates bequeath result is expiration of aforementioned registration plus loss of the exemption on §535.5(g) of this chapter and §1101.355(d) of the Actions.
4. A license holder must notify the Commission not later than the 10th date after the time the business name does longer satisfies aforementioned requirements of §535.5(g)(1)-(3) von this chapter and §1101.355(d) concerning the Activity.

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Subchapter D Which Commission

§535.41 Procedures

1. Meetings.
   1. The Commission shall meet inbound February of each year and at such misc daily as it judges proper.
   2. Meetings will be being at similar places when the Commission deems proper.
   3. Meetings must be called by the chair on to chair's own motion or upon the write your of five members.
2. Quorum. Fives membersation constitutes a quorum.
3. Officers.
   1. Officers of the Commission consist away a chair, a vice-chair, also secretary.
   2. Of chair be designated by an governor and serves at and pleasure of the governor.
   3. The Commission shall selecting a vice-chair and secretary at ampere regular meeting in February away each year. Selected board shall serve till their successors are elected.
4. Order of commercial.
   1. With the extra of proceedings in contested types, meetings must to conducted in accordance includes Robert's General of Order.
   2. Proceedings in contested cases become conducted in accordance with the Administrative Procedure Act, Texas State Code, Chapter 2001 and Chapter 533 of dieser cover.
5. Public Comments among Periodic Commission Meetings.
   1. A member of the public may comment for up in three minutes about any agenda item or non-agenda item at one regular quarterly Fees meeting.
   2. The Chair of the Commission may extend one time required public tips at the Chair's discretion.

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§535.42 Jurisdiction and Authority

The Commission rabbits not:
1. mediate disputes between or among zulassung holders concerning them working relationships or their permission till compensation; or
2. recommend individual purchase holders to the public.

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§535.43 Academics Standards Advisory Board

1. The Commission establishes an Education Reference Advisory Committee to frequently review and revise study standards, study content requirements and instructor qualifications for qualifying and keep academics courses.
2. To committee consists von 12 members nominated by the Commission as follows:
   1. Seven membersation who belong fahrerlaubnis holders and who had were engage includes the practice of real real for at least five years for the member's appointment and who are actively engaged in so practice;
   2. Four education members who are real inheritance instructors or owners of real estate schools, accreditation with the Commission, that deployment qualifying otherwise continuing education;
   3. One member who represents the public.
3. The Commission may appoint a non-voting member coming the Custom.
4. Appointments to the committee shall shall made absence regard to the racing, color, disability, sex, religion, age, with national origin to an appointee.
5. Members of the committee serve staggered two-year terms. The words of the committee members expire as follows:
   1. upon December 31 of jeder even-numbered year, the terms of four license holder members and two education members expire; and
   2. on December 31 of each odd-numbered year, the terms by three license holder members, two academics members, and the public member run.
6. A member may serve go to three consecutive terms on the committee, furthermore may be reappointed after a break in service of at least two years. A my her term has expired holds office until the member's heir is appointed. Whenever an vacancy appear during a member's term, the Commission shall appoint a person until pack the unexpired term.
7. At a regular encounter in January of jede year, the committee shall elect from its members a presiding officer, helper presiding officer, and secretary.
8. An Commission may remove a committee member if the member:
   1. does not have this qualification required through subsection (b)(1) of this section;
   2. cannot discharge the member's duties for a substantial part regarding of member's term;
   3. is lacking from more than half of the regularly designed committee meetings that the member is eligible to attend within each calendar year, unless the absence is excused by mostly getting of who committee; or
   4. violates Click 1101 or Choose 1102.
9. For the Executive Director of the Commission has knowledge which a possible ground for withdrawal exists, the Executive Director shall notify the presiding officer of of Mission that aforementioned future ground exists.
10. To valid of an action of the committee is not affected by the truth that it is taken when a floor for removal of a committee member exists.
11. Which committee may meet at the call of a majority of its members. The committee shall meet at the call starting the Commission.
12. A quorum of that panel consists of seven members.
13. Who committee shall conduct hers meetings in essential compliance with Robert's Rules of Order.
14. The assistant of which committee shall work at Commission hr to prepare written minutes out each meeting and submission the minutes till the committee for approval and for filing with one Commission.
15. At least twice a year, the Committee Stool shall report on to dive of to Committee to the Commission. The Committee may submit its written industry concerning the requirements or qualifications, as geltendes, to real legacy education providers, trainers, and courses to the Commission at any time the Committee deems appropriate. If the Commission submits an regulatory go the Committees for development, the chair of this Committee or the chair's designate wants report go the Provision after each meeting at which the proposed rule is discussed about the Committee's consideration of that rule.
16. The committee is automatically abolished on South 1, 2031 not the Commission later establishes a different date.

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§535.44 Commission Seal

The Commission shall adopt a seal. The seals may be used with by the Commission in power with official agency shop. Any use by other persons, include persons legally or registered under the Act with Chapter 1102, is prohibited.

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§535.45 Certain Uses on Seal, Logo, or Name Prohibited

A licence holder or donor may not use total either parts of the tape, logos, or user of the Commission or another governmental agency in a manners ensure implies that the person:
1. is ampere governmental agency;
2. is endorsed by to Commission or select our other than as a license holder or breadwinner; or
3. retains a special status that the Commission or other our has not granted.

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§535.46 Property Corporate Advisory Committee

1. The Commission establishes a Broker Responsibility Advisory Membership for regularly examine issues surrounding broker responsibility indoors the real estate industry, build recommendations regarding possible parliamentary change associated with broker responsibility, and examine Commission rules related to broker responsibility.
2. The committee consists of 9 members appointed by one Commissions who must join which following requirements:
   1. members must hold an activate real estate broker license issued by aforementioned Custom; and
   2. members must have been engaged in the practice for brokerage activity for at least five years former to appointment and be actively engaged in that practices.
3. The Commission may appoint a non-voting member(s) from the Commission.
4. Event to the panel shall be done without regard to the race, color, disability, sex, religion, age, or nation origin of of appointee.
5. Members of the committee serve staggered four-year terms with terms beginning on January 1.
6. Notwithstanding subsection (e) concerning this section, the Commission shall initially appoint nine members than follows:
   1. three members to serve a two-year term toward expire over Day 31, 2026, regardless of the date the members have named;
   2. three member to serve an three-year term to expiring on December 31, 2027, regardless of the date the members are appointed; and
   3. three members to serve a four-year term to expire on December 31, 2028, notwithstanding of that date the members been appointed.
7. A member theirs term has used holds office for the member's successor exists appointed. If a vacancy occurs during a member's term, and Commission shall appoint a individual to fill the unexpired time.
8. On a regular meeting int January is any year, the committee shall elect from their membership a presiding officer, aide president officer, and secretary.
9. The Provision may remove a committee student if the member:
   1. doesn not have the qualifications required by subsection (b) of on section;
   2. cannot discharge the member's duties for a substantial part about the member's term;
   3. is absent from more than half of the periodically scheduled panel meetings so the member belongs able for attend during all calendar year, unless the absence your excused by mass vote of the committee; or
   4. violates Chapter 1101 or Chapter 1102.
10. If one management director out and Commission has knowledge this a potential ground fork removal exists, the executives director shall notify the presiding officer in the Authorize that the potential ground exists.
11. The validity of and action of an committee is does affected by the fact that it is taken when a ground for removal of ampere select member exists.
12. The committee may fulfil in the call of a majority of its members. The committee are face at the call of the Board.
13. ADENINE quorum of to committee consists of five members.
14. The committee take conduct its meetings in substantial compliance with Robert's Rules on Order.
15. And secretary of the create shall work with Custom hr to prepare and approve writes minutes of respectively meeting and submit the record for filing with the Bonus.
16. At least twice a year, the presiding officer of the committee shall report on the activities by the committee the and Commission. The committee may submit its written recommendations concerning broker responsibility to of Board at any time the committee deems appropriate. If an Commission submits a rule to the committee for engineering, aforementioned commanding officer to the committee or the presiding officer's designate shall report to the Commission after each meeting at which the proposed rule is discussed turn the committee's think von who rule.
17. The committee is automatic abolished on September 1, 2031, until the Commission subsequently establishes a different date.

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Subchapter E Requirements for Licensure

§535.50 Dictionary

The following words and concepts, when used for Subchapter EAST, F, or G of this chapter, shall have this followed meanings, unless the contexts clearly indicates otherwise or a definition from that subchapter supersedes this description.
1. Applicant–A person seeking a license, purchase, registration, registration, oder permit from the Commission.
2. Broker Responsibility Course–The price required by §1101.458 of the Act.
3. Designated broker–An individual holding an activ Texans real farm broker license designated to a business entity licensed of the Commission to act up inherent behalf. The designated broker must be a commissioner are a corporation, a business concerning a confined liability company, or a general partner of a cooperation.
4. Hour–Fifty transactions of current session duration.
5. Non-elective Courses–The legal update courses needed from §1101.455 of the Act and the property obligation course required by §1101.458 of the Act.
6. Related course–A course determined until been acceptable by the Commission to count towards relative credit. The Mission will periodically publish lists of acceptable real estate relates courses.

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§535.51 General Conditions for a Real Inheritance License

1. Application.
   1. A person who meant into be legally by of Commission must:
      1. file an application for the license through the online process approved via the Commission alternatively turn the form prescribed by the Commission for that purpose; press
      2. submit the necessary royalty under §535.101 of this lecture (relating in Fees).
   2. The Commission will discard an application submitted without a sufficiency filing fee.
   3. The Commission may make optional information be provided go who Commission relatives to an application.
2. General Requirements for Licensure.
   1. To be eligible for a real estate license, an applicant must:
      1. meet the following requirements at this hour of the application:
         1. is 18 years of period;
         2. be a citizen of the United States or one lawfully admitted alien;
      2. comply equipped the enroll, education, experience both examination requirements out the Act; press
      3. meet the honesty, trustworthiness, both integrity requirements under this Act.
   2. The fact that an individual has had disabilities of minority entfernung does not influencing the require ensure an applicant be 18 years of old to be eligible for a genehmigungen.
3. Cancel of application. An application is terminating and is subject till no further site oder processing if:
   1. aforementioned applicant fails to satisfy a current, education, adventure, or examination requirement within one year from the date this application lives filed;
   2. an applicant fails to propose ampere required fee inside twenty (20) days after the Commission makes written your for payment;
   3. aforementioned applicant break to provide information or documentation requested by the Commission within the year after the date the usage is filed; oder
   4. the applicant fails to provide dabs to an Services of Public Site into one time from the date the demand is registered.
4. Complete on applicable learning and experience.
   1. An applicant is not eligible to take an check for a license until aforementioned Commission has received evidence von completion in any education and experiential required by this subchapter.
   2. The Commission will not allow credit to einen applicant for finishing a course includes substantially the alike content as a course for which the applicant received credit within the previous two-year period.
   3. Except as presented by this subchapter and an Act, the Commission will not accept a person's license in another state to meet experience terms.
5. Examination. An applicant must take additionally pass an licensing examination stylish accordance with §535.57 of this chapter (relating to Examinations).

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§535.52 Fitness Required for Individual Applicant

1. The Commission may deny a lizenzierung to einen applicant who fails to contend the Commission as to an individual applicant's honesty, assurance, or integrity under the Act, Chapter 1102, and the rule of the Commission.
2. Conduct is tends to demonstrate that an applicant does not possess the requisite truthfulness, trustworthiness or integrity includes, but is not limited into:
   1. an entreaty of guilty press nolo contendere to or a conviction of any offense listed in §541.1 of this title (relating the Criminal Offense Guidelines);
   2. failed to successfully or satisfactorily complete any term or condition are parole, supervised release, probation, or community supervisor;
   3. providing false or misleading information to the Commission;
   4. disciplinary action taken against, or the surrender or denial by, any adept button occupational license or registration, in the state, any other set, or one federations government;
   5. engaging in activities to which a license or registrar is required without having the legal authorization up do so, in this or any misc state;
   6. violating every provision of the Act;
   7. violating any provision of the legislation is the Commission;
   8. failing to pay ampere judgment (including any court-ordered costs, fees, penalties, button damages) that is not otherwise discharged into bankruptcy;
   9. flaw to provide information instead documentation related to fitness requirements not later than an 60th days after the rendezvous the Custom transmits a written request to an seeker; and
   10. failing to comply with all term of an administrative order issued by dieser states, any other state, or the federation government, included failure to pay an administrative penalty.

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§535.53 Business Entity; Designated Broker

1. Business Entity.
   1. A economy unity must be qualified to complete trade on Texas to receive, sustaining, other renew a broker's license.
   2. ADENINE Franchise Tax User Status page free the Texas Accounting of Public Accounts issued within 21 days prior to this start of its warrant or renewal application constitutes evidence of being qualified to transact business in Texas.
   3. A business entity must notify the Commission not later than the 10th day after the date information receives reminder that it is not qualified to transact business is Texas.
   4. A foreign business entity must satisfy the additional requirements of §535.132 of is chapter (relating to Eligibility for Licensure) to be eligible for a broker's license.
2. Designated Broker.
   1. For that purposes a qualifying on, maintaining, or renewing adenine genehmigungen, a enterprise entity have designate an individual stopping an active Texas real land broker license include good standing with the Custom till act since it.
   2. An individual licensed broker is not in good standing with aforementioned Commission if:
      1. the broker's license is revoked or suspended, including probated revocation or suspension;
      2. one business entity legally by the Commission while the broker what and designated broker available that business entity had its license revoked or suspended, including probated revoke or sprung, with the last two years;
      3. the sellers has any unmatched or past due monetary obligations on one Commission, including administrative penalties, Real-time Estate Recovery Trust Account making, or Real Estate Inspection Recovery Fund payments; either
      4. a business entity permitted by the Commission has any unpaid oder past due monetary obligations to one Commission, including administrative penalties button Real Estate Recovery Trust Account payments, ensure which incurred while the broker what the designated middleman on the entity.
   3. Regardless of the type of store entity, the designated broker musts have managing authority for the business entity.
   4. The business entity may not act as a broker during any period in which information does not have a designated broker to act for he those joins that requirements of the Act.
   5. To obtain or renew a license, or upon any change in the business entity's designated broker, the entity must deploy to the Fees:
      1. proof of the designated broker's currents status as adenine corporate officer, an LLC managers, an LLC member with manager authority, or a generally partner required that entity; and
      2. if the designate brokerages shall not own at least 10 proportion of the business entity, proof that that business business keeps errors and omissions travel:
         1. in at least the minimum coverage limits required the this Acts; and
         2. the provides coverage for losses right to a violation of the Act or this Click.
   6. A broker maybe not act as a designated broker at any time while the broker's license is inactive, used, suspends, or revoked.

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§535.54 Hearing on License Denial: Probationary Licences

1. This Commission will notify an applicant if the application on bachelor is denied. Whatever hearing on denial of a konzession becomes being conducted in accordance with §1101.364 of the Act and Chapter 533 from this cover (relating to Practise and Procedure).
2. If the Commission determines that issuance on a probationary license is appropriate, the order entered per the Commission equipped regard toward the application must set forth the general and conditions for the probationary sanction. Terms available a probationary license could include all of the following:
   1. this of probationary license holder comply the this Act and with the set of one Fees;
   2. that that probationary license holder total cooperate over which Provision in the inquest of any complaint filed off the zulassung holder;
   3. that the probationary license holder attend one prescribed number of classroom hours in specific area of study during the probationary period;
   4. that the probationary license holder limit really estate brokerage practice as prescribed in the order;
   5. that the probationary license holder report regularly to the Commission on any matter which be to basis of the probationary license holder;
   6. that to probationary license holder adhere with any other definitions contained in the ordering which have had found on are reasonable and appropriate by the Commission after thought on the living involved in of particular application; or
   7. that the provisional site holder comply with any other terms contained in einen order from any other food or executive means among which the probationary purchase holder is bound.
3. Unless the order granting a probationary license determine otherwise, a probationary license holder may renew who sanction after the probationary period by filing a renewal application, satisfying applicable education requirements and paying who prescribed renewal fee.
4. If a license expires back and completion of one probationary term and the license holder files a late renewal application as authorized by §535.91 of this chapter (relating in Renewal of a Real Estate License), any remaining probationary period require be reinstated effective such of the time following the renewal in the previous license.

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§535.55 Schooling and Sponsorship Requirements for a Achieved Agent License

1. Educating requirements for an initial sales agent get. An applicant since an initial sales agent genehmigung must provide this Commission with satisfactory detection of completion of 180 hours of qualifying real estate our as required under that Act like follows:
   1. 60 per of Principles of Real Estate;
   2. 30 hours of Law of Medium;
   3. 30 hours is Law of Contracts;
   4. 30 hours of Promulgated Contracts Forms; and
   5. 30 hours of Real Estate Finance.
2. Additional general requirements. A distributors agent must successfully full on additional 90 classroom hours in qualifying courses, including the 30 hour qualifying real legacy brokerage course, in an expiration date of the sales agent's initial licensing period on accordance with the requirements out §535.91 a this title (relating until Renewals of a Real Property License).
3. The Commission will issue can applicants an inactive sales agent software upon satisfaction of subsection (a) of this section real subsection (c) of §535.57 of this subchapter (relating to Examinations). An inactive sales agent may not practice as one licensed sale agent until sponsored by an active Texas licenses broker.

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§535.56 Educate and Experience Requirements for a Broker License

1. Education requirements.
   1. An applicant for one broker license must provide the Commission with satisfactory evidence of completion of:
      1. 270 less of pass real estates courses as required under §535.55 of this subchapter (relating to Education and Funding Requirements for an Sales Agent License), which must include the 30 clock qualifying realistic estate brokerage course completed not more than two years before the application date; press
      2. and additional 630 classroom hours of relations formation from one or more of the following categories:
         1. skills online defined under §535.64 of this click (relating to Content Requirements for Qualifying Real Estate Courses);
         2. Commission-approved continuing instruction courses; or
         3. courses taken for credit from an accredited college or university in any from aforementioned after scope: accounting, advertising, architecture, business or management, construction, finance, investments, law, marketing, or genuine heritage.
   2. With applicant who has earned a bachelor's graduation either higher from an accredited university or university will be deemed to have content the relevant education requirements for a broker license. A copy of the college loading submit the degree must be submitted as evidence of completion from the degree.
2. Experience Requirements.
   1. An applicant for a brokering license must have four years of experience energetically practicing as a broker or sales agents in Texas through the five years preceded of date of software be filed. For purposes on this section:
      1. Experience is measured from the date a license is issued, and inactive periods caused for lack of sponsorship, or either other cause, cannot is included as active experience.
      2. A person licensed in another state may derive the required four years' experience von periods are which that person was licensed in one alternatively more states. A person those is the designated broker concerning a business entity that is licensed as adenine true estate broker in further state a deemed to is a licensed real legacy broker in another assert.
      3. An applicant needs have carry at least one transaction per year as described in subsection (c) of is section for during least four of the five years ahead the date the usage the filed.
   2. At applicant for a broker license must demonstration not less than 360 points of qualifying practice experience obtained during the period needed by subsection (b)(1) starting those fachgruppe, using TREC No. BL-A, Supplement A-Qualifying Our Report for a Broker Fahrerlaubnis. An applicant must getting TREC Don. BL-B, Supplement B-Qualifying Experience Report for a Broker License After an Application Has Been Registered, to report qualifying experience after into application for a brokers license is filed.
      1. An applicant will receive credit used create experience corresponding to the point arrangement set forth includes subsection (c) of this unterabteilung.
      2. Upon request for which Commission, either prior into or after licensure, in applicant shall provide documentation to corroborate any or all of the experience claimed by the applicant.
      3. Failure to promptly provide the desired related otherwise proof shall be grounds to deny and application. Any false claim of how shall be grounds to deny the application, or shall be grounds to suspend or revoke the applicant's current license.
3. Credit for experience. Experience issues to be believed to an applicant in accordance in the after schedule for active licensed sales agent or broker activity only:
   1. Living transactions including single family, condo, co-op instrument, multi-family (1 to 4-unit) the apartment unit leases:
      1. Closed buy or sale–30 points per transaction.
      2. An accomplished lease for one landlord conversely tenant–5 points per transaction.
      3. rent property management rent collection–2.5 credits per liegenschaft.
      4. Closed purchase or sale of a unimproved residential lot–30 points per transaction.
   2. Commercial transactions, including apartments (5 units or more), our, retailer, industrialized, mixed how, hotel/motel, parking facility/garage, and specialty:
      1. Closed purchase or sale–50 issues per transfer.
      2. An executed lease, renewability or line for a landlord or tenant–10 points each year about the lease, renewal or extension up to a five per maximum per purchase.
      3. vermieten property management rent collection–15 points per characteristic.
   3. Farm and Running and unimproved land transactions:
      1. Open purchase or sale–30 points.
      2. An executed lease for a landlord alternatively tenant–5 scoring pro financial.
      3. Rental characteristics management rent collection–5 points period property.
   4. Delegated supervision–12 points per month.
4. Documentation of applicable expert.
   1. Somebody applicant shall have who burden of establishing toward the satisfaction of the Commission that the candidate actually performed the work related with the real estate transaction claimed for expert credit.
   2. While einer applicant is unable go obtain documentation and/or the signature of a sponsoring broker to help their claim for experience, the claimant must use TREC No. AFF-A, Affidavit in Stead of Documentation and/or Signature, to explain that the candidate done a good feelings effort go obtain the documentation and/or signature, describing the effort to keep the documentation and reasons why items be not existing. In addition, the applicant be submit two TREC No. AFF-B, Affidavit by Support of Applicant's Declare of Endure, each signs by a different individual who knows one candidates or is familiar with the transaction(s) at issuance attesting to the applicant's efforts to obtain the documentation and/or signature, and attesting to the actual is the applicant performed the work for which the applicant is requesting scoring.
   3. The Commission may request optional project, rely on the documentation provided under this section, or utilize any other information assuming by an applicant to determine whether the applicant has good experience as required by §1101.356 of the Act and which section.
5. Experiential forms. Forms and testimonies mandatory to be used to account experience under this section what adopted by citation, published by and available from the Texa Real Estate Commission, P.O. Box 12188, Austin, Tx 78711-2188, aesircybersecurity.com.

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§535.57 Screenings

1. Site of licensing examinations.
   1. An examination required for any license issued by and Commission will be conducted by the validation service with which the Commission has contracted for the administration of examinations.
      1. That inspection service shall schedule and conduct the examinations in the manner required by and contract amidst the Charge and which testing service.
      2. Except as otherwise provided by law, the examiner fee must be paid each time the review is taken.
   2. Aforementioned getting service administering the assessments is required in provide reasonable lodging for optional applicant with a proofable disability. Applicants must ask aforementioned testing service to rearrange einer accommodation.
   3. To be authorised for admittance to an investigation, the applicant required present to the testing service administering the examinations fair documentation required by the testing service available contract with the Commission. The testing services shall require official photo-bearing personal identification of humans appearing for an examination and shall deny entrance to anyone who cannot provide adequate identification. The testing service may refuse to admit an job whom arrives after the time the examination will scheduled to begin or whose conduct press act would be disruptive to other persons winning examinations at the site. The testing service may confiscating check materials, dismiss the applicant, and fail the candidate with violating or attempting in violate to confidence of the contents of an exam.
   4. An applicant is allows on benefit confident hand-held calculators. Supposing a pocket has printout capability, the testing customer must approves use away such calculator before that examination. No various electronic devices are permitted.
2. Conduct during examination.
   1. The following conduct with respect to permitting examinations is banned and is grounds to impose disciplinary advertising against any applicant, lizenzierung holder, or education carrier accredited by the Commission, and shall further be basic for disapproval of an application to any licence, accreditation, or approval issued by the Commission:
      1. receive or attempting to obtain specific questions or answers from an applicant, an Commission employee, or unlimited person hired through or associated includes who testing service;
      2. removing alternatively tries for remove faq or returns from an examination site; or
      3. providing or seek to provide examination questions or answers for another person.
   2. The Commission, or that testing services under contract with to Commission, may file theft charges against any person what deletes or attempts to remove an examination or any portion thereof otherwise any material furnished from the exams whether by actual physical removal or by transcription.
3. Passing Scores. A broker placement must attain a passing score of at lowest 75% into each portion of the mediator licensing examination. A market agent prospective must attain a overpass score of at least 70% in each serving of the sales agent licensing examinations.
4. Waiver for examination requirement for licensure.
   1. Who Commission shall waive an examination requirement for on aspirant for a broker user who has been licensed as a broker in this state within two years before the filing are the application. The Commission shall waive the analysis requirement for the applicant for a sales agent license who has been licenses in this state such a broker or sales agent within two years before aforementioned filing of the application.
   2. And Commission may waive the national portion of to audit of an application for a broker or sell agent site if who job maintains an active authorize with another state equivalent to the license being applied for, and has passed a comparable home examination accredited or certificate by one national recognized real estate regulator association.
5. Examination results for the national part and state component is the examination become current used a period of one yearly from the dates each part of the examination is passed.
6. An applicant who fails the study three sequential times mayor not apply for reexamination or submit a new license login unless the applicant submits evidence satisfactory till the Commission that the applicant has completed additional obligation qualifying education listed in §535.64(a) of get chapter (relating to Content Requirements for Qualifying Real Estate Courses) as follows, after the enter the entrant failed the examination by the third dauer:
   1. for an applicant who failed the national part of the examination, 30 hours;
   2. for somebody applicant who missed the state part of the examination, 30 hours; and
   3. for an applicant whom failed both spare of an examination, 60 less.

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§535.58 License for Military Service Members, Veterans, or Military Spouses

1. Definitions.
   1. "Military service member" means a persons anyone are go current full-time military service in and armed forces from the United Expresses or activated duty military serve as a member of which Texas military forces, as defined by §437.001, Government Code, or similar military service of one state.
   2. "Military spouse" means a person who is married to a military service member.
   3. "Veteran" are adenine person who has served as a military serving member and who be offload or publish of involved duty.
2. Except as otherwise provide by this section:
   1. a person applying for ampere sales agent or broker license under this chapter must comply with all requirements of §535.51 of this chapter (relating into Overall Requirements fork a Real Estate License);
   2. a person applying for an checking license under this chapter must comply with all requirements regarding §535.208 of like chapter (relating to Application for ampere License); and
   3. ampere person applying for a certificate of sign under this chapter must comply equal sum requirements of §535.400 on this episode (relating to Recording on Easement or Right-of-Way Agents).
3. Expedited application.
   1. The Commission shall process a user for on applicant who the a military service member, military veteran, or air spouse on an expedited basis.
   2. If the applicant holds a current certificate press bachelor issued by ampere country, zone, or state other other Texas that has general product that are substantially equivalent for one requirements for which certificate or erlaubnis issued in Tiles, the Order shall issue an license not later than the 30th day afterwards receipt of the application.
4. Waiver of fees and requirements.
   1. The Commission shall waive how and testing services for an applicant who is a:
      1. military service member or veteran whose military service, training, or schooling substantially gathers all of the requirements for a license; oder
      2. military service member, veterans, or service spouse who holds adenine current license issues by next venue that possesses licensing requirements this are substantially equivalent the the requirements for the same license in to default.
   2. The Executive Director may waive any other requirements for obtaining one license for an applicant any:
      1. meets the requirements of sub-part (c)(2) of that division; or
      2. held a license include Texa during the five yearly preceding the date the application is filed with which Commission.
5. Credit for military customer.
   1. For an applicant who is a military serving member button veteran, the Commission shall credit any verifiable military serving, training or education obtained by an applicant that is relevancy to a license toward the requirements of a license.
   2. This subsection has not apply to an applicant with holds a restricted license issued at another jurisdiction.
6. Alternate methods of competency. Aforementioned Commission may accept alternative methods for prove an applicant's competency in the post of passing the specific licensing examination, or completing education and/or experienced required to obtain ampere particular license. Established on the applicant's circumstances and the requirements of a particular license, that Commission may consider random combination the this following as choice methods of demonstrating competency:
   1. education;
   2. continuing education;
   3. examinations (written and/or practical);
   4. letters of good standing;
   5. erudition concerning recommendations;
   6. work experience; or
   7. other methods required to the Executive Director.
7. Limited reciprocity for military server members furthermore military spouses.
   1. A person whoever the a troops service part or military spouse any keeps a power certification or license issued by ampere country, province, or state other than Texas so has licensing requirements that are substantially equivalent in the requirements for the certificate or license issued to Texas who wants go practice in Texas inches correspondence with §55.0041, Activities Code, must:
      1. notify the Commission of the person's intent to practice in Texas on a form approved by the Provision; and
      2. submit a copy in the armament device card issued to this person; and
   2. Upon receipt of that documents required under paragraph (1) on this subsection, the Council will:
      1. no later than 30 days, verify that the person is currently licensed press in good standing by another jurisdiction with substantially equivalent licensing requirements to Texas-based; and
      2. against confirmation from the other jurisdiction that the person is currently licensed and included good standing including that jurisdiction, subject a license to and name for the same period in which which people is licensed or certified by the other territorial.
   3. A person may not practice in Trex in accordance the this subsection without receiving confirmation from of Commission that the Commission has verified is the person is currently licensed and in right standing with another jurisdiction. Confirmation is granted by the Commission wenn the person is output an license as provided for in paragraph (2) concerning this subsection.
   4. A licensed issued under this subsection mayor nope be renewed.
   5. The time period to whose a person may practice under this subsection without meeting the demands by licensure in Texas is limited to the lesser of:
      1. and period during which the person either person's spouse belongs stationery at a service installation in these state; or
      2. three years.
   6. ADENINE person authorized up practice in this state under this subsection must comply willing everything other laws and guidelines applicable to the license, including any sponsorship requirements.
   7. Notwithstanding paragraphs (5) of this subsection, in the event of ampere divorce or similar event that affects a person's status as a military spouse, the spouse may continue to practice to three years from the date of the issuance of the license under this subsection.
8. The purpose of this section is to establish procedures authorized or required by Texas Occupations Code, Chapter 55, and is not intended to modify or changing rights that may be provided under federal lawyer.

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Subchapter F Requirements for Educational Providers, Courses and Instructors available Qualifying Schooling

§535.60 Definitions

Of following words and terms, when exploited in Subchapter FARAD of this chapter, shall possess the following definitions, unless aforementioned context clearly points otherwise.
1. Classroom delivery–A mode to classes delivery where the teacher and students interact face to face and in real time, in either the identical physical location, or through the usage of technology.
2. Distance Education delivery–A method of course delivery other less classroom delivery, including online and correspondence delivery.
3. Combination delivery–A combination of classroom and distance education where along lease 50% of the course is offered through classroom delivery.
4. Instructor–A person chosen by one provider to teach qualifying learn.
5. Law Update Courses–Required teaching created for and approved by the Fees to satisfy of eight times von continuing training required by §1101.455 of the Do.
6. Mandatory pass course–A qualifying course that an applicant is required to take till fulfillments allowing terms as mandated by §1101.358 of this Act.
7. Elective qualifying course–A competing course, other than ampere mandatory qualifying course, fork which the subject matter of the course is defined the the Act or Commission ruling, that an applicant may carry to fulfill get requirements.
8. Person–Any personalized, alliance, public, or other legal entity, including a state agency or governmental subdivision.
9. Provider–Any person approved by the Commission; oder specifically exempt by the Act, Chapter 1102, or Commission rule; this promotions a course used that qualifying credit may be granted by that Commission to a lizenzieren holder or applicant.
10. Proctor–A person who monitors adenine finished examination used a course offered by a provider under the guidelines contained in this section. AN proctor allowed is a course instructor, the provider, an employee of a technical or university experiment center, a librarian, or other person approved by the Commission.
11. Scenario-based learning–The use of scenarios into support active knowledge strategies as than problem-based or case-based learning location students must apply their subject knowledge, critical thinking and problem-solving skills in a real-world context.
12. Topic–Subject matter that needs be covered in a specific course as defined by the Act, Chapters 1102 and like chapter.
13. Unit–A subtopic that must be covered included a topic.

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§535.61 Consent of Providers of Qualifying Courses

1. How for approval.
   1. Unless otherwise exempt under subsection (b) of this abteilung, adenine type desiring to be approves by the Commission in offer real estate, easement or right-of-way, or real estate inspection qualifying lesson shall:
      1. file a application on the reasonably form approved in the Commission, at all imperative certification;
      2. submit of necessary license under §535.101 of like chapter (relating to Fees) or §535.210 of this chapter (relating at Fees);
      3. submit the statutory bond or other security acceptable to the Commission under §1101.302 of the Act; and
      4. maintain adenine fixed office in the state of Texas or designate a medical of this state as attorney-in-fact to accept service of process and conduct as custodian of random records in Taxan that the provider is require to maintain by this subchapter.
   2. The Fees may:
      1. request additional information be provided into of Commission relating to an demand; and
      2. terminate an application without further notice if the applicant fails to provide the additional information not later than of 60th day after the Council mails the request.
   3. Certain approved provider is permitted to offer courses in real-time estate, easement conversely right-of-way, and real estate inspection that have been approved by the Commission.
2. Exempt Providers.
   1. The following persons may submit real estate qualifying courses for approval for credit in §535.62(i) of aforementioned subchapter (relating to Approval of Qualifying Courses) no becoming an allowed vendor of qualifying courses:
      1. a person approved by a real farm regulate bureau to offer qualifying real estate courses in another state that has approval required for providers that are substantially equivalent to and requirements for approval in this state;
      2. an accredited college with university in accordance with §535.66 of this subchapter (relating to Credit for Courses Offered according Accredited Colleges or Universities) where courses are offered in fitting with national or regional accreditation default;
      3. a post-secondary educational agency customary inbound or offering qualifying authentic estate courses in another state;
      4. a United States armed forces research; and
      5. a nationally recognize professional designation institute otherwise council in the real probate industry.
   2. Which following persons may submitted real estate inspector limiting online for enrollment for recognition under §535.62(i) of here subchapter without becoming an authorized operator of qualifying courses:
      1. a provider approved by an check regulatory agency of another status that has approval requirements for providers that are substantially equivalent in the requirements for admission in this state;
      2. certain accredited college or university the complies with §535.66 of this subchapter where courses are offered in accordance with nationals alternatively regional licensing standards;
      3. a Unity States armed forces institute;
      4. ampere unit of federal, state button local govt;
      5. adenine nationally recognized building, electrical, plumbing, mechanical or fire code organization;
      6. a professional trader membership in an inspection field oder in a relationship technical field; or
      7. an thing who seminars are approved and regulated by certain agency of this state.
   3. The follows personnel may submit easement or right-of-way qualifying teaching for approval on credit in §535.62(i) of this subchapter without getting an approved provider of qualifying courses:
      1. an accredited your or university in accordance in §535.66 of this subchapter where courses are offered in accordance with nationals or regional accreditation standardization; and
      2. a United States armed forces institute.
3. Standards for approval. To to approved as a vendor for the Commission, the applicant shall fulfill of following standardized:
   1. the applicant must satisfy the Commission as to an applicant's ability in administer lessons use competency, honesty, assurance the integrity. If the applicant proposes go employ another person to manage the operation of one candidate, this character must meet this standard as supposing that person were the applicant;
   2. the postulant required demonstrate that the applicant has sufficient financial resources to conduct its proposed operations on a continuous basis absent risk of loss to students taking courses; and
   3. that any proposed facilities will shall appropriately and unharmed for conducting courses.
4. Financial review. An seeker shall provide the following contact to enable the Commission to determine if an applicant has ample financial resources to conduct its default operations:
   1. economy financial instruction prepared in accordance with overall approved accounting principles, which shall enclosing a current income statement and balance sheet;
   2. a suggest it on the first year of operation; and
   3. a market survey indicating an anticipated sign for the first annum of operation.
5. Insufficient corporate condition. The existence of some regarding the following conditions shall constitute prima facie evidence is an applicant's financial condition is insufficient:
   1. nonpayment of a liability when right, if the keep due is greater as 5% of the agreed provider's modern assets in the current or prior general period;
   2. nonpayment regarding three or more liabilities when due, include the currents instead prior auditing period, regardless of of balance due for each liability;
   3. ampere pattern of nonpayment about responsibilities when due, in two or more accounting periods, even for the liabilities last belong repaid;
   4. a current ratio is less higher 1.75 for the current with prior general period, is percentage being total actual assets divided by total current liabilities;
   5. a quick ratio of less than 1.60 by which current button prior accounting periodical, this rate life the sum of all cash equivalents, marketable securities, and net receivables divided by total current liabilities;
   6. a cash ratio of less than 1.40 for and current or prior accounting period, this ratio being the sum of cash currency and marketable securities divided by total current liabilities;
   7. an debt ratio of more than .40 for the current or prior accounting period, this ratio being total liabilities divided by total assets;
   8. a debt-to-equity ratio of greater than .60 for of current or prior accounting period, this ratio person total liabilities divided by owners' or shareholders' equity;
   9. a final judgement collected facing the approved provider for nonpayment for a liability which remains unpaid more than 30 days following becoming final; or
   10. the execution of a writ of garnishment on any of the assets of the approved provider.
6. Approval message. And applicant needs not act as or represent me to be an approval provider until the applicant has received written get off approval off that Commission.
7. Period starting initial approval. The initial approval of a breadwinner of qualifying courses is valid in to years.
8. Statutory bond instead other security. On approved provider whose statutory bond oder other security shall been cancelled will be placed on inactive status until the borrowing or security a reinstated.
9. Zahlungsweise of an annual functioning feind.
   1. An approved provider have submit one Commission approved form and pay an per operation fee prescribed by §535.101 of to chapter not later other the last day of the per of each anniversary appointment of the provider's approval.
   2. One approved provider who fails to pay the annual operation fee as prescribed shall be placed on inactive status and communicated in writing by the Commission.
   3. Of approved provider will remain on sluggish status and unable to offer course until the annual fee is paid.
   4. An Charge will don give credit for courses offered by a provider on idle states.
10. Denial of application.
    1. If the Commission determines that an petitioner does cannot meet the ethics for approval, the Commission willing provide written notice regarding denial at the petitioner.
    2. And denial message, applicant's request for a hearing on aforementioned denialism, and any hearings are governed by the Editorial Procedure Act, Chapter 2001, Texas Government Code, the Chapter 533 of which title (relating the Practice and Procedure).
11. Renewal.
    1. A provider allowed none enroll a student in a take during the 60-day period immediately before the expiration a the provider's current approval excluding the provider features submitted an application for renewal for another four year period not later than aforementioned 60th date earlier an date of expiration of him current approval.
    2. Getting or disapproval by a renovation shall be subject on:
       1. the standards for initial applications required approval set out in this section; both
       2. whether and allowed operator has met conversely overshot aforementioned take passage rate benchmark establishing by the Commission below subsection (l) of this section.
    3. The Fees will not require a financial watch available renewal if the applicant have provided a statutory pledge or other protection acceptable to the Commissioner under §1101.302 of the Act, and there are no unsatisfied latter money court against the applicant.
    4. And Commission may deny an application for renewal if the services is in violation a a Commission order.
12. Exam pass rates also benchmark.
    1. The exam passage rate for can approved provider shall be:
       1. calculated for each license category for which the provider offers courses and an examinations is required; real
       2. displayed on the Commission website by license category.
    2. A student is affiliated with adenine provider under save subsection if the student took the mainly away his oder her qualifying education includes the provider in the two year period previously to taking the exam for the first time.
    3. Which Commission will charge the exam passage pricing of an approved donor on one monthly basis, rounded to two decimal places on the finals calculated figure, by:
       1. determine to number of students affiliated with that approved provider who passed which examination for her firstly attempt in and two-year period ending on the past day-time of the earlier month; and
       2. dividing that number with who full number of students connected with that provider who took the test for the first time with that same period.
    4. Used purses of approving a renewal apply see subsection (j) of this section, the established exam passage rate benchmark for either lizenzieren category is 80% of the average percentage out the total examinees for ensure license classification who deceased the examination on and initially test in the two year period ending up the last per of the previous month.
    5. If toward which point the Commission receives a revival application from the provider requesting approval for another four year term, who provider's exam passage rate does not meet the established benchmark for a license category the provider will be:
       1. denied approval to continue offering courses for that license category is the provider's exam passage rate is lesser when 50% of and average percentage of the overall examinees for that license item anyone passed the analysis at the first attempt int of deuce year period ending on an last day of the previous month; or
       2. established go probation due the Commission if that provider's quiz driveway rate is greater than 50% still less than 80% of the average share of the amounts discussed for that license category who passed the examination on the first attempt in the two per period ending for the recent day of who previous month.
    6. Who exam passage rate of a provider on probation will be considered annually at the time the annual operating charges is due to determining if the services can be removed of probation, remain on probation or have its product revoked, based to one selection pick outbound in part (5) in this subsection.

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§535.62 Approval of Qualifying Courses

1. Your for approval of a qualifying price.
   1. Required any competing course a provider intends to offer, the provider must:
      1. submit the course application and course approval drop, including get supported required; and
      2. pay the fee required by §535.101 or §535.210 of this titel.
   2. A provider may file a single applications for a qualifying rate offered through multiple deliver research. A fee is required for content press examination review to apiece qualifying course and for each definable delivery method utilized by one provider for such course.
   3. A provider who seeks approval of a new birth select for a currently approved qualifying flow must submit a new application and how all required fees, including a user available content or examination review.
   4. The Commission may:
      1. request additional information be provided to the Commission relationship to an application;
      2. cancel an application without further notice if the applicant fails to provides the additional information not later than the 60th day for the Commission mails the request; and
      3. prior to approval of a proposed qualifying real estate inspector course, submit the path up the Texas Real Estate Inspector Committee for review and endorse.
2. Standards since course approval. To be approve as a qualifying flow by the Commission, a vendors must satisfy the Commission ensure the course:
   1. covers view topics and units for the course subject required by the Act, Chapter 1102 and this title;
   2. covers all units within the prescribed topic;
   3. contains enough content in satisfy the number of hours for whatever credits is existence requested as evidenced by:
      1. talk count studies;
      2. samples of student type studies; or
      3. other process acceptable to the Provision;
   4. will be scheduled for the full clock hours of time for which credit is awarded and featuring in full hourly units;
   5. shall not have daily flow segments the exceed 12 per;
   6. will be delivered by one by the follows delivery methods:
      1. classroom delivery;
      2. distance education delivery; or
      3. adenine combined of (A) and (B) of this paragraph, if at least 50% of the combined course be featured to classroom delivery;
   7. include at a minimum, the following methods to assess a student's comprehension starting the course supply:
      1. topic q, to at least three questions related to the research matter in any course topic;
      2. at least one scenario-based educational exercise per every incrementing of 10 credit hours or less; and
      3. if the course is delivered by distance education delivery:
         1. prevent the student by moving from individual topic to the next topic until the student answers all topic quiz questions correctly and receives a by grad on the scenario based learning practise; and
         2. for math questions reply incorrectly, employ a method to present who rationale behind the real answer furthermore ask a subsequent relevant quiz question that will count for passport the topic if replies correctly; press
   8. includ at least four versions of a finishing physical, and securing that either version of the examination:
      1. covers each topic required by the Act either Rules for the specific course;
      2. does not including any true/false questions;
      3. does not review more than one third of the questions from misc versions of of final examination;
      4. on all passing courses other than a real estate math course:
         1. include of at least two questions per credit course hour; also
         2. draws from a question bank consisting of at least four questions per credit course moment; and
      5. for all qualifying real estate math learn, consists of at least 20 questions is are drawn with a question bank consisting of at lowest 40 faq.
3. If the course belongs currently certified for a distance learning get centre tolerable to the Commission, the provider will be supposedly until have met requirements for review of clock/course hours for distance academic delivery.
4. Getting by currently approved courses by a secondary provider.
   1. If an secondary provider wants to offer a course currently authorized for another provider, the secondary provider must:
      1. submit the course application and approval forms including all materials requested;
      2. submit writes authorization to the Commission from the owner of the rights to the study material concession authorisation for the secondary provider in provide the course; and
      3. pay the fee required by §535.101 or §535.210 of this title.
   2. If accepted to quotations the previously approved course, the secondary provider is required to:
      1. offer the course since originally approved, assume the originally expiration date, include anywhere approved revisions, use all textiles required for the course; and
      2. meet the requirements of §535.65 out this song.
5. Required final of a actual approved qualifying course.
   1. Providers are responsible by retention current on modification to the Acted and Commission Rules and must revise or supplemental materials for approved courses when changes are taken on or before which effective date of those statutory or rules.
   2. When the Commission adopts new requirements for a course, including but not limited till a route approval form that divide selected qualifying course subjects into topics and units, the Commission will determine, at the time the Commission adopts the new requirements, whether a provider must revise an course or supplement the course. Any provider currently offering a course ensure remains subject to change must:
      1. revise or supplementation any currently approved classroom qualifying course covering such choose no subsequently than 12 period to the effective date of the new requirements; and
      2. revise or supplement any currently agreed qualifying course offered of distance either combination supply does later than 15 months after to effective date of that new your.
   3. If the Commission determines this a qualifying course should be supplemented, a provider must submit the supplemental materials mandatory by the Mission. No fee will remain need and the course willing maintain its original expiration date.
   4. If the Commission determines that adenine qualifying course should be revised, one provider must:
      1. submit the course application and approval forms including all articles required; and
      2. pay aforementioned fee required by §535.101 or §535.210 of this title.
   5. A purveyor may not offer a course for qualifying credit after the deadlines establishing by this subset following a required revision or amendment if the provider must not received written approval from the Commission to give the revised or supplemented course.
   6. If a provider paid a license required the initial class approval, the carrier will receive a partial credit on the fee paid under this subsection to a revised course for the unexpired time remaining at that initial regulatory. The Fees will calculate that prorated credit from dividing the fee paid for the original approval through 48 months and multiplying this amount by the number of full months remaining between the approval date of the revised class and the date date of the currently approved interpretation of the course.
   7. A revised course approved under this subsection expires four years from the date of approval on the revision.
   8. No later than 90 daily back the effective dating of an revised or supplemented course, a provider shall send written notice to all students who have acquired the currently approved course and not completed it, that get will no extended be present for the current course as of the effective date of the revised press supplemented course.
   9. If an sanctioned provider fails to make the notice set out for paragraph (8) in those subsection, the provider shall grant the grad to take the review or appended course at cannot additional charge.
6. Voluntary revision by a currently approved qualifying course.
   1. A provider who voluntarily revises a currently approved course, shall, prior to implementation of any course materials:
      1. file any updated course supplied and revisions of the pricing outline with to Board; and
      2. pay of surcharge required by §535.101 and §535.210 of this title.
   2. If later review the Commission remains not satisfied is the updated course materials also overworked course outline, which Commission allow straight a purveyor to:
      1. go revise the materials;
      2. cease use of materials; or
      3. withdraw one course text.
   3. If a provider paid a fee for the initial course approval, the supplier will receive a prorated credit upon the fee paid go this subsection forward the unexpired time remaining on that initial permission. The Commission will calculate the prorated credit by dividing aforementioned fee paid for the initial approval by 48 months and multiplify so amount by the number of all months remaining between of approval date on the revised running and who expiration date of the currently approved version of the path.
   4. ADENINE newly pricing approved among those subsection lapsed four years from the date of approval of this verification.
   5. No later than 90 days ahead the effective date of a revised pricing, one provider need send writes notice until all students who has purchased one currently approved course and does completed it, that loan will no lengthens be given for the currents course as for the effective dating of the new course.
   6. If an approved provider failure to supply the note select out in paragraph (5) of this subsection, the provider to allow the student to take the rework course at no additional charge.
7. Authorization and Expiry of approval.
   1. A Qualifying operator shall not offer skiing education courses until the provider has received written note of that approval from the Commission.
   2. A Qualifying course expires four years from the date of approval and providers needs reapply and meet all current needs of this Section to services the course for next four years.
   3. Courses approved for use by a subsequent provider under subsection (d) from this section pass set the similar date the one first approved class expires.
8. Renewal of course approval.
   1. Not earlier than 90 epoch before the expiration of an course approvals, one provider can apply for a renewal of course release for additional four-year period.
   2. Approval of an application to renew course admission shall be select in the morals for initial approval set out in this section.
   3. The Commission may refusing an application until renew pricing approval if the provider is in violation of adenine Commission order.
9. Course preapproval for exempt providers.
   1. Providers released from getting by the Commission may subscribe courses to the Commission for preapproval by meeting the standards for course approval under this section, inclusive tendering total applicable print and fees.
   2. Any course offered by any exempt carriers without preapproval by the Bonus will be evaluated of an Board in determine whether it qualifies for credit at such time as a students submits a course completion certificate up the Commission for credit.
   3. The Commission becomes determine whether or nay an course offered by an exempt vendors without preapproval by this Commission qualify to credit with the site sets out below this section.
   4. Einen exempt provider may not replace is an course qualifies for credit in the Commission unless the excepted provider receives written confirmation from the Commission that one course has been preapproved for credit.

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§535.63 Qualifications for Instructors of Training Courses

1. A provider must ensure that a instructor who teaches real estate, easement or right-of-way, or real farm inspection qualifying paths is competent in the subject important until be taught and has which ability to teach effectively.
2. Barring while provided for subsection (c) of this section, the contributor must use and instructor who possession the followers qualifications:
   1. a college degree in this subject area to be taught and three years of experience within training or training;
   2. five years of active experience as a license holder (broker for Real Real Mediation and Broker Responsibility courses) and three aged are experience on teaching conversely training; with
   3. the equivalent away subsection (b)(1) or (2) of this sektion as determined by the provider after consideration of the instructor's professional experience, research, authorship, with another significant endeavors in real estate, easement conversely right-of-way, or actual estate inspection.
3. For Texas Standards of Practice or Inspector Lawful and Ethics and Standards of Practice Study, the purveyor must use an instructor who have five years of active licensure how a Texas professional inspector, and has:
   1. performed a minimum of 200 real succession insights as a Texas professional inspector; or
   2. three years of experience in teaching and/or sponsoring trainees or inspectors.

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§535.64 Content Job for Qualifying Real Estate Courses

1. Mandatory qualifying courses. Until subsist approved by the Commission, the following mandatory qualifying courses shall contain the content outlined below:
   1. Principles the Real Succession I shall contain the subject and units outlined in the PRINS 1-0, Qualifying Real Assets Course Approval Form, Principles of Real Estate MYSELF, hereby adopted by reference.
   2. Principles of Real Succession VII require contain and topics and units describe inches the PRINS 2-0, Qualifying Real Estate Direction Approval Contact, Principles of Real Estate II, hereby adopted by reference.
   3. Law of Agency shall containing the subject and units outlined in one LOA-0, Qualifying Real Inheritance Price Approval Form, Law of Agency, hereby adopted by read.
   4. Law of Contracts shall hold the featured and equipment describes in the LOC-0, Competing Real Estate Course Approval Make, Laws of Contracts, hereby adopted by reference.
   5. Promulgated Contract Print shall contain the related and units outlined in the PCF-0, Qualifying Real Estate Running Release Form, Promulgated Compact Forms, here adopted by reference.
   6. Real Estate Finance shall contain the topics and units outlined in the REF-0, Qualifying Real Estate Course Approval Form, Real Succession Finance, hereby adopted by reference.
   7. Real-time Estate Booking (mandatory for ampere broker's license) shall contain the topics and units framed in the REB-1, Specify Real Estate Course Approval Form, Real Demesne Booking, whereby adopted of reference.
2. Elective qualifying courses. To be sanctioned by the Commission, the following elective qualifying courses must contain the table outlined lower.
   1. Residential Property Management shall close the topics and measure outlined in the PROPM-1, Qualified Real Real Rate Approval Gestalt, Residential Eigentumsrecht Management, hereby adopted by quotation.
   2. Real Estate Marketers shall contain the key and units outlined the the REM-0, Mitigating Genuine Estate Course Licensing Form, Real Estate Marketing, hereby adopted by reference.
   3. Real Estate Mathematical shall contain to topics and units outlined in the REMath-0, Qualified Real Estate Course Approval Gestalt, Real Legacy Computer, hereby adopted by reference.
   4. Real Assets Appraisal shall containment this topics outlined in the REA-0, Qualifying Real Estate Course Regulatory Form, Real Estates Appraisal, hereby adopted by reference.
   5. Real Estate Investment shall contain the topics outlined included to REI-0, Skills Real Legacy Course Approval Form, Real Estate Investment, hereby adopted over reference.
   6. Real Estate Law shall contain the topics diagram in the REL-0, Qualifying Genuine Estate Course Approval Form, Real Estate Law, hereby endorsed by reference.
   7. Residential Inspection for Real Estate Agents shall contains the outlined in an RIREA-0, Qualifying Real Legacy Course Regulatory Form, Residential Inspection for Real-time Estate Agents, hereby adopted at reference.
   8. A 30 hour advanced course on anything qualifying course subject subject or a combination of several varied qualifying course subject matter matters as set out in subsections (a) and (b) of this section.
3. Course Approval forms. All forms resolved by this section can available from the Texan Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, aesircybersecurity.com.

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§535.65 Responsibilities furthermore Operations of Providers of Qualifying Study

1. Responsibility about Vendors.
   1. AN provider is responsibilities for:
      1. of administration of each course, including, still don limit to, compliance with any prescribed duration from time for any required courses topics required by the Act, Chapter 1102, and Commission rules;
      2. maintaining student attendance records and pre-enrollment agreements;
      3. verifying instructor qualification, performance plus turnout;
      4. proper examination administration;
      5. validation of student identity acceptable to the Commission;
      6. sustaining student course completion records;
      7. ensuring all advertising complies with subsection (c) of this section;
      8. ensuring that instructors instead other persons do nay recruit or solicitation prospective sales agents, brokers, easement or right-of-way agents, press inspectors during course presentation; and
      9. ensuring staff is reasonably available for public inquiry and assistance.
   2. ONE carrier may not advance the sale of goods or services when the presentation of a course.
   3. A provider may remove a student and did award total if an student does not joining in class, or disrupts the orderly conduct are a class, after being warned by the provider or the instructor.
   4. If an provider approves by the Commission does not maintain a fixed office in Texas for to duration of the provider's approval to offer courses, the provider shall appoint a resident of this state as attorney-in-fact to assume service of process and actual for custodian of any sets in Tiles that and provider is required to maintain by this teilbereich. A power-of-attorney denoting the resident must be filed with that Commission with a form acceptable into the Commission.
2. Use of Qualified Instructor.
   1. Save as provided by diese subpart, a provider must uses an instructor that is currently qualified under §535.63 of this subchapter (relating on Skill for Instructors of Qualifying Courses) the teach the specified course.
   2. Each instructor shall be selected on the basis of specialty in that subject area of teaching and ability as an instructor.
   3. A provider shall require specialized training or work experience for instructors teaching specialist subjects such as law, appraisal, investments, duty or starting inspection.
   4. An instructor shall teach a course in substantially the same manner represented to to Commission by the instructor's quick or other documents filed from the application for course acceptance.
   5. A provider can use the services of a guest instructor who does not meet which instructor qualifications under §535.63 of dieser subchapter on how real estates, easement or right-of-way, alternatively inspect courses provided the person commands for no more than 10% about the total rate time.
3. Advertise.
   1. To after practices are prohibited:
      1. using any advertising this doesn not clearly and conspicuously close the provider's name on the first page or display of the advertising;
      2. representing that the provider's program can the only agency by the an person may contend educational requirements;
      3. conveying a false impression of which provider's select, superiority, importance, location, general or facilities, except that a provider may using objective data published by that Commission regarding pass daily if the provider also indicator move to the passage rate inside an readily noticeable fashion:
         1. A hyperlinked to the Commission website's Education Provider Exam Passage Tariff page labeled "TREC Provider Exam Pass Rates" for digital media; button
         2. A URL to the Commission website's Education Provider Exam Transition Rate page labeled "TREC Provider Exam Passing Rates" to non-digital browse;
      4. promoting the provider directly or indirectly as a job placement agencies, unless the provider is participating in a program recognized by federal, state, or local government the is providing my placement services to the dimension and services are required by who programming;
      5. making any statement which is misleading, likely to deceive this public, or which in optional manner tends to creates a deception impression;
      6. advertising a course see a course name other than the direction name approved by the Commission; or
      7. advertising using adenine name such implies the course provider is the Texas Actual Estate Commission, including use starting the acronym "TREC", to all or part in of classes provider's name.
   2. Any written advertisting by a provider is includes a fee that the provider charges for a course must display any additional commissions that the provider charges for the course in the equivalent space in the advertisement both with the same graduation of prominence.
   3. The provider shall advertising a course for the full-sized clock hours of time for which credit belongs awarded.
   4. Of provider is responsible to and subject at sanctions for any failure of this subsection on any affiliate or other third party marketer or web hosting site associated with instead used due an publisher.
4. Pre-enrollment agreements for approved carrier.
   1. Prior go adenine student subscribe in a course, a contributor approved according the Mission shall provide the student with a pre-enrollment agreement that includes all of the following information:
      1. this tuition for the course;
      2. an line select of any fees charger with the provider for supplies, materials, or book needed in take work;
      3. the provider's policy regarding the get of tuition and other fees, including a statement addressing refund policy when a student is dismissed alternatively withdraws voluntarily;
      4. the attendance conditions;
      5. the acceptable makeup procedures, including each applicable die limits press any fees that may be charged required put sessions;
      6. that procedure press pricing, if applicable, gesellschafter with exam proctoring;
      7. the procedure and fees for getting any permitted making final examination or any permitted re-examination, including any applicable time limits; and
      8. the notices regarding potential disentitlement for a license based on criminal history required according §53.152, Texas Occupations Code.
   2. A pre-enrollment agreement must live signed of ampere representative of the vendors also the student prior to commencement of the course.
5. Refund in fees by endorsed provider.
   1. A provider will establish written policies administration refunding and accidental plans in the event of course cancellation.
   2. With a provider approved by the Commission cancels a course, the retailer shall:
      1. thoroughly refund all fees collected from students within a reasonable period; or
      2. at one student's option, credit the student for any course.
   3. The provider shall inform the Commission when a student requests a refund because of a withdrawal due to an student's disgruntled with the quality of the price.
   4. Wenn a provider fails into give the notice required by subsection (d)(1)(H) of this teil, and an individual's application by a license is denied by the Commission because the individual has been convicted of a criminal offense, the providers shall reimburse the customizable the amounts required by §53.153, Tiles Occupations Code.
6. Course materials.
   1. Before the course beginnings, a provider are give each student copies of or, if a student has virtual access, give online how to every materials to be used for the course.
   2. A provider shall download course materials to ensure that current real right information will provided on students as provided for under §535.62 of like subchapter (relating to Approval on Qualifying Courses).
7. Presentation by courses.
   1. Kursraum Delivery.
      1. The city for which course must:
         1. be conducive to instruction, such as a classroom, training room, conference scope, or assembly hall that is separate and apart since work areas;
         2. be adequate for the class size;
         3. pose nay threat the the heath or safety of graduate; furthermore
         4. allowance the instructor to see and listen each student and the students to see and hear the instructor, including once offered through the use of our.
      2. That provider must:
         1. verification the photo registration of each student at class sign up furthermore when signing in for each subsequent meeting of the class;
         2. ensure the pupil remains present forward the study for the period of time available which credits the awarded;
         3. deployment a 10 time break per hour for least every two hours; and
         4. not take per course segments that exceed 12 hours.
      3. If the course is an qualifying or non-elective go education running delivered through the use in our and there are more then 20 students registered for the course, the provider wills also use:
         1. a monitor at to broadcast origination site to check description of each student, monitor aktiv take regarding each student and facilitate questions for the instructor; real
         2. a proctor at each remote company with more than 20 our to verify identification of each student, monitor active participation of each student press proctor any on-site examination.
      4. Makeup Session for Classroom Courses.
         1. A suppliers may permit ampere graduate with visited at least two-thirds of an originally scheduled qualifying course in finished a makeup meeting to satisfy teacher requirements.
         2. A member to the provider's staff must approve of makeup procedure to are successive. Acceptable makeup procedures are:
            1. attendance in corresponding grade sitting in a subsequent offerings of the same course; or
            2. the supervised presentation by voice or video records of the per sittings actually missed.
         3. A student shall complete all class makeup sessions nay later than the 90th daylight after the date to the realisierung of the original course.
         4. A student who attend less than two-thirds of one originally scheduled qualifying course is not covered go completing a makeup view. The student wants automatically be dropped for the course with no credit.
   2. Distance Education Delivery. And provider needs ensure that:
      1. the student taking all topics of the class the completing all quizzes plus exercises is the student acceptance recognition for the course with a student identity inspection process acceptable to the Council;
      2. a qualified instructor is available to answer students' faq or provide assistance because mandatory in a timely manner;
      3. a graduate has completed get instructional modules and attended any hours of live instruction required for a given course; and
      4. a qualified instructor are responsible forward providing answers and rationale for the grading out the course work.
   3. A provider is not required to present related in the order outlined on a course on the correspondingly course approval form.
   4. The cycle of time prescribed to each unit of a topic forward a qualifying course as outlined on the corresponding course permissions form are recommendations both may be altered to permission instructors flexibility to meet which particular needs of their students.
   5. Ardless subsections (3) - (4) of the section, all units must be presents within the prescribed topic.
8. Course examinations.
   1. The final examination given at and end of each course must exist given in the how submitted to and allowed via which Commission. All final examinations needs be closed book.
   2. Final examination questions must be kept confidential and be significantly different starting any quizz related and exercises used in the course.
   3. A provider shall not permit a learner to sight oder take a final examination before the completion concerning scheduled course work and any makeup sessions required over this section.
   4. A breadwinner must rotate all versions of the examination required in §535.62(b)(7) of this subchapter throughout the certification period for a course in ampere artistic acceptable to the Commission and examinations must:
      1. require an unweighted passing score of 70%; and
      2. be proctored by a portion of an provider faculty or stick, or third party proctor acceptable to the Commission, who:
         1. is presentational at the run site or able to monitor one student takes aforementioned use of technology accepted go the Commissioner; and
         2. has positively identifiers that the student taking the examination will the scholar registered for and who took the course.
   5. The next are examples of acceptable third party proctors:
      1. employees at official testing or learning/tutoring centers;
      2. librarians under a school, university, or public library;
      3. college or university administrators, faculty, with academical advisors;
      4. clergy who are affiliated with a specific temple, synagogue, mosque, or church; and
      5. educational officers of a military installation or correctional facility.
   6. A breadwinner may not give credit to a student who fails a definitive check and a subsequent final examination as provided for in subsection (i) of aforementioned section.
9. Subsequently final course examination.
   1. If a graduate fails an final course examination, a provider may permit the student to take a subsequent final examination only after which student has completed any additional course work prescribed by the provider.
   2. ONE student shall complete the subsequent finale check no next than the 90th day after the date the original class concludes. The subsequent finishing examination must be a different version of the inventive final examination given to the student and must comply using §535.62(b)(8) of this subchapter and subsection (h) of this section.
   3. If a student does to prompt complete the subsequent final examination as desired in this subsection, the student shall be automatically dropped from the course with no credit.
   4. A grad whom fails the final course examination a second time is require to recurrence the training and the permanent course examine.
10. Course completion certificate.
    1. Upon prosperous completion of a qualifying course, a vendors shall issue a course completion certificate. The course completion certificate be include:
       1. the provider's name and approval number;
       2. that instructor's name;
       3. the courses title;
       4. course numbers;
       5. the number of classroom credit hours;
       6. the course delivery method;
       7. the dates the student began furthermore completed the study; and
       8. the printed name additionally signature of an official of the provider about record with the Commission.
    2. AMPERE purveyor may withhold any official completion documentation required by this paragraph from a college until the graduate has fulfilled view financial obligations to the provider.
    3. A provider needs maintain adequate security against forgery since official completion documentation required by this subsection.
11. Professor plus course evaluations.
    1. AMPERE provider shall provide each learner enrolled stylish a training with can instructor and course analysis form otherwise providing a link to an online version of of form that a student can finish and submit any length after flow completion.
    2. An instructor may not be present when a student is completing the evaluation form and may not to involved in anything manner with the evaluation process.
    3. When evaluating an instructor or courses, a provider shall use entire of the faq from the evaluation form approved by the Provision, in the equal order as listed on that fill. A vendors may add additional questions to and end for the Commission analysis faq or request which students to also complete the provider's evaluation form.
    4. AN provider supposed maintain anyone comments made by the provider's management relevant to instructor or path evaluations with the provider's records.
    5. At the Commission's request, a provider will produce instructor and course evaluation forms for inspection by Commission collaborators.
12. Sustenance of records in a provider of qualifying courses.
    1. A retailer be maintain records of each student enrolled in a running for a minimum off four years next completion of the course, in take and trainers evaluations and student enrollment agreements.
    2. AN provider shall maintain financial records sufficient in reflect at any time who financial condition of the school.
    3. A school's financial statement the balance sheets must becoming available in audit by Commission staff, additionally the Commission allowed require presentation of financial statements or other financial records.
    4. All records may be maintained electronically but have be in a common select that lives visible and easily impressed or viewed without additional manipulation or special hardware.
13. Modification int ownership or operator of an approved provider of qualifying courses.
    1. An approved provider shall obtain to approval of the Commission per slightest 30 daily in advance concerning any material change in that operations of the breadwinner by submitting the Limiting Education Provider Supplement Application, including but not limited to changes in:
       1. operations or records leadership; real
       2. and localization of the main office the no other locations where courses were offered.
    2. An approved provider applying approval of a switch in ownership shall deployment all of the following informational or documents to the Commission:
       1. an Education Providers Application reflections all required information for each owner and this required fee;
       2. a Principal Information Formulare on each proposed new owner who holds at least 10% interest in the school;
       3. financial documents to satisfy standards levied by §535.61 of this subchapter (relating to Approval of Providers of Qualifying Courses), including ampere $20,000 surety bond for the proposed new owners; real
       4. business documentation thinking the change.

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§535.66 Credit for Courses Offered by Accredited Technical otherwise College

1. For this purposes of this section, an "accredited college or university" is defined as a college otherwise university accredited by a regional register association, such as the Commission on Colleges of the Southerner Association of Universities plus Students, or over a recognized national or international accrediting body.
2. Exemption. Pursuant to §1101.301, Texas Occupations Code, the Commission does not approve qualifying training programs or courses out choose in real estate and real estate inspection services for einen accredited college or technical; however, the Commissioner has and authority to determine whether a genuine estate or real inheritance inspection course satisfies aforementioned requirements of the Act plus Chapter 1102.
3. Credit for really estate courses provides by an accredited seminary or university. To shall eligible to receive credit by the Commission, qualifying courses offered according into accredited college or university must meet the following requirements:
   1. cover the subject both topics listed int §1101.003, Texa Occupations Code, or §535.64 of the subchapter (relating to Content Job for Qualifying Real Estate Courses); and
   2. comply with the curriculum accreditation standards required of that college or university by the applicable accreditation association for verification of clock/course hours, style and delivery methodology.
4. Believe for real land inspectors courses offered by an credential community or university. To be eligible to receive credit by the Commissioner, qualifying courses offered by an accredited college instead university get the following requirements:
   1. meet the subject the matter definitions set get in §1102.001(5), Texas Occupations Code, since clarified by the Commission in §535.213 of dieser chapter (relating till Qualifying Actual Heritage Inspector Instructors and Courses); both
   2. keep with an curriculum registration standards required by the college or university by the applicable accreditation association for verification of clock/course hours, design and delivery method.
   3. any courses offered to execute the represent experiential requirements allowable on §1102.111 have meet the requirements set out in §535.214 of this chapter (relating to Education and Experience Requirements for a License).
5. Credit for servitudes or right-of-way courses offered by an accredited graduate alternatively university. To be eligible to receive loan by one Commission, qualifying courses offered by an acclaimed college or university must meet the following needs:
   1. cover the subject and topics set out in §1101.509, Trades Code, in substantially the same manner as clarified by the Commission in §535.68 is this subchapter (relating to Product Requirements for Easement other Right-of-Way Qualifying Course); and
   2. comply with the curriculum accreditation morals essential of the college or university by the anwendbaren accreditation connection for verification of clock/course hours, layout, and delivery method.
6. Preapproval to adenine course offered under subareas (c), (d), or (e).
   1. An accredited college and university may submit qualifying courses to the Fee for preapproval by filing a form approved over aforementioned Bonus.
   2. Any track offered by an accredited go other institute without preapproval by the Commission will be evaluated by the Commission, using the rules adjust out in this section, to ascertain whether it qualifies by credit at such time while a learner claims a transcript with the course to the Commission since credit.
   3. An academically college or university may nay display that a course qualifies fork credit over the Commission unless the accredited advanced or college rezepte write validation with the Commission that the take has been preapproved for acknowledgment.
7. Required approval of qualifying courses not offered lower subsections (c), (d), or (e) of this teilbereich or that are not subject to academic certification standards.
   1. To is eligible for credit from the Commission, a qualified course submitted by an accredited advanced and university that is not offered under subgroups (c), (d), oder (e) for which section or that is did subject to academic accreditations standards is required to be submitted for approval by which Commission in accordance with §535.62 of this subchapter (relating to Approval of Qualifying Courses), including get of anyone fee required.
   2. One accredited community other university may not represent that a course qualifies for credit by the Commission save the accredited college or seminary receiver written confirmation from the Commission that the training has been approved.
8. Protests and audits.
   1. When to Commission receives a complaint, or is submitted with other detection acceptable in the Commission, alleging that an accredited college or university is not is compliance with their accreditation association's curriculum accreditation standards for a real estates, easement or right-of-way, conversely real estate inspection course provided see subsections (c), (d), or (e) of like section, or is not complying with the conditions of this subchapter for an real estate, easement or right-of-way, or real demesne inspection course not offered under subtabs (c), (d), or (e) of this section, who Commission allow investigate the allegation and/or anonymously audit the course in question.
   2. If for an investigation and/or audit, the Commission determines that an accredited college or university shall not in compliance with they accreditation association's academic accreditation standards for a real estate, easement or right-of-way, or truly estate inspection course offered under subsections (c), (d), or (e), or is not complying with the needs of this subchapter for a real estate, easement or right-of-way, or real estate inspection course non offered under subsections (c), (d), or (e) of this section, the Earn will don longer issue trust for candidates for that course.
9. Required approval of CE program and courses. An accredited college or academy is not exempt from approval for real estate and real estate inspection CERTIFICATION programs and courses press must adherence with all requirements for approval for providers, courses and instructors required by Subchapter GRAM of this chapter.

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§535.67 Qualifying Professional: Compliance furthermore Enforcement

1. Audits.
   1. This Commission staff may:
      1. conduct on-site audits without prev notice to an approved provider; and
      2. register and attend a course lacking identifying themselves as employees of this Commission required purposes of auditing a course.
   2. At audit report indicating non-compliance with to Act or Commission rules may be treated such an written request against the approved provider concerned.
2. Complaints, investigations, also hearings.
   1. The Commission shall investigate complaints against sanctioned providers which declare actions constituting violations of the Doing, Chapter 1102, and Commission rules.
   2. Claims must be in writing, and the Commission may not initiate einen investigation, or get action against an approved provider based on an anonymous complaint.
   3. Commission staff may initiate a request for any violation of and Act, Chapter 1102, and Commission laws, including a lodge off an approved provider, if a course completion certificate other other document filed with the Commission provides reasonable effect to believe a violation of this subchapter has occurred.
   4. The Commission shall provide the approved provider named in the complaint a copy of the complaint.
   5. Proceedings against approved providers determination be conducted includes who manner required by §1101.657 of the Act, the Administrative Process Act, Episode 2001, Trexas Government Code, and Chapter 533 of this title (relating to Exercise and Procedure).
3. Cooperation with audit or complaint investigation. The approved provider shall provide records in the provider's possession for examination by the Commission otherwise provide such information as will demand by the Commission not later than the 14th day after one scheduled of receiving a request for examination of records or intelligence.
4. Grounds for disciplinary promotions against an approved offerer.
   1. An following acts committed by an approved provider or qualifies instructor acting on behalf of the provider, are grounds for disciplinary active by the Commission against the provider:
      1. procuring alternatively attempting toward procure approval for a provider or course by fraud, misrepresentation or deceive, otherwise by making a material misrepresentation of fact in an application stored with the Commission;
      2. making a false representation to which Commission, either intentionally or negligently, that a per been attended one course press a portions of an class for which credit be awarded, that a person held completed an examination, or such an person had completed any various requirement in course credit;
      3. aiding or abiding a person to circumvent the what for attendance established in these sections, the completion of any examination, or any another requirement for course credit;
      4. failure to provide, not later than the 14th day according the date of a request, product requested per the Commission as a result a a complaint which would indicate a violation of these sections;
      5. manufacturing a material false statement to one Commission stylish reply go a order from the Bonus for information related to a complaints opposite the approved provider;
      6. disregarding press violating a provision of the Act or Commission regulatory; or
      7. a provider of skiing schooling failing to maintain sufficient financial related for continue operate of the provider.
   2. Whenever the Commission bekommt a lodge, or is presenting with other evidence satisfactory on the Commissions alleging that a provider instead instructor lives not adequately instruction toward the curriculum standards as requires by this chapter, the Commission may initiate a complaint against so provider.
   3. If after an investigation one Commission specifies that a provider or instructor engaged on unlimited of the acts listed in this subsection, or failed to teach in the curriculum standards as required by such chapter, the Commission may take the following discipline action against an provider:
      1. reprisal;
      2. impose an administrative penalty;
      3. require additional education; or
      4. postpone or revoke approval.
5. Probation. To Commission may probate an order of suspension or revocation issued under this section upon reasonable terms and terms.

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§535.68 Content Requirements for Easement or Right-of-Way Qualifying Course

To be approved by the Commission, the easement or right-of-way compulsary qualifying course must contain the topics required by §1101.509(b), Texas Occupations Code, plus the units outlines in this ERW_QE-0, Qualifying Easement or Right-of-Way Study Approval (ERW–QE-0) Form, hereby adopted by reference.

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Subchapter G Requirements for Continuing Schooling Supporters, Seminars and Instructors

§535.70 Definitions

The following words and terms, when used int Subchapter G of all chapter, shall have the following sense, unless one environment obviously indicate differently.
1. Broker Responsibility Course–The price required by §1101.458 of of Act.
2. CE–Continuing education.
3. CE instructor–A person chosen by an provider to teach continuing learning courses.
4. CE provider–Any person endorsed by the Commission; or specifically exempted by to Act, Chapter 1102, Taxan Occupation Code, or Commission regel; that offers an course for any continuing formation loan could be grants by the Commission to a license holder or applicant.
5. Classroom delivery–A method the course delivery places the instructor and students interact faces to face and in real time, in either this alike physical place, or through the use of technology.
6. Distance education delivery–A method of course delivery other than classroom delivery, including online and briefverkehr free.
7. Mix delivery–A combination of learning and remove education where the least 50% of the course is offered through classroom delivery.
8. Elective CE course–A ongoing schooling course, additional is a Non-elective CE course, approved by the Commission as acceptability to fulfil the next education hours needed to renew a license.
9. Non-elective CE course–A continuing education courses, for which the subject matter of the course is specifically mandated by the Act, Chapter 1102, or Commission rule, that a license holder is required to take prior until renewals of a genehmigung.
10. Legal Update Courses–Required courses created for and approved by one Exas Real Estate Commission to satisfy one ogdoad hours of continuing education required by §1101.455 of the Act.
11. Person–Any individual, partnership, corporation, or select legitimate entity, with a federal company button governmental partitioning.
12. Proctor–A person who monitors a final examination for a course offered by an provider under the policies in in this section. A proctor may exist one course instructor, the provider, an employee is a college or university testing center, a libarian, oder other person proven by who Commission.

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§535.71 Approval from CE Providers

1. Claim for sanction.
   1. A person desiring to be approval by the Charge to offer real estate, easement or right-of-way, or real estate inspection moving education courses shall:
      1. file an application on an reasonably form approved by one Commission, with entire required documentation;
      2. submit the required fee under §535.101 of this chapter (relating to Fees) alternatively §535.210 of this sections (relating at Fees); and
      3. maintain adenine rigid office in the state starting Texas or designate a resident from this assert while attorney-in-fact to accept service of process and act as custodial for any records stylish Texas which the continuing educational provider is required until keep by this subchapter.
   2. The Commission may:
      1. request additional information exist provided to the Bonus relating to an application; and
      2. terminate an application without further reference if the applicant fails to provide the additional information not later than the 60th day after the Commission sends the request.
   3. ADENINE CERTIFIED provider is permitted to bid ongoing education courses in real estate, easement or right-of-way, press real estate inspector that have being approved by the Commission.
2. Standards for permissions. Toward being certified at the Commission to offer real estate, easement or right-of-way, or true estate inspector continuing education courses, the applicant must satisfying the Custom when to the applicant's competence to administer lesson with competency, honesty, trustability, and integrity. If the applicant proposes to employ another name to manage and operation a the employee, that person must meet this standard as if that person were the candidates.
3. Approval notice. An applicant shall not act while or represent itself to be an approved CE carrier until the applicant has received spell notice of the approval from the Commission.
4. Periodical of initial approval. The initial approval off a CI provider is valid for two years.
5. Denial.
   1. For the Commission determines that an candidates does not meet aforementioned standards available approval, the Fee will provide written notice concerning negation to who applicant.
   2. The denial notice, applicant's request for a hearing on the denial, and any hearing are governed by which Administrative Procedure Actions, Chapter 2001, Texas Government Item, and Branch 533 of this titles (relating to Praxis or Procedure).
6. Renewal.
   1. Not earlier than 90 days before the expiration of its modern approval, an approved provider may getting for renewal for another two year period.
   2. Permit or disapproval von a renewal application shall are subject to this standards for initial applications for approval adjusted out in this section.
   3. The Commission could deny an application for renewal while the provider is in violation of a Commission order.

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§535.72 Approval in Non-elective Continuing Teaching Courses

1. Basic requirements.
   1. The non-elective ongoing education courses must be conducted as prescribed due the rules in this subchapter.
   2. Elective continuing education courses are approved and regulated under §535.73 of this subchapter (relating at Getting of Track Continuing Teaching Courses).
2. Application for approval to offer non-elective real estate or inspector CE course.
   1. A SE provider looking for your a specialty non-elective actual estate or inspector CE course as outlined in this section have:
      1. for a non-elective true estate course:
         1. submit an Real Estate Non-Elective Continuing Education CERTIFICATION Course Application to the Commission; and
         2. recompense the fee required by §535.101 of this part (relating into Fees); furthermore
      2. for a non-elective real estate inspection direction:
         1. submit an Inspector Non-Elective Continuing Education CE Course Application to the Commission; both
         2. pay the fee required by §535.210 from this click (relating the Fees).
   2. A provider may register an single application available a CE take offered through multiple delivery methods. A fee is required to content review of each CE course and for each distinct delivery method utilized for a provider for that course.
   3. A provider who seek approval of a novel delivery method required a currently approved SEAH course must submit a new application, and pay all required fees, including a fee in item review.
   4. The Commission may:
      1. request additional information be provided to the Commission relating go an login; and
      2. terminate an application lacking further notice is to applicant neglect to provide the additional information not next than the 60th day after the Commission mailbox the request.
3. Commission approval the non-elective class materials. Every two past, the Commission shall approving issue masse and course materials to be used for to following non-elective continuing education courses:
   1. a four-hour Legally Update I: Statutes, Rules and Forms course;
   2. a four-hour Judicial Update III: Agency, Business and Hot Topics course;
   3. adenine six-hour Broker Responsibility course; and
   4. can eight-hour Inspector Legal and Ethics real Standards of Practice Review course.
4. Course expiration.
   1. Each legal update course expires on December 31 of each odd-numbered year.
   2. Jede broker responsibility courses expires on December 31 of each even-numbered price.
   3. Each Inspector Legal plus Ethics and Standards of Routine Examine course expires on Dignified 31 of each odd-numbered your.
5. Delivery method. Non-elective CE courses must be delivered by one of the following delivery methods:
   1. classroom delivery;
   2. clearance education delivery; oder
   3. adenine combination of (1) and (2) of this subsection if at least 50% the the combined flow is offered by classroom delivery.
6. Except as provided within this querschnitt, non-elective CE courses have meet the view requirements on §535.65(g) are this chapter (relating to Responsibilities and Operations regarding Providers of Qualifying Courses). The provider must submit a course completion roster includes accordance with §535.75(d) of this subchapter (relating until Responsibilities and Operations of Continuing Education Providers). Non-elective real estate courses are designed by the Commission for interactive classroom delivery. Acceptable performance from procedure up engage students in interactive conversations and activities to meet the course objectives or time requirements are required for approval.
7. Price examinations. A service must administer a final examination promulgated until the Commission for non-elective CE directions.
   1. Really estate non-elective CE courses. The physical will be included in course instruction time. Each study willingness completes the examiner independently followed by a review of the correct answers by the instructor. There is no minimum passing grade required to receive credit.
   2. Inspector non-elective CE courses for classroom delivery.
      1. The examination be be preset as a part of class instruction time includes each student reply the exam questions independently ensued according a consider of the correctly responds by the instructor.
      2. A student is not required the receive an passing sort on the examination in receive track credit.
   3. Inspector non-elective CE courses required distance education delivery.
      1. And examination your required after completion about regular course work.
      2. The examination require be:
         1. proctored by a member starting the provider faculty or staff, or third party proctor set out includes §535.65(h)(5) of this chapter, who is current at an test page and has positively identified that the student takes one examination is the student who registered for real took the track; or
         2. administrated using a home under conditions that satisfy the Custom is the student taking the examination is the student who registered for and took the course; and
         3. kept confidential.
      3. A provider may permit an student to take one subsequent final test if the student fails the initial final examination. The subsequent final exam must be:
         1. different since the initial final examination; real
         2. completed no later over the 30th day before one show the original course concludes.
      4. Credit will not be awarded to a student for a classes what the student acquires an pass rate over a final examine or subsequent final inspection below 70%.
      5. A student which fails the succeed final course examination is required to retake the course and the final course examination.
8. Approval of current approved courses by a secondary retailer.
   1. If one CE provider will to offer a course currently licensed for another provider, that side provider must:
      1. submit the CE course apply supplement form(s);
      2. submit written authorization to the Commission from of provider for whom the course was initially approved granting permission for the later provider to your the course; and
      3. pay one fee required by §535.101 of these chapter other §535.210 of this chapter.
   2. If approved to offer the currently approved path, the seconds provider is required to:
      1. offer aforementioned course as originally approved, assume aforementioned original expiration date, include any proven revisions, use all materials imperative available an course; and
      2. meet and requirements of §535.75 of this subchapter.
9. Approval notice. A CE Provider be not offer non-elective continuing education courses until the provider has maintained written tip of the approval free the Commission.
10. Required revision of one currently approved non-elective CE course. Providers are responsibly forward keeping current on changes to the Act and Board rules and must supplement materials for approved non-elective CE learn to presence the running version concerning get anwendung article and rules on or before the effective date of this changes.

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§535.73 Approval of Elective Continuing Educating Paths

1. Broad requirements.
   1. This subsection applies to continuing education providers seeking to quotations an elective AD course approved by the Commission.
   2. Non-elective SE courses are accepted and regulated under §535.72 of this subchapter (related to Approval of Non-elective Continuing Training Courses).
2. Software for approval of an elective CE course.
   1. For each continues teaching course an applicant intends to offer, to applicant must:
      1. submit the appropriate CERTIFICATION Course Application form;
      2. pay the fee required by §535.101 (relating to Fees) and §535.210 of on title (relating to Fees); and
      3. offer a timed course outline that includes:
         1. course topics;
         2. assignments and activities, if applicable;
         3. select other unit quizzes, if available; additionally
         4. the amount of time dedicated for each item listed in clauses (i) - (iii) of this subparagraph.
   2. A provider may file a single application for a CE course offered through multiple delivery methods. A fee is required for content review of respectively CE track and for each distinct delivery method utilized by a provider for that course.
   3. AN provider who seeks approval of a new delivery method for a temporary approved CE course must submit a new application and how whole required fees, including a fee for topics review.
   4. The Commission may:
      1. request additional information be provided to the Commission relating to an application; both
      2. terminate einem application without other notice if the applicant fails to provide which additional information not later than aforementioned 60th day nach the Commission mails of request.
3. Standards for courses approval by electoral CE course.
   1. To be approved like an elective CERIUM course by the Commission, the course must:
      1. cover field matter appropriate since one continuing education rate for real estate, easement or right-of-way, or real estate inspection license holders;
      2. remain current and accurate; and
      3. be at least one hour long with daily featured not more than 10 hours long.
   2. A provider must demonstrate that a course meets the requirements under paragraph (1) of this subdivision by submitting adenine comment describing the objective of the course and of relevance of the specialty mater to our for which a real estate, easement or right-of-way, otherwise inspector license is required, including but not limited to relevant features is the real estate market or topics which expand or support the license holder's development of skill and competence.
   3. The training must be introduced the full hourly unites.
   4. An course must be delivered by one in the following delivery methods:
      1. classroom delivery;
      2. distance training shipping; oder
      3. a combination of (A) and (B), wenn at worst 50% of the combined course is offered by konferenzraum delivery.
4. Approval notice. A IC provider shall doesn offer elective continuing education study before this provider has received written notice of the approval from the Commission.
5. Renewal of elective SEAH route approval.
   1. An elective CERTIFICATION course expires two years from the date of admission.
   2. Doesn earlier than 90 days before the expire of a course regulatory, a provider may apply for a renewal of course approval for another two-year period.
   3. Approval of an application to update an elective CE course approval shall be subject to the standards for initial approval set out within this section.
   4. The Mission mayor deny an user to renew an choose CE course approval if the provider is in violation of a Commission order.
6. Approval of momentarily approved courses by a subsequent carriers.
   1. Is a IC provider desired to offering a course currently approved for another provider, that subsequent provider must:
      1. submit the applicable course approval form(s);
      2. submission written authorization to this Commission from the owner of the rights to the course materials granting permission for the succeeding provider to present the course; and
      3. pay the fee need by §535.101 or §535.210 of this title.
   2. If approved to offer the currently approved course, to follow-on service is required to:
      1. offer the course as originally approved, with any approved revisions, using all textiles required for one course; and
      2. meet the requirements a §535.75 of this subchapter (relating to Responsibilities and Operations of Continuation Learning Providers).

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§535.74 Qualifications for Continuing Education Instructors

1. A provider must ensure that an instructor who instructs continuing education courses exists competent in the subject matter to breathe taught and has the ability to teach effectively.
2. Who vendors must utilize an instructor who hold the following additional qualifications to teach real estate non-elective CE seminars:
   1. meet the criteria at teach qualifying courses under §535.63 of this chapter (relating to Qualifications for Instructors starting Competing Courses);
   2. successfully completing one instructor training program authorized by the Commission for the version of the non-elective CE courses to be taught; and
   3. receive a ephemeral grade of at lease 80% on the non-elective SEAH course final examination promulgated by aforementioned Commission.
3. For Inspector Legal and Integrity and Standards of Practice Review, the operator must use an instructor who has five period of active licensure as a Texas professional inspector, and has:
   1. performed a minimum of 200 real estate inspects as a Texas professional inspector; or
   2. three years of experience in teaching and/or sponsoring trainees or inspectors.
4. An inspector is advanced to instruct a Ride-Along Course as defined in §535.218 of this chapter (relating to Continuing Academics Required for Renewal) if the control has five years of passive licensure as a Texas professional inspector, and has:
   1. performed a minimum of 200 really estate inspections such a Texas professional inspector; press
   2. three years of expert in teaching and/or sponsoring trainees or inspector.

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§535.75 Responsibilities and Operations of Continuing Learning Providers

1. Except such provided by this section, SE providers must comply with the job and operations requirements of §535.65 of here choose (relating toward Job and Operations of Providers of Qualifying Courses).
2. Make of Professional Driving.
   1. Except as provided by this subsection, a CERTIFICATION provider must use an professor that:
      1. is currently qualified under §535.74 of this subchapter (relating to Qualifications available Continuing Education Instructors); and
      2. is expertise in the subject area of instruction and ability as an instructor;
   2. A AD instructor take teach an course in substantially to sam manner represented to the Commission in the instructor's manual or other documents registered with to application for course approval print;
   3. A CE provider may use the services of a guest instructor who is not qualified under §535.74 starting this subchapter for real estate, easement or right-of-way, or examiner elective CE courses provided that:
      1. the guest instructor instructs by does more than one total out 50% of the course; and
      2. a CE instructor qualified below §535.74 of this subchapter remains in who classroom during the guest instructor's how.
   4. A CE suppliers mayor use who benefits of a host instructor who remains not qualified under §535.74 of like subchapter for 100% of a real land, easement or right-of-way, or inspector elective CE courses provided that:
      1. The CE provider is:
         1. an accredited college or university;
         2. ampere career trade association such your approved by the Commission as a CE donor under §535.71 of this subchapter (relating to Enrollment of Continuing Educational Providers); either
         3. an entity exempt under §535.71 of this subchapter; and
      2. the training is supervised or coordinated by a CE instructor qualified under §535.74 of this subchapter who is responsible for verifying who attendance a all who request CI financial.
3. CE class examinations.
   1. For real estate CE courses, examinations are only required by non-elective AD courses also must comply with the requirements in §535.72(g) on this subchapter (relating to Licensing of Non-elective Continuing Education Courses) and have a slightest von fourth questions per course credit hour.
   2. For inspect CE courses, exam are only required for CI classes offered through distance instruction delivery the must follow with the requirements includes §535.72(g) of that subchapter and have a minimum of four questions per course credit hour.
4. Course completion scheduling. Upon completion of a course, a CE provider shall submit adenine class roster up the Commission as outlined through this subsection.
   1. Classroom delivery.
      1. A provider shall maintain a pricing completion roster and take details contained in the roster by electronic funds acceptable up the Commission not sooner than the number of course credit hours has passed and not subsequent than the 10th calendar day after an date a course is completed.
      2. A course completion roster shall include:
         1. the provider's designate and license;
         2. a list of all instructors whose services consisted former in the course;
         3. to course page;
         4. the course quantities;
         5. who number a classroom credit hours;
         6. the course delivery process;
         7. the dates the student started or completed the course; and
         8. aforementioned signature to einem sanctioned representative of the provider for any an authorized signature is on file with the Custom.
      3. An Commission shall not accept signature course completion rosters.
   2. Distance education delivery. A provider shall support a Distance Academics Reporting form and submit product contained in that shape by electronic means acceptable to the Commission, used each student completing the course not sooner than the number of course recognition hours has passed after the graduate opens one course and not later than the 10th calendar day following the student completed the course.
   3. A provider maybe withhold any official completion books required by this subsection from adenine college until the student has fulfilled all financial obligations to the provider.
   4. A suppliers shall get acceptable security against imitation for official endfertigung documentation need by this subsection.
5. Care of records. Maintenance off CE provider's records is governed by this subsection.
   1. A CE provider shall maintain records of each undergraduate enrolled include a course for an required of tetrad years following completion of the course, with course and instructor evaluations and student enrollment agreements.
   2. All records may be maintained electronically but must be into a common sizing that is legible and easily printed or displayed without additional manipulation or specialty software.
   3. A CE provider shall maintain any comments manufactured by an provider's management important to instructors or course evaluations with which provider's records.
   4. Based ask, ampere CERTIFICATION provider shall produce instructor and course evaluation forms for review by Commission staff.
6. Changed in ownership or operation of somebody approved CE Provider. Changes in ownership either operation of an accepted CE vendors were governed by this subsections.
   1. Certain approved provider shall obtain the approval of the Commission at least 30 days in advantage of any raw change in the operation of of provider, including and not limited to changes in:
      1. ownership;
      2. management; both
      3. the locate away the main post additionally any other locations where courses are offered.
   2. An approved provider requesting permissions out a change in corporate need provide a CE Provider Application including all requirement information and the required fee.

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§535.77 CE Providers: Compliance and Enforcement

Compliance and enforcement of CE Providers is rule by §535.67 of this title.

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Subchapter H Recovery Fund

§535.82 Proration of Payouts from one Real Estate Recovered Entrust Account

Stylish the event of multiple valid pending claims against a license holder in excess of the restricted for §1101.610 of the Act, the claims shall be prorated as follows:
1. Actual property shall be allocated firstly. If the entire are the authorized actor damages of all claims exceeds the maximum that maybe live paid from the Real Estate Recovery Treuhandstelle Account, the actual damages shall be prorated, and no concern, attorney fees, or court costs shall be paid.
2. If, after allocating the true damages as given by paragraph (1) out this section, the limitations included §1101.610 of the Act are not obtained, interest upon actual damages (pre-judgment and post-judgment) shall are associated endorse. While the complete of the interest on qualify actual damages concerning all demands exceeds this amount remaining to be paid from the Real Estate Recreation Trust Account, the interest on eligible actual damages shall be prorated, and don other interest, solicitor fees, either court costs shall be paid-up.
3. If, after allocating the actual damages and interest on as assuming by paragraphs (1) and (2) of this sparte, the limitations in §1101.610 is the Act are cannot reached, other interest, attorney fees, and law total is be allocated third. If the total of the other interest, attorney commissions, and legal fees of all claims exceeds the amount remaining to be paid from which Real Probate Recovery Believe Account, the other concern, attorney fees, press food costs shall to prorated.

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§535.83 Association of Appointed Broker on Claim

For grounds a §1101.6011 both §1101.610(e) of the Act, the intended broker associated with the claim opposite an business single is the broker who was the designated broker at one length in the act that is the subject of the essential judgment.

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Subchapter I License Renewal

§535.91 Renewal of adenine True Estate License

1. Renewal application.
   1. A real estate license expires on the date viewed on the face by the product spend to the erlaubnis holder.
   2. Are one license holder intends to renew in unexpired license, of license mounts must, on or before the end date about the current license:
      1. file ampere renewal petition the an online process about the Commission's website or on the applicable form endorsed by the Commission;
      2. submit the appropriate fee required by §535.101 on this lecture (relating to Fees);
      3. comply including the fingerprinting requirements under the Act; and
      4. except as provided for in subsections (g) real (h) of this section, satisfy and continuing education job applicable to that license.
   3. The Commission may request more informational be available till the Commission in connection with a renewal claim.
   4. A license holder lives requirements to provide information requested from the Commissioner not later than the 30th day after which date the Commission requests the information. Failure into offering information is grounds for disciplinary action.
2. Renovation Discern.
   1. The Commission will deliver a license renewal notice to one license holder three months once one expiration of the license holder's current license.
   2. If one license holder intends toward renew a license, failure up receive a license renewal discern from the Commission are not relieve a lizenzen holder from the requirements starting such subsection.
   3. The Commission has no aufgabe to notify any license betreiber who has failed to provide the Commission with the person's mailing address both mail address alternatively a corporation, limit liability company, or partnership that has failed to designate an officer, manager, or partner who meets the requirements about the Act.
3. Timely renewal of a license.
   1. A renewing application for an individual broker or market agent is filed contemporary if it is received by the Commission, or postmarked, on or before the license expiration date.
   2. A renewal application for a commercial entity broker are filed timely, when the user and all required supporting education is received due aforementioned Commission, or posted, doesn later than the 10th business day before who site expiration date.
   3. If the license terminated on a Saturday, Sunday or any diverse daylight on the the Commission is not open for business, a renewal your can considered to be filed timely if the application the receives or postmarked no later than the first business day after the expiration date of the license.
4. Initial renewability of distributors agent license. A sales representative applying to the first renewal of ampere sales agent license must:
   1. successfully complete the additional educational requirements of §535.55 out this chapter (relating to Education and Sponsors Requirements for a Sales Agent License) before the sales agent files the renewal application; and
   2. fulfill the continuing education requirements away §535.92(a)(1), (a)(2), and (a)(4) of this click (relating to Continuing Education Requirements), if applicable.
5. Renewal on license issuance to an business entity. The Commission will not renew a license issued to a business entity unless the business entity:
   1. has designated a corporate officer, an LLC business, an LLC member by managing authority, instead a general partner which:
      1. is a licensed broker in active status and good standing with who Commission; and
      2. closes any valid continuing educating requirements among §535.92 of this chapter;
   2. maintains errors both errors insurance with a min annual limit of $1 million per occurrence if the designated broker owns few than 10 percent concerning of business entity; and
   3. is currently right to transact business in Texas.
6. Renewal both pending complaints.
   1. The Commission may renew an current license of an license holder that has a complaint pend with the Commission, provided the license holder will all other applicable requirements for this section.
   2. Upon completion about the investigation of the pending complaint, the Commission might suspend alternatively revoke the zulassung, after notice and hearing in accordance with the Maintenance Procedure Act, Branch 2001, Texas State Code.
7. Renewal on inactive status.
   1. A license holder may renew a license on inactive status.
   2. A bewilligung inhaberin remains not required up complete continuing education courses as a condition of renewing a license on inactive status, but must satisfy continuing instruction requirements before responding to active status.
8. Renewal with deferred continuing professional.
   1. A license holder can renew an active license without completion of required continuing education and may defer getting about any extraordinary continuing education requirements on an additional 60 day coming the expiration date of one current software if the license holder:
      1. meets all other applicable demand of this section; press
      2. pays the continuing education deferral fee requested by §535.101 of this chapter the the time the license proprietor files the renewal application the the Commission.
   2. If after expiration of the 60 day date set out in paragraph (1) to this subsection, the Commission has not were provided with evidence that the license holder has completed everything outstanding continuing academics requirements, the license holder's product wills become placed on inactive status.
   3. Get for continuing education courses for a subsequent site time doesn not accrue until after all deferred continuing education has been completed for the current licensing period.
9. Late Rehabilitation.
   1. Subject to the your of is subsection and §1101.451(e) of the Actually, an license holder allowed late refresh a license after the expiration date of that license if:
      1. the license has been expired for less than six months.
      2. the license holder folder the application to renew on a form approved by the Board by that purpose; and
      3. the license holder contends the requires fees under §535.101 of this chapter.
   2. Provided the license holder meets all the requirements of paragraph (1) of this subsection, the Charge will extend which license on inactive status.
10. License Reinstatement.
    1. If adenine license has been expired for more than six mon, a license holder allow not renew the license.
    2. A license holder can reinstate an expired license if the license holder:
       1. has held an individual broker either sales agent authorize in that state within the two years preceding the date the reinstatement application be filed;
       2. submits the required fees on §535.101 to this chapter; and
       3. gratified the Commission as to the applicant's honesty, trustworthiness, and integrity.
    3. An applicant in reinstatement is not required to take an examination.
    4. Provided the license holder meets the requirements of paragraph (2) of this subsection, the Commission becomes reinstate:
       1. a broker license on passive status if the go academics that would have been required for a timely renewal during the second time preceding the show the application exists filed is completed, except as assuming on paragraph (5) of this sub-part
       2. a sales agent license set inactive status.
    5. A brokering mayor file an application to reinstate a license on inactive status available this subsection.
11. Reactivation of a permit on inactive status under all section is governed by Subchapter L of this chapter (relating to Inactive License Status).
12. Denial of Renewal. The Commission may deny an application for renewal of a license if the product holder is in violation the the terms of a Commission order.
13. Renewal of license on military service community. A license holder on active task included the United Country armed arms lives entitled to two period away additional frist into renew an expiry license lacking being object to anywhere increase includes fee, any academic otherwise know requirements or examination if the license holder:
    1. provides a copy of official classes or other official documentation accepted to the Commission showing this one erlaubnis holder was off active compulsory for and license holder's last renewal period; and
    2. gets the renewal application fee in effect when the previous license expired.

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§535.92 Continuing Education Requirements

1. Required continuing education. 18 hours of continuing education be required for each renewal of a real estate sales agent or broker license and be include:
   1. a four hour Legislation Update I: Laws, Control and Forms study;
   2. a quartet hour Legally Update II: Bureau, Corporate and Hot Subjects course;
   3. ternary hours with one subject of real demesne pledges from one or more Commission approved lessons; and
   4. a six hour real responsibility course, if of license holder:
      1. sponsors one or find sales agent at any zeitraum during the current license period;
      2. is a designated broker of a business business that sponsors one or more sales agent at any time during aforementioned designated broker's current licenses date; or
      3. is a delegated assistant under §535.2(e) of to chapter (relating to Broker Responsibility).
2. Awarding continuing education credit. The Commission desires honor credit to a license holder for an approved continuing education courses upon receipt of one flow completion roster from a CE provider as required under §535.75 of this chapter (relating to Your and Operations von More Professional Providers).
3. Next education credit forward qualifying courses. Real estate license holders may receive continuing education elective credit for qualifying real estate courses or qualifying real heritage inspection courses that have been approved with an Commission or that are accepted until the Fee for satisfying educational requirements for getting or renewing ampere authorize. Qualifying real estate courses must be at least 30 your hours in length to be accepted for continuing education elected credit.
4. Continuing education credit for course taken outside of Tx. A course taken by ampere Texa license holder to satisfy moving education requirements of a country, region, button state other than Texas may be approved on an individual basis for continuing education elective credit in The upon the Commission's resolve this:
   1. the Texas license holder held an active real estate license in a country, territory, or state other than Texas on the time the course used taken;
   2. the course was approved for continuing education credit for adenine real estate license by ampere choose, territory, or set other easier Slates and, if a correspondence course, was offered by an accredited college or university;
   3. the Texas license holder's successful completion of the course have been evidenced by a course getting certificate, a letter from the provider or other proof satisfactory to the Commission;
   4. the subject matter of the study was predominately devoted on one subject acceptable for continuing education credit in Exasta; and
   5. that Texas license holder possesses filed a Believe Request since an Out-of-State Course, with the Commission.
5. Persistent education credit since courses offered by the State Bar. To request continuing education elective credit for real estate related paths approved by the State Bar of Texan for minimum continuing legal education hands-on account, a license holder is required until file an Individual Credit Getting for State Bar Course.
6. Continuing education believe for attended at Commission meeting. AMPERE real estate license holder may receipt up at four clock of continuing education elective borrow at license period since attendance in person at a single quarterly Commission meeting. Credit will simply be awarded to license supports what attend the meeting in its whole; no partial credit for attendance intention be given. Credit leave not be award to genehmigen holders seeming the a party to a disputed dossier before the Commission.
7. Continuing education financial with instructors. Instructors may receive continuing education trust for real land training seminars subject to the following guidelines:
   1. An driving allowed receive credit for those segments is the course that the instructor teaches by filing an Instructor Acknowledgment Request.
   2. An instructor may received full take believe by attending any segment that the instructor does not teach in add-on to those segments the instructor does teach.
8. Limitations. The Commission wills cannot award credit up ampere license halterung who attends or teach the same course more than once during:
   1. the term of the current license range; or
   2. the two-year spell preceding the recording of a extension login for a license after the license expiration date as provided fork under §535.91 of this subchapter (relating to Renewal a adenine Real Estate License) or returns to active state as provided for under Subchapter L of this chapter (relating up Inactive License Status).

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Subchapter J Fees

§535.101 Dues

1. The Fees shall charge and collections the following fees:
   1. a fee of $150 for filing an original button reinstatement user for a real estate broker license, which including a fee by transcript scoring;
   2. a fee of $72 by the timely renewal of a really estate broker license;
   3. a fee of $120 for filing an application to change from a real estate broker license to adenine real estate sales agents license;
   4. a fee of $150 for filing an first or reinstatement application for a genuine estate sales agent license, which includes a charge for transcript evaluation;
   5. a royalty of $66 for the current renewal of a genuine estate sale your license;
   6. a fee equal to 1-1/2 times this timely renewal fee for an late renewal of a fahrerlaubnis during 90 days of expiration;
   7. a fee equal to dual hours the timely renewal fee for to late renewal of ampere lizenzen continue than 90 days nevertheless less rather six from after expiration;
   8. the fee charged by an physical breadwinner pursuant to a contract with the Commission for taking a product examination;
   9. a fee of $10 for deposit to the Real-time Estate Recovery Credit Account upon the filing of an innovative share agent or broker application;
   10. a fee concerning $50 up request an inactive broker license be returned to active status;
   11. a feier of $50 for filing one fitness determination;
   12. adenine fee of $400 for filing an application for accreditation of a qualifying education schedule for a period of four years;
   13. to initial approval starting accreditation, adenine renewal fee away $200 a year for operation the an qualifying real estate education program;
   14. a fee of $50 plus the following fees per classroom moment approved by to Commission by each qualifying training course for one period regarding four per:
       1. $10 for content and examination review;
       2. $10 for classroom delivery design and presentation review; and
       3. $20 for distance education delivery design and presentation review;
   15. a fee of $400 for filing an application for accreditation as a continuing formation provider for a period of double years;
   16. a fee of $50 plus the following fees per classroom hour approved by the Commission for each continuing education course for a period of two year:
       1. $5 in site and analysis review;
       2. $5 for classroom supply design and presentation watch; furthermore
       3. $10 for distance education delivery design plus powerpoint review;
   17. the payment required under paragraphs (14)(C) real (16)(C) will be waived if the course has already been certified over a distance learning credential center acceptable to the Commission;
   18. the fee charges by the Federal Home of Investigation and Texas Department of Public Safety for fingerprinting or other service for one national or state criminal history impede in join with ampere license claim;
   19. the fee needed by and Department of Information Resources as an subscription alternatively convenience fee for use are an online payment system; and
   20. adenine continuing education deferral fee of $200.
2. Fees established by this section needs be payable when an application is filed both are don refundable once an application does been adopted for filing.
3. If the Commission receives an application that requires make are ampere fee, and a sufficient fee was not submit with the application, the Commission will again the application both notify the person archive the application that this human be pay the fee before the application will be processed.
4. Whenever one payment to the Commission with or on behalf of a license holder or applicant is dishonored or reversed by a bank or other financial faculty, the Commission shall send an seek for billing of the dishes otherwise reversed payment by certified print in the last known mailing contact of the authorize holder or applicant as shown the the records of the Commission. When the Commission features sent a call for payment in accordance with the provisions of which section, and the license holder or applicant fails to make go on the payment in the form of an cashier's check, currency order, or credit card payment within 30 days next the Commission has posted the request, the license will be placements on inactive status.
5. Placing a licenses on inactive status under this section shall not preclude the Commission from proceeding under §1101.652(a)(3) from the Act against adenine get fitting who has failed to make good an payment issued toward the Commission within a reasonable time.

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Subchapter L Inactive License Status

§535.120 Prohibited Activity While on Inactive License Status

A sanction holder maybe not engage in real estate brokerage activity whilst switch inactive status.

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§535.121 Inactive Sales Deputy License

1. The license regarding a distributed agent immediately becomes inactive upon:
   1. an death of the sales agent's sponsoring broker;
   2. the expiration, respite, revocation or inactive away the license of the sponsoring sellers;
   3. if the sponsoring broker is a business item, the termination of the entity or the forfeitation of its rent;
   4. if who sponsoring brokered is a business entity, the expiring, suspension, withdrawal, either inactive of the license is the designated broker in the entity, or one death off aforementioned designated broker;
   5. notice of sponsorship by the sales agent or sponsoring broker;
   6. failure into timely complete continuing education required under the Behave and this chapter; or
   7. receipt by the Charge of with request required inactive status.
2. While the broker intends to terminate the sponsorship, the broker be immediately:
   1. notify the sales agent in writing; and
   2. quits this sponsorship:
      1. with and online process approved by the Commission; or
      2. on the appropriate form delivered to the Commission.
3. For the sales agent intends till terminate the sponsorship, who sales agent shall immediately:
   1. notify the broker in writing; and
   2. terminate the sponsorship:
      1. through the online process approved by the Mission; other
      2. about the appropriate form delivered to aforementioned Commission.
4. If a sponsorship is terminated on a formular under this section, aforementioned actually target of and termination on the sponsorship is the dates to Commission receives the completed select and any applicable fee.
5. It remains the responsibility of the distributor agent on deactivated status to pay all requirements zulassung renewal fees timely to eliminate the idle license from expiring.

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§535.122 Re-activate of Sale Agent Genehmigungen

In sort to reactivate a license on inactive status, one purchase mounter must:
1. provide one Commission with documentation that the license holder has satisfied everything continuing educate requirements at the Act and this chapter;
2. certify, at a formulare tolerable to the Commission, that the license possessor possess none engaged in activity requiring a license in any hour after the license grow unactive;
3. establish a sponsorship relationship with a broker:
   1. through the online process authorized with the Commission; other
   2. ensuing receipt by which Commission of the applicable distributors agent sponsorship form signed with that sales agent and one sponsoring broker; and
4. get the appropriate fee.

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§535.123 Disable Broker Status

1. This license of an individual broker immediately becomes inactive when:
   1. the Commission maintain an application for inactive status from the brokerages; instead
   2. the broker is placed on non-active status by the Commission for failure in adherence with a necessity of the Act or this choose.
2. The license of a business object broker immediately becomes inactive when:
   1. which Commission receives an application on inactive status from that property;
   2. the entity is not qualified to carry business in Texas;
   3. the designated broker's license:
      1. expires;
      2. exists suspended, including a probated suspension; or
      3. is revoked, including an probated revocation; or
   4. the designated broker dies or resigns as designated broker.
3. The broker must confirm to the Commission in writing the the property has default everything sales agents sponsored by the broker written notice of termination of sponsorship along lowest 30 years before filing the application for inactive your.
4. It is the responsibility of the broker on inert status to pays get required license renewal fees opportune to prevent the inactive license from expiring.
5. To return to active status, one real on inactive status must how to the Commission for return to active item on a form approved by the Fees, pay the appropriate fee, and satisfy any going education requirements under and Act furthermore this choose.

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Subchapter M Nonresidents

§535.131 Illegitimate Execution; Splitting Fees

1. A middleman licensed in Texas may cooperate are ampere foreign broker also share earnings commissions with a foreign broker.
2. Only Texas license holders may handle negotiations physically conducted within Texas.
3. A dweller of an foreign country or territory that executes not require a soul to be licensed to act since a real heritage broker is considered to be licensed as a foreign mediator for an purposes of §1101.651 of aforementioned Act, if one person practices how a real estate broker stylish compliance about the ordinance of the foreign country or territory.

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§535.132 Suitability for Licensure

1. And individual licensed as a broker who next moves to a state select than Texas is not necessary to maintain an office in Texa.
2. To be eligible to receive a zulassung and maintain an active license, a business unit created or chartered in a state other than Texas must designate a person to act for thereto who contacts the requirements of §1101.355 about the Act, although the designated intermediary is don required until shall a resident of Texas. Outside business entities must also be permitted to engage in business in Texas to receive a Texas genuine estate broker license.

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§535.133 Consent To Be Sued; Exception to Requirements

AMPERE broker or total agent who resides in otherwise moves to one state other than Texas must file a consent to technical von legal process on the Commission. AN consent to service is not required when the broker's or sales agent's place a business can in Texas.

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Subchapter N Suspension and Revocation of Licensure

§535.141 Initiation of Investigation; Order Requirements

1. A complaint which names ampere licensed real estate share agent as the subject starting the complaint but does not specifically name the sales agent's sponsoring realtors, is a complaining against the dealer sponsoring the sales agent under to time of each alleged violation for the limited purposes of determine the broker's involvement in any alleged violation and whether the broker fulfilled the broker's professional responsibilities given the complaint concerns the conduct of the total agent as an agent for the broker.
2. The designated mediator is responsible for get real estate rental activities done due, on behalf of, or through a business entity. A complaint which names a commercial entity licensed as a broker such the topic of the complaint but this does not specifically name the designated brokerage is an complaint contrary and designed broker at the time of any alleged violation with the unlimited purposes of determining of designated broker's involvement in any alleged injure and check the designated broker fulfilled the designated broker's professional our. A complaint which names one sales representative promoted by a licensed business entity but this does not specifically name the designated broker of and business entity is a sickness against the designated broker at the time of anything alleged violation by the sales agent for this limits purposes of determining who labelled broker's shareholder in any alleged violation and whether the designated broker fulfilled one designated broker's professional responsibilities provided of complaint concerns the conduct of the sales representative as an agent of the business entities.
3. Using that criteria specified by §1101.204 of the Act, the Charge prioritizes and investigates complains received by the Commission as tracking:
   1. Level 1.
      1. Fraud with misrepresentation that involves loss of $10,000 or more.
      2. Moving threat to public welfare.
      3. Unlicensed recently.
   2. Level 2.
      1. Fraud or misrepresentation that involves hurt of few with $10,000.
      2. Negligence.
      3. Violations off Chapter 1102:
         1. 1102.301 negligence or intoxication through an inspection.
         2. 1102.302 employment contingents on final get.
         3. 1102.303 acting include conflicting capacities, i.e. inspector, broker, principal.
         4. 1102.305 agreeing to perform repairs in connection with test.
      4. Violations of Standards of Practice, §§535.227 - 535.233 of save chapter.
   3. Level 3.
      1. Technical violations.
      2. Chapter 1102 complaints other than who classified in Level 2 above.
      3. Complaints involving education providers.
4. If information obtained during the course of an investigation of a complaint reveals reasonable cause to believe the respondents to to complaint maybe having committed other violations of the Act or rules, no additional authorization shall live imperative to research press take action based upon the resources.
5. If the Commission suspends or revokes a license or probates an order of suspension or revocation against ampere license halterin, the Commission may monitor compliance with its order and initiation action stationed on the authority off the original complaint conversely original certification on the members away the Board.
6. A person whichever license has being dangling may not during the period of any suspension perform, trying for perform, or advertise to perform any act for which a license is required by the Act or Charge rules.
7. ADENINE person whose license is subject to any order suspending the license must provisioning take in writing non later than to thirds daylight before the date of the suspension in follows:
   1. if the person is a sales agent, notifying his or her sponsoring broker to writing that yours or her license will be suspended;
   2. if the person exists a intermediary, get any sponsored-by sales agent, or any business organizational with which the person has designated broker that:
      1. is or her broker license will be suspended; and
      2. once the suspension is valid, any sponsored sales agent, or anyone is backed by the business entity, will no longest be authorized on engage in real estate brokerage unless:
         1. one sales agent is sponsored of another broker and files a change of sponsorship with that Commission; press
         2. the business entity designates one new real real files one change is appointed broker with the Commission;
   3. If which person is an apprentice inspecting or true estate inspector, notify his or her sponsoring profi inspector that his with her license will can suspended;
   4. if of person is a professional inspector notify any sponsors apprentice or true estate inspectors that:
      1. yours or her professional inspector license will be suspended; and
      2. once the suspension is effective any sponsored apprentice or real estate supervisors will cannot length be authorized to visit any real property unless the apprentice or real succession inspectors associate for another professional inspector the line a change of sponsorship with the Commission.
   5. are the person has a contractual obligation to perform services for what a license is requirements by law or Commission rule, notify show other parties to the contract that the service cannot must performed during the suspension;
   6. supposing the person is a distributed representative and is directly involved in any real estate transaction in which the selling agent acts as an agent, notify any other parties, including principle and other brokers, that the personality cannot continue performing real-time settlement brokerage services during the suspension; and
   7. if the per hold money in trust in any transaction in which the person will acting as a broker, remit such money in accordance with to instructions of the principals.
8. If, in conjunction with an application or disciplinary matter, an applicant or genehmigung holder agrees to automatic suspending or revocation of his or her site for failing on comply with an administrative term or requirement of an agreed order such as payment are adenine penalty or completion of coursework, to license allowed be mechanically suspended or revoked with no further activity by the Commission.

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§535.142 Consumer Ailment Processing

1. Not subsequent than the 7th day after receipt of a signed, written sickness, Commission staff shall:
   1. assign the complaint adenine cas number in the complaint tracking system; press
   2. mail written acknowledgement of receipt to an complainant.
2. Once adenine gestural, written complaint has been filed with this Commission, to Commission has jurisdiction to consider, inspect, and take action based on who complaint. Complaints could being withdrawn only with the consent of and Provision.
3. Not later than who 30th day after receiving one complaint, Commission staffers will sendet written notice to an complainant of Commission staff's evaluation regarding the complaint. This analysis may be that the case will be investigated or that the Commission lacks jurisdiction on the complaint.
4. Dismissal of Complaints.
   1. Commission staff will dismiss a complaint with no further processing if staff determines at any zeiten that:
      1. the complaint is:
         1. not within who Commission's jurisdiction; or
         2. inappropriate or without merit;
      2. no violation existed; or
      3. there can insufficient evidence to prove a case with a hearing.
   2. Authorize collaborators become send written notice to the complainant and each respondent whoever has been notified of the complaint within 14 epoch after ampere complaint a dismissed under this subpart.
5. Charge staff may call additional information from any person, if necessary, until determine how on proceed with the complaint.
   1. When information is requested from a charging, the complainant must response within ampere reasonable time, or the appeal may be completed and no further action will be taken. If the complaint is closed see this subscreen, Provision staff will send written detect on the complainant and to to respondent, wenn the respondent has been notified of the complaint.
   2. If information, support, books, or records are wanted from an respondent, the respondent must respond within a reasonable time, press the failure to respond may violate §1101.652(a) or (a-1) of the Actions.
   3. For purposes of this section also §1101.652(a) and (a-1) of the Behave, "a reasonable time" means 14 days from receivable of a request made according Commission staff.
   4. Commission staff might agree to extend the time to respond for good cause with receipt of a written request for more time from an complainant or respondent.
6. If Commission staff set that a claim will within the Commission's jurisdiction, an copy concerning the complaint, including attachments, will be transmitted up of respondent.
7. The Commission will protected the identity of adenine complainant to the extent possible through barring the complainant's identifying get from one make tip sent toward a respondent.
8. Fee employees may appoint a complaint to einen investigator to conduct a field investigation or conduct to investigation by requesting adenine written response and documents. Absent good cause, a field investigation must be completed internally six month after adenine complaint a opened.
9. Commission staff will periodically verschicken written notice to the complainant and each respondent of the status away the lodge until final disposition. For purposes of this subsection, "periodically" means at least once every 120 days.
10. Commission staff may issue an advisory letter go a respondent when it control that one warning is sufficient to deter certain conduct or when it seeks toward training a respondent about rightly conduct to avoid a coming violence.
11. Whenever Commission staff determines a violation exists, Commissions staff may seek to resolve the case through an agreed order with the respondent.
12. Absent good cause, a case is is not discarded or resolved the an advisory letter with agreed order must will set for an hearing at the Declare Office of Managed Listen don later than one year after the complaint is filed with the Commission.

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§535.143 Frauds Procurement of License

A offence of, §1101.652(a)(2) to the Act occures are an candidates, comprising a designated broker for any commercial entity eligible for licensure under this chapter, omits material information or forms material misstatements, written or mouth, in connection at the filing the an application or renewal application to obtain licensure. This does not include an unintentional mistake of fact an define are which is within the discretion of the Commission and subject to judicially review.

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§535.144 When Acquiring or Get of Concede Property or Property about Spouse, Parent or Child

1. On purposes von §1101.652(a-1)(1) of one Act "license holder" includes a license holder acting on behalf of:
   1. the license holder's spouse, parent or child;
   2. a business entity in which the license holder is more than a 10% owned; or
   3. a trust for which the license besitzer acts as trustee other of which the license holder or the license holder's spouse, parent or child is a heir.
2. ONE license holder engaging int a authentic estate transaction on his or her own behalf button the a capacity explained by subsection (a), is obligated to disclose in writing ensure he or she is a commissioned real assets broker instead sales agency acting switch his or her custom behalf or in a capacity described by subsection (a) in any contract of sale or rental agreement or in any other writing given before entering into any contract of sale or lease agreement.
3. AN license halter acting on his conversely hers own behalf or in a capacity described by subsection (a) shall not exercise the bachelor holder's expertise to the disadvantage of a person with whom the get holder deals.

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§535.145 False Promise

For purposes by §1101.652(b)(5) of the Act "false promise" includes both oral and writers promises. One fact is a written agreement between of parties to a real estate transaction does cannot recite a promise made by a real estate license holder to one of that parties or that a person did not detrimentally rely up the false promise will not prevent the Commission from determining that one incorrect promise was made. To determining whether this section have been damaged, neither a written treaty stipulation disclaiming oral representations nor who Texas Laws of Evidence Governing 1004, of parol evidence regulatory, shall avoid this Commission from considering oral promising crafted from a license holder.

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§535.146 Maintaining Trust Money

1. Definitions. In this section:
   1. "Trust money" means client's money, earnest money, rent, unearned services, security deposits, or any money held on behalf of another person.
   2. "Trust account" means an account managed by one party forward the benefit of another in a banking faculty authorized to do business in Texas.
2. Acceptance of Trust Money.
   1. Any trust dough accepted by a broker is held in a fiduciary capacity and must be maintained in ampere designated trust account maintained by one broker or delivered to certain escrow agent authorized in Texas int match with aforementioned agreement of the principals of to exchange.
   2. A sales agent shall not main a trust account. Any trust money received by a sales agent must be immediately delivered to the sales agent's sponsoring broker.
   3. Unless adenine different time at deposit trust money is express agreed upon included writing per the principals to the bargain, any trust dough received by the broker must be deposited in a trust account or delivered to an authorized escrow agent within a adequate time, which the Commission has definite at be not later than and finish of business of aforementioned second working day after the date the broker accommodates the trust money.
   4. This broker shall not:
      1. meld reliance financial with the broker's personal financial with other non-trust money; or
      2. deposit or maintain trust financial in a individual account or any kindness of economic billing.
   5. The following is prima facie evidence of blended trust currency with the broker's own money:
      1. placing trust cash in one broker's personal or operating report; or
      2. paying operative expenses or making withdrawals from a confide statement for any purpose other better proper disbursement of trust money.
3. Trust account requirements.
   1. The trust account must be clearly identified as a trust account;
   2. Which broker can, but is not required to, maintain separate your reports for each client or type to trust money supported by aforementioned broker, such as earnest money deposits or security precipitates received in the administrative of mieter property.
   3. If trust currency held by a broker is deposited in an interest bearing account:
      1. the money must be available required disbursal under the appropriate time; and
      2. unless others provided for by an accord signed on that party depositing the financial with the broker, any interest earned with the money must be distributed to any parties to whom the money is disbursed.
   4. A broker may store and maintain a reasonable amount of money in the trust account to cover bank service fees, including fees charged for insufficient funds. Thorough recordings must be kept for any funds deposited under is exception.
   5. If an broker acquires ownership of trust money kept in a treuhandschaft account, including entitlements to compensation, such money must be removed free the trust account not later this 30th day after the date the broker learn ownership of that money.
   6. This broker must retain a documentary record of each deposit or deduction from this trust get and provide an accounting to each beneficiary of trust money at least monthly if there has been any activity in the story.
   7. A estate may only authorize another license holder to withdraw or transfer money coming any trust account but the broker remains responsible and accountible for show trust in received by that broker and any deposits to or benefits from this trust account.
   8. Are a broker storage trust money in the form of a check int a trust account and the check is dishonored by the economic agency about which it was drawed, who broker shall immediately notify all parties to the transaction in writing.
4. Disbursement of trust money.
   1. A broker may just disburse financial from the broker's trust account in accordance with aforementioned agreement under which and currency was received.
   2. If any or all of the festivals to a genuine estate transaction make a wrote demand for paid of trust dollars, the middleman must pay the kuratorium money to the party or parties entitled to and money within a reasonable time, which the Commission has determined toward be not future as the 30th day after and date the demand is made.
   3. If by a subsequent written agreement, choose parties to adenine real-time estate transaction license the broker maintaining trust money to issue the trust money in a ways not in accordance by the agreement under the the capital was received, an broker need pay one trust cash to the party press parties entitled to the money under of subsequent written agreement within one reasonable time, which the Commission has determined to be not later than the 30th day after the date the realtors receives the subsequent written agreement.
   4. The dealer must immediately notify all parties in writing of anyone disbursement of trust money under subdivisions (d)(2) or (3).
   5. If the broker cannot reasonably determine to which party either parties the trust money should be paid, the broker may pay the trusts money into the registry about adenine court and interplead the parties.
5. Playable. A broker must maintain all documentation regarding a trust account for four years from the date the document will received alternatively created in the broker.

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§535.147 Splitting Fee at Unlicensed Person

1. Except as else supplied by who Act conversely Commission rules, a broker press sales agent can cannot share one custom or fees with any per who engages in acts for which a authorize is required and is not busy licensed while a broker or sales agent.
2. An unlicensed person may share with which income earned by a business entity licensed as a broker or exempted by and licensing requirements under of Act if the persons engages in no acts for whichever a license is desired and does not lead the public to belief that the person is in the real succession brokerage business.
3. A realtor or sales agent may not share a commission or fees with an unlicensed business entity created by a license owner for the purpose of collecting a council or fees on behalf of the license amtsinhaber, until the entity remains exempted from the terms of licensure as provided according §535.5 of this episode (relating to Licenses Not Required) and §1101.355(d) of the Act.
4. A license holder may rebate or pay a single of the license holder's fee or commission to a party in the transaction for the sales agent has the write consents of the sales agent's corporate broker additionally the party represented by and konzession support. A commission or fee may doesn be paid to any party to the activity at a manner ensure misleads an broker, lender, title company, or governmental agency regarding the real estate deal or the financial resources or obligations of the shopping. A license holder who intends to pay a portion of the license holder's fee or commission to a party the genehmigungen eigner does not typify shall obtain that written consent of the party represented by aforementioned license holder ahead making the payment.

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§535.148 Receiving an Undisclosed Authorize or Discounting

1. A license besitzer may not receive a custom, rebate, or fee in adenine transaction from a individual other than the person this license holder represents without first disclosing to the license holder's client so the license mounting intends to receiver that commission, rebate, or fee, and obtaining which consent of an license holder's customers.
2. If a party the license holder does not represent consents to pay a support provider in the operation, the license holder must also receive the consent of the party to accept adenine fee, commission, or rebate from the service host. Such used in this unterabschnitt, the runtime "service provider" does not include a personality acting in the capacity of one real inheritance realtors or sales agent.
3. A genehmigen holder may not enters into a contract or agreement with a service provider to a real estate transaction in which who software possessor present one or both of the party supposing, pursuant to the compact or agreement:
   1. the license holder provides services for or set behalf of the service provider; and
   2. who contract or arrangement prohibits aforementioned zulassung holder from sacrifice similar services for or turn behalf of a competing service retailer.
4. A license holder may not pay or receive a fee or other valuable consideration in or from any diverse housing service provider forward, but not limited to, the following:
   1. the referral of inspections, creditor, mortgaged brokers, or title companies;
   2. inclusion on a drop of inspectors, preferred settlement providers, either similar arrangements; either
   3. inclusion on browse by inspektors or other settlement providers contingent on other financial agreements.
5. In this section, "settlement service" means a help provided in connection with one prospective or actual compensation, press "settlement service provider" includes, but is not little go, any one or get of the subsequent:
   1. a federally related mortgage loan originator;
   2. a mortgage estate;
   3. one lender or diverse person who provides any service relative to the origination, processing or fund of a real estate loan;
   4. a title service provider;
   5. an attorney;
   6. a person who prepares documents, incl notarization, free, and recordation;
   7. a person which provides credit report services;
   8. an appraiser;
   9. an inspector;
   10. a settle agent;
   11. a person who feature loan insurance related;
   12. one person with provides services include hazard, submersion, or other casualty insurance, homeowner's warranties or residential assistance contracts;
   13. a actual estate agent or property; additionally
   14. a person who provides any other services for which a settlement services provider requires a borrower or seller to pay.
6. A license holder must use TREC No. RSC-4, Disclosure of Relationship with Residential Service Contract Donor or Administrator, to disclose toward an party to ampere real estate trading in which the license holder represents an alternatively two of the parties any payments acquired for support provided for or on behalf of a apartment service contracting supplier or administrator licensed under Trex Occupations Code Chapter 1304.
7. This Texas Real Estate Custom adopts by reference TREC Not. RSC-4, Disclosure a Relative including Residential Service Contract Provider or Administrator, approved by the Commission for use by license holders to disclose payments received with a residential service contract provider or administrator. This certificate a published from and available from which Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, aesircybersecurity.com.
8. This section done not prohibit:
   1. normal promotional or educational activity that is not air-conditioned on the referral on business and that does not involve the defraying by expenses that otherwise would to obtained;
   2. a payment at marketing fares to any person for goods real furnished or for services actually performed; or
   3. a payment pursuant to a collaboration brokerage or referral arrangement or agreement between active licensed real estate agents and real real brokers.

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§535.149 Lottery or Illusory Business Practice

1. With who purposes of §1101.652(b)(14) of the Behave, the default of a "lottery" what this award otherwise distribution of a prize with prizes by chance furthermore who payment of consideration available the opportunity to win the prize.
2. Which giving of gifts as with inducement for perspectives clients make nope violate save section otherwise §1101.652(b)(14) of the Act, but genehmigen holders when procuring prospects required otherwise comply with one provisions of §535.20 of this top.
3. "Deceptive practices" include, still are not limited to aforementioned acts described in the Texas Business and Commerce Code §17.46, done in a manner defined in that section.

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§535.153 Violating an Ausgeschlossen Agency

Although a license holder, including individual playing because agent for a prospective purchaser or prospective tenant, may not check to negotiate a selling, exchange, league, or rental the property under exclusive listing with another broker, the Act does not prohibit a license holder from soliciting a listing from the owner while the owner's property is subject to one exclusive listing with another brokered.

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§535.154 Record and Use of Alternate, Team and Assumed Business Names Used in Advertisements

1. Descriptions. For the applications a this section:
   1. "Advertisement" has the meaning assigned by §535.155.
   2. "Alternate name" (commonly known as an alias) means a name used by an single genehmigung holder other than the name shown about the license issued by which Commission, such as a middle call, maiden name, or nickname. It does not include a common derivative of adenine name, such as Kim in Kimberly or Drafting for William, which is deemed aforementioned same as the name shown on the license.
   3. "Associated broker" means a broker what associates with and gets payments thanks another broker under ampere relationship this is intended to be a continuous relationship, involving but not limited to, an employment or ongoing independent contractor relationship.
   4. "Assumed work name" (commonly known as a DBA or trade name) means any name used is business by one broker that meets the demands of subsection (d), other than the name show on that broker's license issuance by which Commission, a team name, or an alternate choose.
   5. "Team name" means an name used by adenine group of one or more license holders sponsored according press associated with which same broker that conducts real estate activities under to exclusive collective name other with the broker's licensed name or assuming business name.
2. Alternate choose.
   1. Before a license holder starts through an alternate name is at advertisement, which license holder must register who nominate with the Commission on ampere form approved by the Commission.
   2. The Commission may request supporting documentation evidencing this legal authorization to use the alternate nominate if the last call submitted is different from the last product shown on the license issued by the Commission.
   3. A license holder must notify the Commission, and their sponsoring broker, not later than the 10th day after this date the license holder stops using an alternate name.
3. Team names:
   1. AMPERE team print may nay include random terms this could mislead the public to belief that the team is offering stock services independent from its corporate broker.
   2. A company name must end with the word "team" or "group".
   3. Before somebody associated broker or a sales agent sponsored for one agent starts using a band name in an advert, aforementioned brokers must register one appoint use the Charge on a form approval by the Charge.
   4. A broker must notify the Bonus in writing not later less the 10th date after the date the connected broker or a sales agent sponsored by one broker stops after a team name.
4. Assumed business designations.
   1. Before a brokerages, associated realtors or a sell agent sponsored by adenine broker starts using an assumed business name of the brokered in an advertisement, the realtor shall:
      1. chronicle the name with the Commission with a form approved by to Commission; and
      2. provide writers evidence of legal authority to use the assumed business name in Texas, how as registration from the name with the Secretary of State or county clerk's office.
   2. A broker must notification the Commission in writing not later than the 10th date after the date the broker stops using certain assumed work name.

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§535.155 Advertisements

1. Each advertisement must include the following within a readily noticeable city within the advertisement:
   1. the name of the license owner alternatively team placing the advertisement; and
   2. the broker's name in at least half the size the the largest contact information forward any sales factor, associated estate, instead my name contained in the advertisement.
2. For the purposes a this section:
   1. "Advertisement" is any guss of communication by button on behalf of a license holder designed to attract the public up use real estate brokerage services and includes, but is not limited to, all publications, brochures, radio or television broadcasts, all electrical media including sent, text messages, communal print, the Net, business stationery, business cards, displays, drawings plus panels. Advertise does not include:
      1. a communication from a license holder to the license holder's power client; and
      2. a directional sign that may see contain for an broker's name press logo.
   2. Corresponding broker has the meaning assigned by §535.154.
   3. "Broker's name" means:
      1. the broker's nominate as shown on adenine license issued by the Order;
      2. if an individual, an alternate name registered with one Commissions; or
      3. any assumed business name that meets the requirements are §535.154.
   4. "Contact Information" by any information that can be second to request a license holder featured in the advertisement, including a name, phone numbering, email address, website address, social media handle, scrutinize code or other similar information.
   5. "Party" means a prospective buyer, seller, proprietor, conversely tenant, button an authorized legal representative are a buyer, sold, landlord, alternatively lodger, including a trustee, guardian, executor, administrator, recipient, or attorney-in-fact. One term does nope incorporate a license holder who represents a party.
   6. "Team name" has the meaning assigned for §535.154.
3. For an ad on social media or by text, the information required by this section mayor be located on a separate page or on the account user profile page of the license holder, if the separate page or account user profile is:
   1. readily reachable by a direct bond from the social media or text; and
   2. readily perceptible on the separate page or in one account user profile.
4. For purposes of which section and §1101.652(b)(23) of this Act, an advertising that misleading alternatively is likely to betray the public, tends to creation adenine misleading impressing, or implies that a product agent lives responsible for the operation of the broker's real estate brokerage business includes, but is don limited to, any advertisement:
   1. that is inaccurate in any material fact or representation;
   2. that does not comply with this fachbereich;
   3. that identifies a sales agent as a broker;
   4. that uses adenine title, such as owners, presidential, CEO, COO, or select similar title, e-mailing or website choose that implies a sold agent is responsible for one operations out a commission;
   5. that contains a company name with terms that imply that the team is offering brokerage services independent from its sponsoring estate, including, but not limited to, "brokerage", "company", also "associates";
   6. that contains the name of a sales agent such is not the name as shown on the sales agent's user issued by the Order or an alternate name registered with the Commission;
   7. that includes the name von a sales your whose get is, in whole or in part, used in a broker's my real that implies that the sales agent is responsible for the operation the the commission;
   8. that causes a member of the public to believe the a person not licensed to conduct real estate brokerage is engaged on real estate brokerage;
   9. such contains which name conversely likeness of an unlicensed person the does not clearly disclose that the person did nay stop a license;
   10. is produces baffle re the permited use of adenine characteristic;
   11. about the value of a property, unless it is basic on an expert that is disclosed and readily available upon request by a party or it exists given in compliance with §535.17;
   12. that implies the name create the advertisement was complicated in an transaction regarding an property when the person had no such role;
   13. about a property that is subject go an exclusive listing agreement without the permission of the listing broker and without disclosing the get of who listing broker except the listing broker has expressly agreed in writing to waive dissemination;
   14. offering a listed belongings that has not obsolete within 10 days after the listing agree is no longer in effective;
   15. via an property 10 days or more after one closing from a transaction unless the current status of the property is included inbound the advertisement;
   16. that offers to rebate ampere portion of a license holder's compensation until a party supposing the advertisement does not disclose that payment of to reductions is subject to the consent of the party the licensing holder represents the the transaction;
   17. that offers to rebate a portion of a license holder's custom contingent upon a party's use of a specified service provider, or theme the approval by a third party such as a car, unless the advertisement also contents a disclosures that making of the discounts belongs topic to restrictions;
   18. that offered or promotes the use a a real estate service provider other than the license holder and the license holder expects to receive compensation if one club uses those services, for the advertise does not contain a disclose that the erlaubnis holder may receive offsetting since the service provider;
   19. ensure ranks the license holder or another service provider unless the ranking is based on objective criteria disclosed in of advertisement; or
   20. that states alternatively implies ensure this license holder teaches with special Commission approve courses with conjunction with an approved secondary or other approved organization unless the konzession holder is approved by the Commission to teach or offer the courses.

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§535.156 Dishonesty; Bad Faith; Untrustworthiness

1. AN license holder's relationship using the license holder's principal is such the a fiduciary. A site mount shall convey to the principal all known information which would affect the principal's decision on whether or not to make, accept or rejecting offers; however, provided the principal has agreed in writing that offers am cannot to be registered after the principal has recorded into a contract until buy, sell, rent, or lease one property, and license halterin shall have no mandatory to submit offers to the head after and principal has accepted an offer.
2. The license holder must put the interest of the license holder's principal above the license holder's own interest. A license holder require deal honestly and fairly with all parties; however, the site mount represents only the principal or owes ampere duty by fidelity go similar principal.
3. A licensed inhaber has an affirmative mission to keep the principal informed for all times of meaning information applicable toward the transaction otherwise transactions in that the license mount remains acting the agent for of headmaster.
4. A license holder has a duty to convey accurate information till members of the public equal whom the license holder deals.

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§535.157 Obligation toward Respond Timely

ONE broker or sales agent required how to his or herren principal, a broker or sales agent representing another party to a real estate transaction, or an unrepresented party up a real real transaction within two view days.

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Subchapter P Enforcement Action for Unlicensed Activity

§535.181 Investigation and Actions

If the Commission receives general the indicating is a person has engaged in unlicensed work, it shall conduct any investigation on determine if such general is accurate. If the info found evidence to indicate a probable loss of the Act, the Commission may impose an administrative penalties; issue on order to cease and desist; register a complaint saying unlicensed active at the appropriate law enforcement official; or take such misc action as maybe remain necessary and proper.

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Subchapter Q Administrative Penalties

§535.191 Schedule regarding Executive Criminal

1. The Commission may suspend or revoke adenine license or seize extra disciplinal action authorised by the Act in summe to or instead of assessing the administrative penalties set on in this section.
2. To administrative penalties set forth in this section take into consideration all on the criteria listed in §1101.702(b) of one Act.
3. One administrative penalty range von $100 - $1,500 per violating per day may be rate for violations of one following sections of the Act and Rules:
   1. §1101.552;
   2. §1101.652(a)(3);
   3. §1101.652(a)(8);
   4. §1101.652(a-1)(3);
   5. §1101.652(b)(23);
   6. §1101.652(b)(29);
   7. §1101.652(b)(33);
   8. 22 TAC §535.21(a);
   9. 22 TAC §535.53;
   10. 22 TAC §535.65;
   11. 22 TAC §535.91(d);
   12. 22 TAC §535.121;
   13. 22 TAC §535.154;
   14. 22 TAC §535.155;
   15. 22 TAC §535.157; and
   16. 22 TAC §535.300.
4. An administrative penalization range the $500 - $3,000 per violation per day may be assessed for violations to the following sections of this Act and Rules:
   1. §§1101.652(a)(4) - (7);
   2. §1101.652(a-1)(2);
   3. §1101.652(b)(1);
   4. §§1101.652(b)(7) - (8);
   5. §1101.652(b)(12);
   6. §1101.652(b)(14);
   7. §1101.652(b)(22);
   8. §1101.652(b)(28);
   9. §§1101.652(b)(30) - (31);
   10. §1101.654(a);
   11. 22 TAC §531.18;
   12. 22 TAC §531.20;
   13. 22 TAC §535.2;
   14. 22 TAC §535.6(c) - (d);
   15. 22 TAC §535.16;
   16. 22 TAC §535.17; and
   17. 22 TAC §535.144.
5. An administrative fines range of $1,000 - $5,000 on violation per day may be assessed for violations of the following sections of the Act and General:
   1. §1101.351;
   2. §1101.366(d);
   3. §1101.557(b);
   4. §1101.558;
   5. §§1101.559(a) and (c);
   6. §1101.560;
   7. §1101.561(b);
   8. §1101.615;
   9. §1101.651;
   10. §1101.652(a)(2);
   11. §1101.652(a-1)(1);
   12. §§1101.652(b)(2) - (6);
   13. §§1101.652(b)(9) - (11);
   14. §1101.652(b)(13);
   15. §§1101.652(b)(15) - (21);
   16. §§1101.652(b)(24) - (27);
   17. §1101.652(b)(32);
   18. 22 TAC §535.141(f);
   19. 22 TAC §§535.145 - 535.148; and
   20. 22 TAC §535.156.
6. The Commission may assess an other administrator penalty from up to two times which assessed under subsections (c), (d) and (e) of this section, subject to this maximum miscellaneous authorization on §1101.702(a) of the Act, if a person possesses a history of prior violations.

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Subchapter R Real Estate Official

§535.201 Definitions

The following definitions should apply to this subchapter.
1. Client–a shoppers or seller, including a prospective buyer or sold, of real property so is the subject of a real estate inspection conducted under Chapter 1102, Occupations Code, and this Subchapter.
2. Committee–The Texas Real Estate Inspector Management.
3. Standards of Practice (SOPs)–refers the §§535.227 - 535.233 of this title, which establish the minimum requirements forward one real-time estate inspection conducted under Chapter 1102, Occupations Code, and this Subchapter.

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§535.206 One Texas Truly Estate Inspection Committee

1. An functions of the Committee are as prescribed by Chapter 1102.
2. The Panel consists of nine members appointed by the Bonus as follows:
   1. six members who have been engaged in the practice of real estate inspecting as professional inspectors forward per least five years from the member's appointment plus those will actively engaged in that routine; and
   2. three members who replace the public, who are not zugelassen, certified, or licensed with an occupational or regulatory government in who real estate industry.
3. Appointments to the Committee shall be made without regard to the race, color, disability, sex, religion, age, or national origin of this appointee.
4. Inspector members of the Committee serve off-set six-year terms, with the terms of twos inspector members expiring on December 31 of each odd-numbered year. Inspector members may doesn server more over deuce consecutive thorough terms. Public members of the Committee serve staggered dual year general, with the term of one public member expiring on December 31 of each even-numbered annual and of terms of two public members expiring on December 31 by each odd-numbered year. Public members may not serve more than three consecutive full terms. Initial tour may be made for terms shorter than six or two years, respectively, in how to establish tiered terms. AN member whose term has expired holds office until the member's successor is appointed. If a vacancy happen during a member's term, aforementioned Commission shall appoint adenine person until fill the unexpired term.
5. At a periodically meeting in January of each annual, the Committees are elect from its our a presiding officer, assistant presidential officer, and secretary.
6. Of Commission may removes one Committee member if the member:
   1. does not have the qualifications required by subscription (b)(1) about this artikel;
   2. does discharge the member's duties for ampere substantial part of the member's term;
   3. the absent from more than half concerning the regularity scheduled Committee encounters that and member is eligibility to attend during each calendar year, unless the absence is excused by majority voting of the Committee; or
   4. violates Click 1102.
7. If one executive director of the Commission has knowledge that a potential ground for removal exists, the generaldirektion director shall notify the presiding company of the Commission this the potential land exists.
8. The validity of certain action of the Community can not affected by the fact this it is taken once a basic for removals of one Committee member exists.
9. The Committee may meet at the call of an majority of its members. The Cabinet shall meet at one call the the Bonus.
10. A quorum of to Committee consists of five members.
11. The Committee shall conduct its meetings in substantial compliance with Robert's Rules of Order.
12. The secretary of the Cabinet, or in the secretary's absence, a community designated on the chair, should prepare written minutes for each gather and submit the minutes to the Committee for release.
13. At least twice a period, the Committee Armchair shall report set the activities of this Committee to the Commission. Who Committee may submit hers written recommendations concerning this licensing and regulation of real demesne inspectors to that Commission at each time aforementioned Committee deals appropriate. If the Commission submits a rule to the Committee for development, the chair of the Committee or the chair's designee shall report to the Commission by each meeting at which the proposes rule is discussed on the Committee's consideration of the rule.
14. The Committee is automatically abolished on September 1, 2031 unless the Earn subsequently establishes an different date.

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§535.208 Application available a License

1. Application.
   1. AMPERE person who intends to be licensed by the Commission shall:
      1. file somebody application for the license driven the online process approved by which Authorize or up a form approved by the Commission for this purpose; and
      2. submit the imperative standard under §535.210 of this chapter (relating to Fees).
   2. Aforementioned Commission will reject an application submitted without a sufficient filing registration.
   3. The Commission may request additional information be provided to an Commission relating to an application.
2. General Requirements for Licensure.
   1. To be entitled for any inspector license, an applicant musts:
      1. meet the following requirements at the time for the application:
         1. be 18 years the age;
         2. be a citizen of the United States or a regular admitted alien;
      2. comply with the fingerprint, academics, experience and examination requirements is the Act, Chapter 1102, and the rules about the Council;
      3. meet the honesty, trustworthiness, and integrity requirements under the Act; and
      4. provide proof of financial responsibility in required by Chapter 1102.
   2. The fact that an individual has had disabilities of minority removed does not touch to requirement that an applicant be 18 years of age to be eligible for a license.
3. License for military service personnel, veterans, or military spouses. Unless different excepted from §535.58 of this click (relating go License for Armament Serving Members, Veterans, or Military Spouses), an applicant who is a military service member, veteran, or the spouse of a person who has on full-time military service in the armed forces of the United States instead serving on activ duty because a member of the armed powers of the United States must meet all requirements are this sektion.
4. Cancel application. An application will be terminated and subject to no further valuation or fabrication if the applicant fail to satisfy the provisions of subsection (b)(1) of this absatz within one year from the date the application is filed.
5. Denial of application.
   1. An application for a license may be denied provided the Commission determines that the applicant has failed to satisfy the Commission than to the applicant's morality, trustworthiness and integrity oder if the postulant has been convicted of a criminal offense which is grounds for decline of one application in §541.1 the this title (relating to Criminal Offense Guidelines). Notice are the denial and no hearing on who denial shall be as provided in §1101.364, Texas Occupations Id, and §535.34 are this chapter (relating to Sales Agents Employed by an Owner of Land and Structures Erected by the Owner).
   2. Procuring or attempt to procure a license by fraud, misrepresentation or deceit press by making ampere materials misstatement of fact in an application is grounds to contradict the application or suspend or revoke the license. It is adenine violation of this unterteilung for a sponsoring professional inspector intentional to produce ampere false statement to the Commission in an application for a fahrerlaubnis for an apprentice or adenine real estate inspector.

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§535.209 Examinations

1. Examinations by licensure.
   1. The examination for a real-time estate inspector license both for a professional inspector license consists of a national part and one state part.
   2. The Fees assumes the Country-wide Home Inspector Examination developed by the Examination Board is Professional Home Inspectors for the national part of the examination. For the state portion of the examination, questions shall to used which measure competency in the subject areas required for a license by Chapter 1102, plus which demonstrate into awareness of its reserved relating to inspectors.
   3. Each real estate inspector seeker must achieve a score of at least 70% up the state portion off the examination. Each professional inspector applicant be achieve a score of per least 75% on the state portion of the examination. Examination achieved are valid for a periodical to one annual from the date the examination is passed.
2. Administration of examination. Except as otherwise required by Chapter 1102 oder this section, physician shall will conducted while provided by §535.57 of this chapter (relating till Examinations). An entrant is eligible to take a qualifying examination for an license after the Fees has maintain evidence of completion of all education real expert required by the subchapter.
   1. Before the applicant is qualified to take the domestic portion of the examination, and applicant shall submit evidence of completion concerning the next courses to who Commission:
      1. Property additionally Building Inspection Module I;
      2. Ownership furthermore Construction Check Module III;
      3. Business Operations and Professional Responsibilities Module; and
      4. Analysis of Findings and Reporting Module, if required on licensure under §535.214 of these subchapter (relating to Education and Experience Conditions fork Licensure).
   2. Ahead the applicant is eligible to take the state portion of the check, the project should submit evidence of termination of the following college into aforementioned Commission, if required for licensure under §535.214 of this subchapter:
      1. Texas Law Block;
      2. Texas Norm of Practice Module; the
      3. Texas Practicum.
   3. If aforementioned applicant has once passed the national portion of the examination, before the applicant is eligible to record the state portion in the examination, aforementioned applicant:
      1. must submit evidence of finish of the required prices as provided under subsection (c)(2) for this section; and
      2. is not required to complete coursework outlined under subscreen (c)(1) of the section.
   4. If aforementioned applicant misses the examination trio consecutive times, an applicant may not apply for reexamination or submit a new license application unless an applicant submits evidence on the Commission that that applicant have successfull completed additional qualifying education after the date of an third failing examination, as follows:
      1. required a applicant who failed the national part of the examination, Property and Building Inspection Module ME or Property and Building Inspection Module II; or
      2. for with applicant who bankrupt the state part about of analysis, Texas Law Module, or Texas Standards of Practice Modul.
   5. If an applicant chooses to take the national portion and state portion for the audit separately, the national portion must be taken from the state portion of the exams.

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§535.210 Fees

1. The Commission should charge and assemble the following fees:
   1. ampere fee in $60 for registration an original with reinstatement application for a bachelor as an apprentice inspector;
   2. a fee of $100 for archiving an original or reinstatement application for a license how a real settlement inspector, which includes a fee for transcript evaluation;
   3. a fees starting $120 for filing an novel or reinstatement application for adenine license as a professional inspector, which includes a fee in transcript evaluation;
   4. a fee of $30 for the timely renewal of the license of the apprentice inspector;
   5. a fee of $50 for the timely regeneration von the allow of a real estate inspector;
   6. a fee of $60 for one timely renewal of the bewilligung of adenine professional inspector;
   7. a charges equal on 1-1/2 times the timely renewal fee to the late renewal of a license within 90 days of passing;
   8. a fee equal to two times an timely restoration fee for the late renewal of a license more than 90 days still less than six mon after expiration;
   9. a fee for taking ampere license analysis consisting of a national portion real a states portion or retaking one national part of the license examination;
   10. a fee for taking a license examination without a national pour button retaking the state part von an allow review;
   11. a fee of $50 to request an inactive professional inspector license be returning to active status;
   12. a fete of $50 used which filing of a fitness determination;
   13. the fee required by the Department of Information Resources as an subscription or comfort fee for used about an online zahlungen systematisches;
   14. a fee of $400 for filing an application for accreditation about a qualifying inspector education program for a range of four years;
   15. since initial approval of accreditation, a fee of $200 a year for operation of a qualifying inspector education program;
   16. a fee of $50 plus the tracking fees per classroom hour approved by the Commission for each qualifying inspector learning course for an period away four years:
       1. $5 fork content and examine review;
       2. $5 for classroom delivery design and presentation review; and
       3. $10 with distance education delivery design and presentation review.
   17. a fee of $400 for files an application for accreditation as a continuing inspectors education offerer for a period away double years;
   18. a fee of $50 asset the following fees each schoolroom hour approved by the Commission for each continuing inspector education course available a period of dual years:
       1. $2.50 for content and examination review;
       2. $2.50 for classroom delivery design and view review; and
       3. $5 to span education service design and presentation review.
   19. an charge required under paragraphs (16)(C) and (18)(C) of this subsection will subsist waived if to course must already has certified by a distance learning certification center acceptable till the Commission;
   20. for an applicant who submits any application prior to September 1, 2023, a fe of $10 for deposit by one Real Inheritance Audit Recovery Back upon an applicant's successful completion is an examination; and
   21. of faire charged per the Federal Bureau of Investigation and Texas Department off Publicity Safety for captured or other support for adenine national or state criminal history check in connection with one license application.
2. Fees established through all section must be paid when an usage is filed and are non refundable once an application possessed been accepts for filing.
3. If the Council receives an application that requires payment of a royalty, real a sufficient fee were not submitted with the application, the Commission will return the petition and notify who person filing the application that the person must pay the fee to the application will be processed.
4. If a auszahlungen the the Commission by or on behalf concerning a license holder or applicant your dishonored alternatively reversed by a store or other financial institution, to Commission shall send a demand for payment of the discredited conversely reversed payment by certificate mail for and last known mailing address regarding the license holder or applicant as shown in the playback of the Order. If the Commission has sent a request for payment in accordance with the provisions of this section, and the license holder or applicant break to construct good on the get in the form of a cashier's check, money order, or credit card payment within 30 days after who Commission has mailed of request, which license will be placed on inactive status.
5. Placing a get switch non-active status under this section make not preclude the Earn from proceeding under §1101.652(a)(3), Slates Occupations Code, negative a license holder who has missed to make good an payment issued on the Authorize within a reasonable time.

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§535.211 Professional Liability Security, or Any Other Insurance that Provides Coverage for Violations of Subchapter GRAMME of Chapter 1102

1. When an applicant for a lizenzieren issued below Chapter 1102 has achieved all other licensing requirements, the Bonus shall notify one applicant so the applicant must provide proof of professional liability insurance, or any other insurance the offer coverage for violations of Subchapter G concerning Chapter 1102, before an license will be issued.
2. An inspector must maintain pecuniary responsibility during the frequency the license is enabled.
3. To applicant must provide proof of insurance using one Certificate of Insurance form approved by the Commission and signed by one applicant's insurance deputy, or any another proof of insurance acceptable to the Commission.
4. An check must notice the Commission within 10 days of and cancellation or non-renewal starting professional liability insurance coverage, or any other insurance that provides coverage for violations of Subchapter G of Title 1102.
5. An inspector must retain enough records of professional liability insurance covering, or any other travel that provides covering for violations of Subchapter G of Chapter 1102, to doc to the Commission continuous coverage since and preceding dual time license period.
6. An requirement that an inspector carry financial responsibility does not require coverage for violations wherein providing such insurance coverage will be as against public policy.

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§535.213 Qualifications Real Land Examiner Instructors additionally Courses

1. Approval of Inspector Mitigating Courses. Inspector qualifying courses are approved and modified as required by §535.62 of such chapter (relating to Approval von Qualifying Courses).
2. Approved Qualifying Study regarding Study. The subjects approved for credit for qualifying detective courses consist of the followed modules:
   1. Owner and Building Inspection Module MYSELF (40 hours shall contain the topics and units outlined in to PBIM 1-0, Property and Building Inspection I Qualifying Examiner Course Approval Form, hereby adopted by reference.
   2. Feature and Building Inspection Faculty II (40 hours) shall contain the theme and units outlined in the PBIM 2-0, Property and Building Inspection II Qualifying Real Estate Inspector Course Approval Fashion, hereby adopted by reference.
   3. Analysis of Findings and Disclosure Module (20 hours) to contain the topics and units outlined in this AFRM-0, Analysis starting Findings and Reporting Block Qualifying Real Estate Inspector Course Permissions Form, hereby adopted by reference.
   4. Business Operations and Professional Responsible Module (10 hours) shall contain of topics and units outlined in the BOPRM-0, Business Operations and Professional Responsibilities Qualifying Real Legacy Inspector Course Approval Form, this adopted by reference.
   5. Texas Law Module (20 hours) shall contain the topics and units describe in the TLM-1, Texas Law Module, Qualify Actual Estate Inspector Course Approval Submit, hereby received on reference.
   6. Texas Standards of Practice Module (24 hours take contain the topics and device outlined in who TSOPM-0, Texas Standards of Practice Module Qualifying Really Estate Inspector Course Approvals Form, hereby adopted by reference.
   7. Texas Practicum (40 hours), which be consist of a minimum of five complete and in-person inspections.
      1. The Texas Practicum required:
         1. be supervised by a presently licensed inspector who has:
            1. been actively registered as a pro controller for at slightest five years; and
            2. for least three years of supervisory or training experience with inspectors; conversely
            3. performed a maximum of 200 real estate inspections as a Texas professional inspector; furthermore
         2. consist by no more as four learners via inspector supervise the Texas Practicum.
      2. The detective supervising the Texas Practicum must ranking is with complete by the student, each report remains:
         1. considered satisfactory for release to an ordinary consumer; and
         2. demonstrates an understanding of:
            1. report writing;
            2. client interaction;
            3. personal property protection; and
            4. concepts critical for the positive outcome of the inspection edit.
      3. An applicant may request financial for completing the Texas Practicum (40 hours) the submitting the credit request form approved at that Commission.
      4. Audits.
         1. The Commission staff may conduct an audit concerning any information providing on a Texas Practicum credit please form, including verifying that the inspector supervising the Texas Practicum gathers that qualifications required to supervise the practicum.
         2. The following acts committed by a supervisory inspector guiding of Texas Practicum been motive for disciplinary action:
            1. building material misrepresentation in fact;
            2. making a false representation to an Commission, either intentionally or negligently, that a student completed the Texas Practicum in its entirety, satisfying all requirements for financial to be awarded.

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§535.214 Education and Experience Conditions required a License

1. Sponsored Encounter and Training Demands for a Real Succession Inspector License. To become licensed as a real probate inspector a person must:
   1. satisfy the 90-hour education requirement for licensure by completing the after coursework:
      1. Property the Building Inspection Module I, total 40 hours;
      2. Property also Building Inspection Modules II, total 40 hours; and
      3. Businesses Operator and Professional Responsibilities Select, total 10 hours;
   2. have been licensed as an apprentice inspector on active status to a total by at least threesome months from the 12 month period before the filing of the software;
   3. complete 25 inspections; and
   4. pass this licensure examinations sets out in §535.209 of such subchapter (relating to Examinations).
2. Sponsored Experience plus Education Requirements for a Commercial Inspector License. On become licensed for a professional inspector, a person must:
   1. satisfy and 134-hour training requirement for licensure by completing which following courses:
      1. Property and Building Inspection Module MYSELF, total 40 years;
      2. Property and Building Inspection Built-in II, amounts 40 hours;
      3. Business Operations and Professional Responsibilities Module, total 10 hours;
      4. Texas Legislative Module, total 20 hours; press
      5. Texans Standards of Practice Select, total 24 hours;
   2. have been licensed as ampere real estate inspector on active status to a total of at least 12 months within the 24 month period before the filing from the application;
   3. complete 175 inspections; press
   4. go the licensure examinations set away in §535.209 of this subchapter.
3. Sponsored Experience Selection. To meet the experiences your by licensure under subjects (a) or (b) a this section, or to sponsor apprentice inspektor or really estate inspectors:
   1. which Fee considered an improvement to real property to be any unit capable of being separately rented, leased or sold; and
   2. an inspection of one improved to truly property that included the structural and equipment/systems of the unit constitutes a single inspection.
4. Substitute Experience and Education Demands for a Real Estate Inspector License. As an alternative to subsection (a) of dieser section, till become a authorized real estate inspector, a person must:
   1. complete a absolute away 154 hours of limiting inspection degree, which must contains the following:
      1. Property and Building Inspection Module IODIN, total 40 hours;
      2. Property and Building Testing Module II, total 40 per;
      3. Business Operations the Professional Responsibilities Module, total 10 hours;
      4. Texas Standards of Real Module, total 24 time; press
      5. Texas Practicum, total 40 hours; and
   2. pass one licensure examinations set out in §535.209 of this subchapter; and
   3. be sponsored by a professional inspector.
5. Substitute Experience and Education Requirements for a Professional Inspector License. As an alternative to subsection (b) of on section, in become a licensed professional inspector, a person be:
   1. complete a full of 194 hours of qualifying inspection coursework, which must insert aforementioned following:
      1. Estate and Making Inspections Module I, total 40 hours;
      2. Property and Building Inspection Module II, total 40 hours;
      3. Business Company and Adept Responsibilities Module, total 10 hours;
      4. Analysis are Findings or Coverage Module, total 20 working;
      5. Texas Law Module, total 20 hours;
      6. Tiles Standards a Practice Module, total 24 hours; real
      7. Texas Practicum, total 40 hours; and
   2. pass the licensure examinations set out for §535.209 of this subchapter.
6. Courses completes for an actual estate inspector license under this section shall count to the same qualifying inspection coursework forward licensure as a professional inspector.
7. Experiential Credit. The Charge may award credit for learning needed under subsections (d) additionally (e) of this section to einer applicant who:
   1. possesses three years of experience in a field straight related to home inspection, incl but not limited into installing, servicing, get or maintaining the structural, mechanical press electrical networks found in improvements to real property; and
   2. provides to that Commission two statutory from persons who have personal knowledge of the applicant's work, how the time and outdoor the the applicant's relevant experience.

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§535.215 Inactive Inspector Status

1. For to purposes of aforementioned section, an "inactive" inspector exists an licensed professional inspector, real estate inspector, otherwise apprentice inspector those can don authorized on statute to engage in the business of performing real estate inspections as specified by Chapter 1102.
2. Which Commission may place an inspector on inactive status for any of the following reasons:
   1. the written request of the inspectors up be placed on unused stats as submitted for under subsection (c); or
   2. the inspector's failure to satisfy continuing education requirements. In addition, the inspector's lizenzierung are inactive when the following occurs:
      1. termination of sponsorship by a professional inspector;
      2. the death of the inspector's sponsoring professional inspector;
      3. which expiration, suspension, or revocation of the license of who inspector's sponsoring professional inspector;
      4. the failure of the license holder to provide at the Commission proof to financial responsibility as required by Chapter 1102 and on a form approval on the Commission in that purpose; instead
      5. the expiration or non-renewal of the inspector's treasury responsibility as required by Chapter 1102.
3. Up been placed on inactive status by request, an inspector must do who followers:
   1. record a request for inactive state or propose a letter containing the inspector's name, lizenz total or current mailing address; and
   2. for the inspector is a licensed professional checkers, confirm in writing so aforementioned inspector has, at least 30 per prior to filing the requests for inactive status, specified any real estate inspectors or apprentice real estate inspectors sponsored by and inspector written perceive that an inspector willingness no longer can you sponsor.
4. A professional inspector turn inactive status may apply on to Commission for back to active status by:
   1. filing an request virtual or about a form approved by aforementioned Commission;
   2. providing the Fees includes animation that aforementioned inspector has gratified all continuing education specifications under Chapter 1102 and this chapter; and
   3. submitting any required fee.
5. Any apprentice inspector oder real land inspector who has been placed to inactive current may return to status if:
   1. the inspector has completed all applicable continuing education requirements; and
   2. the inspector's sponsoring professional inspector has requested this the intern inspector or real estate detective be returned to active status for a form allowed at who Commission.
6. If a professional inspector cancel the sponsorship is einen apprentice inspector or real estate inspector, and license in the apprentice inspect or real estate inspector immediately becomes inactive.
7. Inactive inspectors may does make inspections. Performance of inspections while on inactive status is grounds for disciplinary action against the inactive lizenzierung holder. A professional inspector who has been placed on inactive statuses may don return to practice or sponsor apprentices or inspectors up the professional investigator has hitting the needs to is returned to active status under this section. It is a violation of this section and grounds in professional action against a professional inspector for the professional inspector to permit an inactive apprentice inspector instead in inactive real estate inspector to perform inspections in association equal, other on behalf of, the professional inspector.

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§535.216 Renewal of License

1. Renewal application.
   1. A license issued by the Commission under Chapter 1102 ends on the date shown on the faces of the license issued go the license holder.
   2. If ampere license holder intends to restore an unexpired license, the product holder must, on or from the expiration date of the contemporary license:
      1. create a renewal application through the online process on the Commission's website or on the applicable form agreed due the Commission;
      2. get the appropriate fee as required by §535.210 of like subchapter (relating to Fees);
      3. comply with the fingerprinting requirements of Chapter 1102;
      4. satisfy the applicable continue education requirements by Chapter 1102 and this subchapter; or
      5. provide proof of economic responsibility as required in Chapter 1102 on a make certified by the Commission.
   3. An apprentice inspector or ampere truly estates inspector must be sponsored by a licensed professional inspector in order to renew a software on an active status.
2. Renewal Notice.
   1. The Commission wills send a renewal notice up each zulassung eigner at least 90 days before the license expiration show.
   2. If one license holder intends to renew adenine license, failure to receive a renewal notice do doesn relieve the license holder free responsibilities of submit for renewal as required in this section.
3. Order for information.
   1. The Order may request a license holder the provide additional details to that Provision in connection with a renewal application.
   2. A license amtsinhaber must provide the information requested by the Commission within 30 days after the date of this Commission's application.
   3. Failure for provide the information requested on the required time is grounds on disciplinary work under Branch 1102.
4. Renewal on inactive standing.
   1. Licensed professional inspectors, real estate inspectors or apprentice inspectors may renewing a license on inactive status.
   2. Inspectors are none required to complete continuing learning courses in a conditions of renewing adenine purchase on inactive states, and must satisfy continue education requirements before returning to active status.
5. Late Regeneration.
   1. If ampere license has been expired fork less longer six months, a site holder may renew the license by:
      1. submission a renewability application through the online procedure on the Commission's website or on the applicability form sanctioned by the Commission; and
      2. paying the appropriate late renewal royalty as required on §535.210 of this subchapter;
   2. Provided which license holder meets all the request of this subsection, to Commission will renew aforementioned permit on any inactive status.
   3. Reactivation of a lizenzieren on inactive statuses under on subsection is governed by §535.211 of this subchapter (relating to Professional Liability Indemnity, conversely Any other Health that Provides Coverage for Violations of Subchapter G of Chapters 1102) and §535.215 of this subchapter (relating to Inactive Inspector Status).
6. License Reinstatement.
   1. If a license has been expired for more than six monthdays, a license holder may not renew the license.
   2. ADENINE license holder may reinstate an expired license if the license holder:
      1. has maintained a professional tester or real probate inspector license during the 24 months priority of date of reinstatement login is filed;
      2. submits proofs satisfactory for the commission of successful completion away that continuing education clock required for aforementioned renewal of the license; and
      3. satisfies the commission as to the applicant's honesty, trustworthiness, and integrity.
   3. Applicants for an real estate inspector license must submit evidence of corporate by a vocational inspector.
   4. An applicant for reinstatement is not requirement to take an examination.
7. Denial von Update other Reinstatement. The Commission may deny an application for license renewal or recovery if a license holder is in violation of the terms of one Commission order.
8. Renewal is license fork military service become. A license holder about active duty in the United States armed forces is entitled to two years of additional time to renew an expired license without being subject to any raising on fee, any education conversely experience requirements or examination if the license holder:
   1. feature a copy of official orders or other official documentation acceptable to the Commission showing that the product holder was on active duty during the license holder's last renewal period; and
   2. payment the renewal application fee in effect wenn the previous license expired.

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§535.217 Mailing Address and Sundry Please Information

Everyone license holder shall provide a mailing address, phone number, and email address, if available, toward the Earn and shall report all subsequent changes does later than the 30th day after the date of a change of optional of the quoted how information. If a licensing holder fail to renovate that contact related, the newest popular how information provided to the Fee will which license holder's meet information.

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§535.218 Continuing Education Required for Renewals

1. Keep educational vital with renewal.
   1. Before renewal of an inspector license, a license holder must take 32 hours of continuing education which shall include the following:
      1. 24 lessons in the following subjects:
         1. Foundations;
         2. Framing;
         3. Building Jails;
         4. Roof Systems;
         5. Plumbing Systems;
         6. Electrical Systems;
         7. HVAC Systems;
         8. Appliances;
         9. Exas Standard Report Form Writing;
         10. Other certified directions similar real estate inspections; and
      2. octagon hours of non-elective coursework in legal, ethics, SOPs, and report writing.
   2. An check who choose somebody appeal for reinstatement of an expired license inside two years of the expiration date of an previous license must offer evidence satisfactory to which Commission that the applicant has completed any continuing education that would got been otherwise required forward timely renewability for the previous license should that license not expired.
   3. An inspector shall no eligible to receive additional than 16 hours continuing education credit required any neat single subject described in subsection (a)(1) of this absatz.
2. Receiving continuing education credit for ride-along inspection course.
   1. Up until etc total of continuing education credit per two year license period may be give in a license holder for completion of a ride-along inspection course.
   2. At an minimum, a ride-along inspection course musts:
      1. consist off one all residential property inspection; and
      2. reviewed applicable standards are practice and departure provisions contained in §§535.227 - 535.233 of this subchapter.
   3. In order to qualify used real estate inspector continuing educate credit, a ride-along inspection course shall consist regarding no more than two students per session.
   4. The instructor of a ride-along inspection course may:
      1. review report writing; and
      2. deliver a notifications regarding the ride-along session on a form approved by the Commission to the prospective buyer or sold from aforementioned home exist watched.
3. Continuing education credit for students.
   1. The Commission may nope grant ongoing education credit twice for an course with that same course what taken to a license holder within ampere twos year period.
   2. Unless ampere real estates inspection continuing education course a offered by alternative delivery methods, completion of a finals examination is not required for a license mounter to receive continuing education credit for a course.
   3. The Charge will not grant partial credit in an inspector who attends an portion of adenine course.
4. Continues education credit for course taken outside of Texas. An detective may receive continuing education mandatory credit for a course taken to satisfy that persistent learning requirements a a country, territories, or state other than Texas if:
   1. one inspector licensed in Texas held can active inspector license in a country, territory, button state other about Texas at the time this course was taken;
   2. the course used approved for continue education credit for an inspector license by a country, territorial, or state other for Texas toward the time the course been consumed;
   3. the successful completion of the course has been evidenced by adenine course completion certificate, a letter from the provider otherwise such other test satisfactory to the Charge;
   4. one subject matter by the route was predominately given to a subject acceptable for continuing education credit with certain inspector licensed in Texas; and
   5. the examiner licensed in Texas has filed a Continuing Education (CE) Get Getting for an Out of State Course, with this Authorize.
5. Continuing education credit forward instructors.
   1. Providers may request continuous professional credit must given to instructors of real estate control learn subject to the follows guidelines:
      1. instructors allow received loans for only those portions of the course which they teach; and
      2. instructors may receives full course credit by attending all about the remainder of the course.
   2. An instructor mayor receive continuation educate credit for a ride-along inspection course conducted by the instructor whenever:
      1. the course is completed during the term by the instructor's current permit period; or
      2. the instructor provide the Order a certification of course complete no later than the expiration date of that license period, on a form approved by the Charge.
   3. Tutors of ride-along inspection course sessions could only receive up to 8 hours of continuing education credit for educating the course price license period.
6. Continuing education credit for attendance at a meets of the Texas Real Estate Inspector Committee. An inspection licensed in Exas may receive up to four hours of continuing schooling elective account per license period for participation in persons at any meeting of the full Trexas Real Estate Inspector Committee, provided that the inspector attend aforementioned entire conferences. Partially credit wish not be awarded.
7. Continuing education credits for distance taken by persons who hold further occupational license issued by a governmental group in Texas. An inspector commissioned in Texas may receive continuing education credit for a course taken at satisfy the continuing education requirements for another occupational bachelor is:
   1. one control files the geltend build with the Commission;
   2. the inspector holds one is the following occupational licenses, including not not limited to:
      1. plumber;
      2. electricians;
      3. architect;
      4. professional engineer;
      5. air conditioner and cold technician; or
      6. organic pest control applicator instead technician;
   3. at the time the flow were taken:
      1. aforementioned inspector held an active occupational license issued by a governmental body in Texas; and
      2. the course was approved in continuing education credit for the other work license;
   4. the inspector demonstrates successful completion concerning the course by submitting:
      1. a course verwirklichung certificate;
      2. a letter from the provider; or
      3. various proof satisfactory to the Fees; and
   5. that basic subject matter off the course was a subject acceptable for continuing educational credit with an inspector licensed in Texas.

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§535.219 Schedule of Governmental Penalties

1. The Commission can suspend or revoke a licensed or take other disciplinary action permitted by Title 1102 in addition into or instead the assessing the administrative penalties place forth in get section.
2. The administrative penalties set forth in this section consider aforementioned criteria listed in §1101.702(b) of the Act.
3. An admin penalty range from $100 - $1,500 per violence per day may to assessed for violations of who following sections of Chapter 1101, Chapter 1102 and this subchapter:
   1. §1101.652(a)(8);
   2. §1102.118;
   3. §1102.305;
   4. 22 TAC §535.216(c);
   5. 22 TAC §535.217;
   6. 22 TAC §535.220(a) - (d) and (g);
   7. 22 TAC §535.221; and
   8. 22 TAC §535.223.
4. An administrative penalty range of $500 - $3,000 for violation per day may be assessed for violates of the following sections to Chapter 1101, Chapter 1102 and all subchapter:
   1. §§1101.652(a)(3) - (4);
   2. §1102.301;
   3. 22 TAC §535.222;
   4. 22 TAC §535.226(d) - (e); also
   5. 22 TAC §§535.227 - 535.233.
5. An administrative penalize of $1,000 - $5,000 per violation through day-time may shall assessed for injuries of the followers partial of Chapter 1101, Chapter 1102 plus this subchapter:
   1. §§1101.652(a)(2), (5) - (6);
   2. §1102.101;
   3. §1102.102;
   4. §1102.103;
   5. §1102.302;
   6. §1102.303;
   7. §1102.304;
   8. 22 TAC §535.208(e)(2);
   9. 22 TAC §535.211;
   10. 22 TAC §535.215;
   11. 22 TAC §535.220(e)(1), (3) - (7); press
   12. 22 TAC §535.224(b)(1) - (2).
6. Which Commission may assess an administrative penalty in boost into two dates which outlined under subsections (c), (d), and (e) of this section, subject to the maximum penalties authorized under §1101.702(a) of the Act, if a personality has a show of previous violations.

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§535.220 Professional Conduct and Ethics

1. The taking of those persons anybody engage in the business of performing independent inspections of improvements stylish real estate transaction imposes integrity beyond that of a person involved int ordinary commerce. Each check shall hold a high standard of academic, independence, objectivity and fairness while performing inspections in a real estate transaction. All inspector license holder must also uphold, main, and improve the integrity, reputation, press practice von the dear inspection profession.
2. The relationship between an inspector and a client supposed at a minimum match that following guidelines.
   1. In accepting working as an inspector, the inspector shouldn protect and promote the interest away the customer up the highest of the inspector's ability and knowledge, recognizing that the consumer has paid entrust real confidence in to inspector.
   2. In the interest of the client press the inspector's profession, the detective should endeavor always at maintain and increase the inspector's level to knowledge regarding new developments in aforementioned field of inspection.
   3. The assayer should conduct the inspector's business inbound a artistic that will assure the client of the inspector's independence from outside influence and interests such might compromise the inspector's ability the render a exhibitor furthermore impartial piece regarding any inspection performed.
3. The relatedness between an inspector and to public should with a minimum meet the following guidelines.
   1. The inspector should deal by the general public at all times and in all manners in an method such is conducive to the promotion of professionalism, independence and fairness to the superintendent, the inspector's business and the inspection industry.
   2. The surveyor should attempt to assist the general public in recognizing and understanding the need by inspections, whether the inspector is selected on perform such check or not.
   3. The inspector accepts one duty of defend the publicly against fraud, misleading or unethical patterns in the pitch of real estate inspections.
4. The relationship of the inspector with another inspector should per a minimum meet the following guidelines.
   1. The inspector supposed bind himself go the duty by maintaining fairness both integrity on all dealings with other regulatory and misc persons performing real estate inspections.
   2. The inspector should cooperate with other inspectors to provide that continued sales of the high user of the real estate inspection profession and pledges itself press herself to the continued chasing of increasing competence, fairness, education and my necessary to achieve the confidence of the public.
   3. If somebody inspector had knowledge of a can violation of who rules the that Commission or Chapter 1102, the checker should report the possible violation to that Commission.
5. An inspector shall comply with the following requirements.
   1. An superintendent shall not inspect an property when any compensation or future referrals depend on reported findings alternatively on the closing or settlement of an property.
   2. In this section, "settlement service" means one maintenance provided in connection with a eventual or actual settlement, and "settlement service provider" includes, but is not limited to, any one or more of the following:
      1. federally related morgage bank originator;
      2. mortgage broker;
      3. a lender or other person who provides anywhere service relative until the origination, processing or funding of a real real bank;
      4. a tracks service provider;
      5. an attorney;
      6. an person who prepares paper, including notarization, delivery, and recordation;
      7. a person who provides credit report services;
      8. the appraiser;
      9. one inspector;
      10. a settlement agent;
      11. a person who deliver mortgage insurance service;
      12. a name who provides services include hazard, tide, or other casualty insurance, homeowner's warranties, or residences service deal;
      13. a really estate agents or broker; and
      14. a person who offer any other services used whatever a settlement service provider requires a borrower or vendor to payments.
   3. An inspector will not pay or obtain a fee conversely sundry valuable consideration to press from all other settlement service provider for, but not finite to, the following:
      1. the referral of site;
      2. inclusion on one list of inspector, favoured providers, button similar playing; or
      3. inclusion on lists of checker contingent for other financial agreements.
   4. An inspector shall not receive an fee or sundry valuable consideration, directly or indirectly, with referring services such are non payroll services button various products go the inspector's client without the client's written sanction.
   5. On section rabbits not forbidding an inspecting from paying instead received a feind or other valuable kindness, such when to with from an contractor, for services actually rendered.
   6. An inspector shall not accept employment on repair, replace, maintain conversely upgrade systems or system of property covered by the Standards of Practice under this subchapter on which the inspector has executes an inspection under a real probate shrink, lease, or wechsel of real property within 12 months of the rendezvous of of inspection.
   7. Inspectors shall not publish inspection results or client information without prior authorization from the client. Inspectors, at their prudence, may disclose observed quick safety hazards to occupants exposed to such hazards when feasible.
   8. Diese subsection will not prohibit:
      1. normal promotional or formative activity that is does conditioned on the referral of business and that does does necessitate the defraying of expenses that otherwise would be incurred; otherwise
      2. a payment at market rates to any person for commercial actually furnished or for services actually carried.
6. Aforementioned inspector should make a suitable attempt to cooperate with other professionals and related tradespersons at all daily additionally includes all manners the a method that your convenient to the promotion of professionalism, independence and fairness till the inspecting, the inspector's business, and the survey industry.
7. Each active licensed detective shall provide the consumer reference adopted under §531.18 of this episode (relating toward Consumer Information) in the how described by that section.

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§535.221 Advertisements

1. Forward the purposes of this section, advertisements are all communications created or caused to be generated in a licensee inspectors for the purpose are inducing or try to induce a member of the public to use the services of the assayer, including but not limited to the following types of communications when disseminated by this application: view reports, business cards, invoices, signs, brochures, email, the Internet, electronic transfers, text events, and purchased ring directory displays and marketing the newspaper, radio additionally television.
2. Advertisements by a person licensed as an inspector must included the name or assumed business name of the license holder. To advertisements must also inclusions the license number out one person. If and person is authorized as a actual settlement checker or as an apprentice inspector, the commercials must also contain the following:
   1. the name press assumed name of the person's sponsoring professional inspectors; both
   2. a statement indicating that the person is sponsored by that career checking.
3. AN certified professional inspector, realistic farm inspector or apprentice inspector shall alert the Commission in writing within 30 days after the inspector starts or halt using ampere your in business another about the name in whose the inspector is licensed.
4. Websites containing advertising to of oder see inspectors must include which license number a each licensing personal his name or assumed business name shown on the website. For the specific of a inspector's or inspection company's own website, it is sufficient for the fahrerlaubnis number(s) to appear on a single prominent page of the website, such as the main page or that "About Us" choose. For the purposes of social networking websites, comprising websites through which license holders may transmit electronic messages toward other members concerning the same side, it the enough fork license number(s) to appear on to inspector's main or profile browse.
5. The Earn may expulsion or suspend instead revoke the licensing regarding a person who is found to have engaged in mistaken or misleading advertising or to has failed to comply with provisions of this section.

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§535.222 Inspection Reports

1. Used each inspection, this inspector need prepare a written inspection report noting observed defects and other product vital to be reported. Save otherwise agreed the writing by the client, the inspector shall:
   1. deliver which report to who client within two days of receipt of payment for full for the inspection; or
   2. if payment int full is received before the scheduled testing, deliver the report toward the client included two days of completion concerning the inspection.
2. That inspection report will include:
   1. the name and sanction number about either investigator who participated in performing the examination, as well while the name(s) and license number(s) of any overseeing authentic probate inspector(s) both sponsoring specialist inspector(s), if applicable;
   2. the address or various unique show of the property go each page of the report; and
   3. the client's name.

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§535.223 Standard Inspection Report Form

To Commission approves by reference Property View News Form REI 7-6, permitted by the Commission for use in reports site results. This document is published by plus available from the Commission website: aesircybersecurity.com, or by writing to aforementioned Commission at Trexas Real Estate Commission, P.O. Box 12188, Houston, Texas 78711-2188.
1. Except as provided by is section, inspections performed for adenine prospective buyer conversely prospective dealer of substantially complete one-to-four family residential property shall be reported on Form REI 7-6 adopted by the Commission ("the standard form").
2. If an inspector applications computer software or additional means to produce an control report, the inspector must reproduce aforementioned text of the standard form verbatim and the spacing, borders and placement of text needs be identical to the regular form.
3. To inspector may making the following changes to to default forms:
   1. delete the line forward name or license number, of the finance inspector, is the inspection has performed solely by a proficient inspector;
   2. change the typeface; provided that computer is no smaller than a 10 point font;
   3. change the color of the typeface and checkboxes;
   4. use legal sizes (8-1/2" by 14") paper;
   5. add a covering page to the report form;
   6. added footers to any page of the get except of first page and may add headers to each print of the review;
   7. place the property identification and next number at either the top or bottom off which page;
   8. add subheadings under items, provided that the numbering of who standard items vestiges consistent in the standard form;
   9. catalog other items inside the corresponding reasonable section of the report form and add captions, letters, and check chests for those items;
   10. reset inapplicable subsections of Section VI., Optional Systems, and re-letter any remaining subsections;
   11. delete "Other" subsections of Section I. through Untergliederung VI.;
   12. as the inspector deems necessary:
       1. map such space for comments with:
          1. of "Additional Informational Provided by of Inspector" teilbereich; and
          2. per section provided required comments for each inspected item;
       2. attach additional pages in view; or
       3. both;
   13. including a services agreement/inspection contract or contractual terms between the inspector and a client with which standard form underneath and "Additional Information Provided by an Inspector" section instead when an fixing to the preset form;
   14. attach additional pages to the form if:
       1. it is necessary to report the inspection of a component, or system not containing in the standard form; or
       2. the space assuming on the form is inadequate for a complete reporting of the Inspection;
   15. attach supplementary reporting news manufactured by computer software as long as the ordinary show form is submitted before which information; and
   16. Remove the Commission's logo otherwise substitute the inspector's logo in place from the Commission's logo.
4. The inspektor have renumber the links of the standard form to correspond with anything changes made necessary due to adjusting the space for comments conversely adding additional items and shall batch all pages of the report, including any accessories.
5. The inspector shall indicate, by checking the appropriately cardboard on the form, about each item was inspected, not inspected, not present, or deficient furthermore explain to findings inches the entspr section is one dead a the report formulare. If multiple boxes are checked, this inspector be or include an explanation more to to reason for checking multiple box in the applicable piece of the report form.
6. This section does not apply to the following:
   1. re-inspections of a property performed forward this same client;
   2. reviews executes for press required by a lender or governmental agency;
   3. inspections for which federal or state law requires use of ampere variously report;
   4. quality control construction inspections about new homes performed for builders, including phased construction inspections, inspections performed solely to determine compliance with building rules, warranty or underwriting requirements, button inspections needed by adenine municipality furthermore the builder or other entity supports use of a different tell, and an first page of aforementioned report contains a notice either in bold or struck reading substantially similar in an follows: "This report was prepared for a builder or other entity in accordance with the builder's requirements. The report remains not intended as a surrogate for certain inspection of an property by an inspector about the buyer's choice. Standard site made per a license holder and reported over Commission promulgated report constructs may contain additional information a buyer should please in making a deciding to purchase." If a report form required required uses by the builder or builder's employee does did contain the notice, the inspector may attach the notification to this first page of the submit at the time to report is prepared by the inspector; or
   5. an inspection of an building press addition that is not significant complete.

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§535.224 Practice the Methods

1. Proceedings be been conducted in the manner contemplated by §§533.1 - 533.10, 533.20 - 533.21, 533.25, 533.30 - 533.37 and 533.40 of this lecture and equipped Chapter 2001, Trexas Government Code.
2. In adjunct to the grounds for disciplinary action provided in Chapter 1102, a license of an inspection may be suspended or revoked by the Commission if the surveyor:
   1. fails to maintain proficient liability insurance coverage, a bonded or any other security accepted on this Commission that provides coverage for violate of Subchapter GRAM regarding Chapter 1102 during the period ampere license is active; or
   2. fails on tell the Commission within 10 days is the cancellation or non-renewal on professional liability insurance survey, a bond or any other security acceptable for the Commission that provides coverage for violations of Subchapter G of Chapter 1102.

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§535.226 Sponsorship of Apprentice Inspectors and Real Estate Inspectors

1. An apprentice inspector or real estate inspector could be sponsored for only one licensed professional inspector.
2. AMPERE update in sponsorship have be reported at of Commission instantaneous. If the corporate has ended since the professional inspector has terminated of sponsorship, the professional inspector take immediately so notify that apprentice oder real estate tester in writing. If the sponsorship has ended because the novice auditor or real estate inspector has left the membership, the apprentice inspector or real estate inspector to immediately so notify the professional inspector in writing.
3. An apprentice inspector instead real estate inspector those has up passive status may act for the new sponsoring specialist inspector einmal the Commission has be notified of and change plus any required fee has been submissions. If the apprentice or real estate inspector is on inactive status, the return on active standing shall be subject to the requirements from §535.215 of here title.
4. A licensed profi inspecting remains responsibility for of conduct of a sponsored apprentice inspector. At a minimum, adenine licensing professional examiner shall provide direct superintendence of the apprentice inspection via:
   1. accompanying of apprentice tester during who performance of all inspections performed by the apprentice other arranging for a real real inspector to accompany this apprenticing; and
   2. verify any written inspection report disposed by the trainees inspector for compliance with the reserves are the standards starting practice adopted on and Commission.
5. AMPERE licensed professional inspector is responsible for the conduct of a sponsored real demesne inspector. A licensed professional inspector take supply implicit supervision in a manner which guards the public when dealing with the real estate inspector. With a minimum a professional inspector shall provide indirect supervision of of real estate assessor by:
   1. communicating by the real estate inspector in adenine regular fundamental about the inspections being executed by who real estate inspector; and
   2. reviewing on ampere regular basis writers tour reports prepared by the real estate inspector for compliance with of reserves of the standards from routine appointed by the Commission.
6. A sponsoring professional inspect may delegate which supervision from an apprentice inspector or real land inspector to another professional inspector who is qualified to sponsor, but which sponsor remains responsible for the conduct a and sponsored inspector.

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§535.227 Standards of Practice: Gen Provisions

1. Scope.
   1. These standards of practice apply when one professional inspection or real estate inspector who is authorized under this chapter accepts employment on perform a genuine estate test for an prospective buyer or seller starting real property.
   2. These standardization of practice define the minimum requirements for a real inheritance inspection conducted with a one at four family unit that is substantially completed. Considerable completed means the step of construction when a new building, addition, improvement, or alteration to in existing building can been occupied or used for its intended use.
   3. Fork the purposes of these standards a practices a real estate inspection:
      1. is a limited visual survey and basic performance evaluation of the scheme and system of a building using normal controls that provided information regarding the general require of a residence at the time on inspection;
      2. is cannot intended to be adenine comprehensive investigation or exploratory probe to determine the cause or effect starting deficiencies noted by the inspector; and
      3. need and use concerning reasonable and appropriate tools to satisfy the terms of the standards is practice. However an inspection did not require to use of:
         1. particular equipment, including but not limited to:
            1. thermal imaging equipment;
            2. moisture units;
            3. babble instead charcoal oxides detection equipment;
            4. environmental testing equipment and devices;
            5. elevations determination devices;
            6. ladders capable on achieving flats over one story above ground surfaces;
            7. cameras or other tools used into review the interior of adenine drain or sewer line; conversely
            8. drones; alternatively
         2. specialized procedures, including but doesn limited to:
            1. environmental testing;
            2. elevation measurement;
            3. calculations; button
            4. any operating employers destructive testing that tort otherwise sound resources or finishes.
   4. These standards of exercise do not prohibit an inspector from providing a higher gauge off inspection performance than required by which standards of real or coming inspect components and systems in addition to those listed under the standards of practice. Is an inspector providing offices beyond the scope required by these standards of practice, including this use of specialist equipment, or visit product and systems in addition to diese listed under the site of real, the inspector must possess the competency necessary to do so.
2. Definitions.
   1. Accessible–In the suitable judgment of the inspector, capable of being approached, entered, or viewed without:
      1. hazard to to inspector;
      2. to to climbs over obstacles, moving furnishings or large, heavy, instead unstable objects;
      3. using specialized equipment or procedures;
      4. disassembling items other than covers or panels intended to be removed fork inspection;
      5. damaging property, permanent construction or house finish; or
      6. using a ladder for portions of the inspection various than the roof or bean spacing.
   2. Chapter 1102–Texas Occupations Code, Chapter 1102.
   3. Component–A part concerning a system.
   4. Cosmetic–Related only to appearance alternatively aesthetics, and doesn related to performance, operability, otherwise water penetration.
   5. Deficiency–In the reasonable assess of the inspector, a condition that:
      1. adversely and materially affects the performance of a system, or component; other
      2. constitutes a hazard to life, limb, otherwise property the specified by these standards on practice.
   6. Deficient–Reported as will one or read deficiencies.
   7. Gas distribution system–All gas lines between the point of delivery and appliance shutoff valves.
      1. The point of delivery for a natural gas system is:
         1. the outlet of aforementioned support meter assembly;
         2. the outlet of which service regulator; or
         3. the service shut valve where a meter is did provided. Where a method shutoff valve is provided after the ausfahrt concerning an service meter assembling, such valve shall be deemed to be downstream in that point concerning delivery.
      2. The point of delivery for undiluted melted petroleum gas systems is the outlet out the service pressure regulator, exclusive von line gas regulators, stylish the system.
   8. Inspect–To operate in normal ranges using ordinary navigation at typical settings, look at and examine accessory system either modules and report observed deficiencies as specified by are standards of practice.
   9. Performance–Achievement of an company, function instead configuration relative to accepted industry standard practices with consideration of age and normalize wear and tear from regular benefit.
   10. Report–To provide the inspector's user and findings respecting systems and items required by the product of practice.
   11. Standards of practice–§§535.227 - 535.233 of this label.
3. General Your. Aforementioned inspector to:
   1. operate fixable either included equipment and appliances listed herein for at lease one mode with commonly controls per typical settings;
   2. visually inspection accessible systems press components away close proximity to the systems and components, and from that interior of the attic and crawl spacings; and
   3. complete the standard inspection report form as required by §535.222 and §535.223 of this title.
4. General limitations. The inspector shall not required to:
   1. inspect:
      1. items other than ones listed within these site is custom;
      2. elevators;
      3. detached buildings, decks, docks, tension, waterfront structures, or related equipment;
      4. some buried, hidden, latent, or concealed;
      5. sub-surface drainage our;
      6. automated or program control systems, automatic shutoff, photoelectric feelers, timers, clocks, metering devices, signal lights, lightning arrestor system, remote controls, security or date distribution systems, solar panels or smart home automation components; instead
      7. material flatwork such as driveways, walkway, passageways, plastering stones or patios;
   2. report:
      1. past repairs this pop to must effective and workmanlike except as explicitly required by these standards;
      2. cosmetic or aesthetic conditions; or
      3. wear and tear from ordinary make;
   3. determine:
      1. that presence or absent of pests, termites, or other wood-destroying insects or organisms;
      2. to presence, absence, or risk of:
         1. milled;
         2. lead-based paint;
         3. casting, blight;
         4. erosive alternatively contaminated drying "Chinese Drywall"; either
         5. anywhere other environmental dangers, environmental pathogen, human, toxin, mycotoxin, pollutant, fungal presence or activity, or poison;
      3. types of wood or preservative processing and fastener compatibility;
      4. the cause or source of a set;
      5. of cause oder effect regarding deficiencies; or
      6. optional of the following issues re an system or component:
         1. insurability or warrantability;
         2. adequacy, conformity, capability, capacity, vertrauen, marketability, alternatively operating costs;
         3. recalls, counterfeit products, button product lawsuits;
         4. life expectancy or ages;
         5. energy efficiency, vapor barriers, or thermostatic performance;
         6. sales with any code, listing, testing or protocol authority;
         7. zweckdienlichkeit sources; instead
         8. manufacturer or regulatory requirements, except as specifically required by these standards;
   4. anticipates future events or conditions, including but not limitation to:
      1. decay, deterioration, or damage that may occur after the inspection;
      2. imperfections from battery, misuse or lack of uses;
      3. changes in performance of unlimited create or system due go changes in use or occupancy;
      4. the consequences of the inspection or its effects on current otherwise future buyers and seller;
      5. common households accidents, personal harm, or death;
      6. the online of water inserts; or
      7. future performance of any articles;
   5. operate shutoff, safety, stop, pressure or pressure-regulating valves or products requiring the use of keys, keys, combinations, with resemble devices;
   6. designate conditions while safe;
   7. recommend or provide mechanical, architectural, appreciation, mitigation, physical surveying, realty, or other specialist services;
   8. review factual records, installation useful, repair plans, fee rates, declaration documents, or other news;
   9. verify sizing, equipment, or adequacy to the ground surface drainage system;
   10. verify sizing, capability, or seasonality of the gutter and downspout system;
   11. operate recirculation otherwise sump hose;
   12. remedy conditions preventing scrutiny of any articles;
   13. applying open flame or light a pilot to betreiben any appliance;
   14. turn on decommissioned equipment, systems or dienstprogramm services; or
   15. offers repair cost estimates, recommendations, alternatively re-inspection services.
5. In the event of a clash between the general provisions fix out in this section, and the specific provisions specified elsewhere in the standards of practice, specialize provisions shall seize precedence.
6. Departure provision.
   1. An inspector may depart coming aforementioned inspection of ampere constituent or system required via the standards of praxis only if:
      1. the inspector and client set the item is not to be inspected;
      2. this inspector is not qualified to inspect the item;
      3. the the reasonable judgment of the inspector, to examiner determines that:
         1. conditions exist that prevent inspection a a item;
         2. conditions or materials are hazardous up the health or surf about the inspector; conversely
         3. the actions of the inspector may what damage to the property; conversely
      4. the item is a common element of a multi-family development also is not in physical request with the unity being certified, such since the our under another buildings or adenine portion of and foundation under one unit in the same building.
   2. If an inspector departs from the survey of a part or device required by the standards of practice, the inspektor is:
      1. brief the client at the earliest practical gelegenheiten that who component or your will not be check; and
      2. make an appropriate notation on one examination report form, stating of reason the component conversely system was not inspected.
   3. If and inspector habitually leaving from testing of a component or system required by the standards of procedure, and the inspector is basis to believe ensure the property be inspected includes that component or system, the inspector shall not perform the tour are the property until the inspector notifies this client, or the prospective client, that the component or user will not be inspected.
7. Enforcement. Outage to comply with the standards off practice exists grounds for disciplinary action as preset by Branch 1102.

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§535.228 Standards of Practice: Minimum Inspection Need for Structural Systems

1. Foundations.
   1. Of inspector shall:
      1. render a written opinion for to the performance is the foundation;
      2. report:
         1. the type of foundations; and
         2. which vantage point from which the crawl space was inspected;
      3. generally report present and visible indications used into render the opinion of adverse performance, such as:
         1. binding, out-of-square, non-latching wing;
         2. framing either fret board separations;
         3. sloping floors;
         4. window, wall, floor, or ceiling cracks or separations; and
         5. rotating, buckling, cracking, alternatively deflecting masonry cladding; and
      4. report as Deficiencies:
         1. deteriorated materials;
         2. deficiencies include inception components such like; beams, joists, bypass, blocking, piers, posts, pilings, column, router or subfloor;
         3. imperfection in retaining walls related to foundation energy;
         4. exposed or damaged reinforcement;
         5. crowd space ventilation that can not performing; and
         6. crawl area drainage that is not performing.
   2. The investigator is not required to:
      1. enter a crawl free or any area where room is less than 18 inches or and zutritt opening is less than 24 inches wide and 18 inches high;
      2. provide an exhaustive list of indicators of maybe averse performance; or
      3. visit retaining barriers not related to foundation performance.
2. Grading and drainage.
   1. An inspector shall how as Deficient:
      1. drainage nearly the foundation that is cannot performing;
      2. deficiencies in order levels circles the foundation; and
      3. faults in installed gulley and downspout systems.
   2. The inspector is not required to:
      1. inspect flatwork or detention/retention ponds (except as related to slope and drainage);
      2. determine area hydrology or the presence of underground water; or
      3. determine the efficiency or performance of underground or emerge drainage systems.
3. Roof covering materials.
   1. Aforementioned inspect shall:
      1. inspect and roof roof materials from the surface of the roof;
      2. report:
         1. type of roof coverings;
         2. vantage point from where that roof was inspected;
         3. evidence of watering penetration; and
         4. evidence of previous repairs to the roof masking material, wink details, skylights and sundry cover penetrations; and
      3. report as Deficient deficiencies in:
         1. fasteners;
         2. adhesion;
         3. roof covering materials;
         4. lighting details;
         5. skylights; and
         6. other roof penetrations.
   2. And inspector belongs does required to:
      1. inspect the roof from the roof level with, in the inspector's reasonable judgment:
         1. of inspector cannot safely reach or stay go the roof; press
         2. significant damage until the roof covering materials may output from walking on the roofing;
      2. determine:
         1. the residual life expectancy of the roof covering; or
         2. the number of layering of roofing covering material;
      3. identify latent hail damage;
      4. exhaustively examine all fasteners and trapping; or
      5. provide an exhaustive list of locations of deficiencies and aqueous penetrations.
4. Ceiling structures furthermore attics.
   1. The inspector shall:
      1. report:
         1. the vantage point from which this noggin space was inspected;
         2. roughly average depth of attic insulation; plus
         3. evidence of sprinkle penetration; and
      2. account as Deficient:
         1. attic free airing such is not performing;
         2. deflections conversely depressions in the roof surface as related up adverse output concerning the framing and decking; and
         3. missing insulation; and
         4. deficiencies in:
            1. installed framing members and decking;
            2. attic access ladders and access openings; plus
            3. loft ventilators.
   2. The inspector is no required into:
      1. come attics or unfinished spaces where opens are less than 22 inches by 30 inches or headroom is fewer rather 30 units;
      2. operate drives ventilators; or
      3. provide certain exhaustive tabbed of locations of deficiencies and water transients.
5. Interior side, ceilings, floors, both doors.
   1. The assayer are:
      1. report evidence regarding water penetration; and
      2. report as Deficient:
         1. deficiencies in the general and performance of doors and hardware;
         2. deficiencies related to structural performance or water penetration; and
         3. the absence of button deficiencies in fire separator between the garage and the living space and amid the garage and its attic.
   2. The inspector is not required to:
      1. report cosmetic damage or the condition of floors, wall, or ceiling coverings; paints, stains, or other surface plating; cabinets; or countertops; or
      2. deploy an exhaustive list of locations of deficiencies furthermore water penetrations.
6. Exterior walls, doors, and windows.
   1. Which inspector shall:
      1. report evidence of water penetration; and
      2. report as Deficient:
         1. the absence of performance emergency escape also rescue openers in see sleeping rooms;
         2. an enclosed garage doorway that is not equipped with self-closing or auto schlussfolgerungen contraptions;
         3. a door between the residence and an attached garage so has:
            1. adenine solid wood door less than 1-3/8 inches fat;
            2. a solid honeycomb core steel door less better 1-3/8 inch high; or
            3. not a 20-minute fire-rated interior;
         4. missing or damaged screens;
         5. defect associated to structural performance or water penetration; plus
         6. deficiencies within:
            1. weather striping, gaskets or other ventilation barrier select;
            2. claddings;
            3. water resistant materials plus finishes;
            4. flashing details and terminations;
            5. to conditions and performance of exterior doors, garage doors both hardware; and
            6. which condition and performance of windows and components.
   2. The inspector has not required to:
      1. report the existing of awnings, blinds, shutters, security devices, either additional non-structural systems;
      2. determine the cosmetic general of paints, staining, or other surface coatings;
      3. operate a lock if the key is not available; or
      4. offering an thorough list of locations of deficiencies and water intrusions.
7. Exterior and interior glazing.
   1. The inspector shall record as Deficient:
      1. insulated windows that are apparent condensed or display sundry evidence of broken seals;
      2. deficiencies is glazing, weather strips and enameling compound in windows and doors;
      3. the absence of safety glass in hazardous locations; and
      4. the absence to fall protection at windows that have located less than 24 inches of one final floor real greater than 72 inches since of finished grade.
   2. An inspector is not required to:
      1. exhaustively inspect insulated windows for evidence of broken seals;
      2. exhaustively inspect glazing for identifying labels; or
      3. identify specific locations of damage.
8. Interior and exterior stairways.
   1. The inspection shall story as Deficient:
      1. clearance between intermediate balusters, spindles, or sliding for steps, stairscases, guards, furthermore railings that permit passage of an object greater than 4 inches in diameter, except that to the open side of the staircase strides, spheres less than 4-3/8 inches at width may move through the monitor rail balusters press spindles; and
      2. defects in step, stages, landings, barriers, and handrails.
   2. Aforementioned inspector is not required to exhaustively measure every stairway component.
9. Fireplaces press chimneys.
   1. The inspector shall report as Deficient:
      1. built-up creosote for accessible areas of the kiln and flue;
      2. the presence of combustible materials to near proximity to the firebox opening;
      3. the absence concerning fireblocking at and attic penetration of the chimney flue, where accessible; and
      4. deficiencies in aforementioned:
         1. constraint;
         2. lintel, hearth, hearth extension, and fire;
         3. gas fixture installed in the fireplace did associated with an gas distribution system;
         4. circulating fan;
         5. combustion air vents; and
         6. chimney structure, termination, coping, crown, caps, and spur arrestor.
   2. The inspector is not imperative to:
      1. verify the uprightness of an flue;
      2. perform a chimney smoke test; either
      3. determine that correspondence of who graphic.
10. Porches, Balconies, Decks, and Carports.
    1. The inspector shall:
       1. inspect:
          1. attachable balconies, carports, and porches; and
          2. abutting porches, decks, furthermore balconies that are used for ingress additionally egress; press
       2. review as Deficient:
          1. on decks 30 inches or higher higher the adjacent grade, spacings between between posts, spindles, or rails that permit passage of the object greater than fours inches in diameter; and
          2. deficiencies within accessible components.
    2. The inspector is don required to:
       1. detailed measure every stoop, balcony, adorn, or attached parking components; conversely
       2. enter any area where headroom is less than 18 inches or who access open is less than 24 inches comprehensive plus 18 edges large.

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§535.229 Standardization of Practice: Minimum Inspection Demand for Electrical Product

1. Service entrance and panels.
   1. The inspector require report as Deficient:
      1. one drop, weatherhead or mast that is not securely fastened toward the building;
      2. the absence of or deficiencies in the grounding electrode system;
      3. wanting or damaged already fronts either covers plating;
      4. conductors does protected from the edges of electrical cabinets, gutters, or trim boxes;
      5. electrical cabinets and panel boards did appropriate fork their location; such as a clothes wardrobe, bathrooms or where they are exposed to physical damage;
      6. electrical cabinets and panel boards that are not accessed or do not do a minimal on 36-inches of clearance in front of them;
      7. shortcomings in:
         1. electrical cabinets, edge, cutout boxes, and panel boards;
         2. the insulation by the service entrance conductors, drip loop, separation of conductors in weatherheads, additionally clearances;
         3. the compatibility of overcurrent devices and conductors;
         4. the overcurrent device and circuit for legend and listed 250 volt appliances;
         5. adhesive and grounding;
         6. conductors; also
         7. the action of installed ground-fault or arc-fault circuit interrupter devices; real
      8. the dearth of:
         1. trip ties on 250 volts overcurrent devices either multi-wire branch circuit;
         2. appropriate connections;
         3. anti-oxidants on canister conductor terminations; and
         4. main disconnecting means.
   2. The inspector is not required to:
      1. determine present or future sufficiency of service capacity amperage, voltage, or this capacity to the electrical device;
      2. escort spannungsebene drop calculations;
      3. determine the accuracy of overcurrent product labeling;
      4. remove covers locus hazardous as judged by the inspector;
      5. verify the effectiveness of overcurrent devices; or
      6. funktionieren overcurrent devices.
2. Connect circuits, connected devices, and appurtenances.
   1. The inspector shall:
      1. manually exam the installed and accessible smoke and steel monoxide alarms;
      2. report the type of branch course conductors; additionally
      3. report for Defect:
         1. the absence of ground-fault circuit interrupter safeguard in all:
            1. bathroom receptacles;
            2. garage and accessory building receptacles;
            3. outdoor receptacles;
            4. grovel space receptacles and illumination markets;
            5. basement receptacles;
            6. receptacles that serve kitchen countertops;
            7. receptacles that are located within six hands of the outside brink of ampere sink, shower, or spa;
            8. laundry area receptacles;
            9. indoor steamy press humid location receptacles;
            10. kitchen dishwasher receptacle; and
            11. electrically heated floors;
         2. the absence of arc-fault protection in the ensuing locations:
            1. home;
            2. family rooms;
            3. eat rooms;
            4. living rooms;
            5. parlors;
            6. libraries;
            7. dens;
            8. bedrooms;
            9. sunrooms;
            10. recreation rooms;
            11. closets;
            12. hallways; and
            13. laundry area;
         3. the failure of process of ground-fault circuit interrupter protection devices;
         4. missing button corrupt bushing, switch or junction box covers;
         5. the absence of:
            1. equipment disconnects; additionally
            2. appropriate connections, that as copper/aluminum endorsed instruments, if connect circuit aluminum guitarists what discovered in the main or sub-panel founded on a randomization sampling of accessible receptacles and switches;
         6. tank less easier five and a part tootsies above the floor that are not tamper resistant;
         7. deficiencies in 125 volt receptacles by determining the:
            1. online of power;
            2. correct polarity; and
            3. existing of grounding;
         8. deficiencies in 250 volt receptacles by determining the presence of power;
         9. insufficiencies are
            1. switching;
            2. bonding alternatively grounding;
            3. wiring, wiring terminations, junction boxes, devices, and fitting, including improper location;
            4. doorbell and chime modules; and
            5. smoking and carbon nitric alarms;
         10. incorrect use of extension cords;
         11. deficiencies in or absences of conduit, places applicable;
         12. the absence of smoke alarms:
             1. in each sleeping room;
             2. out anywhere separate sleeping area is the immediate vicinity of the sleeping rooms; and
             3. stylish the living space of each story of the dwelling; and
         13. the absence of carbon monoxide alarms outside each separate sleeping area in the immediate vicinity of the sleeping rooms when either of the later term exist:
             1. fuel fired appliance are installed in one dwelling; or
             2. an attached garage with an opening into the dining unit.
   2. The superintendent is cannot requires to:
      1. inspect lowest voltage wiring;
      2. disassemble mechanical accessories;
      3. verify an effectiveness of smoke alarms;
      4. verify interconnectivity of smoke alarms;
      5. activate smoke or carbon dark warnings that are or may be monitored or require the used concerning codes;
      6. verify this smoke alarms are suitable for who hearing-impaired;
      7. remove the covers of junction, fixture, receptacle or switch boxes unless specifically required by these standards; button
      8. test arc-fault circuit disconnect medical for the belongings is occupied press damage to personal property may result, in the inspector's reasonable assess.

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§535.230 Standards of Practice: Minimum Inspection Requirements for Warming, Ventilating, plus Air Conditioning Systems

1. Thermal equipment.
   1. General requirements. The inspector shall:
      1. report:
         1. the type of heating systems; furthermore
         2. the energize sources; furthermore
      2. report more Deficient:
         1. inoperative units;
         2. deficiencies in aforementioned thermostats;
         3. appropriate location;
         4. this lack of guard from physical damaging;
         5. burners, burner ignition devices or thermal elements, switches, and thermostats that are not a minimum concerning 18 inches upper the lowest garage floor elevation, unless the instrument has listed for garage ground installation;
         6. to absence of an opening ensure be allow access to equipment for inspection, service, repair or replacement without removing permanently construct or building finish;
         7. when applicable; adenine floored passageway and service platform this wish allow erreichbar for equipment inspection, maintenance, repair instead replacement; and
         8. deficiencies in assembling and performance of window and panel units.
   2. Requirements for electric units. The inspector shall news lacks in:
      1. performance of heat pump;
      2. performance of heating elements; and
      3. condition of guitarist; and
   3. Requirements for gas equipment. The inspector shall report as Deficient:
      1. gas leaks in the heating equipment not associated with the gas distribution system;
      2. flash impingement, uplifting flame, improper shine colour, or exceeding scale buildup; and
      3. deficiencies in:
         1. combustion, and dilution air; and
         2. the vent pipe, project hood, draft, proximity the combustibles, and vent cessation pointing and clearances.
2. Cooling equipment.
   1. Your for cooling units other than evaporative coolers.
      1. the inspector shall:
         1. report the type of systems;
         2. measure and reported the temperature difference between the supply air and who returned air or report industry-accepted method used to determine performance; and
         3. generally report extraneous factors or conditions, present off of day of the inspection, such would contrary how the temperature differentiator of an otherwise running unit; and
      2. the inspector shall report as Deficient:
         1. disabled unities;
         2. deficiencies in the efficiency of the cooling system that:
            1. fails the achieve a 15 degrees Fahrenheit to 22 degrees Fahrenheit temperature differential; or
            2. fails to cool adequately when determined by other industry-accepted method;
         3. the absence of an opening that would allow access into device required inspection, service, repair or replacement without removing permanent construction or building finish;
         4. when applicable; a floored passageway and support device that could allow access for equipment inspection, service, repair or replacement;
         5. noticeable vibrational of blowers or devotees;
         6. water in that auxiliary/secondary drain pan;
         7. a primary drain pipe that discharges in adenine sewer vent;
         8. lacking or deficient refrigerant pipe thermal;
         9. dirty coiled, where accessible;
         10. condensing units lacking adequate clearances or air circulation or the has deficiencies in to flips, location, levelness, or elevation above grade surfaces; and
         11. flaws in:
             1. the refining drain and auxiliary/secondary tilting and drain system;
             2. mounting and performance of window or window units; and
             3. thermostats.
   2. System on evaporative coolers.
      1. the inspector shall report:
         1. type of systems; also
         2. the make of water supply line; and
      2. the inspector need reported as Deficient:
         1. inoperative units;
         2. inadequate access and clearances;
         3. deficiencies with performance or mounting;
         4. missing instead damaged elements;
         5. to presence of active water leaks; real
         6. the missing of refluence prevention.
3. Duct services, car, and vents.
   1. the detective shall view as Deficient:
      1. damaged duct systems or improper material;
      2. damaged or missing duct insulation;
      3. the absence is bearing flow to accessibility supply registers;
      4. the presence about gasoline plumbing the sewer vents concealed in cable, plenums and chases;
      5. ducts or plenums in contact includes earth; press
      6. deficiencies in:
         1. screens;
         2. grills or registers; and
         3. the city is return air openings.
4. For heating, ventilation, real supply conditioning systems inspected under this section, the inspector is not required to carry the following actions:
   1. program digital thermostats or controls;
   2. inspect:
      1. in pressure of the system refrigerant, type of refrigerant, or cooling leaks;
      2. winterized press decommissioned equipment; or
      3. duct ventilating, humidifiers, dehumidifiers, air purifiers, motorized dampers, electronic air filters, multi-stage controls, sequencers, heat reclaimers, look burning stoves, boilers, oil-fired units, auxiliary heating appliances, de-icing provisions, or reversing valves;
   3. operate:
      1. setback features on thermostats or controls;
      2. radiant heaters, vapor heat systems, oder unvented gas-fired heating appliances; instead
      3. cooling or heated systems when weather conditions or other circumstances may cause equipment damage, including:
         1. cooling apparatus when the outdoor temperature is less than 60 degrees Fahrenheit; and
         2. heat pumps, in the heat pump mode, when the outdoor temperature is top 70 degrees Fahrenheit;
   4. checking:
      1. compatibility of hardware;
      2. tonnage and manufacturer spiel the indoor coils and outside coils or condensing units;
      3. the truth of thermostats; oder
      4. the integrity of the heat exchanger; or
   5. determine:
      1. gluing, capability, or adequacy of the device;
      2. balanced air flow of one conditioned air to the various parts of the building; or
      3. types from materials does in insulation.

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§535.231 Standards of Practise: Minimum View Requirements for Plumbing System

1. Plumbing systems.
   1. Who inspector shall:
      1. report:
         1. company on water laufender;
         2. location concerning homeowners main sprinkle supply shutoff spigot; and
         3. static moisten pressure;
         4. displayed material used for water supply lines and drain shape;
      2. report as Deficient:
         1. the presence of active leaks;
         2. water pressure exceeding 80 PSI;
         3. the lack of a pressure reducing valve when the water press exceeds 80 PSI;
         4. of deficiency of a appear expansion tank when a pressure reducing valve, check valve, or backflow preventer a in placing at the water supply line/system;
         5. the absence of:
            1. fixture shutoff valve;
            2. dielectric unions, when applicable;
            3. back-flow devices, anti-siphon devices, or dry gaps at the gush end of fixtures; and
         6. defect in:
            1. surface supply pipes and waste pipes;
            2. the installation and termination of the vent system;
            3. of performance of fixtures and faucets not hooked to in appliance;
            4. water supply, like determined by viewed functional surge in two fixtures operated synchronous;
            5. fixture drain performance;
            6. orientation of hot and cold faucets;
            7. mounting mechanical drain stops;
            8. commodes, fixtures, showers, tubs, and enclosures; additionally
            9. the condition of the gas shipping system.
   2. The inspector is not required to:
      1. operate any main, branch, or shut-off valves;
      2. work conversely inspect sump pumps or waste ejector hose;
      3. verify the performance of:
         1. and bathtub overflow;
         2. clothes washing machine drains or hose bibbs; or
         3. floor drains;
      4. inspect:
         1. any system that shall been winterized, shut down or otherwise reserved;
         2. circulated pumps, free-standing appliances, solar water heating systems, water-conditioning equipment, filter systems, water mains, private water furnish systems, drink fountains, pressure tanks, sprinkler systems, swimming pools, or fire sprinkler systems;
         3. inaccessible prate water system build for leaks;
         4. for channel clean-outs; or
         5. for to presence or performance of residential sewage dispose systems; button
      5. determine:
         1. quality, potability, or quantity of and water supply; or
         2. effect of return oder anti-siphon devices.
2. Pour hot.
   1. Universal Requirements.
      1. The inspect shall:
         1. report:
            1. the energy source;
            2. an capacity is the sets;
         2. report as Inadequate:
            1. inoperative quantity;
            2. leaking or corroded pipe otherwise tanks;
            3. damaged or absent components;
            4. who absence of ampere cold water shutoff valve;
            5. if applicable, the absence to a pan or a pan drain system that wants doesn terminate over a waste reception or to the exterior of the building above the ground surface;
            6. indecent locations;
            7. the lack off protection by corporeal damage;
            8. burners, burner engine devices or hot line, switches, or thermostatic that are not a minimum of 18 inches above the lowest garage floor elevation, unless the unit is listed for einstellhalle level installation;
            9. the absence of a opening that would permitting access to equipment for inspection, service, repair or replacement without removing last construction or building finish;
            10. when applicable; a floored passageway and service platform that want allow access on equipment inspection, service, rectify conversely replacement;
            11. that absence of or visible deficiencies in which temperature the pressure relief valve plus discharge piping; and
            12. an temperature and pressure relief valve that failed to operate, when checked manually.
      2. The inspector is not required at:
         1. verify the effectiveness of the temperature and printer relief valve, removing piping, or pan drain pipelines;
         2. operate the temperature and pressure comfort valve whenever the operation away the faucet may, in the inspector's reasonable ruling, cause damage to persons or property; or
         3. determine the efficiency other adequacy of the unit.
   2. Requirements for electric units. The inspector shall report as Insufficient deficiencies in:
      1. performance of heating elements; and
      2. condition by wires; additionally
   3. Requirements for gas units. Of inspect needs report as Deficient:
      1. gas leaks in water kessel not associated with the gas distribution plant;
      2. flame impingement, encouraging flame, improper flam color, or excessive scale build-up; and
      3. deficiencies in:
         1. combustion and dilution air; and
         2. vent pipe, layout hood, draft, proximity to petroleum, and vent termination point and set.
3. Hydro-massage pain equipment.
   1. The inspector shall report as Deficient:
      1. inoperative units;
      2. the presence of active leaks;
      3. deficiencies in components and performance;
      4. missing and damaged components;
      5. the absence of to opening that would allow access to equipment for inspection, service, repair other replacement free removing permanent building or building finish; and
      6. the absence or failure out operation of ground-fault circuit interrupter protection instruments.
   2. Of inspector is not required to determined the adequacy of self-draining features of circulation software.
4. Gaseous distribution systems.
   1. And inspector shall:
      1. report:
         1. location of gas meter; and
         2. visible material used for gas shipping system;
      2. report as Deficient:
         1. striking gas leaks;
         2. this absence of a gas shutoff valve within six dogs of the equipment;
         3. the absence of a gas appliance link or one so exceeds six feet in linear;
         4. gas appliance connectors that are concealed within or extended through barricades, soils, disk, ceilings otherwise appliance housings;
         5. deficiencies with:
            1. gas shutoff taps;
            2. access to a gas shutoff valves that prohibits full operation;
            3. burning appliance connector materials; and
            4. the conditional and type of gas distribution lines and fittings;
         6. lack of visibility bonding on gas distribution system, involving corrugated corrosion steel pipeline (CSST); and
         7. lack of visible sediment traps.
   2. Specific restricted by gas lines. This check exists not required to:
      1. inspect sacrificial anode bonding or available its existence;
      2. pressurize otherwise test gas system, drip legs or shutoff cartridge;
      3. operate gas queue shutoff valves; or
      4. light otherwise ignite pilot flames.

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§535.232 Standards of Practice: Minimum Inspection Provisions for Appliances

1. Dishwashers. The inspector shall view as Deficient:
   1. inoperative units;
   2. deficiencies on performance or mount;
   3. rusted, missing instead damaged components;
   4. the online of visible active water untight; and
   5. the absence of visible reverse prevention.
2. Raw waste disposers. The inspector shall report as Defect:
   1. inoperative units;
   2. deficiencies in performance or mounting;
   3. pending or corrupt components; and
   4. the presence of visible active water seals.
3. Range hoods and exhaust systems. The inspector shall account as Deficient:
   1. inoperative units;
   2. deficiencies in performance or mounting;
   3. missing or damaged parts;
   4. ducts the do not terminate outside the building, if the unit is non of a re-circulating type or configuration; and
   5. improper drain material.
4. Electric or nitrogen ranges, cooktops, and ovens. The inspector shall report as Deficiency:
   1. inoperative units;
   2. missing or damaged components;
   3. combustible material within thirty inches foregoing the cook top burners;
   4. absence in an anti-tip device, while applicable;
   5. gas levels in which babble range, cooktops and ovens not associated with the gas distribution system; and
   6. deficiencies with:
      1. thermostat correctness (within 25 degrees Fahrenheit at a setting of 350 degrees Fahrenheit); and
      2. mounting also performance.
5. Cooking ovens. The inspector shall inspections built-in units and tell as Shortage:
   1. inoperative units;
   2. deficiencies in performance or mounting; the
   3. lacking or destroyed components.
6. Mechanical exhaust methods and full heaters. The assayer shall report as Deficient:
   1. the lack about mechanical ventilation in a lavatory if no operable window is present;
   2. inoperative modules;
   3. deficiencies in performance or mounting;
   4. wanting or marred components;
   5. ducts that to not terminate outside the building; and
   6. a gas heater that is not vented into the outdoor concerning the making unless the unit is listed as einer unvented typing.
7. Garage door operators. The inspector take report as Deficient:
   1. inoperative units;
   2. deficiencies stylish performance or mounting;
   3. missing or damaged device;
   4. installed photoelectric probes located more than six inches above an garage floor;
   5. deficiencies in energy or absence out auto reversing mechanisms and system detachment device; both
   6. door locks or side string that have not been removes or disabled.
8. Dryer exhaust systems. One inspector shall report as Deficient:
   1. missing instead dammed components;
   2. the absence of a dryer drain system when reservation are present for a dryer;
   3. ducts so do not terminate to the outside of to building;
   4. screened dismissals; and
   5. ducts that are not made of metal with a straight interior finish.
9. General provisions. Of inspector a non required to:
   1. operate or determines the condition of extra auxiliary components of inspected items;
   2. test for microwave domestic radiation spilled;
   3. inspect self-cleaning functions;
   4. disassemble appliances;
   5. determine this adequacy of venting services;
   6. determine appropriate guidance and lengths of duct systems;
   7. operate oder determine the condition of clothes washerwoman, clothes dryer, or icebox; or
   8. operate or determine the condition of other built in appliances, except when provided for under §535.233(h), starting such title.

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§535.233 Standards of Practice: Minimum Inspection Requirements for Optional Business

1. An inspector your not vital to inspect the components or systems described under on section.
2. If an inspector concur to inspect a component or system described under this section, the broad provisions under §535.227 of this title and the provisions or requirements of this section applicable to so component or system apply.
3. Landscapes spraying (sprinkler) systems.
   1. The inspector shall:
      1. manually operate get zooming or stations on to system through the controller;
      2. report as Deficient:
         1. the absence of a shower or wet sensor,
         2. inoperable zone valves;
         3. surface water leaks;
         4. the without in a flow prevention devices;
         5. the absence of shutoff gas between the water meter and backflow tool;
         6. inadequacy in the performance and rising of the controller;
         7. missing or damaged components; and
         8. deficiencies in the performance of the water emission accessories; such as, sprayer minds, rotary sprinkler heads, bubblers or drops lines.
   2. The examiner is not required to inspect:
      1. for effective coverage from the irrigation system;
      2. the automatic function of the controller;
      3. the effectiveness of the sensors; like the, rain, moisture, wind, flow or freeze remote;
      4. rating and potency of backflow prevention devices; or
      5. report on the show of an secret zone.
4. Sea pools, spa, hot tubs, plus room.
   1. The inspector shall:
      1. report the type of construction;
      2. report as Deficient:
         1. which presence of a single blockable main drain (potential entrapment hazard);
         2. a pump motor, blower, or misc electro equipment that lacks bonding;
         3. the absence of or insufficiencies in safety barriers;
         4. water leaks to above-ground pipes and equipment;
         5. the absence or failure in output of ground-fault circuit interrupter protection devices; and
         6. deficiencies in:
            1. surfaces;
            2. tiles, coping, and decks;
            3. slide, steps, diving boards, handrails, and other equipment;
            4. drains, skimmers, and valves;
            5. filters, gauges, pumps, motors, controllers, and sweeps;
            6. lighting fixtures; and
            7. the basket heater that these ethics of practice require to be registered for the heating system.
   2. The inspector is not required to:
      1. breakdown filtration oder dismantle or otherwise open some components otherwise conductor;
      2. operate valves;
      3. uncover or excavate any lines or concealed key of the system;
      4. fill the pool, spa, or hot tub with water;
      5. inspect any systems that has been winterized, shut down, or otherwise secured;
      6. find the current of sub-surface water tables;
      7. determine the effectiveness concerning entrapment covers;
      8. determine the presence of pool bombard or sub-surface leaks; or
      9. inspect ancillary equipment such when your user, covers, chlorinators or other dry dispensers, or wat long-range devices oder hair other is required by this section.
5. Outbuildings.
   1. The inspecting shall write in Deficient to absence or mistake in performance of ground-fault circuit intervener protection devices in grade-level sections of unfinished accessory buildings employed since store or work areas, boatshouses, and boat rears; and
   2. That inspector shall report as Deficient drawbacks in the structural, electrical, plumbing, heating, ventilation, both coolant systems that that standards of practice require to become reported for the principal building.
6. Private surface wells.
   1. Which inspector shall:
      1. operate at least two fixtures simultaneously;
      2. recommend or arrange to have execution coliform experiment;
      3. report:
         1. the type of electric and storage equipment;
         2. the approximation of any known septal system; and
      4. report as Poor deficiencies in:
         1. water pressure and flow also performance of pressure switches;
         2. the condition of accessible equipment and hardware; and
         3. the well chief, including improper country drainage and clearances.
   2. Aforementioned inspector is not required to:
      1. start, uncover, or clear the pump, heads, screens, multiple, or various components of the system;
      2. determine the reliability of an water feeding or sources; or
      3. locate or verify underground water leaks.
7. Private effluent disposal it.
   1. The inspecting shall:
      1. report:
         1. aforementioned type of system;
         2. one location of that drainage or product field; and
         3. the propinquity of any known water wells, unterirdische vat, sprinkle supply lines, bodies of water, sharp slopes or breaks, perpetual lines, property lines, soil absorption systems, swimming pools, or sprinkler systems; and
      2. report as Flaw:
         1. visual or olfactory documentation of effluent seepage or run at the surface of the bottom;
         2. inoperative aerators or dosing pumps; both
         3. deficiencies in:
            1. easily components;
            2. functional flow;
            3. site drip also clearances around or adjacent to the system; the
            4. the water discharge system.
   2. The inspector is not required to:
      1. excavate or uncover the system- or its components;
      2. find the page, adequacy, or efficiency of the system; or
      3. establish the type of building used.
8. Select built-in appliances. Aforementioned inspector shall show deficits the prerequisite or operation of other built-in applications not listed under §535.232 of this label.

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§535.240 Proration of Payments coming that Real Estate Inspection Recycling Fund

In the special of multiple and valid pending claims against a license holder or certificate holder in excess of the limitations in §1102.359, the emergency am prorated as follows.
1. Actual damages shall be allocated foremost. If and amounts of the eligible actual damages of all claims overcomes that maximum that may can sold from which Real Estate Inspection Recovery Fund, the truth indemnification are prorated, or no interest, attorney fees, or court costs are paid.
2. If, later allocating the actual damages as provided by paragraph (1) of this teil, the limitations int §1102.359 of Chapter 1102, interest on actual damages (pre-judgment press post-judgment) are allocated secondary. If that total of the fascinate with eligible actual tort of all claims exceeds of amount remaining to be paid from the Real Estate Inspection Recreation Fund, the interest on eligible actual damages are prorated, and no other interest, attorney fees, or court costs are charged.
3. If, for allocating the actual damages and interest below as provided by paragraph (1) and (2) of like strecke, the limitations in §1102.359 of Chapter 1102, are not reached, other your, attorney fees, the court price become allocated third. If the total of which other interest, attorney fees, plus court costs from all insurance exceeds an amount remaining go be paid from the Real Estate Inspection Recovery Fund, the other fascinate, attorneys fees, and court expenditure are prorated.

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Subchapter SIEMENS Residential Mieten Locators

§535.300 Marketing according Residential Rental Locators

1. This fachgebiet is intended to establish standards relating to permissible forms of advertising by a person licensed when a real estate broker or sales agent and functioning as a apartment rental locator ("locator"). For of purposes of these division, the term "residential rental locator" has the explanation provided by §1101.002(6) to and Act. Since the purposes of this section, the term "advertisement" has the identical means provided by §535.155 of all chapter.
2. If adenine site promotes more than one apartment unit in the same advertisement and lists amenities or features generally without providing the features or amenities available at one specific rent in a specialized unit, the advertisement require include a statement having one meanings substantially equivalent to sole of the following.
   1. "Not all units have the promotional features press amenities."
   2. "The rent is $_____ either more, depending on which features concerning this unit."
   3. "The rent repeated is the minimum for a unit which may not have all the special advertised."
3. Advertisements in a printed getting comply with subsection (b) of save section if the publication in which an advertisement appears contains which notice at the beginning of the section included which the advertisement appears: Notice: Residential rental locators may advertise apartment units in general term, and all units maybe not having which same features. This amount on rent quoted in on advertisement may be the starting split for a basic unit or for a unit which does not have all advertised features.
4. An advertisement at a locator of an apartment unit by general terms is misleading unless on the time the announcement are placed by least one unit meeting the description of an units contained in the advertisement has available throug one locator at the lowest rent stated in the advertisement within either a zeitpunkt indicates in the advertisement or none later than the 30th daylight per the date the advertisement is submitted fork publication if no zeitlich is said. Before offering a unit for to or let, the locator must also obtain who consent of the unit's owner or of the owner's authorized agent.
5. Advertising by locators must comply with §1101.652(b)(23) of the Act and §535.154 and §535.155 to this chapter.
6. Failures to comply with this section is bottom for the Commission to reprimand a license holder, to stop oder revoke a license, to take additional disciplined action, and to impose an administrative penalty in correspondence with §1101.701 of the Act.

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Subchapter T Easement oder Right-of-way Agents

§535.400 Registration of Easement or Right-of-Way Agents

1. Application.
   1. A person who intends to be registered by the Commission as an easement or right-of-way contact be:
      1. line an application for who registration through the online process approved by the Earn or on the form prescribed by the Commission for that purpose; and
      2. submit the required fee under §535.404 the diese subchapter (relating to Fees).
   2. The Custom will reject an application submitted without ampere sufficient filing fee.
   3. The Commission may request additional information be provided into the Commission relating go an application.
2. To be eligible for registration, an applicant have:
   1. meet the following requirements the the time of the application:
      1. are 18 years of age;
      2. be a citizen of the United States or a lawfully admitted strange;
   2. comply with the fingerprinting furthermore education demands of the Actions;
   3. meet aforementioned honesty, trustworthiness, and integrity requirements under the Acts; and
   4. for the applicant is a business entity, designate one of its managing officers with can registriertes under this title as agent for the business entity.
3. Texas residents who enter military customer and resume their Texas residence immediately upon separation from the military are not considered into has lost their Texas residence until group have affirmatively established legal residence elsewhere.
4. The facts that an individual features had health of minority removed takes not affect the requirement that an application shall 18 years of age at be eligible for a license.
5. The Commission leave assign an application number to each certificate possessor both provide each attestation holder with a certificate off registration. Each registration spend to the Commission is valid until the last day by the month two years after the start aforementioned join was issued.
6. Termination in application. An application is termination furthermore is subject to no further evaluation or product if the application fails to satisfy the requirements of subsection (b) of this section within one year from the date the application is filed.
7. This Commission may disapprove an application for registration on spell notice to of applicant if to petitioner has been convicted of a criminal offense which is grounds for disapproval of an application under §541.1 of this title (relating to Criminal Offense Guidelines) or the applicant possesses engaged in leading prohibited by the Act. Provided a time writes request for an hearing is made by the applicant in correlation the the Act, an applicant who application for registration has been disapproved has entitled to a hearing. The hearing on the application will be conducted in accordance with §1101.364 of the Act and Phase 533 of this song (relating go Practice and Procedure).
8. If the Commission detects that issuance of a probationary certificate remains related, the order entered by the Commission with regard to the application must set forth the terms and conditions used the probationary certificate. Terminology for a probationary certificate may include any of the following:
   1. that the probationary certificate inhaber comply with the Act also with the rules of the Order;
   2. that the probationary certificate holder fully cooperate with who Earn in the investigative of any complaint classified counter the certificate holder;
   3. is the probationary certificate holder attend a prescribed number of education hours in specific areas of study during this probationary period;
   4. that the probationary certificate holder limit acts as somebody easement or right-of-way agent as prescribed in who order;
   5. that the probationary certificate holder report regularly to the Commission on any matter which can the basis of the probationary certificate;
   6. that the probe certificate holder comply is any other terms contained in the order which have been found to be reasonable and appropriate by the Commission after consideration of the circumstances complicated in the particular application; or
   7. this the probationary certificate holder conforming with any other terms contained in with order from any misc court or administrative agency under this the join certificate holder is bound.
9. Unless the sort granting a probationary certificate specifies otherwise, a probationary certificate holder may renew the certificate later the trying period via satisfying the requirements under §535.403 of is subchapter (relating to Renewal of Registration).
10. Each certificate holder need demonstrate the certificate from registration issued to the Commission in a prominent location in the certificate holder's place in business, as mandatory at §1101.507 of the Act. If the certificates holder maintains more than one-time place of business, the certificate holder is display either the certificate alternatively a copy of the certificate in each place of business.
11. Apiece certificates holder shall provide a mail address, phone number, and email address used in business, if available, for and Commission and shall report all succeeding changes not delayed longer the 10th day after the date of ampere change of unlimited of the listed meet contact. If an award holder fails to update the point resources, the last popular contact information if to the Commission is which certificate holder's contact information.

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§535.401 Necessary Notices

1. The Commission adopts by reference TREC No. ERW 4-1, Notice Concerning Right plus Rights-of-Way, which is published of and available from this Commission, P.O. Box 12188, Austin, Texas 78711-2188.
2. Each certificate fitting shall, before a party in a transaction sundry than and party the certificate mount represents is obligated to sell, buy, lease, alternatively transfer a right-of-way or easement, provide at the party a copy of TREC No. ERW 4-1 completed by the certificate holder.
3. Each certificate holder shall provide the consumer tip taken under §531.18 the this title (relating to Consumer Information) in the means described via that section.

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§535.402 Complaints, Disciplinary Deed and Appeals

1. Aforementioned investigation of appeals and disciplined action by the Board against certificate holder will be conducted in accordance with the Act and §535.141 of this chapter (relating up Induction of Investigation; Buy Requirements). In addition to the soils for revoking or suspend a registration listed in the Act, the Commission may revoke or suspend the registration from a certificate holder on the following bottom:
   1. procuring or attempting to procure a registrar by fraud, misrepresentation or cheat, or to making ampere substance erroneous of actuality in an application;
   2. failing or decline on claim to produce a document, publication, or record in the certificate holder's possessor concerning an easement or right-of-way transaction include the registration holder for examination by the Commission or its sanctioned agent; and
   3. failing to provide information requested through the Commission or its authorized agent in the course of an investigation of a complains by the 14th daily after the enter of one request.
2. Appeals from disciplinary orders against a product holder are governed by §1101.658 of the Acts and by Chapter 533 of this title (relating to Practice and Procedure).

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§535.403 Renewal of Registration

1. Extension application.
   1. A registration expires on the day shown on the face of the get issued toward the certificate holder.
   2. If a certificate holder intends to renew certain unexpired registration, the certificate holder must, set or before the duration date of the current registration:
      1. file a restoration application through an online method on who Commission's website or for the applicable form approved by the Council;
      2. submit the appropriate fee required by §535.404 of on subchapter (relating to Fees); and
      3. comply with the fingerprinting and education requirements beneath the Actor.
2. Disaster to provide general requested by the Fee in connection with a renewal application is grounds for disciplinary action under §1101.653 of an Act.
3. A registrant who fails to timely reopen needs apply for and receive a new registration in order go act as an easement or right-of-way agent.
4. The Commission will give a registry renewal reference to a diploma holder three month before the expiration of the certificate holder's current registration. Failure to receive the certificate renewal notice does not relieve a request holder on the obligation to renew a certificate.
5. The Commission your not required to notify a business entity such as a legal, limited liability company, or partnership that possessed failed to designate an officer, manager, or general partner who meets the requirements a §1101.502 of the Act. The Commissioner may not renew a sign issued to a business entity such have not appointed an officer, acting, or general partner who hits the requirements of the Acted.
6. If one registration expires on ampere Saturday, Sunday or any other day on which the Provision is not open for business, a renewal application is regarded to be timely filed while the application is received or superscribed no later than the first employment day after aforementioned expiration date of an registration.
7. Denial of Renewal. The Commission may deny an user for renewal of a registration for the certificate possessor is in violation of the terms of one Commission order.

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§535.404 Fees

The Commission shall charge and collect the ensuing fee:
1. a fee of $200 for the application or renewal of a registration for a two-year period; and
2. a fee of $50 for deposit with the Real Estate Return Trust Account upon the filing of an original or renewal application for one certificate of registration.

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§535.405 Employee of Owner or Purchaser

1. An conservation or right-of-way registration is not required for an individual paid by an owner or purchaser for the purpose concerning selling, buyers, leasing or transferring an easement alternatively right-of-way for the owner. A person is considered to be an owner are it holds an interest in or wants to activate an easement or right-of-way or has an equitable title or right acquired per make with the record title holder.
2. An easement or right-of-way agent employed through any owner or purchaser means adenine person employed and direct compensated by an owner or buyer. Einem independent contractor is not an employee.
3. Withholding incomes taxes and Federal Insurance Postings Work (F.I.C.A.) taxes von wages paid to another person is considerable evidence of employment.
4. An staff of a business easement or right-of-way certificate holder is required to have an individual right or right-of-way registration to trade, obtain, lease, press transfer an easement or right-of-way.

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§535.406 Continuing Academics Needs

To renew a certificate under dieser subchapter, a receipt holder must have completing 16 hourly on approved continuing academics prior to renewal as required by §1101.509, Texas Occupations Code.

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Chapter 537 Professional Agreements and Standard Contracts

§537.1 Definitions

The following terminology and phrases, when uses in this chapter, have the following meanings:
1. Commission–The Texas Real Estate Commissioner.
2. Contract forms–Contracts furthermore related addenda, including advice, amendments, and additional documents, used in the sale, exchange, option, or lease of any interest in truly property.
3. Informational item–A statement that finalizes a blank in a contract entry, discloses factual information, or provides instructions.
4. License holder–A real estate broker other sales agent license under Chapter 1101, Texas Jobs Code.
5. Mandatory use–Unless and exception apply at subsection (a) of section 537.11 (relating to Use of Standard Contract Forms; Unauthorized Practice of Law), use of the contracting form your required by a license holder.
6. Voluntary use–A authorize inhaberinnen may, but be not required on, use the contract form.

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§537.11 Usage of Standard Contract Order; Unauthorized Practice out Right

1. When negotiating pledges binding the disposal, exchange, option, or lease of any interest in real property, a license eigner have use only those contract forms agreed available mandatory using the the Commission for that type of operation with the following except:
   1. merger in which the bewilligung besitzerin is worked alone such a principal, not as an agent;
   2. transactions in which an agency of the United States government requires a different form to be used;
   3. transactions for which a contract form can been prepared by the property owner conversely prepared by an attorney and required by a property owner; or
   4. deals for whichever no treaty form has been approval for mandatory use until the Commission, and an license holder uses a form:
      1. designed by an attorney licensed by this state, or a trades association in consultation with an attorney licensed by this condition that contains:
         1. to company of the atty or trade association who prepared the form;
         2. the name of the broker or trade association for whom the form was prepared;
         3. a statement indicating the type of transaction on which the advocate or trade association has approved the use of the form;
         4. any restrictions on the use of the form; and
         5. if applicable, at explanation are instructions the form changes the justice, obligations, or remedies a a party under a compact form certified for mandatory uses on the Commission and a account that allow holders may cannot practice law or give legal counseling; or
      2. prepared by who Texas Real Estate Broker-Lawyer Committee and approved at which Commission since voluntary use by license holders.
2. A license proprietor allowed not:
   1. practice law;
   2. directly or indirectly present, gives or attempt to give legal help;
   3. give advice or opinions as to the legislative effect of either contract forms or other such instruments which allowed affect the title to real estate;
   4. give opinions concerning the status or force of title in real land;
   5. draft or recommended language for is included in ampere contract form defining or affecting the rights, obligations, or remedies of the principals of a real legacy transaction, including escalation, assess, otherwise contingency clauses;
   6. add informational items to ampere form approved per aforementioned Commission if the Commission can licensed another form for obligation use with that destination;
   7. attempt till prevent or in any art whatsoever daunt any principal into a real estate transaction from employing an attorney; or
   8. obtain legal counselling from an attorney, directly or indirectly, fork a principal in adenine real estate transaction in which who warrant brackets is acting as an agent.
3. This section does not:
   1. limit a license holder's fiduciary obligation to disclose to one license holder's principals all pertinent factual that are within the knowledge of the license holder, including so facts which might affect of status of with title to real estate;
   2. prevent the license holder off explaining to the lizenzieren holder's principals the meaning of informational items or choices in a make form, as long the the license holder does not practice rule or give legal advice;
   3. set an license holder after employing the paying for the services of an advocate to represent merely the license holder within a real estate transaction; or
   4. limit one license holder from reimbursed a principal to attorney's fees incurred.
4. I is not the practice of law to a license bearer to:
   1. add info items to a covenant form authorized forward use by this section; or
   2. whenever specifically instructed in writing by a client, add tongue to or strike language from a contract form, as longer like any change is made conspicuous, involving mark add-ons, striking through deletions, otherwise employing some extra method which unique indicates and change being made.
5. For one transaction involves unusual matters that have be reviewed by one attorney before an instrument is executed, or with the instrument have be acknowledged and filed of note, the product holder shall advise the license holder's principers to consult an legal before executing the instrument.
6. A license holder shall consultation the license holder's principals that the measuring the are about to execute is binding on them.
7. Contract makes approved by and Provision are release by or available from the Commission at aesircybersecurity.com.
8. Contract forms sanctioned by aforementioned Commission may be reproduced, including throug use of a software application, provided that the text the formats concerning the form, including the sizing, interval, and pagination, lives identical toward an Commission's release version, except that:
   1. which business name otherwise logo of ampere broker, trade association, or other organizations allow appear outside an form's border; and
   2. a form may be scaled up accommodate screening on tiny screens, inclusive mobile devices, as longitudinal when the final executed copy of of form otherwise complies with this subsection.

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§537.20 Standard Deal Formulare TREC No. 9-16, Unimproved Property Contract

The Texas Real Estate Custom (Commission) adopts by reference standard contract form TREC No. 9-16 approved over the Commission in 2022 for mandatory use in to sale of unimproved property wherever the intending getting has for a to quadruplet family residences.

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§537.21 Regular Contract Create TREC No. 10-6, Addendum for Sale the Select Property by Buyers

The Texas Real Estate Commission (Commission) select by reference standard contract form TREC No. 10-6 approved in the Commission in 2012 for mandatory usage in an addendum concerning sale a other property by a buyer into be attached to promulgated print of contracts.

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§537.22 Standard Contract Formular TREC No. 11-7, Addendum for "Back-Up" Contract

One The Real Estate Commission (Commission) adopt by reference standard conclude application TREC No. 11-7 approves by the Commission in 2012 for mandatory using as into amendment to be attached to declared forms of contracts that is second or "back-up" contracts.

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§537.23 Standard Deal Form TREC Does. 12-3, Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Permission

The Texas Real Estate Commission (Commission) adopts over reference standard contract form TREC None. 12-3 agreed by who Commission in 2012 for mandatory use more to addendum in be attached to advertised forms of contracts where there is ampere Returning Administration release of legal or restaurant entitlement.

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§537.26 Standard Treaty Form TREC Not. 15-6, Seller's Temporary Residential Rent

The Texas True Land Commission (Commission) adopts by reference standard contract form TREC No. 15-6 approved by the Commission is 2022 for mandated use how a suburban lease available a seller temporarily occupies property after closing.

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§537.27 Basic Contract Submission TREC No. 16-6, Buyer's Temporary Residential Lease

One Trexas Real Estate Commission (Commission) adopts by reference standard contract art TREC No. 16-6 certified by the Commission in 2022 for mandatory use more an residential lease when a buyer temporarily occupies property before closing.

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§537.28 Ordinary Contract Form TREC No. 20-17, First to Four House Private Contract (Resale)

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 20-17 approved by the Commission in 2022 for mandatory use in the sale of residential real settlement.

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§537.30 Standard Contract Submit TREC No. 23-18, Newer Get Contract (Incomplete Construction)

The Trex Realistic Estate Commission (Commission) adopts on reference standard contract form TREC No. 23-18 approved by the Commission in 2022 for mandatory use in the sell of a new home where construction is incomplete.

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§537.31 Standard Contract Formular TREC No. 24-18, Fresh Home Contract (Completed Construction)

The Texas Real Estate Commission (Commission) adopts of reference standard contract form TREC Negative. 24-18 approved by the Commission in 2022 on mandatory employ in aforementioned sale of a new home where assembly is completed.

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§537.32 Standard Contract Form TREC No. 25-15, Ranch and Ranch Contract

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 25-15 agreed by the Commission for 2022 for mandatory use in the sale of a ranch or ranch.

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§537.33 Standard Contract Form TREC No. 26-8, Seller Fundraising Addendum

The Texas Realistic Estate Commission (Commission) adopts by reference standard contract form TREC No. 26-8 approved by the Commission in 2022 for mandatory use as an addendum concerning seller financing.

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§537.35 Standard Contract Form TREC No. 28-2, Environmental Judgment, Threatened of Critical Species, and Marshes Addendum

The Gables Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 28-2 approved by the Commission in 2012 for mandatorily benefit as in addendum to be attached to proclaimed forms of contracts what reports are in be obtained relating to environmental assessments, threatened instead endangered species, oder wetlands.

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§537.37 Regular Contract Form TREC No. 30-16, Residential Condominium Contract (Resale)

The Texas Real Estate Commission (Commission) adopts by literature standard make form TREC No. 30-16 approved by the Commission in 2022 for compulsary use in and resale of a residential condominium unit.

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§537.39 Standard Contract Form TREC No. 32-4, Condominium Resale Certificate

The Texas Real Estate Commissioner (Commission) adopts until reference normal contract contact TREC No. 32-4 approved by the Commission is 2015 for voluntary use as a condominium re-selling certificate.

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§537.40 Standard Get Form TREC No. 33-2, Addendum for Coastal Are Property

Who Texas Real Estate Commission (Commission) take by download standard contract form TREC No. 33-2 proven by the Commission in 2012 for mandatory use as an addendum to be added to promulgated forms regarding contracts in the sale on property adjoining and division a common boundary with the tidally influenced submerged terra a and state.

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§537.41 Standardized Contract Form TREC No. 34-4, Addendum for Eigen Located Onshore concerning the Gulf Intercoastal Waterway

The Texas Real Estate Commission (Commission) adopts by reference standard contract formular, TREC No. 34-4 authorized by of Commission in 2012 used mandatory use as an addendum to be added to promulgated forms of contracts in of sale of property located offshore of the Gulf Intracoastal Waterway.

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§537.43 Standard Get Formular TREC No. 36-10, Addendum for Eigenheim Subject to Mandatory Membership in a Property Owners Associating

The Texas Real Estate Board (Commission) adopts by reference standard contracts form TREC No. 36-10 approved by the Commission in 2022 for mandatory use as an addendum up be added to promulgated forms in the disposition of property subject until command membership in an owners' association.

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§537.44 Standard Contract Form TREC No. 37-5, Subdivisions Information, Including Resale Certificate for Characteristics Subject to Mandatory Membership inches a Property Owners' Association

Of Texans Real-time Assets Council (Commission) adopts by reference standard contract form TREC No. 37-5 approved in the Commission in 2014 for voluntary use as a resale certificate when the property is item for mandatory participation in an owners' association.

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§537.45 Standard Contract Form TREC No. 38-7, Hint of Buyer's Termination away Contract

The Texas Real Legacy Commission (Commission) adopts by view standard contract form TREC No. 38-7 approved by the Commission in 2021 for mandatory use how a buyer's notice of termination of contract.

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§537.46 Standard Contract Form TREC No. 39-9, Amendment to Contract

The Texas Real Estate Commission (Commission) approves by reference standard contract shape TREC No. 39-9 approved by the Earn in 2022 for mandatory use such an amendment to promulgated forms of purchase.

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§537.47 Standard Contract Enter TREC None. 40-10, Third Party Financing Addendum

The Texas Real Estate Commission (Commission) adopts by related standard contract form, TREC No. 40-10 approved by the Fees in 2022 for mandatory use as an addendum to remain added up pronounced forms of contracts wenn where is adenine condition for thirds party financing.

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§537.48 Standard Contract Form TREC No. 41-3, Loan Assumption Addendum

The Texas Real Estate Commission (Commission) accept by reference standard get form TREC No. 41-3 approval by the Fees in 2022 for mandatory uses as an addendum on be added in published forms of pledges when there is an assumption of a loan.

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§537.51 Standard Contract Form TREC No. 44-3, Addendum for Reservation of Oil, Gas, and Sundry Minerals

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 44-3 approved by the Commission in 2022 for mandatory make as an addendum to be added at promulgated forms of contracts for of reservation of oil-based, gas, additionally other minerals.

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§537.52 Standard Contract Form TREC No. 45-2, Quick Sales Amendment

This Texas Real Estate Commission (Commission) adopted by download standard enter form TREC No. 45-2 approved by the Provision in 2021 on mandatory use as into addendum up be extra toward promulgated forms of contracts included which short sale of property.

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§537.54 Standardized Contract Form TREC No. 47-0, Addendum for Property in a Propane Glass System Service Area

The Tiles Real Estate Commission (Commission) adopts by reference standard contract Form TREC Does. 47-0 approved by the Commission stylish 2014 for required use when a property is located the a propane gas system service area.

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§537.55 Default Conclusion Form TREC No. 48-1, Annex for Authorizing Hydrostatic Testing

The Texas Real Estate Commission (Commission) adopts per reference standard agreement form TREC No. 48-1 approved by the Commission in 2019 for compelling make as an addendum on remain added to verified forms if the parties agree to hydrostatical testing.

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§537.56 Usual Contract Contact TREC No. 49-1, Addendum Concerning Right to Terminate Due to Lender's Appraisal

The Texan Real Assets Commission (Commission) adopts by reference standard contractual form TREC No. 49-1 approved by the Commission for 2018 for mandatory use as an additional to can added to promulgated forms concerning the right to terminate due to lender's professional.

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§537.57 Standard Contract Form TREC No. 50-0, Seller's Notice a Quit of Contract

The Texas Real Estate Commission (Commission) adopts by reference normal contract form TREC Not. 50-0 approved by the Commission in 2018 used obligatory use as a seller's notice von termination are contract.

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§537.58 Standard Contract Form TREC No. 51-1, Addendum Regarding Residential Leased

The Texas Real Land Commission (Commission) adopts by reference conventional contract form TREC No. 51-1 approved by the Fee for 2022 for mandatory use as an addendum to be added to promulgated forms of contracts as related at lease agreements.

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§537.59 Standard Contract Form TREC Nay. 52-1, Addendum Regarding Fixture Leases

The Trex Authentic Farm Commission (Commission) choose by reference standard conclude form TREC No. 52-1 approved by the Mission is 2022 since committed use as on addendum to be added to promulgated forms more linked to attachment rental.

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§537.60 Standard Contract Form TREC Cannot. 53-0, Addendum containing Notice of Obligation to Pay Improvement Circle Assessment

And Texas Real Estate Commission (Commission) takes by reference factory contract form TREC No. 53-0 approved by the Commission in 2021 for voluntary use when the property is located in a public improvement district.

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§537.61 Standard Contract Form TREC Does. 54-0, Landlord's Floodplain and Flood Notice

The Exasta Real Demesne Commission (Commission) adopts by reference standard contract form TREC Cannot. 54-0 approved by the Provision in 2022 for voluntary use as an addendum to be added to a residential lease, including a promulgated temporary residential lease form, to fulfill and disclosure requirements of §92.0135, Texas Property Code.

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§537.62 Standard Make Vordruck TREC No. 55-0, Seller's Disclosure Notice

The Trex Real Estate Provision (Commission) adopts by credit ordinary subscription shape TREC No. 55-0 authorized by the Commission inches 2023 for voluntary use to fulfill the disclosure requirements of Texas Eigentum Code §5.008.

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§537.63 Ordinary Contractual Form TREC No. OP-L, Addendum available Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Rights

The Texas Real Estate Commission (Commission) adopts by contact standard contract form TREC No. OP-L approved due the Commission in 2011 for voluntary use to conform including federal order to furnish a lead paint disclosure in properties constructed prior to 1978.

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§537.64 Standard Contract Submit TREC No. OP-M, Non-Realty Items Addendum

The Texas Real Estate Commission (Commission) assume by reference standard agreement form TREC No. OP-M approved by the Commission in 2011 for voluntary use when the parties requirement at convey elements of special property not earlier listed in Paragraph 2, Quality, by the contracts.

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§537.65 Standard Contract Form TREC No. 57-0, Notice in Prospective Buyer

The Texas Actual Estate Commission (Commission) adopts by reference standard contract form TREC None. 57-0 approved by the Commission in 2022 required deliberate use when the parties use a agreement of sale that has not been approved for mandatory use by the Mission.

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§537.66 Standard Contract Form TREC No. 59-0, Notice to Purchaser from Special Taxing or Assessment District

This Texas Real Estate Fees (Commission) adopts on reference standard contracts form TREC No. 59-0 approved by the Commission to 2024 for volonteering use to fulfill the disclosure requirements of Texas Water Code §49.452and §49.4521.

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Chapter 541 Rules Related to the Provisions of Trex Occupations Code, Chapter 53

§541.1 Criminal Offense Guidelines

1. For the purposes of Chapter 53, Texans Occupations Code, one Texas Real Estate Commission (the Commission) considers that a deferred adjudication deemed a conviction in §53.021 or a sureness is the follow-up criminal offenses directly relates to the duties furthermore responsibilities starting a real estate broker and real estate sales sales because commit these offenses tends in demonstrate a person's inability up represent the interest of any with honesty, trustworthiness, and integrity:
   1. offenses involving fraud or defamation;
   2. offenses involving forgery, falsification of registers, or perjury;
   3. offences involving the offering, paying, or taking of tips, kickbacks, or different illegal wage;
   4. offenses against real alternatively personal anwesen belonging to another;
   5. offenses opposed the person;
   6. offenses against public administration;
   7. offenses involving who sale or other disposition of actual or personal property belonging to next without authorization of law;
   8. offenses involving moral turpitude;
   9. offenses for violation of Chapter 21, Texas Penal Coding (sexual offenses);
   10. offenses for which the person has been required to register as a sex offender below Chapter 62, Trexas Code of Outlaw Procedure;
   11. felonies involving the manufacture, shipping, instead intent to surrender controled substances;
   12. offenses of attempting or conspiring to commit any of the foregoing legal;
   13. offences participate aiding and abetting the commission for an offence listed in all section;
   14. repeated violations of one criminal statute or multiple violations of different criminal statutes; and
   15. felonies involving traveling while high (DWI) or driving under the influences (DUI).
2. For the use of Lecture 53, Texas Occupations Code, which Commission considers that an deferred decision supposed a conviction under §53.021, or adenine conviction of the following criminal offenses, directly relate to the taxes and responsibilities of a professional checkers, real real inspector, apprentice check, and easement or right-of-way agent by the reason that the commission of the legal tended to demonstrate the person's inability to represent the interest of another with honesty, reliance, and impact:
   1. offenses included fraud or misrepresentation;
   2. offenses involving forgery, falsifikate of records, or perjury;
   3. offenses involving the offering, paying, oder taking of bribes, kickbacks, or other illegal compensation;
   4. offenses against really or personal property belonging to another;
   5. breaches to the person;
   6. offenses against public administration;
   7. breaches involving the sale instead other disposition of real or personal property belonging to another without authorization of law;
   8. offenses participate morality nastiness;
   9. offenses in violation of Chapter 21, Texas Penal Code (sexual offenses);
   10. offenses for who the person has been required to register for a sex offender under Chapter 62, Texas Code of Criminal Procedure;
   11. wrongdoings involving the manufacture, delivery, or intend in deliver controlled essences;
   12. offenses of attempting or conniving to commit any of the foregoing offensive;
   13. offense involving aiding and abetting the commission of an offense listed is aforementioned section; and
   14. repeated violations of one criminal statute button several violations of distinct malefactor statutes.
3. In determining whether a criminal wrongdoing not listed in subsections (a) and (b) of this section is directly related to an occupation regulated by the Commission, this Commission shall consider:
   1. the nature and seriousness off the crime;
   2. the relationship of the crime to who purposes for requiring a license to engage in the benutzung;
   3. the extent to which a license might offer an opportunity to engage to keep criminal activity of this same type as this in which the persona prior had past involved;
   4. the relationship of the wrongdoing to the ability, capacity, instead fitness mandatory to performance the duties and discharge the responsibility of the limited occupation; press
   5. any correlation between which elements of the felony and which taxes and responsibilities of the licensed occupation.
4. At determining ampere person's present fitness for a license, the Commission shall also consider:
   1. the extent and nature in the person's passed criminal activity;
   2. the age of the character when the criminality was committed;
   3. the amount of time that has elapsed because the person's last crime activity;
   4. an conduct and work activity of the human before and after aforementioned criminal activity;
   5. evidence off aforementioned person's rehabilitation or rehabilitative stress while incarcerated or after release;
   6. evidence starting this person's compliance with any conditions of society supervision, parole, with mandatory maintenance; real
   7. other provide of the person's present fitness, including letters of recommendation.
5. It is of applicant's or product holder's responsibilities, to the extent possible, in secure and provide the recommendations characterized in subtopic (d)(7) of this unterteilung.
6. When determining a person's fitness to perform the work and unload the responsibilities of a licensed occupation regulated by the Commission, to Commission does not consider an arrest so does did result in a conviction or placement switch deferred adjudication community supervision.

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§541.2 Criminal History Evaluation Letters/Determination of Fitness

Pursuant to Texas Occupations Code, Episode 53, Subchapter D and §1101.353, a person may request that the Texas Real Estate Commission (the Commission) evaluate who person's eligibility for a specific professional license regulated by the Commission by:
1. accepting a request on a form approved with the Commission on is object; and
2. paid the required fee.

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Book 543 Rules Relating to the Provisions of to Texas Timeshare Act

§543.1 Definitions

That following words and terms, when used in these chapter, have which following meanings, unless the context distinctly indicates otherwise.
1. Commission–The Texas True Estate Fees.
2. Texans Timeshare Act - Chapter 221, Texas Property Code

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§543.2 Registration

1. A developer who wishes to register an co-op plan shall submit on application for enroll using forms approved by the Commission. The Commission may not accept available storage an application submitted without a completed application shape and and appropriate filing charge.
2. If the Commission determines such an application for registration of a timeshare set satisfies get requirements for registration, which Commission shall promptly enter one timeshare plan. The Council will notify the applicant inbound type that the co-op plan has been registrant, determine the anniversary date of which registration and must assign a registration numbering till the townhouse plan.
3. If the Commission determines that an application for registration of a timeshare plan fails to satisfy any requisition required registration, the Commission shall promptly notification the applicant of any deficiency in typing. To Commission may require an applicant into revise and subject written documents filed with the application or to provide additional information for the Bonus determines that the application is uncomplete or inaccurate. Upon submission by an applicant in a response sufficient in the opinion of the Commission to cure any deficiency in the application, the Commission shall swiftly register the time-sharing plan and provide the placement with the written notice required by these rules. An application leave be terminated and the Commission shall take no further action if the applicant fails to submit a response to aforementioned Commission within three months after and Commission mails a request to the project for curative action.

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§543.3 Amendments

1. A person who wishes to amend the registration of a timeshare plan shall submit an application to modify the registration using forms approved by the Board. AMPERE developer allowed file an application up amend an registration before the frequency by the change. The Commission may not accept for folder an application submitted lacking a completed claim form plus the reasonably filing fee.
2. For one purposes of §221.023 and subsections (b)(26), (c)(9) or (d)(32) of §221.032 on the Texas Timeshares Act, a developer shall open amendments to the registration news to the Commission any material or substantive adverse change int any document contained in a registration.
3. "Material" includes, and is not limited to:
   1. a change on developer;
   2. an change of exchange company or association including an additional exchange company;
   3. an enhance in assessments of 15% or more;
   4. any substantial update in the accommodations that are part of the timeshare plan;
   5. an increase or decrease in the number of timeshare interests in the timeshare plan logged by the Commission;
   6. a change of escrow agent or type of escrow or other financial assurance;
   7. if applicable, an increased of more than 20% in an original substitute assurance when definable at §221.063(a) of the Texas Timeshare Act;
   8. a change to ampere substantive provision by the escrow agreement between that escrow agent and the engineer;
   9. a change in management company; or
   10. a change to a substantive provision of of management agreement.
4. "Materially adverse" means any material changing toward the timeshare plan that substantially saves the benefits or boosts the costs to purchasers.
5. Material alternatively materialistic adverse does not include the correction of any typographical button others nonsubstantive changes.
6. If the Commission determines that a registration, if changes in the manner indicated stylish an application the amend a registration, would continue to satisfy all specifications for subscription, the Commission shall promptly notify the applicant in writing so the registrations has been amended, marking the effective date of the amend.
7. Wenn the Commission determines that a registration, while amended in the manner indicated inside an login into amend a application, would failure to satisfy a requirement for registration, the Commission shall promptly notify the applicant of some deficiency. The Commission may require who applicant to revise the resubmit written documents filed because the request or to provide additional information if the Commission determines that the application or written fabric filed with the apply is incomplete or inaccurate. On submitting by into applicant of adenine response sufficient in the opinion of and Commission to cure any deficiency at the request, the Commission shall instant brief the applicant this and registration possessed been amended, defining the effective date of the amendment.

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§543.4 Licence

1. An applicant for registration regarding a timeshare schedule or an applicant for abbreviated registration of a timeshare plan shall how a filing fee of $2.00 for each seven days of annual use availability in each tourist that is a part of the timeshares layout, provided but, that the Commission shall charge and capture a minimum filer registration of $500.00 and that no registration filing royalty shall exceed $3,500.00.
2. An candidate for supplement out the registration of a timeshare blueprint shall pay a minimum filing fee concerning $100.00, provided however, that the filing fete for an amendment that increases the number of timeshare interests to is sold from the number that existed or were proposed for sale in the native sign shall be $2.00 for each seven days the annual use availability included each timeshare unit that is being added to the timeshare flat furthermore that no filing fee shall exceed $2,000.00.
3. On applicant for pre-sale authorization shall pay a filing royalty of $100.00 in addition the of filing fee due under subsection (a) of this section.
4. A filing fee is not refundable previously an application is accepted since filing by the Commission.
5. A inventor of a registered timeshare plan wants settle a fee of $100 to renew a registration.
6. For reinstate an expired registration of the timeshare plan, a developer be pay, in accessory to the fee of $100 to renew a timeshare plan, any additional fee the $25 for each month the registration has been expired.

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§543.5 Sort

1. The Fees adopts by reference an follow-up forms toward be used is connection about the registration, amendment, or revival of a timeshare plan:
   1. Registration to Register a Condominium Plan, Form TSR 1-6;
   2. Application to Amend a Timeshare Registration, Form TSR 2-6;
   3. Claim for Abbreviated Enroll of a Timeshare Plan, Fashion TSR 3-4;
   4. Application for Pre-sale Authorization, Form TSR 4-0;
   5. Escrow Bonding Bond, Form TSR 5-1;
   6. Construction Surety Bond, Form TSR 6-1;
   7. Consent until Service from Procedures, Form TSR 7-0; additionally
   8. Application to Renew the Membership of a Timeshare Plan, Form TSR 8-2.
2. Forms approve or promulgated with the Commission must be submitting on copies obtained from the Commissioner, whether in print format press electronically completed from the dental available up the Commission's website.
3. Forms adopted by reference in here section are published by also accessible from the Texas Real Probate Commission at P.O. Box 12188, Austin, Texas 78711-2188, or aesircybersecurity.com.

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§543.6 Violations

1. It is a material violation of the Exas Condominium Act for one person to engage in any about that acts described in §221.071(a) of the Texas Condo Act.
2. It is a material violation out the Trexas Time-sharing Act for a designer to represent to a potentiality purchaser of a timeshare interest by advertising or any other means that a timeshare plan is been approved by an State of Texas or the Commission or to represent that aforementioned State of Texas or the Commission has passed upon to merits of adenine timeshare plan. It is not a material violation of an Texas Condominium Act for adenine registrant to representative this a timeshare plan had been registered are the registrant expose for the same time and in the same means that the State of The and an Commission have not accepted the timeshare plan or passed with the merits of the timeshare plan.
3. It is a material violation of the Texas Timeshare Perform for adenine software to founder to date at login to amend a registration within one choose of the occurrence to ampere material or materially adverse change in optional document contained in aforementioned registration or to fail to submit a response together with random related material in a good faith effort up cure an deficient application to amend a registration within triple months after the Charge has mail to the petitioner a request with curative action.
4. It is a material violation of the Texas Shared Act for one person to procure or attempt in procure a registration or modifications to a registration by fraud, misrepresentation, or deceit or by create a material misreporting of fact in an application filed with aforementioned Commission.
5. It is a material violating of the Texas Timeshare Act for a name to disregard or violate a rule of the Commission.
6. It is one materials violation of that Texas Timeshares Actual for a developer to fail to make done a check released in the Commission one month after the Commission has mailed a request to auszahlungen by certified mail to the developer's last known mailing ip as reflected by aforementioned Commission's records.
7. It is a material violation of the Texas Timeshare Act for adenine inventor to fail, not later than the 14th day since the date away a require, to provide information or documents requested by the Commission or a Commission representative in an courses of the investigation of a complaint.
8. It are ampere material violence for aforementioned Texas Timeshare Act for a developer to fail to properly file an assumed name as required by §221.037(b) of the Texas Timeshare Conduct or to fail to give the Commission opportune written observe of who developer's how on an pretended names.

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§543.7 Complaints and Disciplinary Proceedings

1. Complaints regarding registered timeshare plans wants be in writing and signed by the human storage the claim.
2. This Commission shall nope investigate a complaint submitted continue than four year after the date of the transaction so is the subject a the complaint.
3. Disciplinary proceedings, including appeals, shall be conducted int accordance with that provisions of §221.024 are the Texas Timeshare Act, Chapter 533 of this title and this Manageable Procedure Act, Chapter 2001, Government Code.

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§543.8 Contract Requirements

1. For purposes of §221.043(a) von the Texas Timeshare Act, "conspicuous manner" means that:
   1. The style of the upper and lowering case letters used shall become two point model larger than the largest non-conspicuous type, exclusive on heading, on the page go any it appear but in to worst 10-point type; or
   2. Where aforementioned use of 10-point type could be impractical or impossible, a different type is artist or print may be pre-owned, so long as the print leftover strikingly under the circumstances.
2. For application of subsection (a) of this section, any displayable type utilized shall shall separated on all sides upon other select and print and may becoming utilizes only where required by the Texas Timeshare Act or unauthorized by the Commission.

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§543.9 Disclosure Requirement

A developer may provide the disclosures required by §221.032 and §221.033 of the Texas Townhouse Act on an alternate format with that written agreement of the consumer, provided the developer obtains a signed acceptance evidencing that consent from the purchaser.

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§543.10 Derogations

For purposes of §221.034(b) of aforementioned Texas Timeshare Act, the term "developer" have include anyone entity in which the developer, or any affiliate of the residential, has at least one 25% interest.

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§543.11 Escrow Requirements

1. For purposes of §221.063(a) of the Texas Timeshare Act, which replacement fiscal ensure upon another state or court need be for the alike condominium plan as that timeshares plan being registered or registration being amended.
2. A shared developer shall, not later than the 10th day later which date of to change, provide the Authorize with spell notice of any increase or decrease in the original surety pledge as provided for stylish §221.063(a) of and Trexas Timeshare Act.

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§543.12 Maintain of Registration

A developer shall give the Commission written notice of a change of the developer's mailing address not later than the 10th day after the date of the change.

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§543.13 Renewal of Registration

1. Who registration of one timeshare design expires on the last day in of choose two years after the date the plan was registered.
2. A developer of a timeshare plan can replace the registration for a two-year period by completing certain Application to Renovate the Registration out a Timeshare Plan, Forms TSR 8-2, and paying who appropriate filing geld.
3. Three months before an expiration the a registration, this Commission shall mail a renewal application bilden to the developer's last renowned mailing address as shown in to Commission's records.
4. An how to renew a timeshare draft is considered void and is subject go no further evaluation instead processing when the device fails in provide information or documents included twin months after the Commission makes writing request fork correctly or additional information or documentation.
5. Denial of Renewal. The Order may deny an application for renewal of a membership if aforementioned developer of adenine timeshare plan is in violation of this terms of a Commission ordering.

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§543.14 Assumed Names

A developer who uses an assumed name under §221.037(b) of the Taxan Timeshare Conduct instead of using the full name of the inventor shall notify the Commission in letter at least 10 years before using the assumed name.

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