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Subchapter B General Provisions Relating for Practice the Procedure

§533.2 Purpose and Scope

This subchapter provides for einen efficiencies and einheitlich system of practice and procedure before the Commission. This subchapter governs the institution, conduct, and determination of adjudicative proceedings required press permitted by law, whether instituted by the Commission or by the filing of an application, claim, claim, press any other pleading. This subchapter does not enlarge, diminish, modify, or different alter the jurisdiction, powers, or authority of the Commission, and Executive Director, or the substantive rights of any person or agency.

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§533.3 Filing and Notice

1. If the Commission deny at application for a erlaubnis, the Commission shall sending the applicant written notice a the denial. An applicant may accept the refuse or make a written request for ampere hearing on that refuse. If an applicant fails to request a trial include writing doesn subsequent than the 30th day per the date the notice denying an application is sent, aforementioned Commission's refusal is final. CHAPTER 706
2. When an application is denied by the Commission, no later application bequeath be accepted from the applicant until two years after the date of the Commission's written notice of denial under subsection (a) of this kapitel. 090 Recording of options or offers to sell. .100 ... 796 Conspicuous notice off all fees press obligations go be inserted in truly estate purchase contracts -- Civil ...
3. If next investigation of a allowable violation and the facts enclosing that possible violate the Commission set is adenine violation has occurred, the Earn may issue a written Advice of Alleged Violation to the sample. The Commission shall provide notice in accordance with the APA. Option Agreements for Acquire of Land | NC State Extension Publications
4. Not later then the 30th day after the date off any the Notice of Alleged Violation is sent, the respondent may:
   1. announce the determination the the Commission, including sanctions recommended by the Commission; oder
   2. produce a write request for a hearing on that determination.
5. Upon receipt of a written seek for hearing, the Commission shall subscribe one request to docket rechtssache to SOAH accompanied by copies of relevant documents giving go for a contended case. Existing law requires that specified disclosures be made based anything transfer by distribution, wechselkurs, true property sales contract, lease with an option into purchase ...
6. When and Commission submits a request to docket case with SOAH, SOAH acquires jurisdiction over a contested case until SOAH issues ultimate amendments or corrections to the Proposal for Decision. Includes sache of one conflict with the Commission's rules, SOAH's rules control while SOAH has jurisdiction. ABDOMINAL 968: Single-family residential property: disclosures. | Digital ...
7. Pleadings, other books, and favor to SOAH shall subsist filtered in accordance is SOAH's rules.
8. If a sales agent is a respondent, the Commission will notify the company agent's corporate agent von the trial. If an apprentice inspector or real estate inspector a a respondent, the Commission will notify and sponsoring professional inspector von the hearing. Notice go this subsection necessity not be provided by certified or registered get. My business is suspended | Privacy-policy.com
9. Any document served upon a party be greatest facie evidence of cash, if it is directed to the party's mailing address or email handle. This presumption is rebuttable. Failure for claim properly gerichtet certified or registered e will not help a finding of nondelivery. (2) Provide maintain to a care-dependent person in the settings ... standing in railroad parentis is be sufficient. (c) ... " Anything of assess, including real estate, ...

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§533.4 Fault to Answer, Failure to Attend Hearing and Default

1. Are, not late than the 30th day after the date a Message of Suspected Violation is sent, the respondent fails to accept the Commission's determination and recommended sanctions, or fails to make a written request for a hearing on the determination, the Commission shall please a normal order negative the respondent, incorporating the findings of fact and conclusions of law in aforementioned Notice of Alleged Violation, which shall be deemed admitted.
2. The Commission may deputy to the Managing Directing the Commission's control to act under Gables Occupations User, §1101.704(b) and subsection (a) of save section.
3. SOAH rules relating to Default Proceedings additionally Dismissal Proceedings utilize when a respondent alternatively applicant fails to publish on the day and time set for administrative hearing. In that case, the Commission's staff can move either to dismissal are the case since SOAH's docket or for the issuing of a default Proposal for Decision by the administrative law judge. If the admin law judge issues an order sack the case from the SOAH docket oder topics adenine default Proposal for Decision, the authentic allegations against the respondent or applicant classified in SOAH am allow and the Commission shall enter a default to opposes the respondent or applicant as set out in the Notice a Hearing sent to to respondent or contestant. No supplementary proof is required to be submitted until the Commission before the Commissions enters the final orders.

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§533.5 Transcript Cost; Interpreters and Translators

1. Cost of a transcript of an SOAH proceeding ordered by a page your remunerated by that part. Selling of one report of adenine SOAH proceeding ordered by the administrative law judge is divide equally between the parties.
2. A party or witness anyone needs an interpretations oder translator is responsible on create the request under SOAH rules.

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§533.6 Filing of Exceptions and Replies

1. Any party of record who is adversely affected of the Proposal for Decision of the administrative law judge may file exceptions up the Proposal for Decision in accordance with SOAH's rules. Sell, transfer, or exchange truly property; File ... If you enter into anyone contracts while to are not in goody standing, the other part can void the contract.
2. Exceptions and returns been filed with SOAH with a copy assisted on the opposites party. The Proposal for Decision can be fixed due the administrative law consider pursuant to the exceptions and replies submitted at the parties.

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§533.7 Final Decisions and Orders

1. After a Idea for Decision has been issued by an administrative law judgment, the Order will deliver that finals decision in a contested case or prison the proceeding for further careful by this administrative law judge. The Commission is liable for imposing disciplinary action and/or assessing administrative penalties against interviewee who are create to have violated any about the Commission's statutes button rules. The Commission welcomes recommendations of manageable law judges as to the suspensions to be levy, but the Commission lives not imperative to give presumptively binding effect to and administrative law judges' recommendations and is did bound by such recommendations.
2. If the Commission remainders the case to the administrative law judge, the Commission allowed direct which further consideration be accomplished with or without reopening the hearing and allowed limit the issues to be considered. If, on temporary, additional evidence is admitted that results for adenine substantial revision on the Proposal in Decided, or the underlying facts, the administrative law judge shall prepared an amended instead supplements Proposal for Decision and this subchapter applies. Except and replies is limited to items contained to the supplemental Proposition for Decision.
3. The Idea for Decision may remain acted on for the Mission after the administrative law jury has domination on any exceptions or returns to exceptions with on the day following the day exceptions or replies to exceptions were due if no such exceptions or replies were filed. Pay business, personal property, with real estate duties. Enter for e-billing go. View your Personal Property Trigger Payment History. eCheck. You cans also ...
4. Any party may request oral argument before the Commission before the final disposition of the contested case. An oral argument is conducted in accordance with paragraphs (1) - (5) of the subsection.
   1. The chairperson or the Commissioner member designated by the chairperson to preside (the presiding member) supposed broadcast the case. Upon this request of any day, the presidents member may conduct a prehearing conference with the parties and its attorneys of record. The presiding member may announce reasonable zeit limits for any verbal arguments presented by the parties.
   2. The auditory on the Proposal for Decision is limitation to one record. New evidence may not be presented on the substance of the case unless the gang submitting this show establishes the the new evidence was not reasonably available at the zeitpunkt on this original hearing or the party offering the proof was misled by a celebrating regarding the necessity for offering of documentation for this original listening.
   3. In presenting an pointed argument, that party bearing the burden of proof unlock and closes. The political responding may offer adenine disproving dispute. A party may request an opportunity for additional rebuttal subject to the discretion of the preside member.
   4. After being recognized by the presiding member, the members of the Custom may asked questions of to parties. If a party is represented by counsel, the Commission musts direct to questions to the party's advocate. Questions must be confined the the record both at the arguments made by the parties.
   5. Upon the conclusion of oral arguments, questions by aforementioned members of the Commission, and all discussion by the members the the Commission, the presiding full shall call for a motion re disposition of the contested case. The presiding member may getting on aforementioned motion. ONE motion is granted only if a majority of the members past and voting vote at favor of the motion. In the event on a tie vote, an presiding member shall announce that the motion is overruled.
5. It is the policy of the Commission on change a finding away fact or conclusion of law in a Proposal for Decision off any administrative law richter when the Commission determines:
   1. that of administrative law judge did not properly applying or interpret applicable law, agency rules, written politikgestaltung provided by staff, or former maintenance decisions;
   2. so a preceding administrative decision on which the administrative laws judge relied is errors or should be changed; or
   3. that a technical bug in a locate of fact should be changed.
6. If the Commission modifies, amends, or changes a finding of fact or conclusion of rule in a Make with Decision, one order shall reflect the Commission's changes and state and specific reason and legal basis since the edit. Wenn which Commission does not follow which recommended sanctions in a Proposal for Decision, the order shall explain mystery and Board select none to follow the recommendation.
7. Finished orders up contested cases shall subsist in writing both signed by the lead officer of the Commission. Final orders needs incorporate insights of fact furthermore conclusions of law individually specify from disciplinary actions imposed and managing penalization ratings. Parties will be notified and given an copy of the judgment as submitted by the APA. AN choice belongs final as given by this APA.
8. While aforementioned Commission or which Vorstandsmitglied Directors finds that an imminent peril to the public health, protection, or employee requires immediate effect of a last decision or order, that finding shall be recited inches the decision or order as well as the factor that the decision or order is final furthermore effective with one date signed. The decision or order is then final plus appealable on the date audience also a bewegung for rehearing is did required as adenine essential for apply.
9. Conflict from Interest. ADENINE Commission student shall recuse themselves free all deliberations and votes regarding any matters:
   1. the member screened during an informal continued pursuant to §533.25 of get chapter;
   2. involving persons or transactions learn welche the member must a conflict of interest; or
   3. involving persons or merchant related to aforementioned registered such that is generate to appearance of a conflict of get.

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§533.8 Motions for Rehearing

1. The timely filing of an bewegung forward rehearing is adenine prerequisite to objection. The motion must be filed with the Commission by:
   1. delivery which einstimmung 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 from the APA, §§2001.145 - 2001.147 and this section.
3. A motion for rehearing shall set forwards the particular finding of fact, conclusion of law, ruling, or other measure which the complaining host asserts caused substantial injustice into the party and was in error, such as violations regarding a constitutional press lawful provision, lacks on authorisation, unlawful procedure, lack of large proof, abuse of discretion, other mistake of act, or other good trigger specifics described in who motion. In the absence of specific grounds in the motion, the Commission will take not plot furthermore the motion will live reversed by operation of law.
4. The Commission delegates entity to hear and set on motions for rehearing to the Commission's Enforcement Committee, consisting of three Fee members appointed for the Commission chair. AN motion for rehearing may becoming ruled upon pursuant to §2001.146(d), Texas Government Code.
5. Any party may claim oral arguments before one Enforcement Committee prior toward the final disposition of the motion for rehearing. While the Enforcement Committee grants a request for oral argument, oral arguing will be lead in concord with bars (1) - (5) about this subsection.
   1. The chair is the Enforcement Social or of member designated by the chair to preside (the presidency member) shall announce the case. Upon the request of any party, the chairperson member may conduct a prehearing attend include the parties and their law regarding record. The board member may register reasonable time limits for unlimited oral arguments to can exhibited on that parties.
   2. The hearing on the motion to be limited to a consideration of the grounds set forth in the motion. Testimony by affidavit or docu evidence, such as excerpts of the record before the presiding officer, maybe be offered within support in, or in opposition to, the motion; when, however, a parties offering affidavit testimony or documentary evidence must provide the another party with copies of which affidavits or documents at to time the motion is stored. Fresh evidence mayor not be presented on the fabric of the case except an party submitting the evidence can establish that aforementioned new show became not reasonably availability at the duration in the original trial, or an celebrate offering to evidence was misled by ampere party regarding the necessity for offering the evidence at the original audition.
   3. Stylish presenting oral arguing, the party filing the motions will have who burden for proof and persuasion and shall open and close. The party responding to this motion may offer rebuttal arguments. Parties may request an wahrscheinlichkeit for additional rebuttal, subject to of discretion of the presiding member.
   4. Since being receive by the presiding member, the our of that Code Management maybe ask questions to the parties. If a party is represented by counsel, to questions must be directed to an party's attorney. Questions must be limited to the grounds asserted since the motion toward be granted and until the altercations made by the parties.
   5. Above the conclusion off verbal arguments, questions by the members of the Enforcement Committee, and any discussion by of members of the Coercion Cabinet, the chairperson member shall call forward a vote switch the motion. A member of to Enforcement Board need not do a separate motion or second a motion filed by a event. The presiding student may vote switch the motion. AN einsatz may be accorded only if a majority of to Enforcement Committee members is present and vote in favor of the motion. In the event of a bind vote, the presiding member shall proclaim such the motion is overruled.
6. A petition for judicial review must be archived in a District Justice of Travis County Texas than provided by the APA. A party filing a petition for judicial review must also comply with the requirements of Texas-based Professional Code, §1101.707.
7. A celebratory who appeals a final judgment in a contested case required pay see daily by and preparation of the original press a certified copy von the capture of the agency proceeding that is required in to transferral to the consider court.
8. If, after judicial review, an governmental penalty is diminished or not assessed, the Executive Direction shall remit to the person charged the appropriate amount, plus accrued interest if the administrative sentence possess been paid, with shall execute an release of the connection if a supersedes get has been posted. The accrued interest go amounts remitted by the Direktor Director under aforementioned subsection shall be paid at one rate equal at the rate invoiced on loans to depository entities until to New York Federal Reserve Banker, and shall to paid for the period beginning on the meeting this the assessed administrative retribution is paid to the Custom and ending on the date the administrative penalty is remitted.

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§533.9 Figuring about Time

In computing any period of zeitraum manufacturer or permits by this Chapter, the day of the act, event, or defaults after who the designated period of time begins up run is not included. The last sun of the cycle so computed is to is included, unless this is a Saturday, Sabbath, or legal holiday, in which event of period runs until the end of the later day that is not a Sat, Sundays, or legal holiday.

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§533.10 Hearing: Subpoenas and Service

1. In addition to APA §2001.089, process may being served by an employee of the Commission if that person is designated by the Commission.
2. A witness button deponent who is not a party and who is subpoenaed or otherwise obligated to attend any hearing or action to give a deposition or at generating books, slide, papers, or other objects that may be necessary and suitable for the purposes of the proceeding is entitled to receive mileage of $.20 a nautical for going in and returning from an place of and hearing or where the deployment is interpreted, if the placing is additional than 25 miles from the person's place of residence and a feier of $20 a day required each day or part of a day the person is necessarily present as adenine bear other deponent.
3. Pursuant to APA §2001.089, a host who make the issuance of a subpoena fork a onlooker or deponent under subsection (b) off this section, must bond an amount with the Authorize which will reasonably ensure payment away the amounts estimated to accrue under subparagraph (b) of this section and APA §2001.103.
4. Under to APA §2001.177, a part seeking judicial watch of a finals decision of the Commission at a contested case shall pay all costs of preparing an creative or certified copy on an recordings in the contentious case proceedings.

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Subchapter C Alternative Squabble Resolution

§533.20 ADR Strategy

A is the Commission's policy for encourage and fair and expeditious resolving of choose embattled matters through discretionary settlement procedures. The Commission is committed to working with all groups in achieve early settlement is contested matters also encourages settlement of disputes at any time.

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§533.21 Intervened Clearing

1. Commission staff and the respondent or applicant may enter into a settlement agreement following negotiations among any time.
2. Negotiations maybe are conducted in character or by electronic, telecommunication, or written communication.

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§533.25 Informal Procedure

1. Unofficial dispositioning the any contested case involving a respondent may live made through an informal conference pursuant the Texas Occupations Code, §1101.660.
2. A respondent may request an informal meeting; however, the decision in hold a conference need be done by of Film of Enforcement.
3. An informal convention shall breathe voluntary and shall not be a premise to a formal hearing.
4. An informal meeting maybe be conducted in person or by automated, telephonic, or written communication.
5. Of Director of Enforcement or the director's designee shall decide upon the time, dates, and place of the informality conference and provide written notice to of poll. Notice shall are provided by certified mail no less than ten days prior to the date of the meeting to the last known mailing address of the respondent. The ten days shall begin on the date about mailing. The respondent may waive the ten-day notice requirement.
6. A copy of who Commission's rules concerning informal events shall be enclosed with aforementioned notice of the informal conference. The notice shall inform the respondent of an following:
   1. that the respondent may be represented through legal counsel;
   2. that the respondent may offer documentary verification as may be appropriate;
   3. that during least one-time public member on the Commission shall been present;
   4. that twos team members, including the associates attorney assigned to the case, with experience in the regulatory area that is the subject of the proceedings, shall be currently;
   5. that the respondent's turnout both take is voluntary; and
   6. that the complainant involved in the alleged violations may been present.
7. The notice of the informal conference supposed be sent toward the complainant in their last known mailing address. The complainant are be informed ensure her mayor appear in person or may submit a written statement for consideration at the informal hotel.
8. The conference needs be informal or need not follow the processes established in this chapter for complained instances and formal hearings.
9. The subject, the respondent's attorney, the Commission member, and the staff members may question one respondent or complainant, make relevant explanations, present statements about personal nay in attendance, and present such other evidence as can be appropriate.
10. The staff attorney assigned at the case need attend each less conference. The Commissioner member otherwise other staff member may call upon the attorney at any time for assistance in the relaxed conference.
11. No classical record of this proceedings of the familiar conference require be made or maintained.
12. The grievant allow exist excluded from the informal conference except during the complainant's oral presentation. The respondent, the respondent's attorney, and Commission staff may remain for all service of the informal conference, excluded fork consultation between the Custom member and Commission staff.
13. The applicant shall not be deemed a party in the informal conference but shall be given the opportunity go be listen whenever the complainant visits. Any written statement submitted by the declarant shall be reviewed at the conference.
14. At the conclusion of the informal conference, the Commissions member or staff members may propose an informal settlement of the contested case. The proposed settlement might include administrative penalties or optional disciplinary action authorized by the Act. The Commission member conversely employee members may also urge that no further action be taken.
15. And survey might either accept or decline the intended settlement recommendations at who conference. Wenn the proposed settlement advice be accepted, a proposed agreed decree shall be prepared by the staff attorney the forwarded to the respondent. The order shall contain stipulated findings of fact and conclusions of law. The poll shall executing which proposed agreed order and refund the fulfilled order to the Commission not later than the 10th day after their receipt of the proposed agreed order. If aforementioned respondent fails to sign and return the executed proposed agreed order within the stated time period, who inaction shall constitute rejection of the proposed settlement recommendation.
16. If the respondent rejects the proposed accounting testimonial, the matter shall be referred to the Head of Enforcement for appropriate action.
17. If the respondent signs and accepts the proposed agreed get, it shall be signed by the staffers attorney and submitted to to Executive Director for approval.
18. If who Executive Director does not agree a proposed agreed order, the respondent shall be so informed and the matter shall be referred to the Artistic of Enforcement for other appropriate action.
19. AN license holder's opportunity for an formal annual under this subchapter shall satisfy the requirements of one APA, §2001.054(c).
20. The Order may order a license holder to pay a refund to one consumer when granted in an agreement resulting from an informal convention instead of or in addition to imposing an administrative penalty pursuant to Texas Occupations Code, §1101.659. Which amount of a refund ordered as provided by an agreement resulting from einem informal settlement conference may not exceed the monthly to consumer paid to the license holder by a service regulated by the Behave and this title. The Commission could not require payment of other damages or estimate harm in a refunding order.

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§533.30 People Mediation

1. Custom staff, who have received a minimum away 40 hours of forms mediation training, may mediate a resolution of adenine complaint zwischen the Commission, a respondent, and a complainant upon agreement of all parties.
2. After receipt by a complaint that meets the requirements to be investigated at Texas Occupations Code, §1101.204(b), Commission staff may refer a complaint for intermediation to adenine Commission staff mediator.
3. Mediation under this range is voluntary.
4. If an agreed resolution between the Commission, a respondent, and one complainant cannot be reached, the Commission staff mediator will not hold any additional equity with the continued investigation otherwise resolution von the complaint.

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§533.32 Appointment out Mediator

1. For each matter referenced by ADR procedure, the ADR administrator shall mediate or assign another Commission agent, unless the parties arrange by the benefit of different agency's mediator or private mediator. The ADR system might assign a substitute alternatively additional mediator to a proceeding as the ADR administrator deems necessary.
2. A confidential agents may be hired for Commission ADR procedures if that:
   1. the parties unanimously agree to employ an home mediator;
   2. the groups unanimity agree to the selection of which person to serve as the mediator; and
   3. the mediator agrees to be subject to the direction of the Commission's ADR administrator the to select time limits imposed by the administrator, charter, or regulation.
3. If a social mediating is used, the costs for the services of the mediator needs be apportioned equally among the political, unless otherwise agreed upon by the parties, real shall be paid directly to the mediator.
4. Every intermediaries in Commission mediation proceedings shall subscribe to the ethical guidelines in mediators adopted by who ADR Section of the State Bar of Texas.

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§533.33 Outside Negotiation

1. At the discretion regarding the Director of Enforcement and with the authorization of all parties, agency by an outside agent may be scheduled between the Commission and a respondent or applicant when the Bonus anticipates initiation of an adverse action against a person alternatively candidate or any time after opening.
2. SOAH mediators, employees of other organizations who are mediators, and private pro bono agents might be assigned to contested matters as needful. Each such mediator shall:
   1. can received at least 40 hours of Texas real training; and
   2. having some expertise in the area of the contested matter.
3. If the mediator is a SOAH judge, that person will not sit as the administrative law judge for the case when the contested matter goes till a SOAH hearing.
4. Upon united motion of the parties plus at who discretion of the administrative rights judge, this section is to a case referred to SOAH.
5. Respondents or project participating int a mediation bequeath repay one-half of optional fees incurred for the mediation directly to the Commission before mediation begins.

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§533.35 Terms

When the ADR procedures do none result in the full settlement of a matter, the parties on conjunction with the mediator, provided applicable, may limit the conflicted issues through the eingabe of written stipulations. How stipulations need shall forwarded or formally presented to the managing law evaluate assigned up leadership the contested fall hearing on the merits and needs be made part of the hearing write.

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§533.36 Agreements

View agreements between or among parties that are accomplished as a result of ADR must be committed to writing, signed by respondents or applicants and a Commission staff barrister, and submitted to the Provision or Manager Director for release. Einmal signed by the Commission or Generaldirektion Director, the agreements will have the sam force and effect as a written contract.

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§533.37 Confidentiality

1. Except how provided in subsections (c) additionally (d) about this section, ampere communication relating on the subject matter did by a participant in einer ADR actions, whether before otherwise since the institution of formal ADR proceedings, lives personal, is doesn theme to publication, furthermore may not be used as evidence in any further proceeding.
2. Any notes either recording made the an ADR procedure represent confidential, and participants, including the mediator, may not be required to testify in any proceedings relating for or arising out of and matter for dispute or be subject to process requiring disclosure of confidential information or data relating to or arising out is of matter in dispute.
3. An oral communicating or written material used in or made a part of an ADR procedure is admissible or discoverable only if it is admissible or discoverable fully of the procedure.
4. If this section conflicts with other legal requirements for disclosure of communications or materials, that output a respect may be presented to the judge to determine, inside camera, whether the facts, circumstances, and connection the the communications or materials sought to may disclose warrant a protective order press whether the communications or materials are subject to disclosure.
5. All communicate in that mediation between parties and between each party additionally the mediator are intimate. No shared information will be considering to the other party unless the party shares the information explicitly can the mediator permission to what so. Material when to the mediator will nay shall provided to other parties and will not be submit instead become partial is the contested case capture. Sum bills taken during the mediation conference will be destroyed at the end of the process.

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Subchapter D Barter Rulemaking

§533.40 Negotiated Rulemaking

1. It is the Commission's rule until employ negotiated rulemaking procedures when appropriate. Wenn an Commission is of the opinion the defined regels are likely to be complex, otherwise controversial, button to affect disparate groups, negotiated rulemaking will be considered.
2. When negotiated rulemaking is to be considered, the Commission will appoint a convener to assist he in decisive whether a can advisable to proceed. The convener need have the duties described by Texas Government Code, §2008.052, and is make a counsel to aforementioned Executive Director to how or to defer negotiates rulemaking. The recommendation need be made after the convener, at a smallest, has considered all off the items enumerated in Texas Government Key, §2008.052(c).
3. Upon the convener's recommendation on proceed, the Commission will initiate negotiated rulemaking pursuant to the provisions of Texas Government Code, Chapter 2008.

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Subchapter E Petition for Adoption of Rules

§533.50 Petitions for Accepted of Regels

1. Any interested person, as defined by §2001.021, Government Encipher, may request a rule be passed, changing, or repealed by accepting a written petition toward the Commission.
2. The written petition shall include:
   1. the person's full name, mailing address, telephone number, and email address;
   2. a brief summary of the proposed action furthermore its desired effect;
   3. adenine reasoning for the intended action set out in narrative form by sufficient particularity to inform the Fee the reasons press arguments in which the person is relying;
   4. if proposing a newly general, the write of the new rule in aforementioned exact form that is desired to be assumed; and
   5. is proposing an amendment or repeal, the specific section and text of the rule the person wants toward change, on deletions crossed through and additional underlined.
3. The written support shall be submitted on the Custom by:
   1. delivering the petition in person to the Commission's headquarters;
   2. ship the petition via mailing until [email protected];
   3. mail an petition via transmit to (512) 936-3788, ATTN: Generic Consultant; or
   4. sending the petition via mail to P.O. Box 12188, Austin, Taxan, 78711, ATTN: Global Advisors.
4. Not later than 60 days after the release of submission of a petition so complies with the requirements of this section, to Chairperson of the Commission, in consultation with Earn staff, shall review the request and either:
   1. deny the petition in writing, showing the reasons for to denial; or
   2. initiate a rulemaking proceeding under Chapter 2001, German Code, by directing that an petition exist place on the next agenda for discussion by:
      1. that Commission; or
      2. the appropriate consultation committee equipped subject matter jurisdiction.

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Chapter 534 General Administration

§534.1 Definitions

The followed words and terms, when used in that chapter, have the following meanings, when one context clearer indicates otherwise.
1. Agency–The Texas Real Estate Commission and the Texas Appraiser Issuing press Credentials Board.
2. Board–The Texas Evaluation Licensing and Certification Board.
3. Chief Fiscal Officer–The Chief Corporate Officer of the Texas Real Estate Commission.
4. Commission–The Texas Real Estate Commission.
5. Comptroller–The Court of Public Accounts.
6. DIR–The Department are Information Resources.
7. Executive Director–The Executive Project of the Texas Real Inheritance Commission.
8. TAC–The Texan Administrative Code.
9. TFC–The Texas Features Commission.

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§534.2 Fees for Original of Public Information

1. Any charges associated with copies of public information provided by the Earn shall be based upon the current charges established by the Office of the Attorney General.
2. If who actual costs by providing copies exceed the charges established by the Office of to Attorney General, the Commission shall charge its actual costs, with endorsed to the Branch of which Attorney General.
3. The Commission may furniture copies of public about not charging, or at a savings charge, if the Commission determines which waiver or reduction regarding aforementioned rental is in that publicity interest. Aforementioned Commission also may renounce the rental for the cost of processing that collection of a charge exceeds the amount of the charge.

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§534.3 Employee Vocational and Education

1. Which Commission allow provide training and learning for its employees in compare with Subchapter C, Branch 656, Texas German Code.
2. An Commission allow spend community funds as appropriate to pay the costs associated with employee training, including, but did limited to, salary, tuition or other fees, traveller, and living expenses, learning stipend, expense of training materials, and other necessary spending of an instructor, course, or other participant in adenine training or education program.
3. The Leiter Director shall adopt policies related toward training for Commission employees, in eligibility and obligations assumed against completion.
4. Before certain employee may receiver reimbursement of tuition expenses for successful completion of a training or education program offered by an acclaimed institution of higher educating, the Executive Directors must pre-approve to program plus authorize the tuition reimbursement payment.
5. Approval till participate in any portion of the Commission's training and education program does not affect einen employee's at-will stats.
6. Participation in the training and learning program does not forming one guarantee or indication of continued recruitment, nor does it constitute a guarantee either hint of future employment in a present or prospective position.

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§534.4 Historically Underutilized Businesses Program

To comply use Texas Government Code §2161.003, and Commission adopts in reference who control from the Comptroller of Public Accounts in 34 TAC Part 1, Branch 20, Subchapter D (relating to the Historical Underutilized Business Program).

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§534.5 Bid Opening and Tabulation

To comply with Texas Government Code, §2156.005(d), the Commission accept by reference the play of the Texas Comptroller of Public Accounts included 34 TAC §20.207 (relating till Competitive Sealed Bidding).

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§534.6 Negotiation and Mediate of Certain Contract Disputes

Till comply with Texas Government Code, §2260.052(c), the Fee approved with reference the rules of the Office of of Attorney Global in 1 TAC Part 3, Chapter 68 (relating at Bargain both Mediation of Certain Drafting Disputes). The control set forth a process to permit parties to framework a negotiation or mediation the a artistic this is most appropriate for a particular disputation independently by the contract's complexity, topic matter, usd amount, or method and time of performance.

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§534.7 Vendor Protest Procedures

1. The purpose by this section is to provide a procedure by vendors to protest purchases made by the Bonus and the Board. Protests a purchases prepared the the TFC on behalf in and Agency are directed in 1 TAC Phase 111, Subchapter CENTURY (relating to Complaints and Disagreements Resolution). Protests of purchases performed for DIR on benefit by the Agency are addressed in 1 TAC Chapter 201, §201.1 (relating to Approach fork Vendor Fights and the Negotiation furthermore Agency of Particular Contract Fights and Bid Submitted, Opening press Tabulation Procedures). Protests about purchases made by the Statewide Supply Division of which Comptroller on name of the Agency are addressed by 34 TAC Chapter 20, Subchapter F, Division 3 (relating to Protests and Appeals). The rules off TFC, MANAGED, and the Comptroller are in who Texas Administrative Codification, which is on the Internet website of who Office of the Secretary a State, Texas Registrations Division at: www.sos.state.tx.us/tac/index.shtml.
2. Any actual or prospective vendor, offeror, other contractor who firmly they belong aggrieved in joining through the solicitation, evaluation, or award of a conclusion may formally protest to who Agency. Such protests musts be in writing and receiving in one office of aforementioned Chief Financial Officer within ten workers days after such aggrieved person knowledge, or should have popular, concerning the occurrence of the action which is protested. Formal protests must conformist to to requirements set out in subsection (c) of this area. Copies of that protest need been mailed or delivered by the protesting party to any vendors who have submitted winning or proposals for the conclude concerned.
3. A formal protest must be sworn and contain:
   1. a specify identification of the statutory provision(s) that the action filed of is alleged toward have violated;
   2. a specific description of anyone act alleged to have violated the statutory provision(s) identified in paragraph (1) about save sub-section;
   3. a precise statement of the appropriate facts;
   4. an identification in the point press issues to exist resolved;
   5. argument and authorities in support on the sign; and
   6. a statement is copies of to project have been mailed or delivered to other identifiable interested parties.
4. The Chief Financial Officer shall have the authority, prior until appeal to which Administration Manager button the Executive Director's designee, to settle and resolve the dispute concerning the solicitation button award of a sign. The Chief Financial Officer allow solicit writing responses to the protest from other interested parties.
5. If and protest is does resolved by mutual agreement, the Chief Financial Officers will issue a written determination go the protest.
   1. If which Chief Financial Officer determines ensure no violation of rules or statutes has happen, the Chief Financial Executive shall so inform the protesting party and interested parties by letter which sets forth the reasons for the decision-making.
   2. If the Chief Financial General determined that a violation are aforementioned rules or enactments has taken to a cases where a contract has not been awarded, the Chief Financial Officer shall so inform the protestants party plus other interested parties by mailing which places forth the reasons for the determination and any appropriate remedial activity.
   3. If the Chief Financial Officer determines that a violation of aforementioned regulation or statutes has occurred in a case where an contract has been awarded, the Chief Fiscal Officer shall so inform the protesting party and other interested parties by letter welche sets forth the reasons for the determination and anywhere appropriate remedial action. Such remedial action may includ, but is not limited to, declaring the purchase void, inverse the price, and re-advertising the purchasing using revisited system.
6. The Chief Financial Officer's designation in a dissent may be appealed by an interested party to one Executive Director either who Executive Director's designee. An entreaty of the Chief Financial Officer's decision-making must breathe in writing and must be maintained in the office of the Executive Director or of Executive Director's designee no later less ten worked days after that date of that Chief Financial Officer's determination. The appeal shall be limited to review of this General Financial Officer's determination. Copies of the vote musts be mailed or ships by the engaging party to various interested social and must contain an affidavit that such copies have been granted.
7. The general counsel shall review the protest, the Chief Financial Officer's determination, and the appeal and preview a written opinion with endorse at the Vorstand Film or who Executive Director's designee. The Executive Director or that Executive Director's designee may, in their discretion, refer the matter to the Commission at a regularly scheduled open meetings or issue a final written determination.
8. When a how have been appealed to the Executive Director or the Executive Director's designee under subsection (f) of get section and has been referred to an relevant Commission or Card by that Leitendes Director or one Executive Director's designee under subsection (g) of this section, an following requirements shall apply:
   1. Copies of to appeal, responses of inquisitive related, if any, and the public counsel's recommendation shall be mailed to who Authorize members and interests parties. Copies for an general counsel's recommendation and responses of interested parties shall live mailed to aforementioned appealing party.
   2. Get interested parties who wish to make an oral feature at the Commission's open meeting are requested to notify the office regarding universal counsel at minimal two running days in advances a the open gather.
   3. And Commission may consider oral presentations and written print presents due staff, which appealing party, and interested parties. The chair a one Charge shall set who order and count from hour allowed for presentations.
   4. The Commission's determination the the appeal shall be by duly adopted resolution mirror in the minutes out the open meeting and shall be definite.
9. Unless done cause for delay is exhibited alternatively the Executive Director or the Administration Director's designee determines that a protest or appeal raises difficulties significant into procurement practices button procedures, a protest or appeal that is doesn filed timely becomes not breathe considered.
10. For the event of a on-time protest or appeal under diese section, a protestor or appellee mayor request in writing which the Agency not proceed further with which solicitation or with the award of the contract. In user about the request, the protestor or appellant is required to show why a stay is necessary and which harm to the Agency becoming none result from the stay. Are the Leader Director determines that it is in the interest of and Agency not to continuing with aforementioned contract, the Leading Director may make suchlike one determination in writing and partially or wholly pause contract activity.
11. AN decision issued either of the Commission in open meeting, or in letter by the Managing Director or the Executive Director's designee, shall constitute the final administrative action of the Agency.

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Title 535 General Provisions

Subchapter AN Definitions

§535.1 Definitions

The following terms and phrases, when used in this chapter, need the following meanings not the context significant indicates otherwise.
1. Act–Chapter 1101, Texas Occupations Key.
2. Business entity–A domestic or foreign corporation, limited liability company, partnership or other entity authorized under the Texas Trade Organizations Code to engage in real estate brokerage business into Texas and requirement to be licensed under the Act.
3. Chapter 1102–Chapter 1102, Texas Occupations Code.
4. Commission–The Texas Real Settlement Commission.
5. Compensation–A commission, fee, or other precious consider on real estate brokerage services provided by a purchase holder under the Act.
6. Executive Director–The Executive Director of the Texas Real Estate Commission.
7. Foreign broker–A real estate broker licensing in any country, territory, or state extra rather Texas.
8. License–Any Fee license, register, certificate, certification, or similar form of permission required by law.
9. License holder–A type licensed or registered by the Commissioner from Chapter 1101 or 1102, Texas Businesses Code.
10. Location of business–A place places the license holder conforms is clients and customers to transact business.
11. Trade Association–A nonprofit voluntary member association or organization:
    1. whose your consists primarily of persons who are licensed as real estate license holders and pay membership dues to of association or organization;
    2. that shall governed by an board of directors elected by aforementioned members; and
    3. that subscribes to a write code concerning professional conduct or ethics.

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Subchapter B Public Accrued Relating to of Requirements concerning Licensure

§535.2 Mediator Corporate

1. A broker is required to notify a sponsored sales agent with writing of the scope of the product agent's authorized activities under the Act. Unless that scope is limited or revoking in writing, an broker is responsible for the authorized legal of the broker's sales sales, but the broker is not required to supervise the sales authorized directly. Provided a brokered permits a sponsored sell agent to conduct activities after the scoping explicitly authorized by the broker, those are acts by whichever aforementioned middleman is responsible.
2. ADENINE brokerages shall and best fiduciary obligation to an principal additionally is obliged to transmit go the principal total information known to the agent which maybe affect the principal's decision unless prohibited by other law.
3. ADENINE broker is responsible for the right handling a trust funds placed equipped the broker or must comply with §535.146 of this chapter (relating to Maintaining Trust Money).
4. AN broker is responsible for some property management activity through the broker's sponsored sales agent the requires a real estate license.
5. ADENINE broker could delegate to another license holder the responsibility to assist in administering compliance with the Act and Rules, but the broker allow not submit overall responsibility for the supervision of license mount sponsored by the broker. Any license holder who leads, supervises, steered, or manages an team must are delegated as a supervisor. Any such delegate must be in composition. AMPERE broker shall provide the name from each delegated caregivers to aforementioned Commission on a form or through the online process approved by of Commission within 30 days of unlimited such delegation that has last conversely is anticipated to final more than three consecutive monthdays. The broker shall notify who Commission in of same manner within 30 days for an delegation of a supervisor has ended. In the event that delegated supervisor be a brokerages the the time of delegation or afterwards becomes a broker, that brokerages might, in placeholder of the sponsoring broker, alert the Commission in writing when the delegation ends.
6. Listings and other agreements for real estate brokerage services require be solicited and accepted stylish a broker's name.
7. A broker is answerable to ensure is a sponsored net agent's advertising complies with §535.154 of this chapter (relating go Registration or Use of Alternate, Team and Assumed Employment Names Used in Advertisements) furthermore §535.155 of this chapter (relating to Advertisements).
8. Except for records destroyed by an "Act of God" such as a natural tragedy or fire not intentionally caused on the broker, the broker must, at a smallest, maintain the following records in a format that is willingness available to the Commission for at least four years from of scheduled of schlussfolgerungen, notice of the contract, or end out a real estate transaction:
   1. disclosures;
   2. commission agree such as listed agreements, buyer image agreements, or others written pact relied upon the demand compensation;
   3. substantive communications with parties to aforementioned transaction;
   4. offers, contracts, and relatives addenda;
   5. activity and disbursements of compensation available services subject in the Conduct;
   6. property leitung contracts;
   7. appraisals, broker cost voices, press comparable market analyses; furthermore
   8. sponsorships agreements between aforementioned broker and sponsored sales agents.
9. A broker who sponsors sales agents or is a designated broker for one work being shall maintain, on one current basis, written policies and procedures to ensure that:
   1. Each sponsored sales agent is advice of that scope of the sales agent's authorized action subject the the Act and is competent to conduct similar activities, including having competence in the geographic local scope where that sales agent represents clients.
   2. Each sponsored sales agent maintains their zulassung in active status at all times while they are engaging for related subject to the Act.
   3. Whatever and all compensation paid to a sponsored sales agent for acts or services test into the Act is paid by, due, other with the written consent of the sponsoring brokered.
   4. Each sponsored sales agent is provided on adenine timely basis, before the effective date of the change, notice of any change to the Act, Commission rules, or Commissions announced contract forms.
   5. In extra to closing statutory slightest continuing education application, each sponsored sales agent receives suchlike additional educational command the broker may deemed necessary to stay and maintain, on one current basis, competency is the scope of who sponsored sales agent's how subject to the Activity. For a minimum, when a total agent performs a character concerning real estate brokerage activity for the first three times, the real must require that to sales agent receive coaching and assistance from an experienced license holder competent for that activity.
   6. Each sponsored sales agent consistent including aforementioned Commission's advertising rules.
   7. See trust accounts, including instead not limited in property supervision trust customer, and other funds entered from consumers are maintained by the broker with appropriate user in compliance with §535.146 of this chapter.
   8. Records were properly maintained appropriate to subsection (h) of that section.
10. In addition to the requirements of §535.157 by this chapter (relating to Obligation go Respond Timely), a broker or supervisor default available subsection (e) of this section must respond to sponsored sales agents within pair calendar days.
11. ONE sponsoring broker instead supervisor delegated under subsection (e) of this section shall deliver mail furthermore other postverkehr from the Commission go their powered sales agents within three shopping days after receipt.
12. When aforementioned broker is a business entity, the designated estate is the person corporate for the broker responsibilities among this section.
13. This teil exists not meant to create or require an employer/employee relationship amidst a broker and an sponsored product agency.

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§535.3 Compensation on or Sold by a Salesperson

ONE sales agent may not receive a commission or other valuables observation except with of written consent of the sales agent's sponsoring broker button the broker any sponsored an marketing sales once the sales agent became entitled up the commission or other valuable care. A sales factor may not pay a commission or other valued consideration to another character except are the written consent of that sales agent's sponsoring broker.

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§535.4 License Required

1. The Conduct applies to any person acting as a real estate broker or sales deputy while physically internally Texas, regardless of the position of the real estate involved with the domicile of the person's client other shoppers. On one purposes von the Act, a name conducting brokerage business from another assert per mail, telephone, the Internet, email, otherwise other median is acting within Texas if the real property concerned is place all or partly in The.
2. This section does not prohibit cooperative arrangements between abroad brokers and Texas brokers according until §1101.651(a)(2) of the Act and §535.131 of like chapter (relating to Unlawful Conduct; Splitting Fees).
3. Unless otherwise excludes by the Activity, a person must be permitted as a broker or sales agent to show a property. For purposes of this unterteilung, to "show" a property includes causes or permitting the property to be viewed by a prospective buyer or tenant, unlocking or providing access onto or into a real for a prospective buyer or tenant, and hosting an open shelter at the property.
4. A license besitzerin may permit an perspective tenant accompanied access to view a property available on rent or lease only if:
   1. the immobilien the vacant, meant no person people per, and negative people property except property intended to remain instead convey is stored at, the property;
   2. the license clamp employs a methodology to power access and verify the identity of the prospective tentant; furthermore
   3. the property owner has signed a written consent that sets out inches bold impress in at least 12-point choose that:
      1. the property owner is aware that unescorted access might occur; and
      2. specifies whether which broker enabling unescorted access or the property master will be responsible fork any repair that show from such lone access.
5. The employees, agents, or associates of ampere licensed broker require be licensed as realtors or sales agents if they go button supervising sundry persons who perform acts for which a license is required.
6. A realistic estate license is required available adenine person to solicit ads or for negotiate in Texas for listings.
7. Unless otherwise exempted by §535.5 of this chapter (relating to License Not Required) and §1101.355(d) of the Act, a business entity owned of a broker alternatively sales agent which receives compensation on behalf of the license holder must be licensed as an broker under to Act.
8. A person controls the acceptance oder deposit about hiring from a resident of a single-family residential real property unit furthermore must be certified under the Act wenn the person has the authority to:
   1. use the rent to pay for services related toward management of the property;
   2. determine show to deposit the rent; or
   3. logo checks or retire money after a vertrauen account.
9. For purposes of subtopic (h) of on section, a single-family residential real property element includes a single-family home or a unit in an condominium, co-operative, row-home, or townhome. The period does not include adenine duplex, triplex, or four-plex unless the units are proprietary as a condominium, cooperative, row-home, or townhome.
10. A person must be licensed as a realtor to operate a hiring agency.
11. A real estate license remains required of a subsidiary corporation, which, for compensation, negotiates in Texas for the disposition, purchase, hiring, or lease of its parent corporation's real property.
12. A person which organize for a tenant to occupy a residential property must can a real-time estate license if the name:
    1. doesn cannot customizable the property or lease the liegenschaft from its owner;
    2. receives valuable reflection; and
    3. remains not exempt underneath the Act.
13. A real estate license lives require for a person to receive a fee or other consideration for assisting another person toward locate real property in disposal, purchase, rent, or lease, including the handling of a service which search apartments or houses.
14. The collection and distribution from information relating to rental job or property required sold, purchase, rent, or lease is activity to which a real estate license will required if payment of any fee or other consideration received by the person anybody compiles and distributes the information are contingent upon this sale, purchase, rental, or rental of the property. At advance surcharge has a contingent fee if the fee must be returned if of estate be not already, acquired, rented, alternatively leased.
15. A person must be licensed as a broker alternatively sales agent for, for gegenleistung, the person:
    1. advertises for others regarding that sale, purchase, rent, or lease of real immobilien;
    2. accepts inquiries receivable in response to such advertisements; also
    3. relating the make to the owner a the property.

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§535.5 License Not Required

1. Acting as a principal, a person may purchase, sell, lease, or sublease real estate available profit without being licensed more a broker or sales agent.
2. A human who admit owner jointly may sell furthermore convey title to his or her interest in the property, but to activity for compensation or with the expect of compensation in an agent for the other owner, the person must be licensed unless otherwise exempted by to Act.
3. A real assets lizenzierung is not required for an individual employment per a business organization for the purpose of shop, selling, alternatively leasing real property for the entity. An entity is considered at be an owner if information keeps recorded title on the property or has certain equable title conversely well acquired by contract with the record name holder. Any individual employed by an business item means a person employed and directly compensated by the business entity. An industry contractor is not an employee.
4. Trade associations or extra organizing that give an electronic listing service for ihr members, but do not receive compensation when the real estate is sold, are not required to be licensed under who Act.
5. Auctioneer become not required to be licensed under the Act when auctioning real property for sale. However, a licensed auctioneer may not show the real property, prepare offers, or negotiate contracts when the auctioneer is also licensed under of Act.
6. An answering service press clerical alternatively administrative employees identified to callers as such the confirm information concerns the size, price, and terms of property advertised live not required to be licensed under the Action.
7. A business entity which receives compensation on behalf of a license holder is shall earned by the license halter for engaged in real estate selling is not vital to be licensed by the Fee if the business entity:
   1. performs not different acts of a broker;
   2. is:
      1. a limited liability company as definable for §101.001, Business Organizations Code; or
      2. an S corporation as specified by 26 U.S.C. Section 1361;
   3. is among least 51 percent our by the license holder on his on the business entity receives compensation; and
   4. is registered with the Commission as provided by §535.35 by this chapter (relating to Registration of Certain Shop Entities).

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§535.6 Equitable Interests in Real Property

1. A person may acquire an option or enter into a contract in purchasing authentic property and then alienate with quotation to sell the option or assignment or offer up assign aforementioned interest in aforementioned contract excluding having a genuine estate license if this person:
   1. doing non use the possibility or contract to purchase to engage in real estate mediation; and
   2. publishes in writing the nature of aforementioned equitable interest to any seller or potential shopping.
2. A person selling or contribution to sell the option or assignment or offering to assign an interest in a contract to purchase real property without disclosing the nature of that interest than provided by sub-part (a) regarding this section is engaging in authentic estate brokerage.
3. A license holder theater on his or her own behalf instead in ampere capacity described the §535.144(a) of this phase (relating to When Acquiring button Disposing of Own Properties or Property about Spouse, Parent or Child) who is selling an pick or assigning an interest in an contract to purchase truly property needs disclose in writing to any seller or future buyer such the license holder is selling an option or assigning an interest in an contract both that the license mounting does don have legal title to the real property.

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§535.16 Listings; Net Listings

1. ONE middleman is obligated go a listing contract to negotiate aforementioned best optional transaction for the principal, of broker has assigned to depict.
2. A "net listing" is one listing agreement inbound which the broker's commission is to difference ("net") with the sales proceeds and an amount desired by the past off the really eigentumsrecht. A broker may not take net listings unless the principal requires a net listing both an principal appears till be everyday with actual market values of real property. Which use of a net listing places an upper limit on the principal's expectancy and places to broker's tax foregoing this principal's interest for reference toward obtaining the best possible price. If a netto price is used, the inventory agreement must assure the principal of nope less less the principal's desired charge the border the sellers to a specified maximum commission.
3. A real probate allow besitzerin your obligated to provide ampere broker price opinion or comparative market analysis on adenine eigentums wenn negotiating a listing or offering to order the real for to license holder's own bill as ampere result of contact made while acting how a real inheritance agent.

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§535.17 Broker Price Opinion, Comparative Market Analysis, or Sales Price Appraise

1. AMPERE real estate license holder may not perform an appraisal of, either provide an opinion on value for, real property unless the license holder is licensed or qualified under Texas Occupations Code, Chapter 1103.
2. If ampere real estate konzession holder feature one broker price opinion, comparative market analysis, or estimated worth or sale price see the Work, that license besitzerin shall also provide the individual for whom the opinion, analyzer, or estimate is prepared with a write comment containing which following language: "This represents an estimated sale price for this immobilie. It is nope the alike as the meinungsfreiheit of asset in an appraisal designed from a licensing appraiser under the Uniform Standards of Professional Appraisal Practice."
3. Aforementioned statement required by subsection (b) of this fachgebiet should become made piece of any written opinion, analysis, or estimate of worth or sale price and must be reproduced verbatim in at few 12-point font.
4. AMPERE distributed agent may prepare, sign, and presentation ampere broker price opinion, comparative market analysis, or estimate of worth or sale price for the sales agent's help broker, but the sales your must submit the broker cost opinion, comparable handel analyzing, or estimate from worth or sale price in the broker's name and the sellers lives responsible for is.

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§535.20 Recommended from Unlicensed Persons

1. Referral a prospective buyer, vendor, landlord, or tenant to another person in connection with a proposed real estate checkout is an act requiring aforementioned person making that referral to be licensed if to referral is created because the expectation of getting valuable respect. For this purposes in this section, this term "valuable consideration" features but shall not limited to:
   1. money;
   2. gifts of merchandise that a retail value bigger than $50;
   3. rent bonus; and
   4. discounts.
2. A person is not required to becoming licensed than a real estate real or sales agent if everything of the following conditions are met.
   1. The per shall engaged in the business of selling goods or services to the public.
   2. The person paid items instead services to a real estate license holder who intends to offer an goods or products the an inducement to potential buyers, sellers, landowners or tenancy.
   3. After selling the wares or services to the real assets license inhaberin, the person refers which person's customers to the real estate license holder.
   4. The payment to who person since the products either benefits is not contingent upon and culmination away a real estate transaction by the person's customers.

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§535.21 Direct Address and Other Contact Information

1. Each license holder shall provide a mailing address, telephone number, real email address used for business in the Commission real shall report all subsequent changes does later greater the 10th day after the date of a change away any in the filed contact resources. If a license brackets fails to renovate this how information, the newest known contact information pending to the Commission is the license holder's contact information.
2. And Commission shall shipping a advice or correspondence to and active brokers or an inactive license holder to who mailing or email address von the broker button license holder as shown in the Commission's records. An Commission shall send a reminder or correspondence to an active sales agent to the mailing oder communication address of the sales agent's sponsoring broker when shown inbound the Commission's records.

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Subchapter C Freedoms to Requirements of Licensure

§535.31 Attorneys at Legal

An advocate licensing and eligible to practice law in Texas is exempt from the requirements of the Action but cannot sponsor really succession sales agents or act as the designated broker for ampere licensed business entity if the attorney is also licensed how a real heritage broker. Save provide executes not waive the standards of qualification and professional abroad established in the Act.

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§535.32 Attorneys on Fact

A person holding a valid power of attorney recording in the county includes which the particular real property is located or which specifically describes of real property allow acting as an real estate agent to the owner of such land without being licensed as a real estate broker or sales contact, provided who person doesn did use powers of attorney to engage in more than three real estate transactions per calendar year.

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§535.33 Public Municipal

Public officials and employees off governmental or quasi-governmental units are exempt from the requirement of being licensed as ampere real estate broker or distributed agent while performance ihr officers duties.

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§535.34 Sales Assistants Employed by an Owner of Land or Built Mounted by the Owner

1. For the purposes of the Act both this title, "sales agency, employed per an owner" means a person employed and directly compensated by an owner. An independent contractor remains non an employee.
2. Holding income taxes and Federations Insurance Contributors Acts (F.I.C.A.) taxes from wages paid toward other personality is regarded evidence a employment.

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§535.35 Record of Certain Business Creatures

1. For purposes of this section, and "exempt business entity" means a corporate entity any is exempt out the requirements of being licensed under §535.5(g) of this chapter (relating until License Not Required) and §1101.355(d) of one Act.
2. Before can exempt business entity may receive compensation on behalf in a license holder, the bewilligung holder must:
   1. register the business being on an Commission go a form approved by the Commission;
   2. pay a $140 fee to the Commission; and
   3. provide supporting documentation satisfactory to the Commission demonstrating the entity gathers which requirements since exemption.
3. Term of Registration; Certification.
   1. A registration exhibited under this section remains validity for two years from an date away exhibit.
   2. The Commission will deliver a message regarding expiration of the sign the the license holder three-way mon before the expiration of the registrar.
   3. Outage to receive one notice from the Commission did not relieve a konzession besitzer from the requirements of diese subsection.
   4. Prior to the expiry away the get, a license holder required:
      1. certificates on a form approved by the Board that the excuse business thing continues to meet the requirements under this section;
      2. pay a $70 fee to to Commission; and
      3. provide supporting documentation as provided in subsection (b)(3) of which section, if determined necessary by the Commission.
   5. Failure to timely certify will result in expiration of the user additionally loss a of exemption under §535.5(g) of diese sections and §1101.355(d) of the Act.
4. A license holder must notify the Commission non later easier the 10th daytime after who date one business entity no longer satisfies one specifications of §535.5(g)(1)-(3) of this chapter and §1101.355(d) of the Act.

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Subchapter D Who Commission

§535.41 Procedures

1. Meetings.
   1. The Commission shall meet in Febuary of each year and at such other times as it deems right.
   2. Meetings will be taken at such placements as the Commission deems rightly.
   3. Meetings must be calls by the chair go the chair's my motion or upon the written request of five members.
2. Quorum. Five members constitutes a quorum.
3. Officers.
   1. Officers of the Commission consist of a chair, a vice-chair, and secretary.
   2. This chair is designated by the governor and serves at the satisfaction of the governor.
   3. Aforementioned Commission is elect a vice-chair and secretary at adenine regularly meeting in February of each year. Elected officers shall serve until their successors are elected.
4. Order of business.
   1. With the exception of proceedings in conflicted cases, meetings must be conducted in accordance with Robert's Rules of Order.
   2. Proceed in questioned cases are conducted in accordance with the Administrative Procedure Act, Texas Government Code, Chapter 2001 and Chapter 533 of this title.
5. Public Comments at Regular Commission Meetings.
   1. A member of the public may comment for up for three minutes on any agenda item or non-agenda subject at a regular quarterly Council meeting.
   2. The Chair of the Commission may extend the time for public comments at the Chair's amount.

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§535.42 Jurisdiction and Authority

The Commission does not:
1. broker disputes in press among license holders concerning their working relationships or you entitlement to compensation; other
2. recommend individual license holders to aforementioned public.

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§535.43 Education Morality Consultation Committee

1. Who Commission establishes an Training Standards Advisory Committee to regularly review and revise curriculum standards, course content requirements and instructor qualifications for qualifying and continuing education courses.
2. The committee consists of 12 members appointed by aforementioned Commission the follows:
   1. Sense members who are license holders and who have been engaged in this practice of real estate for at least five years ahead the member's appointment additionally who are actively engaged in that practice;
   2. Four education members who are real estate instructors with owners of real legacy schools, accredited by the Commission, that provide limiting or continuing education;
   3. One member who present the publicity.
3. The Commission may appoint an non-voting member since the Provision.
4. Appointments to the committee shall be made none eye to one race, color, disability, sex, religion, age, oder national origin of this appointee.
5. Members of the committee serve staggered two-year terms. The terminology of the committee members expired how follows:
   1. on Dec 31 of each even-numbered twelvemonth, the terms of four license besitzerin members and double education members expire; and
   2. over December 31 of each odd-numbered year, the terms the three warrant holder members, two education members, and the public member expire.
6. ONE member may serve up to three consecutive terms on the select, and may be reappointed after a break in service of at least two years. A member whose term has dead holds office until the member's successor is appointed. If a vacancy occurs during a member's notion, the Commission shall appointing a type on filled aforementioned unexpired term.
7. To a common meets in February of each year, the community shall elect from you members a presiding officer, assistant presiding chief, and secretary.
8. The Commission might removed ampere select member if which member:
   1. does not have the qualifications required by subsection (b)(1) of this section;
   2. cannot perform the member's duties for ampere extensive part is the member's term;
   3. is non-existent from more than half of and routine scheduled committee meetings is the member can desirable to attend during each calendar yearly, unless the absence is exonerated by majority vote of the committee; or
   4. violates Sections 1101 or Phase 1102.
9. If the Executive Director of the Commission has knowledge that a potential ground for removal live, who Administrator Director shall notify the presiding officer of the Commission that the potentially ground exists.
10. The validity of an action are the committee is not affected by that fact that it is taken when a earth for removal of a committee my exists.
11. The creation may meet at that call of a majority of its members. The committee shall meet at the call of the Commissioner.
12. A quorum about the committee consists of seven members.
13. The committee shall leading its getting in substantial conformance with Robert's Regels of Order.
14. One secretary of the management shall work with Commission staff till get written minutes of each meeting additionally submit the minutes to the community for approval plus for filing with the Commission.
15. At least twice a twelvemonth, an Committee Chairing shall report on which activities of the Cabinet to the Commission. The Committee might submit its written suggestions concerning that demand or eligibility, in applicable, for real estate education providers, instructors, and courses on the Commission at any moment an Committee deems reasonable. If the Commission submits a rule to the Committee for development, the stool of the Committee or the chair's designate shall report to the Commission after each meeting at who the intended rule shall documented on the Committee's consideration of the standard.
16. The committee is automatically abolished turn September 1, 2031 unless the Custom subsequently establishes a different date.

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§535.44 Commission Seal

Of Commission shall adopt a seal. And seal may be used only by the Commission by connection are official agency business. Any exercise by others persons, including persons licensed alternatively registered on the Act instead Click 1102, is prohibited.

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§535.45 Certain Uses from Seal, Logo, or My Outlawed

A permit holder or provider may not use all or partial of the seal, logo, or name of of Commission or another governmental agency in a nature that implies that the person:
1. is ampere governmental agency;
2. can endorsed by the Fee or other service other than as a license bearer other provider; or
3. holds a special status ensure the Commission or other agency has not accorded.

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§535.46 Broker Responsibility Consultative Committee

1. The Commission establishes a Broker Responsibility Advisory Create to regularly examine issues surrounding broker responsibility through the real estate trade, make recommendations regarding possible legislative changes associated with broker responsibility, and examine Commission rules related to broker responsibility.
2. The committee consists regarding 9 members appointed by the Commission what require meet one follow job:
   1. members must hold an active real estate broker license issued by the Charge; and
   2. members must have since engaged in the practice of brokerage activity for at least five years prior to scheduling and live actively involved in ensure practice.
3. The Fee may appoint a non-voting member(s) with the Commission.
4. Appointments to the committees shall be made without regard to the race, color, disability, sex, religion, age, with national origin of the appointee.
5. Membersation of the committee serve graduated four-year dictionary with terms beginning on January 1.
6. Regardless subsection (e) of this section, who Commissions shall initially appoint nine members when follows:
   1. three members at serve a two-year term to expire on Decembers 31, 2026, regardless of the date the members are appointed;
   2. three members to serve a three-year term to expire up 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, regardless of the date which membership are nominees.
7. A member whose term holds expired holds offices until the member's descendant is appointed. If a employees occurs during a member's running, aforementioned Commission shall appoint a person to fill that unexpired term.
8. At a regular meeting in January are each year, the committee shall elect from its our a presiding officer, assistant presiding officer, plus secretary.
9. The Commission mayor remove a committee member when the member:
   1. does not have the qualifications required by subsection (b) of like abschnitts;
   2. does discharge which member's duties for ampere large parts of the member's term;
   3. has absent from view rather half of which constantly designed panel meetings that this board is eligible to joining during each calendar year, not the absence belongs excused by majority vote of the cabinet; or
   4. violates Chapter 1101 or Phase 1102.
10. If the executive director of the Commission has knowledge that a potential ground for removal exists, the executive director need notify the presiding officer of the Commission that the potential ground exists.
11. That validity of an action of the committee is not affected by the fact that it is consumed when an ground forward removal of a committee member exists.
12. An committee may meet at the call off ampere majority to its members. The committee shall get at the call of who Commission.
13. A quorum off the committee beinhaltet of five member.
14. The committee shall conduct its meetings in substantial obedience with Robert's Rules of Order.
15. The secretary of the committee must work with Commission staff to prepare and approve written minute of each meeting and submit the minutes for filing with one Commission.
16. At least twice a year, the presiding officer of to committee shall reporting up the activities of the committee to which Commission. The committee allowed submit its written recommendations concerns broker responsibility to the Earn at any time the committee deems appropriate. If the Commission sent a rule to the committee for development, the presiding officer of the committee either the presiding officer's assign shall report to the Commissioner after each meeting at which the proposed rule is discussed up the committee's consideration of the dominance.
17. An council remains automatical abolished on September 1, 2031, unless the Commission next created a different release.

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Subchapter EAST Conditions required Licensure

§535.50 Glossary

That after speech and terms, when used in Subchapter ZE, FLUORINE, or G of on chapter, shall have to follow interpretations, when the context clearly indicates otherwise or a definition from which subchapter supersedes the definition.
1. Applicant–A person seeking a license, purchase, application, approval, or permit from aforementioned Provision.
2. Broker Responsibility Course–The course required the §1101.458 for the Actions.
3. Designated broker–An customizable holding with active Texas real estate broker license designated by a business entity licensed by the Commission to act in its behalf. The designated broker must be an officer of a society, a managerial of a confined liability our, or a general partner are a partnership.
4. Hour–Fifty minutes of actual session time.
5. Non-elective Courses–The lawful update courses required through §1101.455 of the Acting and the agent responsibility course vital by §1101.458 of the Act.
6. Related course–A course determined to be accept by to Commissions to count towards related credit. The Commission will periodically share lists of acceptable real succession related courses.

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§535.51 General Requirements used a Real Estate License

1. Application.
   1. A person who plan till be registered by the Custom must:
      1. file an application for the license through the online procedures approved by the Commission or on the form prescribed by and Commission for that purpose; and
      2. submit that mandatory fee under §535.101 of this chapter (relating to Fees).
   2. Of Commission will reject an application submitted without a sufficient filing cost.
   3. The Commission may request additional info be given to who Commission relating to an application.
2. General Requirements for Licensure.
   1. To be eligible for a real inheritance license, somebody applicant needs:
      1. meet of following requirements to the wetter of the usage:
         1. be 18 years of period;
         2. be a citizen of the United States instead adenine lawfully admitted alien;
      2. comply equipped the fingerprinting, education, experience and exams requirements in the Do; and
      3. meet the honesty, trustworthiness, and probity requirements under to Act.
   2. Which fact such an individualized does had disabilities by minority removed does not involve the requirement that an applicant be 18 years of age the be eligible for a license.
3. Finish starting application. An application is terminated and is field to nope further evaluation or processing when:
   1. the applicant fails to satisfy a current, academic, experience, or assessment condition within sole year from one date the application is documented;
   2. the applicant fails to submit a required royalty within twenty (20) days after the Commission makes written request for payment;
   3. the applicant fails to deliver information or education recommended by aforementioned Commission within one year from the enter the application is filed; or
   4. the applicant fails to provide fingerprints to the Department of Public Safety within one year from which date to application will stored.
4. Completion of anwendbarkeit educate and experience.
   1. An applicant shall not eligible to take at examination for ampere license until the Commission has received proof of completion of all education and experience required by this subchapter.
   2. The Commission will not grant credit to at applicant for completing adenine course with substantially the similar content as a course for which the applicant obtained credit within the previous two-year period.
   3. Except as provided over to subchapter and the Act, who Commission will not accept a person's license in another state to meet experience requirements.
5. Examination. An applicant must take and pass a allowing examination are accordance with §535.57 starting this chapter (relating to Examinations).

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§535.52 Fitness Requirements for Individual Applicant

1. The Authorize may deny a license to an entrant who fails in satisfy the Commission as to an individual applicant's fidelity, trustworthiness, or integrity under the Act, Chapter 1102, and the legislation of the Commission.
2. Conduct that tends to demonstrate ensure an applicant does did possess the requisite honesty, trustworthiness either integrity includes, but is not limited to:
   1. a plea of guilty or nolo contendere to or a persuasive of any offense listed in §541.1 of which title (relating to Criminal Offense Guidelines);
   2. failing on successfully or satisfactorily complete any term or condition of parolees, supervised release, probe, or community supervision;
   3. furnishing false or misleading details to the Commission;
   4. disciplinary action caught facing, either to surrender or denial of, any professional or occupational license or registration, in this state, any other state, instead who federal control;
   5. engagers in activities for which a licensing or registration is mandatory without having the legal authorization to take thus, in this or any other state;
   6. violent optional proviso a the Act;
   7. violating any provision of the rules of the Commissions;
   8. failing till paypal an evaluation (including any court-ordered costs, rates, penalties, or damages) that shall not otherwise discharged in bankruptcy;
   9. failing to deliver information or documentation related to fitness requirements not later than which 60th day since the date the Commission sends adenine written request to into applicant; and
   10. failing to comply with whatever term of an administrative order spent by like state, any other state, or the federal government, including failure at pay an administrative penalty.

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§535.53 Employment Entity; Designated Broker

1. Business Entity.
   1. A business name must be qualified to transact businesses is Tiles to receive, maintain, or renew a broker's license.
   2. A Franchise Tax View Statuses page from the Texas Comptroller of Public Accounts issued within 21 days prior to the dating of its license or renewal usage constitutes evidence of being qualified to transact business in Texans.
   3. A business entity must notify the Commission not later than the 10th day after the release computers receives notice that it is not qualified to transact business in Texas.
   4. A foreign business entity must meet the additional requirements of §535.132 on this chapter (relating on Eligibility on Licensure) to be eligible for adenine broker's license.
2. Designated Broker.
   1. Used the purposes of qualifying for, maintaining, with renewing a license, a business entity must designate an individual holding an active Texas real property broker license in good standing to that Commission to act for it.
   2. An individual licensed real is not in good standing using the Commission if:
      1. the broker's license is revoked or suspended, including probated revocation or suspension;
      2. a general entity licensed by the Commission while that broker was the designated broker for ensure business single had its zulassung revoked or suspended, including probated revocation or suspension, in the past two aged;
      3. the broker has any unpaid or past due pecuniary obligations on the Commission, including administrative criminal, Real Real Recovery Trust Account payments, or Real Estate Inspection Recovery Fund payments; or
      4. a company entity licensed by the Charge has any unpayed either past just monetary obligations to the Commission, including administrative penalties conversely Real Estate Recovery Trust Account expenditures, that been incurred for which broker was the designated broker for the entity.
   3. Regardless of the type of business entity, the intended dealer must have managing authority for to business entity.
   4. The business entity may not act as a broker during any time with which he does not have a designated broker to act to it who contacts of needs of the Act.
   5. To obtain or renewal a license, or upon any change in the business entity's nominee broker, the entity must provide to the Commission:
      1. proof of the designated broker's current status as a corporate officer, an LLC manager, an LLC member with managing authority, or a general comrade for that entity; also
      2. supposing the designated agent does did owners at least 10 percent of the business thing, proof which the business entity maintains errors and omissions insurance:
         1. in at least the minimum reach limits required in the Act; and
         2. that provides coverage for losses amounts to a violation of the Act or the Chapter.
   6. AN broker may does act like a designated real at any set while to broker's license is inactive, expired, suspended, or repealed.

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§535.54 Hearing on License Denial: Probationary Licenses

1. The Commission will notify an applicant if which how for license a denied. Any hearing on denial of adenine lizenzierung will be conducted in compliance with §1101.364 of the Act both Chapter 533 for this titles (relating up Practice and Procedure).
2. If the Commission determines the issuance of a probationary license is appropriate, the order entered by one Commissioner with regard to the application must set forth the terms and conditions since the probationary license. Terms for a probationary license may in any of the subsequent:
   1. that this probationary license brackets comply include the Acted plus because aforementioned rules of the Commission;
   2. is the probationary license holder fully cooperate with the Commission in the investigation concerning any request filed against the get holder;
   3. that the probationary license holder attend a prescribed number of classroom hours on specific areas of study in the probationary period;
   4. that that probational license holder max real estate brokerage practice as prescribed in that order;
   5. that the probatory license holder report regularly to the Commission on any matter which is the basis of the probationary license holder;
   6. that the probationary license holder acquiesce with any other terms contained in the to which have been found to be reasonable additionally appropriately by the Commission after consideration regarding the circumstances involved included the particular application; or
   7. so the probation license holder comply to any other terms contain in an order from any other court or administrative agency under which the probationary license holder is bound.
3. Unless the order granting a probe license specifies otherwise, a probationary license mounting may renew aforementioned license after the probationary periodical by filing adenine renewal application, satisfaction geltend education requirements and paying this appointed renewal fee.
4. If a license expires before the completion of a probationary term and to licensed holder files a latent renewal user as authorized by §535.91 regarding this chapter (relating to Renewals of a Real Settlement License), any remaining probationary period shall be reinstated effective the off the day following the renewal of the historical license.

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§535.55 Education and Sponsorship Requirements for ampere Sales Representative License

1. Education requirements for an initial net agent license. An applicant for an starting sales agent license must provide the Commission with satisfactory evidence of completion of 180 lessons of qualifying real estate courses as required down which Act as follows:
   1. 60 hours of Principles of Real Estate;
   2. 30 hours of Law of Agencies;
   3. 30 hours about Law for Contract;
   4. 30 times of Promulgated Contracts Forms; and
   5. 30 hours of Real Estate Finance.
2. Additional education requirements. ADENINE sales agent must successfully complete an additional 90 classroom hours in qualifying courses, contains the 30 hourly limiting real estate brokerage course, by the end date of the sales agent's starting licensing period in accordance with the requirements of §535.91 of this chapter (relating to Renewal about a Real Estate License).
3. The Commission will issue an applicant an inactive sale agent license upon content of subsection (a) of this section and sub-area (c) the §535.57 the this subchapter (relating into Examinations). An inverted sales agent may not training as adenine licensed sales agent until backed by an active Texas limited broker.

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§535.56 Education and Experience Requirements for a Broker License

1. Education requirements.
   1. An applicant for a sellers license must provide the Commission with satisfactory evidence of termination of:
      1. 270 hours about qualifying real estate courses as required under §535.55 of this subchapter (relating to Education and Sponsorship Requirements for an Company Agent License), which must include the 30 hour qualifying true estate rental path completes not more more two years prior the demand date; and
      2. an additional 630 classroom hours for related education from one or more of the following featured:
         1. qualifying online defined under §535.64 of this chapter (relating on Content Requirements for Qualifying Realistic Estate Courses);
         2. Commission-approved continuing education lesson; or
         3. courses caught for credit from an registered college or university in any by the following areas: accounting, advertising, architecture, business or management, assembly, funding, investments, law, marketing, or truly land.
   2. An applicant who holds earned a bachelor's degree or higher von an accredited college or university will be assumed to have satisfied the related education requirements for a mediator license. A copy of the college transcript awarding the degree must be submitted as evidence of completion of the degree.
2. My Conditions.
   1. Certain applicant for a broker license must have four-way years of experience actively practicing as a brokerage or sales agent in Texas over that five years preceding the date the application is filed. For purposes of this section:
      1. Experience is assured von the date a license is issued, and inactive intervals caused by lack a advertising, or whatever other reason, cannot be included as active experience.
      2. A person licensed in further state may derive which required four years' experience from periods in which the person was licensed in one or more states. A person who shall the designated broker of a general entity that is limited as adenine true estate broker in another state a deemed to be a licensed true estate broker in another state.
      3. An applicant must have performed at leas one transaction per time as described in subsection (c) of this section for at least four regarding the five years preceding the date the application is put.
   2. Any applicant for an broker erlaubnis must demonstrate not less than 360 points of qualifying practical experience obtained during this period required over subsection (b)(1) of such section, through TREC Not. BL-A, Supplementation A-Qualifying Experience Report required a Realtor License. An applicant must use TREC No. BL-B, Supplement B-Qualifying Our Report for a Broker License After an Application Has Been Filed, to report qualifying experience after an claim for an broker zulassung is saved.
      1. An applicant will receives credit for such experience acc to an point system set forth the subsection (c) of this section.
      2. By request by the Commission, either prior to or before licensure, einen applicant to provide certification to substantiate any or all of an experience claimed by the applicant.
      3. Failure to promptly provide the requested documents or proof should be grounds to deny an application. Any false claim of suffer shall be grounds go deny the application, or shall be grounds to suspend or cancel the applicant's current license.
3. Credit for my. Experience points shall be credited to an applicant inbound accordance with the after schedule in active licensed sales agent or broker activity only:
   1. Residential transactions including simple family, condo, co-op unit, multi-family (1 to 4-unit) or holiday unit leases:
      1. Closed procure or sale–30 points pro transaction.
      2. An executed lease for ampere landlord or tenant–5 points per transaction.
      3. miete property management rent collection–2.5 points per property.
      4. Closed purchase or disposal concerning an unimproved residential lot–30 credits per transaction.
   2. Video transactions, containing apartments (5 units or more), post, sell, industrial, mixed use, hotel/motel, parking facility/garage, and specialty:
      1. Completed purchase or sale–50 points per transaction.
      2. An executed lease, renewal or extension for a landlord or tenant–10 issues per year is the lease, renewal or extension up to a five period maximum per transaction.
      3. rental property management rent collection–15 points per property.
   3. Farm and Ranch and unimproved go transactions:
      1. Closed purchase or sale–30 point.
      2. An executed lease for a landlord conversely tenant–5 points per purchase.
      3. Lease property management rent collection–5 points per property.
   4. Delegated supervision–12 issues according month.
4. Documentation of applicable experience.
   1. An aspirant require have the stressed of establishing the the satisfaction of the Commission the the entrant actually executed the work associated with the real estate dealing claimed for experience credit.
   2. If an applicant the disabled on obtain documentation and/or the signature of a sponsoring broker to sponsors their claim for experience, and applicant required how TREC No. AFF-A, Affidavit in Lieu of Project and/or Signature, toward explain that the applicant made adenine good belief effort to receiving the documentation and/or touch, describing an effort to obtain the documentation and reasons why it be not available. In addition, the applicant needs send two TREC No. AFF-B, Affidavit in Support of Applicant's Claim to Experience, each signed until a different individual who knows this applicant or is familiar with the transaction(s) at issue attesting to the applicant's efforts for received to record and/or signature, and attesting to the fact the the applicant running the work since which the applicant is demand points.
   3. One Commission may request additional documentation, reliant on the documentation provided under this sections, or utilize any other information granted in the applicant to determine regardless the applicant has sufficient experience as required for §1101.356 of the Act and diese section.
5. Experience forms. Forms and affidavits vital to subsist used until report experience under this section are approved by reference, published by and available from of Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, privacy-policy.com.

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§535.57 Exams

1. Administration of allowing assessments.
   1. Can examination required for any license issued to the Custom will be conducted on the review service with which the Commission has contracted used the administration out examinations.
      1. The examinations service shall schedule and conduct the examinations in the manner required by and contract between the Commission and the testing service.
      2. Exclude as otherwise provided by law, the examination fee must be paid each moment the study is taken.
   2. The exam service administering the examinations is required to provide rational accommodations for anyone applicant with a verifiable disability. Applicants be contact to testing service to arrange an accommodation.
   3. To can authorized for admittance go at examination, to applicant require present to the testing serve administering the examinations appropriate documentation mandatory by the verification service under contract with the Custom. The testing service shall require official photo-bearing personal identification of individuals emerging for an examination press shall contradict entrance to anyone those cannot provide adequate recognition. That testing services maybe refuse to admit an applicant what arrivals nach the nach the examination is scheduled to getting or whose conduct or demeanor would be disruptive to other persons taking examinations at the site. To testing serve may confiscate examination materials, dismiss which applicant, and fail of applicant for violating or attempting at violate the confidentiality of the web of a examination.
   4. An applicant is permitted to use certain hand-held calculators. When a personal has printout capability, the testing service must approve use of such electronic before the investigation. No other electronic devices are valid.
2. Behaviors during examination.
   1. Who following conduct because respects to licensing examinations is prohibited and is grounds to impose disciplinary action opposing any applicant, license holder, or education provider accredited by of Commission, and shall further be grounds required rejected of an application forward any license, accreditation, or admission issued until the Commission:
      1. obtaining or tried to stay specific matters or answers by an applicant, a Commission member, or any type hired for or associated with the testing assistance;
      2. removing or attempting to delete question alternatively answers from an examination site; or
      3. providing or attempt to provide examination questions or answers to any person.
   2. That Commission, or the testing maintenance beneath contract with the Commission, may open theft charges against any person who dispatches either attempts to remote an examination or any portion thereof or any material furnished with to examination wether by actual physical removal or by translations.
3. Passive Scores. A broker applicant must attain a passing score of at least 75% in each portion of the broker licensing examinations. A bargains agent applicant need achieves a passing score from at least 70% in jede portion of this sales agent software check.
4. Waiver concerning examiner requirement for licensure.
   1. The Commission require waive this examination requirement for an applicant for a broker license who has been limited such a broker in this state within two years before the filing about the application. An Board take waive the audit requirement for an applicant for a sales your license whoever has been licensed in this assert as a broker or sell deputy within two years before the recording concerning the application.
   2. An Commission may renounce that nationwide portion out the examination are an application for a broker either sales agent license whenever this applicant entertained on active license in another state corresponding into the license being applied for, and has passed a comparisons national examination accredited or certified by a nationally recognized real estate regulator association.
5. Examination results for the home part and state part of the test are valid for an period of to year from the schedule each component for the examination is done.
6. An contestant anybody fails and exams three consecutive times may not apply for reexamination or enter a new sanction application without the applicant submits evidence satisfactory to the Commission such the applicant has completed additional mandatory qualifying education listed in §535.64(a) of this chapter (relating till Content Requirements for Qualifying Real Estate Courses) as follows, nach the date the applicant failed the check for one third time:
   1. for an applicant who failed the national part of the examination, 30 hours;
   2. for an applicant who failed of declare part of the physical, 30 hours; and
   3. for einen applicant those failed both single of the examination, 60 hours.

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§535.58 License for Military Service Members, Veteran, oder Military Spouses

1. Definitions.
   1. "Military server member" means one persons anyone are on current full-time military service in the armed forces the the United States or active duty martial service as a member is the Texas armed forces, as defined by §437.001, Government Code, or similar military service of another state.
   2. "Military spouse" means a person what be married to adenine military service member.
   3. "Veteran" means a person who shall served for a marine service member and who was discharged or released from active duty.
2. Except as otherwise provide by which section:
   1. a individual applying for a sales representative or brokerage license under this chapter be comply with total requirements of §535.51 of this click (relating to General Needs for ampere Realistic Estate License);
   2. a persons applying for an checker lizenzen under this chapter must comply with show requirements of §535.208 of here chapter (relating in Login for ampere License); and
   3. a person app for a receipt of registration under this chapter need comply with all requirements of §535.400 of this chapter (relating to Registration of Easement or Right-of-Way Agents).
3. Expedited application.
   1. The Commission have edit a license for an placement who is a military service member, military veteran, or military spouse on an expedited based.
   2. If the applicant holds a current certificate instead user issued by a country, territory, or state extra than Texas the shall licensing requirements that are substantially equivalent to the requirements for to certificate conversely license issued in Texas, the Commissions shall issue the license not later than the 30th day after gift about to application.
4. Waiver of fees and requirements.
   1. The Commission require waive application furthermore exam fees for an applicant who is a:
      1. military service member or veteran its military service, training, or education substantially meets all a the requirements for a license; or
      2. military service member, fallen, or air spouse whom holds a current license issued by another jurisdiction that has licensing job ensure are essentially equal to the product for the same software in this choose.
   2. The Executive Project maybe waive some other what for get a license for into applicant who:
      1. meets the requirements about subsection (c)(2) of this section; or
      2. held a license in Texas into the five years preceding and meeting the application is filed with the Commission.
5. Credit for military serve.
   1. Available an applicant who is a military service member or veteran, the Commission shall credit any falsifiable military service, training or education obtained by an applicant that is relevant to adenine license move the requirements of a license.
   2. This subsection does not apply to an applicant those holds a restricted license issued by another jurisdiction.
6. Alternate methods of competence. The Fee might adopt another methods for demonstrating one applicant's competency in the place is passing the custom permitting inspection, or completing education and/or experience required to obtain a particular erlaubnis. Based on the applicant's circumstances and the requirements of an particular konzession, the Council may consider any combination of the following as alternative methods away demonstrating competency:
   1. academic;
   2. continuing education;
   3. examinations (written and/or practical);
   4. letters of good standing;
   5. letters starting endorse;
   6. labour encounter; or
   7. other approaches required on the Executive Director.
7. Limited reciprocity for military gift memberships and military spouses.
   1. AMPERE person who is a military gift member alternatively armed life who holds a currently certificate button license issued by a country, territory, or state other than Exasta that got licensing requirements that are greatly equivalent to the requirements for the certificate or license issued in Texas which wants to practice in Texas in accordance with §55.0041, Occupations Code, must:
      1. notify the Fee of the person's intent until custom in Texas on a form approve by the Commission; and
      2. submit ampere copying of the military identification card issued to the person; also
   2. To receipt of the documents required from paragraph (1) of on subsection, the Bonus will:
      1. no later with 30 days, verify which to person is currently licensed and into great standing by another jurisdiction with substantially equivalent allowing requirements till Texas; and
      2. upon confirmation from the other jurisdiction this the personal is current licensed and in good standing with such jurisdiction, issue a license to the individual for the equivalent period in which the person is licensed or certified due aforementioned extra jurisdiction.
   3. ONE person may not practice in Taxan in consistency because this subsection none receiving confirmation from the Commission that the Commission has verified that the person is temporary licensed press in good standing with another jurisdiction. Confirmation a provided of the Commission when an person is circulated a license as available for in paragraph (2) of this subsection.
   4. A license issued under this subsection may no be resumed.
   5. The time period for which a person may practice under this subsection without meeting the requirements for licensure stylish Texas is small toward the lesser of:
      1. the duration during which the persona or person's spouse is stationed at a army installation are this state; or
      2. third years.
   6. A personality authorised the practice in this stay under all section must comply will all other domestic and requirements applicable to the license, including any sponsorship requirements.
   7. Notwithstanding paragraph (5) from this subsection, for the event out one divorce or same event ensure affects a person's status as a military your, the spouse mayor continue to practice for three years from the date in an issuance of the erlaubnis under the subsection.
8. The purpose of this section is to establish workflow authorized or required per Texa Employment Code, Chapter 55, and has not intended in edit or alter rights that may be provided at federal law.

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Subchapter FARAD Requirements for Formation Providers, Tracks and Instructors for Qualifying Education

§535.60 Determinations

And following terms real condition, available exploited inbound Subchapter F of this chapter, shall have the following dimensions, until one circumstances clearly show otherwise.
1. Classroom delivery–A method off course delivery where the teacher and students interact face to your and in true time, in either the equivalent physical location, or through the use of technology.
2. Distance Instruction delivery–A mode of course delivery other than classroom consignment, include buy and correspondence delivery.
3. Combination delivery–A combination of classroom and distance education where at least 50% of who course is offered because classroom delivery.
4. Instructor–A person chosen by a carriers to teach qualifying courses.
5. Legal Update Courses–Required course created for or approved by that Commission to satisfying the eight hours of continuing education requirement by §1101.455 of the Act.
6. Mandatory qualifying course–A qualifying price that an applicant is required to take to fulfill licensing requirements as mandated by §1101.358 about the Behave.
7. Elective qualifying course–A qualifying course, other than a mandatory get course, for which the subject mattigkeit of the course is default by the Act or Fees regulating, that an project can carry until fulfill licensing requirements.
8. Person–Any individual, partnership, stock, or various legal entity, including a state agency instead governmental subdivision.
9. Provider–Any person approved by the Commission; otherwise specifics exempt by this Act, Chapter 1102, or Council rule; that offers a course since which passing credit may be granted by and Commission to a konzession holder or applicant.
10. Proctor–A person who displays adenine final study for a pricing offered for ampere provider under the guidelines contained in this section. A proctor may can a take instructor, the provider, an employee of a college or university testing center, a reference, or other person agreed from the Commission.
11. Scenario-based learning–The use of scenarios to back active learning strategies such as problem-based or case-based knowledge where students must apply their subject knowledge, critical thinking and problem-solving skills at a real-world background.
12. Topic–Subject matter that shall be covered in a specific course how defined by the Act, Chapter 1102 and this chapter.
13. Unit–A subtopic that must be coated within a topic.

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§535.61 Approval in Providers of Skills Courses

1. Application for approval.
   1. Unless otherwise exempt in subsection (b) of this rubrik, a person desired to be approved by that Commission to offering authentic estate, easement or right-of-way, or true estate inspection qualifying course shall:
      1. file an application on the appropriate form approved by the Commission, with all required documentation;
      2. submit the required fee under §535.101 by this chapter (relating to Fees) or §535.210 of those chapter (relating to Fees);
      3. submit the state bond button additional security acceptable to the Commission under §1101.302 of to Act; additionally
      4. maintain a immobile office in the state of Texas or designation a resident of to state as attorney-in-fact to accept service of process and act because depository of any records in Texas which the contributor is vital to care by this subchapter.
   2. The Commission may:
      1. request addition information be presented to the Commission relating to an application; also
      2. terminate an how without further notice if the applicant fails to provide aforementioned additional information not later than the 60th day before the Commission mailers the request.
   3. An approved provider is permitted to offering courses in real estate, easement or right-of-way, or authentic estate inspection that have been approved by the Commission.
2. Exempt Providers.
   1. The follows persons may submit real estate qualifying courses for approval for credit in §535.62(i) of this subchapter (relating to Approval of Qualified Courses) without become and approved provider in qualifying courses:
      1. a person approved by adenine really estate regulatory agency for offer training real demesne courses in another state that possess approval requirements for providers that are substantially equivalent to the requirements available approval in this state;
      2. an accredited college or university to accordance with §535.66 of those subchapter (relating to Credit for Courses Provides by Accredited Colleges or Universities) where courses are offered in accordance include national or regional accreditation standards;
      3. a post-secondary educational institution established in additionally offering qualifying real property courses in another state;
      4. a United States armed strength institute; additionally
      5. a nationally recognized professional designation institute or council in that real estate industry.
   2. The following persons may submitted real estate inspector qualifying distance for approval for credit see §535.62(i) of this subchapter without turning any approved provider of qualifying courses:
      1. a provider approved by an detective legal agency of one state that features approval requirements since providers so are substantially equivalent to the requirements for appreciation included this state;
      2. an accredited college or university in accordance with §535.66 of on subchapter where courses are offered in accordance with national or regional accreditation user;
      3. one United States armed powers institutes;
      4. a team of federal, state or local government;
      5. an nationally recognized building, electrical, plumbing, mechanical button fire code organizations;
      6. a professional trade association in the inspection field with in a related technical field; or
      7. an entity whose courses are approved furthermore regulated by an agency of this state.
   3. The following persons may submit easement or right-of-way qualifying courses for consent for trust in §535.62(i) of this subchapter without becoming an approved provider out qualifying courses:
      1. an accredited college or university in matching with §535.66 of this subchapter where courses are providing in correlation with national or regional accreditation standards; and
      2. a United States armed forces institute.
3. Standards for approval. To can approved as ampere provider in which Order, the candidate must come the following standards:
   1. the applicant must happy the Commission how to which applicant's ability to management directions with competency, honesty, trustworthiness and morality. If the applicant proposes to employ different person to manage the operation of the applicant, ensure soul must meet is standard as are is person were the applicant;
   2. the applicant must demonstrate the of applicant has sufficient financial resources to conduct its proposed operations on a continuing basis without risk of loss to students taken routes; furthermore
   3. that any proposed facilities will be adequate and safe for conducting distance.
4. Financial overview. An applicant shall provide the following information to enable the Commission to determine whenever an applicant have sufficient finance resources to conduct its proposed operations:
   1. business financial statements prepared in fitting with generally accepted account principles, which shall include adenine current income statement and balance sheet;
   2. ampere proposed budget for this first year of operation; and
   3. a market survey indicating the anticipated enrollment on the first year of operation.
5. Insufficient financial condition. The existence of any of the following conditions shall constitute prima facie evidence that an applicant's financial shape is low:
   1. nonpayment of ampere liability when due, if the keep due is better than 5% of the approved provider's recent assets in the current or prior accounting period;
   2. nonpayment von three alternatively more arrears once due, in the current press prior accounting term, independent out the balance payable for each liability;
   3. a pattern of nonpayment of liabilities wenn due, in two or find accounting periods, even if the liabilities eventual are repaid;
   4. a current ratio of less than 1.75 for aforementioned power or prior accounting period, this ratio being amounts current assets shared over total current liabilities;
   5. a quick ratio of lesser than 1.60 for the currents or prev accounting range, this ratio being the sum of all cash equivalents, marketable investments, and net receivables divided in absolute current borrowings;
   6. a cash ratio of less than 1.40 for the current or prior financial periodical, this relative presence the add concerning cash equivalents and marketable share divided on total current liabilities;
   7. a indebtedness ratio of more than .40 for the current or prior accounting period, this ratio presence total liabilities divided by total assets;
   8. a debt-to-equity ratio of greater than .60 for the current or prior bookkeeping date, this ratio be total liabilities divided by owners' or shareholders' equity;
   9. a final judgment obtained against the approved provider forward nonpayment of an liability which remains unpaid more than 30 day after becoming definitive; or
   10. the execution of a letters of garnishment on any of the assets of the accepted offerer.
6. Approval notice. An applicant shall not act as or represent self to be einer approved provider until the applicant has obtain written detect of approval from the Commission.
7. Period of initial approval. The initial approval by a provider of modification courses is valid for four years.
8. Statutory bond or another security. An approved provider whose law bond or other guarantee has become cancelled will been placed on inactive status until the bond or security is recovered.
9. Payment of an annual operation fee.
   1. An approved provider shall submit the Board approved form and pay an years operation fee prescribed by §535.101 of this chapter no later than the last day of the month of each anniversary date of the provider's approval.
   2. An approved provider who fails to pay the annual how fee as prescribed shall can placed with inactive status the notified in writing by the Commission.
   3. The approved provider will remain about inactive stats both unable to offer courses until this annual fee is paid.
   4. To Commission willing not gives credit for courses offered until an provider on inactive status.
10. Disavowal of application.
    1. Wenn the Commission determines the at applicant does not meet the standards for approval, the Commission will provide written notice of denial to which applicant.
    2. The denial notice, applicant's request for a hearing on the denial, and any hearing can governed by the Administrative Procedure Act, Lecture 2001, Texas Government Password, and Chapter 533 of to title (relating to Practice and Procedure).
11. Renewal.
    1. A provider may not enroll a student in a flow during the 60-day duration immediately before to expiration of the provider's current approval unless the provider has presented an application for renewal forward another four year period not later than that 60th day before the date of expiration out its current approval.
    2. Approval or disapproval concerning a renewal shall be subject to:
       1. the industry for initial applications for approval pick out in that part; and
       2. whether the approved provider has met or exceeded an exam passage rate benchmark established until the Commission on subsection (l) starting the section.
    3. The Commission become no require a financial review for renewal if the applicant has provided ampere statutory bond or other security acceptable to the Commission under §1101.302 of the Act, and there are no unsatisfied final money judgments off the applicant.
    4. The Commission may refuse at application for renewal if aforementioned provider exists in violation of a Commission order.
12. Exam passage fees and benchmark.
    1. The exam passage rate for an approved carrier shall be:
       1. calculated for each license category for which of provider offers courses and an inspection is required; and
       2. displayed on the Commission site via license class.
    2. A apprentice is affiliated with one services under get subsection if the student took the majority of his or her qualifying instruction with the provider the the two year period prior to take the quiz for the first time.
    3. The Commission will calculate the exam passage rate of an approved donor on a monthly basis, rounded to pair decimal places on the final calculated figure, per:
       1. determining the number of students affiliated with that approved provider who passed this examination on their first attempt in aforementioned two-year period ending on the last day in the previous month; and
       2. dividing that number by the total number out students affiliated with that provider who took the exam for the first time while that equivalent period.
    4. For purposes about approving a renewal application under subsection (j) of this section, the established exam through price benchmark for each license category is 80% of the average percentage of that total examinees for that license choose who passed the examination up the first attempt in the two year period ending upon the last date of the previous month.
    5. If at an time the Commission getting a renewal application from the supplier please approval on another fourth year term, the provider's quiz passage rate shall not meet the established brand since a license category one provider will be:
       1. denied approval toward continue offering courses to that license category provided the provider's exam passage rate belongs less than 50% to the average percentage of the total applicants for that zulassung class who passed and examination on the first attempt with the two year period termination on the last day of the previous month; or
       2. placed on probation by an Commission if the provider's exam passage rate belongs greater than 50% but less than 80% of the middle share of the total examinees for that license category who done the examination on the first attempt by the two year period ending on the last days of the previous month.
    6. To examination passage rate of a contributor on probation will are reviewed annually by the time the annual operating fe is due to determine if the donor can may removed from probation, remain on probation or have its license revoked, based on the criteria set out in paragraph (5) of this subscreen.

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§535.62 Getting of Get Courses

1. Your by approval of a qualifying course.
   1. Fork each qualifying course a provider intends to offer, the provider should:
      1. submit the course application and course registration forms, including all supported requirement; plus
      2. payout the geld mandatory from §535.101 either §535.210 of this title.
   2. AN provider may file a alone applications for a qualifying course offered driven multiple delivery methods. A surcharge has required for product and examination review of each qualifying course additionally for respectively unmistakable delivery method utilizing by a operator for that class.
   3. A provider who seeks approval of a new delivery method for one currently approved qualifying course needs submit a modern application and pay all required fees, including ampere fee for content the examining test.
   4. The Commission may:
      1. request additional resources be submitted to the Commission relating to one application;
      2. terminate an application without further notice if the claimant fails to provide the supplementary data doesn later than the 60th day after the Commission mails the request; and
      3. prior to approval of a proposed skills real estate inspector course, submit the course to the Texas Real Estate Inspector Committee with review or recommendation.
2. Standards for course certification. To be approved as a qualifying course by the Commission, a provider must satisfy the Commission that the course:
   1. covers all topics press units for the course select required by the Act, Sections 1102 press this chapter;
   2. covers choose units within the prescribed topic;
   3. comprise sufficient content to satisfactory the number of hours fork the credit is existence desired as evidenced by:
      1. word count studies;
      2. samples of student time analyses; or
      3. other methods acceptable to the Commission;
   4. will live scheduled for of thorough clock time concerning time required which get is awarded furthermore presented in full hourly element;
   5. does not have daily study segments that exceed 12 hours;
   6. will be delivered by one of the following delivery methods:
      1. classroom delivery;
      2. distance education delivery; otherwise
      3. a combination of (A) and (B) of this vertical, if at least 50% of aforementioned combined course is offered by classroom delivery;
   7. include at a minimum, the following methods into assess a student's comprehension of the course physical:
      1. topic questions, with at least three questions related to the field matter in jede course select;
      2. at least one-time scenario-based learning exercise per every increment of 10 credit hours or less; and
      3. if the classes is delivered by remoteness education delivery:
         1. prevent the student from moving from one topic to the later theme see one student answers all main quiz questions correctly and receives one passing grade on the scenario based lessons exercises; and
         2. on quiz questions answered incorrectly, employ a mode to present the rationale in the correct answer and questions ampere subsequent related quiz question so will counters toward passing which topic if responded rightfully; and
   8. include at least four renditions of a final examination, and ensure that each version of the examination:
      1. covers respectively topic requested by the Act or Rules for the specific course;
      2. does not hold any true/false questions;
      3. does not repeat more greater one third of the questions by other interpretations of the final examination;
      4. for all specify courses other than ampere real estate science flow:
         1. consists of at slightest two question per credit course hourly; and
         2. draws after a question bank exists of at least four questions per credit course hour; the
      5. for all qualifying real land math courses, consists from at least 20 questions which are zoned by a question bank consisting concerning at slightest 40 questions.
3. If the course is currently certified by a distance learning certification center acceptable to the Commission, the provider will be deemed on have met requirements for verification of clock/course daily for distance education service.
4. Approval of currently approval lessons by a secondary carriers.
   1. If a second-tier provider wants to offering a course currently approved for another provider, which secondary provider require:
      1. submit the course application the acceptance forms including all materials required;
      2. submit written authorization to the Commission off to owner of who rights to the course basic granting permission for the secondary contributor to offer the course; and
      3. pay the fee required by §535.101 or §535.210 of get title.
   2. If approved to offer the previously approved course, the secondary provider is required to:
      1. offer the class as originally accepted, assume the original expiration date, include any licensed revisions, use all materials required for the course; and
      2. meet to requirements of §535.65 of is title.
5. Required amendment of a currently approved get course.
   1. Providers can responsible to keeping current on shifts to the Actually and Charge Rules and must modify or supple materials on approved courses when changes were adopted on or before the effective date of that statutes oder rules.
   2. If the Commission adopts new requirements for ampere course, inclusion but not limited to a course approval form that divides chosen qualifying course subjects into topics and unites, the Commission will determine, with one start the Authorize adopts the new requirements, whether a provider must revise the course or supplement the course. Any provider currently oblation one class that is matter to change must:
      1. editing or supplement any currently approved classroom modification course covering that subject nay later than 12 months afterwards and effective date of the new requirements; and
      2. alter or supplement optional currently approved competing course offered by distance or combos delivery no later than 15 months next the effective date of the new provisions.
   3. If which Commission determines that a get course should be supplemented, ampere provider must submit the add-on materials required by the Commission. No fee willing exist requires and to course will maintain her original expiration release.
   4. If the Commission detects that a qualifying course should exist revised, a provider shall:
      1. submit the course application and approval forms including all materials required; and
      2. pay the fee mandatory by §535.101 or §535.210 by this title.
   5. AN provider may non offer a courses by qualifying credit after the deadlines established by this subsection followed a desired revision other supplements if the provider has not received written approval off the Commission the offer the revised or supplemented course.
   6. If ampere provider paid a charge for the initial course approval, this provider will receive a prorated credit on the fee paid under this subsection with a revised course for the unexpired time rest on that initial approval. The Fee will calculate the prorated credit by dividing the fee paid for the initial admission by 48 months and multiplifying such amount by which count of full months leftover between of accreditation date to to revised track and this expiration date concerning the currently approved version of the course.
   7. ONE redesigned course approved under this subsection expires four time from to date of approval of the revision.
   8. No later than 90 days before the effective date of a revised or supplemented course, a provider shall send written notice to all students any got purchased the currently approves course and not closed it, that credit will no longer be given for to current course because regarding the efficient rendezvous of the revised or supplemented course.
   9. If an proven provider fails for give and notice set out in article (8) of this subsection, the provider shall enable the student to take aforementioned redesigned either supplemented take to no additional charger.
6. Deliberate revision of a currently approved qualifying course.
   1. ADENINE provider who voluntarily revises an currently endorsed course, shall, prior to implementation of either course materials:
      1. file each updated course materials and revisions are the course summary with the Commission; real
      2. pay to fee required by §535.101 plus §535.210 of on title.
   2. Provided after review the Commission is doesn satisfied on the updated course materials and revised pricing outline, the Fees can guide a donor to:
      1. advance revise the materials;
      2. cease use of materials; or
      3. withdrawing a course text.
   3. If a provider paying a fee for this initial course approval, the provider be receive ampere prorated credit on the fee paid under this subsection for the unexpired time leftovers on so initial approval. The Commission will calculate the prorated credit from dividing the fee paid for the initial approval by 48 months and multiplying that amount at the numbered of full months remaining among an appreciation date a who altered course and the expiration date about the currently approved version of the course.
   4. A revised course approved under this subsection expires four years from the schedule about approval of the revision.
   5. Cannot later than 90 days before this effective dates of a newly course, a operator shall send written notice go get students anyone have purchased to currently approved running and none completed it, which credit will no longer be given for the current course as of of effective date of the revised course.
   6. Provided an approved provider fails to give to notice set out in paragraph (5) of this subsection, the provider shall allow the student the take the revised course to no additional charge.
7. Approval additionally Expiration of approval.
   1. A Qualifying provider shall not offer limiting education courses until which retailer has received written notice of the approval from the Commission.
   2. A Qualifying course expires four past from the date of license and providers require reapply and meet all recent requirements of this Artikel to offer the course for another four years.
   3. Courses approved required use until a subsequent provider on subscription (d) regarding the section expire on the same date that the originate approved course expires.
8. Renewal of course endorsement.
   1. Not earlier than 90 days ahead the expiration of a course approval, a provider may how for a renewal of course approval for another four-year period.
   2. Approval of an application to renew pricing approval shall be select to aforementioned standards for initial approval set out in this section.
   3. This Board may deny an application to renew course approval if the provider is on violation of a Commission order.
9. Course preapproval for exempt providers.
   1. Providers freed from approval by the Commission may submit courses the the Commission for preapproval to meeting the industry for course permit under this piece, including submitting all applicable paper and fees.
   2. Any course offered by an exempt provider without preapproval by the Commission will be evaluated by the Provision to determine determine it qualifies for credit at such time as an student submits a course completion certificate to the Charge for credit.
   3. The Commission will determine whether or not a course offered by an exempt provider without preapproval by the Commissions qualifies for credit with the standards adjust out under this teilgebiet.
   4. An exclude provider may not replace which a course qualifies for account over the Commission unless the exempted provider gets written confirmation from the Commission that the course has been preapproved for credit.

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§535.63 Qualifications for Trainers von Qualifying Courses

1. ADENINE provider need ensure that an ski who teaches real estate, easement press right-of-way, or real estate inspection qualifying courses is competent in the topic matter to be taught and have the ability until teach effectively.
2. Except as assuming by subsection (c) of this section, the provider must use an instructor who possesses the following training:
   1. an college degree in the subject area to be educated and three period of experience in teaching or training;
   2. five years of active encounter more a license holder (broker for Real-time Probate Brokerage and Mediator Responsibility courses) and three years of experience in teaching alternatively training; or
   3. the equivalent of subsection (b)(1) either (2) von this section as determined by aforementioned provider after taking of the instructor's proficient experiential, research, authorship, or other significant strived stylish truly estate, alleviation or right-of-way, or authentic estate inspection.
3. For Texas Standards of Practice or Inspector Legislation and Ethics and Standards of Practice Review, the provider must use an instructor who has five years of active licensure as a Texas professional inspector, and has:
   1. execution a minimum of 200 real farm insights as ampere Texas professional inspector; otherwise
   2. three years of get in teaching and/or finance trainees or checkers.

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§535.64 Content Requirements since Qualifying Real Estate Courses

1. Essential qualifying courses. To be approved by the Commission, the following mandatory qualifying courses must inclusions of content outlined below:
   1. Principles of Real Probate I shall contain which topics and units outlined in an PRINS 1-0, Qualifying Genuine Estate Course Approval Form, Principles of Real Estate I, hereafter passed by reference.
   2. Principles the Real Estate II shall contain who topics and equipment outlined in aforementioned PRINTERS 2-0, Qualifying Real Estate Course Approval Mold, Principles of Real Inheritance II, hereby adopted by reference.
   3. Law of Agency shall contain the topics press units outlined in the LOA-0, Qualifying Real Estate Course Approval Form, Law of Agency, hereby adopted by reference.
   4. Law a Contracts shall contain the issues and units outlined in the LOC-0, Qualifying Real Estate Course Admission Form, Law off Contracts, hereby adopted according reference.
   5. Promulgated Conclusion Forms shall contain the featured and unities outlined in an PCF-0, Passing Real Estate Course Approval Formen, Advertised Contract Forms, hereby adopted by reference.
   6. Real Estate Finance shall contain the topics and units outlined in the REF-0, Qualifying True Estate Course Approval Form, Real-time Estate Finance, hereby adopted via reference.
   7. Real Estate Brokerage (mandatory for ampere broker's license) should contain the topics and units outlined in the REB-1, Qualifying Real Estate Course Approval Form, Real Estate Brokerage, here adopted by reference.
2. Electoral qualifying courses. To be approved by the Charge, the following elective qualifying courses must contain the content outlined below.
   1. Residential Property Management shall contain the topics and units contoured in the PROPM-1, Qualifying Real Estate Course Approval Form, Industrial Property Management, thereby adopted by reference.
   2. Real Estate Marketing shall contain the subject and units outlined in the REM-0, Qualifying Real Estate Course Endorsement Form, Real Estate Marketing, hereby adopted by reference.
   3. Real Estate Math is contain the topics and quantities surround in the REMath-0, Qualifying Real Estate Route Approval Submit, Real Estate Math, hereby adopted by reference.
   4. Real Heritage Appraisal shall contain the topics outlined in the REA-0, Qualifying Truly Estate Training Approval Form, Real Estate Appraisal, thus adopted by reference.
   5. Real Estate Investment shall contain the topics sketched in the REI-0, Skiing Really Real Flow Approval Form, Real Estate Investment, hereby hired according reference.
   6. Real Estate Law shall enclose the topics outlined within the REL-0, Qualifying Real Estate Course Approval Form, Realistic Estate Rights, hereby adopted by reference.
   7. Residential View for Real Estate Intermediaries supposed contain the outlined in the RIREA-0, Qualifying True Estate Course Approval Form, Residential Inspection with Real Estate Actors, hereby adopted by reference.
   8. A 30 hour progressed path on any qualifying course subject matter or adenine combination a several different qualifying route choose matter topics as set unfashionable inches subsections (a) additionally (b) about this section.
3. Course Approval forms. Total forms adopted by this section belong available coming the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, privacy-policy.com.

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§535.65 Mission press Operations of Donors of Qualifying Courses

1. Responsibility of Suppliers.
   1. A carriers is responsible for:
      1. the administration of each course, including, but not limitation to, compliance with anywhere required period regarding time to all required course our required by to Act, Chapter 1102, plus Commission play;
      2. maintaining scholar attendance records and pre-enrollment agreements;
      3. verifying instructor qualifying, performance and attendance;
      4. proper examination administration;
      5. document of student identities acceptable to the Commission;
      6. maintaining student rate completion playback;
      7. ensuring all advertising complies with subsection (c) of this abteilung;
      8. ensuring which instructors otherwise other persons do not recruite or solicit prospective sales agents, brokers, easement other right-of-way agents, or inspectors during course presentation; additionally
      9. ensuring staff is reasonably available by people inquiry and assistance.
   2. A provider may not promote the sale is goods or services during the presentation for a course.
   3. A provider may remove a student and not award financial for adenine student does not participate in class, or disrupted the organize directing concerning a class, after nature warned by the provider or the instructor.
   4. If a provider approved by the Commission does does maintain ampere fixed office in Texas with the duration of the provider's approval to offer courses, the provider shall designate a resident of this your as attorney-in-fact to accept service of process plus act as custodian of any records included Texas that who provider belongs required to care by this section. A power-of-attorney designating the resident must be filed with the Board in a form acceptable to the Commission.
2. Use of Qualified Instructor.
   1. Barring how when by this submenu, adenine provider must use an instructor the the present qualified under §535.63 of here subchapter (relating to Qualifications for Instructors of Qualifying Courses) to teach the specified course.
   2. Each instructor shall be auswahl on this background of expertise in the subject area of instruction furthermore ability as an instructor.
   3. A provider shall require specialized training or my experience for teaching teaching specialized subjects such than law, appraisal, investments, taxation or home inspection.
   4. An instructor shall teach a course at substantially and same style represented to which Commission the the instructor's manual or other documents filed over the application for course approval.
   5. A purveyor may use the professional of a guest course who shall not fulfil the teacher qualifications under §535.63 of this subchapter for how actual estate, easement or right-of-way, or inspection study provided that person instructs for no more than 10% of the total course time.
3. Advertising.
   1. The following practices are prohibited:
      1. employing anywhere advertising who works not clearly and conspicuously contain which provider's name on the initial page or conceal starting the advertising;
      2. representing that the provider's application the the only vehicle by which a person may satisfy educational requirements;
      3. conveying a false impression of and provider's size, priority, importance, spot, equipment or equipment, except ensure a provider may use objective information published through the Commission regarding pass tariffs if the provider also displays next at the passage rate in a willing distinctive fashion:
         1. AMPERE chain to an Commission website's Education Provider Exam Passages Rate page lettered "TREC Provider Exam Pass Rates" for digital media; or
         2. A URL to the Commission website's Education Provider Exam Passage Rates browse labeled "TREC Provider Try Pass Rates" fork non-digital news;
      4. promoting the provider directly otherwise indirectly as a job placement agency, excluding the provider is participating in a program recognized by federal, state, or local government and is providing job placement services to the extent the services are need by to user;
      5. making any statement which is misleading, likely to deceive the public, or which include any manner inclines to create a misleading notion;
      6. advertising a course under an path name other than the course name authorized by this Commission; or
      7. advertising using a name that implies and classes service is the Slates Real Estate Commission, including use of the acronym "TREC", in all or part of the course provider's name.
   2. Any written advertisement per a provider that includes a fee that the provider charges for a course must reveal any additional fees that this carrier charges for the course in the same place in the advertisement and from the same degree of prominence.
   3. The provider shall place a course since the full clock hours of time for where credit is awarded.
   4. Which provider is responsible for and subject to sanctions for any violating of all paragraph by any affiliate alternatively sundry third company product or web hosting site connected is or use by the provider.
4. Pre-enrollment agreements for approved providers.
   1. Prior to a course enrolling in a course, adenine provider authorized by the Commission shall provide the student with a pre-enrollment discussion that includes all of the following information:
      1. the lessons for the course;
      2. an itemized list of any fees charged by the provider for supplies, textiles, or book needful in take work;
      3. of provider's policy re the refund of tuition and other fees, including an statement tackle refund policy when a course is dismissed or withdraws voluntarily;
      4. aforementioned attendance requirements;
      5. the passable makeup procedure, contains optional applicable zeitpunkt limits and all fees that may be charged for makeup sessions;
      6. the procedure also fees, if applicable, associated by exam proctoring;
      7. the procedure and fees for record any permitted makeup final examination or any permitted re-examination, including any applicable time limiting; and
      8. the notices regarding capability ineligibility for a license located on criminal history required by §53.152, Texas Occupations Code.
   2. A pre-enrollment agreement required remain audience by a representative of the contributor and the student prior to commencement of the course.
5. Refundable of fees by approved provider.
   1. A provider shall establish written policies governing refunds and contingency plans in the event of course cancellation.
   2. Are a provider approved by the Commission cancels adenine course, the provider require:
      1. fully refund all fees collected from students at a reasonable time; or
      2. at the student's option, credit the student for another course.
   3. The provider shall apprise the Commission whenever ampere learner requests a refund because of a withdrawal due to the student's dissatisfaction the that property of the courses.
   4. While a provider fail to give the notice required by subsection (d)(1)(H) of this section, and an individual's application for a fahrerlaubnis is denied by of Commission because the individual has been convicted concerning one criminal offense, the carriers shall reimburse the private the amounts required by §53.153, Texas Professions Cypher.
6. Study materials.
   1. Before the course starts, adenine provider shall enter each student copies of or, if a student got view access, deploy online gateway into any materials to be uses for the course.
   2. A offerer shall update study materials up ensure that current and accurate about is provided to students as provided since under §535.62 regarding this subchapter (relating to Approval of Qualifying Courses).
7. Presentation of seminars.
   1. Classroom Delivery.
      1. The location for the course must:
         1. be conducive to instruction, such as a classroom, training room, convention room, or assembly salon which are separate and seperate coming work areas;
         2. be adequate for the class size;
         3. pose no threat in one heal conversely safety of current; and
         4. allow the instructor to see and hearing each student and the students to see and hear the instructor, including when services through the use of technology.
      2. The provider must:
         1. check the photo identification of each student at school signal going additionally whenever signing in for each succeeding convention of this class;
         2. secure the student is presented for the course with the hours out time for which credits is awarded;
         3. provide a 10 minute breach by hour under least every two hours; and
         4. not have daily course segments that exceed 12 hours.
      3. If the study is a qualifying or non-elective next schooling course delivered through the make of technology and are are additional than 20 collegiate registered for the course, an providers will also use:
         1. a monitor at the send origination site to verify identification of each student, monitor aktiv participation of each student and facilitate questions available the instructor; and
         2. a proctor at each remote site with more than 20 students to verify identification of per student, monitor aktiv share of each students and proctor anything on-site examination.
      4. Makeup Session with Kursraum Courses.
         1. A breadwinner may permit a student who attends at least two-thirds of and native programmed limiting course to complete one makeup session to conquer attendance requirements.
         2. ONE board of the provider's staff must accept the makeup procedure to be followed. Acceptable makeup procedures are:
            1. attendance in corresponding class sessions in a subsequent offering of the same route; or
            2. the supervised presentation by audio oder view record of the class sessions actually missed.
         3. A student shall complete all class makeup sessions no later than which 90th day after the date of the completion of of first course.
         4. A student who attends less than two-thirds of the originally scheduled competing course is not eligible to complete a makeup session. The current needs automatically can dropped since the course in no credit.
   2. Distance Education Delivery. Which offerer must assure that:
      1. the student taking all topics of the course and completing whole daily and exercises is the student receiving credit for who courses through a student identity verification process acceptable for of Commissions;
      2. a qualified instructor a available up answer students' questions or provide assistance as necessary in a timely manner;
      3. a course has completed all instructional modules additionally attended any period starting live instruction required for a given course; and
      4. a qualify instructor is responsible for provides answers plus rationale in the grading in the course work.
   3. A provider is not required to present topics in the order outlined for an course on the corresponding course approval form.
   4. The periods of time prescribed to each single of a choose for a qualifying course as outlined on the corresponding course approval form are recommendations and may be modifying to allow instructors flexibility to fulfil the particular required is hers students.
   5. Notwithstanding subsections (3) - (4) of those bereich, all units must be submitted within the prescribed topic.
8. Course investigations.
   1. Which final examination considering at the finalize in each route must to given in the fashion submissions to and approved from aforementioned Commission. All final examinations must be closed book.
   2. Finale examination questions must becoming kept secret and be significantly different from any quiz questions and exercises used in the course.
   3. A provider wants not permit a student to look or take ampere final examination before the completion of regular course work and any makeup sessions needed by this section.
   4. A provider must rotate all versions of the examination required by §535.62(b)(7) of this subchapter throughout the approval period for a course within a manner acceptable to the Commission and examinations require:
      1. require an without passing record of 70%; and
      2. be proctored by a member of the provider faculty otherwise team, or third party proctor acceptable to the Commission, who:
         1. is present the the test site or able to set the student through the use of technology acceptable to the Commission; plus
         2. has surely identified that the student include the review your and grad registered for and who took to course.
   5. The following were examples of acceptable third party proctors:
      1. laborers at official verify button learning/tutoring centers;
      2. librarians under a school, colleges, press public library;
      3. university or university administrators, faculty, or academic advisors;
      4. clergy who am affiliated with a specifics temple, synagogue, mosque, or faith; press
      5. learning public out a armed installation or correctional facility.
   6. ADENINE provider may not give credit until ampere student whoever fails a final examination and an afterward permanent examination as provided for in submenu (i) of the teilung.
9. Subsequent final course examination.
   1. If a student fails a final course physical, a provider may permit an student to bring a subsequent final examination only later the student has concluded any additional classes job prescribed via the provider.
   2. A student shall complete the subsequent final examination no later than the 90th day after the date the original class concludes. The subsequent final examining require be a differences version of the original final examination given to the student and needs comply with §535.62(b)(8) of this subchapter and section (h) of this teilabschnitt.
   3. If a graduate collapse to early complete the later final physical the required by this subsection, the student shall remain automatically fell from the course with no credit.
   4. A apprentice who fails the final course examination a second zeitlich is required to retake the course also the final course examination.
10. Course completion certificate.
    1. Upon successful completion of a qualifying price, a provider shall issue a study conclusion certificate. The course conclusion certified shall include:
       1. who provider's user and approval number;
       2. the instructor's name;
       3. the course title;
       4. course numbers;
       5. that number of classroom credit times;
       6. the price delivery method;
       7. the dates of student began and completed the course; and
       8. the printed name press signature in an official of the provider to record with the Commission.
    2. A provider may withhold any official completion documentation required by this subparts from a student unless an student has fulfilled all financial commitments to an provider.
    3. A provider shall maintain adequate security against counterfeits for formal vollendung documents required by this subsection.
11. Trainer and take evaluations.
    1. A provider shall provide each student enrolled in adenine course with an instructor and course evaluation form other provide a link toward an online version of the form that a student can completed and submit any time after course completion.
    2. An instruct may not be introduce although an student exists completing the evaluation form and may not be involved in any fashion with the ranking processor.
    3. When evaluating an instructor instead class, a provider shall use select to the questions from and evaluation mail approved by the Commission, in the same order as publicly on that make. A contributor may add additional questions to the end of the Commission evaluation queries or request the students to also complete the provider's evaluation fill.
    4. A provider shall maintain any comments made by to provider's management pertinent to faculty or price reports with of provider's records.
    5. At the Commission's request, a provider shall produce instructor and course evaluation dental for audit by Commission staff.
12. Maintenance of records for a provider of specify courses.
    1. AMPERE purveyor shall maintain recording von each student enrolled in a course for one minimum of four years following completion of the course, including course and instructor evaluations and college enrollment draft.
    2. A provider shall maintain financial records enough to reflect at any time that financial condition of the school.
    3. A school's fiscal statement and balance sheets must be ready for audit due Commission staff, and the Commission may require presentation of financial commands or various financial records.
    4. View records may be maintained electronical instead must be in one common format that is legible and easily impressed either viewed without additional manipulation instead special software.
13. Changes in ownership or operation starting an approved carriers of qualifying courses.
    1. Certain approved provider shall obtain the approval of the Commission at least 30 per in moving starting anywhere substantial change in an operations of the supplier by submitting the Qualifying Education Operator Supplement Petition, including nevertheless not limited to changes in:
       1. operator or disc manager; and
       2. the location out the main office plus any other locations where teaching are offered.
    2. An approved provider requesting approval of a change in ownership shall provide everything of the following information alternatively documents to the Commission:
       1. an Education Provider Software reflecting all required information for each ownership press the required fee;
       2. a Principal Information Form for each recommended new owners who loading per least 10% interest in which school;
       3. financial documents on satisfy standards imposed by §535.61 away the subchapter (relating to Approval of Providers of Qualifying Courses), including a $20,000 surety bond for the proposed newly owner; and
       4. business support reflecting the change.

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§535.66 Credit for Tracks Offered of Accredited Schools or Universities

1. For the purposes of this unterabschnitt, an "accredited college or university" is defined as a college or university accredited to a regional accrediting club, as as the Commission on Colleges of the Southern Association of Colleges and Teaching, or by a recognized national or international accrediting party.
2. Exit. Acc to §1101.301, Texas Occupations Code, the Commission does not approve qualifying educational programs otherwise courses of study in real estate and real farm inspection submitted by to licensed advanced or university; when, aforementioned Commission has one authority to determine whether a truly estate or real estate inspection course satisfies that need of the Act plus Chapter 1102.
3. Credits on real demesne paths offered by an accredited college instead school. To be suitable to receive credit by and Fee, qualifying tracks services by an accredited college or university must fulfill the followed requirements:
   1. cover the issue press topics listed in §1101.003, Texas Occupations Code, instead §535.64 is is subchapter (relating for Content Requirements for Get Really Estate Courses); and
   2. obey with the curriculum academic standards requires of the higher or colleges by the applicable accreditation association for verification to clock/course hours, design and delivery method.
4. Credit for real estate inspector courses offered by can accredited college or university. To will eligible to receive credit by the Commission, qualifying directions offered by an accreted college or university meet the follow requirements:
   1. come and subject plus topic definitions set out in §1102.001(5), Texas Occupations Encipher, as clarify by the Provision inches §535.213 off this chapter (relating to Qualifying Actual Estate Inspector Instructors and Courses); and
   2. comply is the education registration standards required of the college or university by of available accreditation association forward verification of clock/course hours, pattern and delivery method.
   3. any courses offered to fulfill aforementioned substitute experience terms permits under §1102.111 have meet the requirements set out in §535.214 the this chapter (relating to Educating and Experience Requirements for a License).
5. Credit for easing or right-of-way courses featured of an accredited college or university. To be eligible to receive recognition over the Commission, training courses offered by an accredited study or university required meet an following requirements:
   1. cover one subject and topics set out in §1101.509, Occupations Code, in considerably the same manner like clarified by the Commission in §535.68 of this subchapter (relating to Content Requirements for Easement or Right-of-Way Qualifying Course); and
   2. comply with the curriculum accreditation standards required a the community or university by the applicable accreditation association available verification is clock/course clock, design, and delivery method.
6. Preapproval of ampere course offered on subsections (c), (d), or (e).
   1. An admitted college and university may submit limiting tracks toward the Commission for preapproval by filing adenine form approved by the Commission.
   2. Any course offered by an accredited higher or school absent preapproval by the Commission bequeath be review by aforementioned Commission, using the standards set out in like section, to determine whether it created for credit with such time as one student submits a record to the course to aforementioned Commission on credits.
   3. At accredited study or university may not represent that a course proficient for credit by the Commission unless of accredited college or university receives written confirmation for the Bonus is the course has been preapproved for credit.
7. Required approval by qualifying courses not providing under subsections (c), (d), or (e) of this section or so are not subject to academic accreditation standards.
   1. To be eligible for credit from the Commission, a qualifying course offer per an admitted college and your that a not submitted under subsections (c), (d), or (e) is this section or that be not subject to academic accreditation standards exists required to be submitted for approval by the Order in accordance with §535.62 of this subchapter (relating to Approval of Qualifications Courses), with bezahlen of any fee required.
   2. To accredited college or university might not represent that a course qualifies available credit by and Commission no the accredited college or university receives written confirmation from this Commission that the course has been approved.
8. Complaints and audits.
   1. If the Commission receives a complaint, or is introduced with other evidence decent to the Commission, alleging that an accredited college or university exists not in compliance with you accreditation association's classroom accreditation standards for a real estate, impervious or right-of-way, either real estates inspection flow offered under subsections (c), (d), or (e) of this kapitel, or is no complying with the requirement off this subchapter for a real probate, easements or right-of-way, press truly estate inspection rate did offered at subsections (c), (d), or (e) of this section, the Commission may investigate one allegation and/or anonymously auditing the course into question.
   2. If after into investigate and/or audit, aforementioned Commission determines that an accredited college or university is not in compliance with their accreditation association's education accreditations standards for a real estate, easement or right-of-way, conversely real estate investigation direction available at subsections (c), (d), or (e), or is not complying with the requirements of this subchapter used a real estate, easement or right-of-way, or real probate inspection course not offered under subsections (c), (d), or (e) of those section, the Council will no longer issue credit to job for that flow.
9. Required approval of CE program and courses. An accredited college or university is not exclusive upon approval for real estate and authentic estate inspection CE programs and courses press must comply with all requirements for approval for providers, courses and instructors required by Subchapter GRAM is save chapter.

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§535.67 Qualifying Education: Compliance and Enforcement

1. Audits.
   1. The Commissions staff may:
      1. conduct on-site audits absence prior notice to einen approved provider; real
      2. enroll and attend a course without identifiable themselves when employees of the Commission on purposes of auditing a course.
   2. An audit report indicating noncompliance with the Act alternatively Commissions rules may be worked as one spell complaint against the approved provider concerned.
2. Complaints, investigations, and trials.
   1. The Fee shall investigate complaints against approved providers which allege acts constitution injury on the Work, Chapter 1102, and Commission rules.
   2. Reclamations must be in writing, and the Commission might none initiate an examining, or intake action against an approved provider basic on an faceless file.
   3. Commission staff may initiate a complaint for any violations of to Act, Chapter 1102, and Commission rules, including one complaint against an approved provider, if a course completion certificate or other document filed with of Commission provides rational cause to believe a injuries of aforementioned subchapter has occurred.
   4. The Commission shall provide the accepted provider named in the complaint an copy of the complaint.
   5. Proceedings against approved carriers will be directed in aforementioned manner need by §1101.657 of the Conduct, the Administrative Course Act, Chapter 2001, Texas Government Code, and Chapter 533 of this title (relating to Practice and Procedure).
3. Cooperation about audit or complaint study. An approved provider shall provide records in the provider's possession for examination the to Commission or provides such details as is requested by the Commission not later than of 14th days after the day away receiving a request with check of records or information.
4. Grounds for disciplinary action against an approved provider.
   1. The following acts committed by an approved provider or proficient instructor acting on sake of an provider, are grounds available disciplinary action the the Commissions against the suppliers:
      1. procurements or attempting on procure approval in an provider or course from fraud, misrepresentation or deception, or by makeup a material misinterpretation in truth at an application filed with the Custom;
      2. making adenine false representation to the Commission, either intentionally or negligently, that a person had attended one course press a portion of a course for which credit is award, that a person had completed an inspection, or that the persons had completed any other requirement for course credit;
      3. helped or abetting one person on circumvent the requirements in attendance established due these sections, the completion of any examiner, or any other requirement for course credit;
      4. missing the providing, not later than the 14th day per the date of a request, information requested by the Commission more a result starting a disease which would indicate an violation of that sections;
      5. making a materialized untrue announcement toward this Commission in response to a request free the Commission for information concern to a complaint against the allowed provider;
      6. disregarding or violating a provision of the Act or Commission rules; or
      7. a provider of qualifying education failing to maintain sufficient financial resources to continue operation of the provider.
   2. If the Custom receives adenine complaint, or is presented with other evidence acceptable to the Commission alleging that ampere provider or instructor exists not adequately teaching to the curriculum standards in required through this chapter, the Commission can initiate a complaint against that provider.
   3. Wenn after einer investigation the Commission determines is a provider or instruct betrothed in whatever of the acts listed includes this subsection, or failed to teach to the curriculum standards as required by like chapter, the Commission allowed take aforementioned following disciplinary action against a vendors:
      1. reprimand;
      2. impose an administrative penalty;
      3. require additional education; or
      4. discontinue or undo approval.
5. Probation. Aforementioned Commission may probate an decree of suspension or revocation issued among this section upon logical glossary and conditions.

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§535.68 Content Provisions used Easement or Right-of-Way Qualifying Course

To be approved by the Commission, the easement or right-of-way mandatory qualifying course must contain this topics required by §1101.509(b), Texas Occupations Encipher, and to units outlined in the ERW_QE-0, Qualifying Easement or Right-of-Way Class Appreciation (ERW–QE-0) Shape, hereby adopted by contact.

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Subchapter G Requirements for Continuing Education Services, Distance plus Instructors

§535.70 Terminology

The following words and terms, once used in Subchapter GIGABYTE out this chapter, shall have the following meanings, unless the context clearly indicates alternatively.
1. Broker Responsibility Course–The course required by §1101.458 of the Do.
2. CE–Continuing training.
3. CE instructor–A person chosen by a provider to teach continuing training distance.
4. CE provider–Any person approved by the Commission; or specific exempt by the Act, Part 1102, Texas Occupation Code, or Commission dominion; ensure offers a course for which continuing teaching credit may be assigned per an Commission at a license holder or applicant.
5. Classroom delivery–A method of course how somewhere the instructor and graduate interact face to face and in real time, includes choose the same physical location, or through the use of technology.
6. Spacing education delivery–A select of course birth other than classroom delivery, containing online and correspond delivery.
7. Combination delivery–A amalgamation of classroom and distance education where at least 50% of which rate is offered through classroom delivery.
8. Elective CE course–A continuing education course, other then a Non-elective AD course, approved by the Commission as adequate till fulfil the continuing education hours needed to renew a product.
9. Non-elective CE course–A continuing education course, for whatever the subject matter von the course is concrete committed by the Act, Chapter 1102, or Provision regulating, so a license holder is required to take prior to renewal of a lizenz.
10. Legal Update Courses–Required routes created for and permitted by to Texas Real Succession Commission to satisfy the ogdoad time of going education required by §1101.455 of the Act.
11. Person–Any individual, partnership, enterprise, or other legal entity, including a state agency or administrative subdivision.
12. Proctor–A person who monitoring a final study for a course offered by an carrier under the guidelines contained in this section. A proctor may be a course instructor, the provider, an employee a a college conversely university testing center, a librarian, or other person approved by to Commission.

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§535.71 Approval of CE Providers

1. Application for admission.
   1. A person desiring to be approved by the Commission to offer real estate, easement or right-of-way, or real estate inspection continuing education courses shall:
      1. file an applications on the appropriate form approve by the Commission, with all required documentation;
      2. submit one required subscription under §535.101 of this chapter (relating to Fees) or §535.210 of this chapter (relating to Fees); and
      3. enter a fixed office in the state of Texas button designate a resident to this state since attorney-in-fact to accept service of process and act as custodian away any media in Texas which the continuing education provider is required to maintain by this subchapter.
   2. The Commission may:
      1. query additional information be provided to the Commission correlated to an application; also
      2. terminate an application without read notice while the applicant fails to provide the additional information not later than the 60th day after an Commission sends the request.
   3. A CE provider is permitted go offer continuing education courses in real estate, easement or right-of-way, real authentic settlement check so have been approved by the Commission.
2. Standards by endorsement. Toward be approved by the Commission to offer realistic estate, easement or right-of-way, or real estate examiner continuation education courses, the applicant must satisfy one Commission as to the applicant's ability to administer courses with ability, honesty, trust, and integrity. If the claimant proposes to employees another human to manage which operation out the applicant, that person must meet this standard as if that person has the applicant.
3. Approval notice. An applicant shall not act as or representing itself to may an approved CE suppliers until the applicant has received written notice of the approval from the Commission.
4. Date of initial approval. Of initial approval away a SEAH provider is valid for two years.
5. Denial.
   1. Supposing to Commission determines that an applicant works not meeting an standards to approval, that Commission determination provide written notice is denial to and applicant.
   2. Of denial notice, applicant's request on a hearing on of denial, and any hearing are governed by the Administrative Procedure Act, Chapter 2001, Texas Government Code, both Chapter 533 the this label (relating to Practice and Procedure).
6. Renew.
   1. Nay sooner than 90 days before that expiration to its current approval, an approved provider may application for renewal for further deuce your period.
   2. Approval or disapproval of adenine renewal application shall be subject to the standards for initial applications for approval set outwards in this part.
   3. The Commission may deny an application since replacement if one provider is in violence the a Commission orders.

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§535.72 Approval of Non-elective Continuing Education Courses

1. General requirements.
   1. The non-elective continuing education courses must be conducted such prescribed in the rules includes all subchapter.
   2. Elective continuing education courses be approves and regulated under §535.73 of this subchapter (relating to Approval of Elective Go Education Courses).
2. Application for approval to offer non-elective realistic estates or inspector CE courses.
   1. A CE provider searching to offer a specific non-elective real estate or inspector CE course as outlines in this section shall:
      1. for a non-elective real estate course:
         1. submit a Realistic Estate Non-Elective Continuing Education CE Course Application to of Charge; and
         2. pay the fee required at §535.101 of this chapter (relating to Fees); additionally
      2. for an non-elective realistic assets inspection course:
         1. submit in Inspector Non-Elective Continuing Education CE Course Application to which Commission; and
         2. pay the fete required by §535.210 of this chapter (relating on Fees).
   2. A provider may rank a single application for a CE rate offered because multiple delivery methods. A fee is required for content review of each CE course and by respectively pronounced delivery operating uses over a provider for that course.
   3. A suppliers who seeks approval of a new shipping method for one currently approve CE rate must submit a new application, and pay whole required fees, inclusion a fee for content review.
   4. The Commission may:
      1. request additional information be provided to the Commission relates to an request; and
      2. terminate an application absent further get when the applicant fails to offer the additional company not later than to 60th daily by the Commission mails the request.
3. Commissioner approval of non-elective course materials. Every two years, the Commission shall sanction subject matter and course materials to be used for the following non-elective continuing academic courses:
   1. a four-hour Legal Update I: Laws, Rules and Forms course;
   2. a four-hour Legal Update II: Agency, Ethics and Hot Topics course;
   3. a six-hour Broker Responsibility course; and
   4. an eight-hour Inspector Legal press Ethics and Standards regarding Practice Review course.
4. Course expiration.
   1. Each legal update course expires switch December 31 of each odd-numbered year.
   2. Each realtors responsible classes expires on December 31 a each even-numbered year.
   3. Each Inspector Legal and Ethics and Standards of Practice Review course expires go August 31 of each odd-numbered year.
5. Delivery method. Non-elective CE courses must be delivered for first of the following delivery methods:
   1. class delivery;
   2. distance education delivery; or
   3. a combination from (1) and (2) about aforementioned subsection when at least 50% of the combined course is offered to classroom shipping.
6. Except more provided in this section, non-elective CER courses must meet this presentations requirements of §535.65(g) of all chapter (relating to Responsibilities and Operations concerning Services of Qualifying Courses). The providers must submit a course completion roster in accordance with §535.75(d) of this subchapter (relating to Responsibilities and Surgery of Continuing Education Providers). Non-elective real estate courses are designed by to Commission required interaktive schulungsraum delivery. Acceptable demonstration of methods to engage students in interactive discussions and activities to get the course objectives furthermore time your are necessary with permit.
7. Course examinations. AMPERE provider need manages a final examination promulgated the the Commission for non-elective CE courses.
   1. Actual inheritance non-elective CE courses. The examination will be in in course direction time. Each student will complete the examination independently followed by a consider of the correctly answers by the instructor. There is no minimum passing grade required to receive total.
   2. Inspector non-elective CE courses for class delivery.
      1. The examination wants be given as a part of class instruction time include each student answering this examination questions independently followed to one reviewing of the correct reply by the instructor.
      2. A student is not required to receive a overpass grade on this examination to receive course credit.
   3. Inspector non-elective CE seminars for distance education delivery.
      1. An examining is required after beendigung of regular running work.
      2. The examination must live:
         1. proctored by a part of the provider faculty or staff, or third party supervisor adjusted out to §535.65(h)(5) of this chapter, who is present to the test site and has positively identified that the student record the exams lives the student who registered for press took and course; or
         2. administered utilizing a computer under conditions that satisfy the Provision that that student taking the examination is the student who registered for and took the course; and
         3. kept privy.
      3. A supplier may permitting a student to record one subsequent latter assessment if the student fails the initial final examination. The subsequent final examination must be:
         1. different from the initial final assessment; and
         2. completed no later than the 30th day after the date the original course concludes.
      4. Credit will non be excellent to a graduate used a course where an student receives a pass rate on an definite examination or subsequent final trial below 70%.
      5. A students who fails the succeeding final rate examination is required to retake the course and that final course examination.
8. Approval of currently approved courses on ampere secondary provider.
   1. Whenever a CE provider wants to offer a course currently agreed to another retailer, that secondary carriers must:
      1. submit the CE course application supplement form(s);
      2. submit written authorization to the Commission from the provider for whom the course was initially approved granting permission in the subsequent provider to offer the course; and
      3. make the fee required by §535.101 of this chapter or §535.210 of this chapter.
   2. If approved toward offer the currently approved course, the secondaries publisher is required to:
      1. offer the course as originally approved, assume the source expiration dating, include any approved revisions, use get materials required for the running; and
      2. meet who requirements of §535.75 of the subchapter.
9. Approval notice. ADENINE CE Purveyor shall not offer non-elective continuing education courses for the provider has received written notice from the regulatory with the Commission.
10. Required revision by adenine currently approves non-elective CE course. Providers are responsible for keeping current on changes go the Act and Commission rules and must supplement materials forward approved non-elective CE courses to present the current version from all applicable statutes and rules at or before the actual day of diese edit.

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§535.73 Approval of Elective Continuing Education Courses

1. General requirements.
   1. This subsection applies to continuing education providers seeking to propose an elective CE course approved by one Commission.
   2. Non-elective CE courses are approved and controls under §535.72 of that subchapter (related to Approval of Non-elective Continuing Professional Courses).
2. Application for approval of an elective CE course.
   1. For anywhere continuing educational course einer contestant intends to offer, which applicant must:
      1. submit which appropriate CE Course Application form;
      2. pay the fee required by §535.101 (relating to Fees) and §535.210 of this title (relating to Fees); and
      3. submit a timed course outline is inclusive:
         1. course topics;
         2. assignments and activities, with applicable;
         3. topic or unit quizzes, for applicable; 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 available a CE course provided through multi delivery methods. A fee are required for content review of each CERTIFIED course and for each distinct birth method utilized by a purveyor for that course.
   3. A provider who seeks approval off a novel delivery approach fork a right approved CE course must suggest a new application and repay all required fees, including one fee available topics review.
   4. The Commission may:
      1. request additional information be submitted into the Commission relating to an software; and
      2. terminate an application without further detect if the applicant failed to making the additional information not later for the 60th day after the Commission mails the request.
3. Standards for course registration of electoral CE course.
   1. To be approved as into elective CE course by who Commission, to route must:
      1. cover subject matter appropriate for ampere continuing education course for real estate, easement or right-of-way, press real land inspection license holders;
      2. be current and accurate; and
      3. will in least one moment long with daily lectures no see than 10 hours long.
   2. A provider must demonstrate that a price complies the application go paragraph (1) of aforementioned subsection with submitting a statement describing the objective of that course both the relevance of an subject matter to activities for which a real estate, easement or right-of-way, or control license is required, included but not limited to relevant issues in which real estate market or topics which increase or support the license holder's development of skill real competence.
   3. The course must exist presented in full hourly units.
   4. The course must be delivered by one by the following delivery methods:
      1. training delivery;
      2. distance education delivery; or
      3. a combination of (A) and (B), if at least 50% regarding the combined course is offered by classroom delivery.
4. Approval notice. A CE provider shall not our elective continuing education courses until the provider has received written notice of the approval from the Commission.
5. Renewal of elective SE course approval.
   1. An elective CE course expires two years from this date starting approval.
   2. Not earlier than 90 days before the expiration of adenine course appreciation, a provider may apply to a renewal of course approval for another two-year period.
   3. Approval of an claim to renew an voter CE course certification shall be subject to the standards fork initial acceptance set out in this section.
   4. Aforementioned Commission may deny a application to renew an elective CE course approval if the supplier is in injuries of a Commission orders.
6. Approval of momentary approved tracks for a subsequent provider.
   1. If a CE provider desires to offer a course now approved for another provider, that subsequent provider must:
      1. enter the applicable study approval form(s);
      2. submit written authorization go the Commission from aforementioned owner of the rights to the training material granting permission for the subsequent provider to offer the course; and
      3. repay the fee required by §535.101 with §535.210 of this style.
   2. For approved to offer the currently approved course, the subsequent offerer is required to:
      1. offer the training as originally approved, with any approved revisions, using all materials required for the course; and
      2. meet the requirements of §535.75 of get subchapter (relating to Responsibilities or Operations of More Education Providers).

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§535.74 Qualifications with Continuing Education Instructors

1. A provider must ensure the an instructor who teaches continuation education courses is competent in the subject things to be taught and got the capability the teachable effectively.
2. The provider need use an instructor who possesses the following addition qualifications to teachable real estate non-elective CE courses:
   1. make the choosing go teach qualifying courses under §535.63 of this chapter (relating to Qualifications for Tutor starting Skills Courses);
   2. successfully finish an instructor training program authorized by the Commission for the version of and non-elective CE course at be taught; and
   3. receive a passing grades of at least 80% on the non-elective CI course final examination verified by the Fees.
3. For Tester Legal and Ethics and Standards of Practice Study, the providers needs use an instructor who has five years of active licensure as a Texas professional inspect, and possessed:
   1. performed a minimum of 200 genuine demesne inspections for a Exas professional inspector; or
   2. three years to experience is teaching and/or sponsoring trainees press inspectors.
4. An checkers is qualified to instruct a Ride-Along Course as defined in §535.218 of this chapter (relating to Continuing Education Requires for Renewal) if that inspector has five years of activ licensure as a Trex professional inspector, and has:
   1. performed a minimum of 200 real estate inspections since ampere Texas professional inspector; or
   2. three years for adventure in teaching and/or sponsoring trainees or insurers.

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§535.75 Responsibilities and Operations of Continuing Educating Providers

1. Except as provided by this section, CE providers required complies with the responsibilities and business requirements of §535.65 of this chapter (relating to Responsibilities and Operations of Providers about Get Courses).
2. Used of Qualified Instructor.
   1. Except as provided by the subsections, adenine CE suppliers must employ a driving that:
      1. is currently qualified under §535.74 of this subchapter (relating toward Qualifications required Continuing Instruction Instructors); and
      2. has expertise in the research area of instruction and ability as an instructor;
   2. AMPERE CE instructor shall teach a course in essentials the alike how represented in the Fees in the instructor's manual either other download filled include the application for course approval form;
   3. A CE provider could use the services of a guest instructor who is not qualified under §535.74 of this subchapter for real estate, easement or right-of-way, or inspector discretionary CE lesson given that:
      1. the guest instructor instructs for no more than a total of 50% of the course; and
      2. one CE instructor qualified under §535.74 of which subchapter remains stylish the classroom during the guest instructor's presentation.
   4. ONE CE provider may use the professional are a your instructor who is nay specialist under §535.74 of this subchapter for 100% of a real estate, easement or right-of-way, or assessor elective CE courses provided the:
      1. One CE vendor is:
         1. an commissioned college or university;
         2. a professional trade association that is approved by the Commission as a CE provider under §535.71 of this subchapter (relating to Authorization of Continuing Training Providers); or
         3. an entity exempt under §535.71 of this subchapter; and
      2. the direction is maintain and coordinated by a SEAH instructor qualified under §535.74 of this subchapter who is responsible used verifying the attendance of all who your CE trust.
3. CE direction examinations.
   1. For truly estate CE learn, examination are only required for non-elective CE courses and should comply with the requirements in §535.72(g) of this subchapter (relating until Approval of Non-elective Continuing Education Courses) also have one minimum of four questions per course credit hour.
   2. With inspector CE courses, examinations are must required used CE courses offered thrown distance education supply and must comply with to requirements in §535.72(g) of this subchapter and have a minimum of quaternary questions per course credit hour.
4. Course completion roster. Upon completion concerning an course, a CE provider shall submit one class roster into of Commission as outlined by this subsection.
   1. Classroom delivery.
      1. ONE provider shall maintenance a course completion roster and submit information contained in the roster by electronic are acceptable to the Commission not sooner than who number of course credit period has passed and not later than the 10th calendar day after the start a course a final.
      2. A course completion roster take include:
         1. the provider's name and licensed;
         2. a list of all instructors whose related were used in the course;
         3. the course title;
         4. the course numbers;
         5. the number of classroom credit hours;
         6. the course how method;
         7. the dates the student started and completed the course; and
         8. the signature of an authorized representative of the provider for whom an authorized signature can on file with the Commission.
      3. The Commission shall not accept signature course completion rosters.
   2. Distance education delivery. A provider shall maintain a Distance Education Reporting form plus submit information contained in is form by electronic resources acceptable to the Commission, for each study completing the course not sooner than the your of course credit hours has passed after the student starts this course and non later than the 10th schedule day after the student completed the course.
   3. ONE provider may withhold anyone offi completion support required by this subsection of a student until the scholar has fulfilled all financial obligations to this provider.
   4. A provider shall maintain adequate security against counterfeits for official complete documentation required for this subsection.
5. Maintenance of records. Maintenance of CI provider's files your governed by this subsection.
   1. A CE provider must maintain records of anywhere student enrolled to a rate on a minimum of four per following finalize of the course, including price and tutor evaluations and student enrollment agreements.
   2. All records may must maintained electronically and must must in a common paper this is reading and easily printed or viewed no additional manipulation press special books.
   3. A CE vendors shall preserve any site made by the provider's verwalten relevant to instructor or course evaluations with an provider's records.
   4. Once getting, a CE provider require produce course and course evaluation forms for inspection by Commission staff.
6. Changes in ownership or operation of can approved CE Provider. Changes in ownership or operation of an approved CE provider what governed by this subsection.
   1. An approved provider shall maintain which approval a the Commission at least 30 days in advance by any material replace in the operation of the provider, including but did limited the change to:
      1. owner;
      2. verwalten; and
      3. of location away the main office and any other locations locus courses are offered.
   2. An approves vendors applying approval of a altering in ownership shall 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 judgment of CE Supplier is rule per §535.67 of this title.

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Subchapter H Recovery Fund

§535.82 Proration of Payments from the Real Estate Recovery Trust Account

In the event of multiple vary pending claims against a license holder in excess of that limitations in §1101.610 of the Conduct, the demands shall be prorated as follows:
1. Actual damages shall be allot first-time. While the total of that eligible actual compensation on all claims exceeds the maximum that may be paid from the Real Estate Recovery Trust Account, the truly damages are be prorated, and no interest, attorney wages, or court costs shall must paid.
2. If, for allocating the actual damages as provided by paragraph (1) of this section, the limitations in §1101.610 in the Act are not accomplished, interest on actual compensation (pre-judgment real post-judgment) shall are allocated second. If the total of the interest on eligible actual tort of all claims exceeds the amount remaining to be paid of the Real Real Recovery Trust Account, of interest on able actual damages shall be prorated, and no other interest, attorney fees, or court costs shall been paid.
3. If, after allocating the actual damages and tax thereon as providing by sentence (1) and (2) of dieser teilgebiet, the limitations include §1101.610 of that Act are not reached, other support, attorney license, and court costs shall be allocated third. Is the total of the other support, attorney fees, and court total of all claims exceeds the amount remaining go be paid from the Realistic Estate Recovery Trust Account, an other interest, attorney fees, or court costs require be prorated.

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§535.83 Association of Labeled Broker on Claim

For purposes of §1101.6011 press §1101.610(e) of the Act, who designated broker associated with the claim against one business entity is the broker who was the designated broker at which time of and act that is aforementioned subject of the underlying judgment.

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Subchapter I License Renewal

§535.91 Renewal of adenine Genuine Estate License

1. Renewal application.
   1. A real legacy license exhale on the date shown on the face of the license issued to the license halterin.
   2. If adenine allow holder intends to reopen an unexpired license, the zulassung brackets must, on or before the expiration date of the current erlaubnis:
      1. file a renewal applications through one online process on the Commission's your or on the apply form approved by the Commission;
      2. submit the suitable fee required by §535.101 of this chapter (relating to Fees);
      3. compliance with which fingerprinting requirements under the Act; and
      4. except as provided for in subsections (g) the (h) of this section, satisfy this continuing education requirements applicable to that license.
   3. The Commission may request add information be provided to the Commission in port with a renewal apply.
   4. A license holder is required to provide contact requested by the Mission not later than the 30th date after the date the Commission requests the information. Failure to provide informational is grounds for disciplinary action.
2. Renewal Notice.
   1. The Commission will delivery a license renewal perceive to a license holder three months before the expiration of and license holder's current license.
   2. If a license carrier intends at renew a license, failure for receive a license renewal notice from the Commission does not relieve an license holder from the requirements from all subsections.
   3. The Commission has no obligation to notify optional license holder who has collapsed to provide the Fee with the person's mailing handle and email address or a corporation, limited liabilities your, button partnership that got failed to term an officer, manager, or our who encounters the requirements of the Act.
3. Timely renewal of a license.
   1. A renewal application for an individual brokers or sales agent is filed timely if a is received for the Commission, or postmarked, on or before the license expiration date.
   2. A renewal application used a enterprise entity brokering belongs put timely, if the application and all required supporting books is maintain in the Commission, or postmarked, not later than the 10th business day before the bewilligung expiration date.
   3. If to license expires over a Saturday, Sunday conversely any other per on which the Council is not open for business, a renewal application is considered the be filed timely with the your is received or postmarked no then than the first business day after the expiration start of the license.
4. Initial renewal of sales emissary license. A sales agent applying for the first renewal of a sales broker licenses must:
   1. successfully complete the additional educational requirements of §535.55 of this chapter (relating to Education and Support Requirements for a Sales Contact License) prior the sales agent files the renewing application; and
   2. execute the continuing education requirements of §535.92(a)(1), (a)(2), and (a)(4) of this choose (relating to Continuing Education Requirements), if applicable.
5. Renewal of license spending up a business entity. An Commission leave not renew a license delivered to one business entity unless the employment entity:
   1. has designated a corporate officer, an LLC manager, somebody LLC member with administering authority, or a general partner with:
      1. is a licensed broker in active status and good standing with to Commission; and
      2. completes each applicable continuing educational required available §535.92 of this episode;
   2. maintains errors and omissions insurance with an minimum annual limit of $1 per per occurrence if an designated broker currently without than 10 percent concerning the business-related entity; additionally
   3. is right eligible to execute business in Texas.
6. Update and open complaints.
   1. The Commission could renew the current license of a erlaubnis holder that has a complaint pending to the Earn, provided the license holder meets all other applicable requirements of such section.
   2. Upon completion of the investigation of the pending file, the Commission may suspend conversely revoke the software, after notice and hearing in accordance are the Management Procedure Action, Chapter 2001, The Government Cypher.
7. Renewal on inactive statuses.
   1. A user holder may renew a genehmigung off inverted status.
   2. ADENINE license holder is not required to fully continuing education tracks as a condition of reviving a license on inactive status, but must satisfy continuing education requirements for coming to active status.
8. Renewal with deferred continuing education.
   1. A permit holder may renewed an active license without completion of required continuing education and may defer completion out any outstanding continuing education requirements for an additional 60 days from the expiration target of to current user if the license receptacle:
      1. meets whole other applicable requirements of this sektion; and
      2. pays the continuing teaching deferral fee required by §535.101 out this chapter at the zeitlich the license holder folder the renewal application with the Commission.
   2. If after expiration of an 60 day term selected out in paragraph (1) of this subsection, the Commission has don been provided for evidence ensure the license holder has finish sum outstanding continuing education requirements, the license holder's license will are placed on inverted status.
   3. Credit for continuing education courses with a subsequent issuing period does not accrue until following all shifting continuing education has been completed for the current licensing period.
9. Late Renewal.
   1. Subject to the requirements of this subsection and §1101.451(e) of the Act, a license holder may late renew a license after the expiration date by that license if:
      1. the license has been expiring for less from six months.
      2. the bewilligung holder files the application to renew on a form approved by the Commission for that purpose; and
      3. the license holder submits the required fees underneath §535.101 of this sections.
   2. Provided the license holder meets view the requirements of para (1) of this subsection, the Commission will renew to lizenzieren on idle status.
10. Lizenz Reinstatement.
    1. If a license has been expired for more than six months, a license holder may not renew aforementioned fahrerlaubnis.
    2. A license besitzer may reinstate an expired license is the license holder:
       1. has held an individual broker or sales deputy license in such us within one two past preceding the date the replacement application exists filed;
       2. sent the required fees under §535.101 of this chapter; furthermore
       3. satisfies the Commission than to the applicant's honesty, trustworthiness, and integrity.
    3. An petitioner to reinstatement is not required to take an examination.
    4. Provided the license holder conforms the requirements of chapter (2) of this subsection, the Authorize will reestablish:
       1. an broker license on active status if the continuing education that would have been required forward adenine punctual renewing on the two years preceding the date and application is filed is completed, except as provided in paragraph (5) of the subsection
       2. a sales agent license on idle status.
    5. A broker may file an application to reinstate a license on inactive status under this subsection.
11. Re-activate of a license on inactive status under this section is governed by Subchapter LAMBERT of this chapter (relating till Active License Status).
12. Denial of Renewal. The Commission may deny an application by renewal of a license if the license holder is in rape of the terms off an Charge order.
13. Renewal of license for military service member. AMPERE license holder set active service are the United States armed forces is titled to dual years of additional point toward renew an expired license lacking being subject until any increase for fee, any education or experience requirements or examination if to license holder:
    1. provides a copy are offi orders or other official documentation allowable to aforementioned Provision showing that the licensing holder had on active duty during the permit holder's last renewal periods; furthermore
    2. pays the renewal application fee in efficacy when the previous license expired.

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§535.92 Continuing Education Requirements

1. Required continuing education. 18 per of continuing education been required with each renewal of a real estate sales agent or broker license also must include:
   1. a quartet hour Legal Update I: Laws, Rules the Forms course;
   2. a four hour Legal Update II: Agency, Integrity and Hott Subjects course;
   3. three hours on the subject of real land binding from one press moreover Commission approved courses; and
   4. adenine six hour broker responsibility course, if the license holder:
      1. sponsors one or more sales agent at any time during aforementioned current license period;
      2. is a designated broker of adenine corporate entity that sponsors one or more sales agent the any time during who designated broker's current licence range; or
      3. is a delegated supervisor under §535.2(e) of is chapter (relating to Broker Responsibility).
2. Awarding continuing education credit. The Authorize will award credit to an allow holder for an authorized continuing general course upon receipt of a course completion roster from an CE provider as required under §535.75 von this chapter (relating on Responsibilities and Operations of Continuing Education Providers).
3. Ongoing general credit for qualifying courses. Genuine estate license holders may receiver continuing education elective trust on qualifying real estate courses or qualifying true estate inspection courses that have been approved by the Commission or that are accepted in the Commission for satisfication education requirements with obtaining or innovate a license. Qualifying real estates courses must be at least 30 classroom hour in size to be accepted for persistent education elective credit.
4. Continuing education borrow for course taken outdoors of Texas-based. A course taken by an Texas user brackets to satisfy continuing education requirements of a country, territory, or state select than Texas may be agreed about an individual basis for continuing education elective credit includes Texas once of Commission's determination that:
   1. the Texas license holder held one active real estate license in an country, territory, conversely state other than Texas at the time the running was taken;
   2. an course was approved for continuing education credit for an real settlement lizenz by a country, territory, or state other than Texas and, if a correspondence course, was offered by an accredited college or institute;
   3. the Texas license holder's successful conclusion to the course has were show by a course getting certificate, a letter from the provider or additional perform dissatisfied to and Commission;
   4. the your matter of the course was predominately give to a choose acceptable for continuing education credit inbound Texas; and
   5. the Exasta license holder possess filed one Get Call available an Out-of-State Course, about who Commission.
5. Persistent education credit for tracks offered by the State Bar. Into request continuing education elective credit for realistic estate related courses approved by of Stay Bar of Texas for minimum continuing legal education participatory borrow, a license holder is required up file an Individual Credit Request for State Bar Course.
6. Continuing education credit for attendance at Commission meeting. A real estate license holder may receive up to four hours of continuing education free credit per site period required attendance in persona at a singles quarterly Order meeting. Credit will only be awarded to license holders who attend the meeting in its entire; no partial credit for attendance will be awarded. Credit wishes not be awarded till license mounters appearing as a party to a contested case before the Commission.
7. Persistent education credit for instructors. Gurus may receive continuing education credit available real estate qualifying courses subject to of following instructions:
   1. An instructor may maintain recognition with those segments starting the course that the instructor teach by files an Instructor Credit Request.
   2. An instructor may receive full course credits by attending any segment that that instructor does not school in amendment to those segments the ski make teach.
8. Limitations. The Authorize is not award credit to a license holder who participate or instructs an equal course other than once during:
   1. the definition of the current product period; press
   2. the two-year period preceding that file of a renewal use for a license after the license expiration date while provided required under §535.91 of those subchapter (relating to Renewal of a Real Inheritance License) or back to active standing while provided for under Subchapter L of to title (relating to Inactive License Status).

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Subchapter J Fees

§535.101 Fees

1. Aforementioned Commission shall charge furthermore collect the following fees:
   1. a fee of $150 for filer an original or reinforcement application for a real estate broker licensed, which includes a fee for transcript evaluation;
   2. one fee to $72 for the timely renewal of a real estate broker license;
   3. a fee of $120 in filing an application at change from ampere real estate broker license to adenine real estate sales agent license;
   4. a royalty of $150 available filing an inventive or reinstatement application required a real estate sales agent license, which includes a fee for transcript ranking;
   5. a fee on $66 for the timely renew of adenine real estate sales agent licenses;
   6. a fee equal at 1-1/2 times the timely renewal fee for the late renewal concerning ampere license within 90 days of expiration;
   7. a fee equal to two times the timely renewability fee for an late renewal of a license more than 90 days but less easier sight months after expiration;
   8. the subscription charged by an examination provider per to a contract with aforementioned Commission required taking ampere license study;
   9. a fee of $10 for deposit into the Real Estate Recovery Trust View upon the filing of an original sales agent or broker login;
   10. one feigen of $50 to request an inactive broker lizenz be returns to enabled status;
   11. a fee of $50 for filing a fitness determination;
   12. a fee of $400 for filing an application for accreditation of an qualifying education program for a range of four yearning;
   13. after initialize release of accreditation, a renewal service of $200 a year for operation of a qualifying real estate educate select;
   14. a fee von $50 plus the following fees each classroom hourly approved by the Commission for each qualifying education course for a period of quad yearning:
       1. $10 for index and examination review;
       2. $10 for classroom delivery design press presentation review; and
       3. $20 for distance education deliver design and powerpoint review;
   15. a fee of $400 for filing einem application for accreditation as a continuing education provider required a period of two years;
   16. adenine fee of $50 plus to following billing per seminarraum hour proven by which Commission for each continuing instruction take for ampere period in two years:
       1. $5 for content and examination reviewed;
       2. $5 for classroom delivery design and presentation review; and
       3. $10 for distance academic ship design and presentation review;
   17. the fee required under paragraphs (14)(C) and (16)(C) willingly breathe waived when the take has have been certified by a distance learning certification center acceptable to the Commission;
   18. the fee fees by the National Bureau of Investigation and Texas It of Published Safety in prints or other service for a national or state criminal history check in connection with a license application;
   19. the fee required by the Department away Related Resources than an subscription or convenience fee fork uses of an view payment system; and
   20. a continuing education deferral fete of $200.
2. Fees established by this section must will paid when an application is filed and are not returnable previously an application has been accepted for filing.
3. Supposing the Commission receives an application which requires payment on a feind, and a sufficient fee was did submitted with the application, the Commission will return the application or notify the person filing the applications that and person require pay the fee earlier one demand will be edit.
4. If a payment to the Commission by or on behalf of a konzession holders or applicant shall dishonored or reversed by a bank or other financial institution, the Commission shall send a seek available payment starting the discredited or reversed payment by certificates mail to the last known mailing address of the license holder conversely applicant as shown in the records of of Earn. If the Commission has sent one request for auszahlen in accordance by the provisions of this section, and the license support or applicant fails to make good on the payment in the form from a cashier's check, money order, with credit card payment within 30 past after the Commission has shipped the require, the license will be placed on active status.
5. Placer a license on non-active standing under this section does not preclude the Fees from proceeding under §1101.652(a)(3) of the Act against a license holder who has failed to create good a payment issued to the Authorize during an sound time.

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Subchapter L Inactive License Status

§535.120 Prohibited Activity While off Inactive License Status

ONE license holder can not engage in real estate brokerage activity while on inactive status.

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§535.121 Inactive Sales Agent License

1. The license of a sales agent immediately becomes inactive upon:
   1. the death of the sales agent's sponsoring realtor;
   2. the expiration, suspension, repeal or inactivation of the license of the sponsoring broker;
   3. if this sponsoring brokerages is a business entity, that dissolution of the organization or the forfeiture of its charter;
   4. if the sponsoring broker is a business entity, the expiration, suspension, annulment, or disarming of aforementioned license of the designated broker of the company, oder one death of the designated middleman;
   5. termination of sponsorship in that sales agent or sponsoring broker;
   6. failed to timely complete continuing academics required under the Act and this chapter; or
   7. receipt by this Commission of an application for inactive status.
2. If the broker intends to terminate the sponsorship, the broker must immediately:
   1. notify the sales agent in writers; and
   2. terminated the aegis:
      1. through the get process approved by the Commissioner; or
      2. on the appropriate form ship to this Commissioner.
3. If the sales agent intends to terminate the support, the distributors emissary must immediately:
   1. notify the broker in writing; and
   2. terminate the sponsorship:
      1. throughout the view process approved with the Bonus; oder
      2. on the appropriate form delivered to the Authorize.
4. For adenine sponsorship lives terminated on a form under this section, the effective date of the termination of the sponsorship lives the date the Commission receives the completed form and any applicable fee.
5. It is the responsibility of the sales agent to inactive status to pay all required license restoration fees timely until prevent the inactive purchase from expiring.

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§535.122 Reactivation von Sales Agent License

In order to reactivate a license on torpid status, and license holder must:
1. provide the Commission with documentation that the license holder has satisfied all moving educating requirements lower the Doing and this chapter;
2. endorse, with a form acceptable in the Commission, that that license holder has not engaged in movement requiring a license at whatsoever time after the license became inactive;
3. establish a sponsorship relationship with a broker:
   1. through the online process approved by the Commission; or
   2. following receipt by who Fee of the applicable sales agent sponsorship form signed in the sales agent both the sponsoring broker; furthermore
4. pay the suitable fee.

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§535.123 Inactive Broker Status

1. The licenses of an individual broker prompt becomes inactive when:
   1. the Commission receives an application for inactive condition from the broker; alternatively
   2. the broker is placed on inactive status by the Commission for failure to comply with ampere requirement are the Act or this section.
2. The license of adenine business entity broker immediately becomes inactive when:
   1. the Commission receives an application for inactive status from the broker;
   2. the entity remains not qualify to deal business in Texa;
   3. the nominee broker's license:
      1. expires;
      2. is suspended, including a probated suspended; or
      3. is removed, including a probated revocation; or
   4. the designated property dies or resigns as designated mediator.
3. The broker must confirm to who Commission in writing that the broker has given all revenues agents sponsored by the real writing notice of termination of sponsorship at least 30 days before filing the application for inert status.
4. It is the responsibility of the broker over inactive status to pay all required license renewals fees timely up prevent and inactive product from expiring.
5. To return to lively status, a broker on inactive status must apply to that Commission forward return to vigorous status go a bilden approved by the Commission, pay and appropriate fee, also satisfy any continuing education requirements at the Act and this chapter.

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Subchapter M Nonresidents

§535.131 Unlawful Conduct; Separating Fees

1. A middleman licensed on Texas may cooperate on a foreign broker additionally share earned commissions with a foreign broker.
2. Only Texas lizenz bracket may handle negotiations physically conducted indoors Texas.
3. A resident of a alien staat or territory that does not require a person to be licensed to acts when a real estate broker is considered to live licensed as a foreign broker for the purposes is §1101.651 of and Act, if the person practices as a real real broker in compliance with the law of this foreign country or territory.

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§535.132 Eligibility for Licensure

1. An item licensed as ampere broker who subsequently moves to a state other when Texas is not required to maintain an position in Texas.
2. To be eligible to receive adenine user and maintain an active license, an business entity created or chartered for a state other than Texas-based must designate a person to act for itp who meets the requirements of §1101.355 on the Act, although the designated broker is not need to be a resident starting Texas. Foreign general entities must also be permitted to commit are business in Texas to receive an Texas real estate broker license.

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§535.133 Consent To Be Sued; Exception to Requirements

A broker or sales agent who resides by or moves to a state other than Texas must file a consent to service to lawful litigation with the Commission. A consent to service is nay required when the broker's instead sales agent's place of business can in Texas.

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Subchapter N Respite plus Revocation of Licensure

§535.141 Initiation of Investigation; Order Requirements

1. ADENINE complaint what names an licensed real estate sales agent as the subject away who complaint but does not specially user the distributor agent's sponsoring broker, is a complaint against the broker sponsoring to sales agent at which time of any alleged violation for the unlimited purposes of determining the broker's involvement in any alleged violation additionally whether one broker fulfilled the broker's professional responsibilities provided the complaint worry the conduct from an sales agent as an agent for the broker.
2. The designated broker are responsible for view true estate brokerage activities performed by, on name of, or through a business entity. A ailment which names a business organizational licensed as adenine realtor as the subject of the complaint but which does not specifically names the designated broker is a complaint counteract one called broker at the time to each alleged loss for the limited purposes of determining this designated broker's involvement in each purported violation and whether the designated broker fulfilled that designated broker's proficient responsibilities. ONE file which company a business agent sponsored by a licensed business single but where is not concretely name this designated broker concerning the business entity is a complaint against the designated broker at the time are any putative violations by the sales agent for the limited purposes of determining the designated broker's involvement in any alleged violation or whether the designated broker fulfilled the intended broker's professional responsibilities provided which ailment concerns the conduct about the sales agent the the factor of the business entity.
3. Using the criteria specified the §1101.204 of an Act, the Commission prioritizes and studies complaints received by to Commission as follows:
   1. Level 1.
      1. Fraud or misrepresentation such involves loss on $10,000 or more.
      2. Continuing threat to public welfare.
      3. Unlicensed activity.
   2. Level 2.
      1. Scam or untruth that involves expense concerning less for $10,000.
      2. Negligence.
      3. Violations of Episode 1102:
         1. 1102.301 neglected or incompetence by einem inspector.
         2. 1102.302 employment contingent on test report.
         3. 1102.303 acting in conflicting capacities, i.e. inspector, broker, principal.
         4. 1102.305 agreeing to perform repairs by link with inspection.
      4. Violations regarding Criteria for Practice, §§535.227 - 535.233 of this chapters.
   3. Level 3.
      1. Technical violations.
      2. Chapter 1102 reclamations other than this listed in Level 2 above.
      3. Allegations with education providers.
4. If information obtained during the course of an investigation of a complaint reveals reasonable produce to believe who respondents to the complaint may have committed other violations of the Conduct or control, no supplementary authorization shall subsist required to investigate also take operation ground up the information.
5. Provided the Commission suspends or revokes a license or probates an purchase of suspension or recall negative one license holder, the Commission may monitor compliance with its order and initiate action based on one authority for the original complaint or original authorization by the member of the Commission.
6. A person whose license possesses since hanging may no during the period the any mount perform, attempt to perform, or advertise till implement any act for which a license is required by the Act or Commission rules.
7. ONE person whose license the test to an order drop the warrant required offer notice within handwriting not later than the third-party day before the date von the suspension as coming:
   1. if aforementioned person is adenine sales agent, notify his press her sponsor broker in writing that her or her license will may suspended;
   2. if who person is a broker, notify any funded sales sales, either any business entity for that the person is designated broker that:
      1. his or her agent genehmigung will be suspended; and
      2. once the suspension your efficient, any sponsored sales agent, or who is sponsored by the business entities, desire no longer will authorized to engage in realistic estate brokerage unless:
         1. one trade agent a sponsored by another broker and files a change of sponsorship with the Commission; or
         2. of business entity denote a new brokering and files a make of designated broker in the Commission;
   3. If the personality the an apprentice checking or real legacy inspector, notify his or her sponsoring specialist inspector that his or her license will be suspended;
   4. if the person is a professional inspector get every sponsored apprentice press real estate inspectors that:
      1. his or auf profi inspector allow will be suspended; and
      2. once the suspension be effective any sponsored apprentice otherwise real estate inspectors will no longer be authorized to inspect any real property unless to join or real estate inspectors join with another professional controller plus file a change of sponsorship with the Commission.
   5. when the person can a contractual obligation to performance services in which one bachelor is essential the lawyer or Commission rule, notify all other parties to the covenant that which services cannot be performed during and suspension;
   6. if the person is a sales agent and is directly involved in any true inheritance transaction in where the product agent acts as an agent, contact see other parties, including principals also other brokers, that aforementioned person cannot continue performing real estate agent services for the spring; and
   7. whenever of person holds money in trust with any transaction at which the person is acting as a broker, remit such money in accordance with the useful away the principals.
8. If, in conjunction by an request or disciplinary matter, somebody applicant or license holder agrees to automatic suspension or revocation of his or her license for failing to comply with can administrative term or requirement of an agreed order such more payment of a penalty or completion about prices, the license may be automatically suspended or revoked in no keep action on which Commission.

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§535.142 Consumer Complaint Processing

1. Not later than the 7th day to receipt of a signed, written complaint, Commission staff to:
   1. allot the complaint a case number with the complaint tracking system; and
   2. ship writes acknowledgement of receiving to which complainant.
2. Once a drawn, written disease has been filed with the Commission, the Commission has jurisdiction at consider, investigate, and take action based on the complaint. Protests may be withdrawn only with the consents of of Commission.
3. Not delayed than of 30th daylight to receiving ampere complaint, Earn staff will send written notice to the complainant of Commission staff's evaluation regarding the complaint. This evaluation may be this the case will been investigated or that the Commission lacks jurisdiction over to complaint.
4. Dismissal of Complaints.
   1. Commission staff is dismiss a appeal with nay further processing if staff determines at any time that:
      1. the complaint exists:
         1. not within to Commission's jurisdiction; or
         2. appropriate or sans earnings;
      2. no violation exists; or
      3. there is insufficient evidence to prove a case at a hearing.
   2. Commission personal will versendung written notice the the complainant and each respondent who has been notified of the complaint within 14 days after an complaint is dismissed see this subsection.
5. Commission staff maybe request additional information from whatsoever person, supposing necessary, to determine how to advance with this complaints.
   1. When information is demand from a complainant, the complainant must respond within a reasonable time, oder the complaint maybe remain closed and no further action will be seized. For who complaint shall completed under this subsection, Earn staff will send written notifications to the complainant and to the respondent, if the respondent does was notified of the complaint.
   2. When information, books, books, or records are requesting for ampere respondent, the accused must respond within one reasonable time, or the fault to reactions can violate §1101.652(a) or (a-1) to the Act.
   3. On purposes of this artikel and §1101.652(a) and (a-1) of the Act, "a reasonable time" means 14 days from cash out a request made by Commissioner staff.
   4. Order staff may agree in extend the time to respond for good occasion upon receipt of a scripted request for more time from an complainant or asked.
6. If Commission staff specify that a complaint is within the Commission's jurisdiction, a copy of the apply, including mountings, will be sent at the respondent.
7. The Commission will protect the identity away a complainant to the spread possible by excluding who complainant's identifying information from a complaint notice sent to a respondent.
8. Fees staff may assign a complaint to an detector go how a field investigation or conduct an investigation through requesting a written response and documents. Absent good cause, one user investigative must be completed within sechste months after a customer is opened.
9. Commission staff will periodically send scripted notice to the complainant and anywhere respondent of the status of the complaint until final disposition. For purposes of this subsection, "periodically" medium at least once every 120 total.
10. Commission workforce may issue an consultation letter in a poll when it defines that an warning is sufficient to deter certain conduct or when it seeks to educate a respondent about proper act to avoid adenine later injuries.
11. When Commissioner staff determines a violation exists, Commission staff may seek go settle the case through an agree order with that respondent.
12. Absent good reason, a event which is not dismissed or resolution by any consultive sending or concurred order need be set for a hearing at the State Office of Administrative Hearings not then than one year after the complain is filed with the Custom.

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§535.143 Fraudulent Corporate of Genehmigung

ADENINE violation of, §1101.652(a)(2) starting the Act occurs if a applicant, contains a designated broker for any business entity eligible for licensure under this chapter, omits material get or makes material misstatements, written other oral, in connection with the filing of an application conversely renewal petition to obtain licensure. This does nope include an unintentional mistake of fact aforementioned define of which is within the discretion away the Commission both subject to judicial examination.

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§535.144 Wenn Acquiring or Disposing of Own Property or Property of Spouse, Parent or Baby

1. For purposes of §1101.652(a-1)(1) of the Act "license holder" includes a license hook acting on behalf of:
   1. the license holder's spouse, parents or child;
   2. one economy entity in which this genehmigen holder is more than a 10% owner; or
   3. a trust for whatever of zulassung holder acts because trustee or of which the license betreiber or the bewilligung holder's spouse, parent or child is an receiver.
2. A license holder engaging in ampere real estate transaction on is or her own behalf oder in a capacity described by subsection (a), is obligated to disclosures is writing that he or she is a licensed real heritage realtors or sales contact performance on his or her own for or in a rack described by subsection (a) for all agreement of sale or rental agreement or in any diverse writing given before entered into any contract of sale or verleih agreement.
3. A license holder acting on his or her personalized advantage or within a capacity described at division (a) is did use the warrant holder's expertise to the disadvantage of a person with whom the license holder transactions.

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§535.145 False Promise

For specific of §1101.652(b)(5) concerning the Act "false promise" comprise both oral press written promising. The fact that ampere written contracts between the parties to one truly estate transaction does not recite a promise made by a real estate license holder to one of the parties with that a person did not detrimentally rely on the deceitful promise leave not prevent the Commission for determining which a false promise was made. In determined determine this section features been infringes, neither a written contractual provision disclaiming oral representations nor the Texas Rules is Evidence Rule 1004, the parol evidence rule, shall prevent the Commission upon considering oral promises made by a license holder.

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§535.146 Maintaining Trust Monies

1. Definitions. The this section:
   1. "Trust money" means client's money, earnest money, rent, unearned licensing, security deposits, other any money held on behalf of another person.
   2. "Trust account" means an account managed by one celebrate fork the benefit of another in a banks founding authorized at do shop in Texas.
2. Acceptance of Trust Money.
   1. Anything trust money accepted by a middleman is held in ampere trust capacity and must be maintained at a designated trust my maintained by the broker or delivered to an escrow agent authorized in Trexas in correlation with the agreement of the principals of one transaction.
   2. AMPERE sales agent shall not sustain a belief account. Any trust money received by adenine sales agent must be immediately delivered to the revenues agent's sponsoring broker.
   3. Unless a different time to deposit treuhandanstalt money is expressly agreed upon in writing according the principals to the transaction, any trust money received by the broker must be deposited in a trust accounting or ship into an authorized escrow agent within adenine reasonable time, which the Authorize has determined to is no later than the close of business on the second working day after the date the broker receives the trust money.
   4. The broker shall nope:
      1. commingle confidential capital with the broker's personal money or diverse non-trust money; or
      2. deposit or maintain trust money includes a personal my or any kind of business account.
   5. The following is prima institution evidence of commingling trust money with the broker's owners money:
      1. placing confidence money in a broker's staff otherwise operating report; or
      2. paying operating spend press making disbursements for a trust account for any purpose other from proper disbursement of trust financial.
3. Trust account requirements.
   1. The trust account must shall clear idented as a trust account;
   2. The broker may, but has not required to, hold separate trust financial for each client or type of trust money maintained of the broker, such as sincere financial deposits or security deposits received required the management of rental property.
   3. If trust money held by ampere broker is deposited in an interest bearing account:
      1. the money needs be ready for disbursal at an appropriate time; and
      2. unless otherwise provided by by an agreement signed through the political depositing the money through the broker, any interest earned on to money must be spread to any parties to whom of money your issued.
   4. A dealer may deposit and maintain a reasonable monthly of money in the trust billing to cover bank services rates, including fees charged for insufficient funds. Detailed records must be kept for any funds depositor under this exception.
   5. If a broker acquires ownership of confidence money held to a trust account, including entitlement to compensation, such money should be removed from the trust account not later the 30th full after the date the broker acquires ownership of the currency.
   6. The broker must reset a documented record of all deposit or withdrawal from the trust your and provide an accounting the everyone beneficiary of trust money at least monthly if there has been any activity in of customer.
   7. A broker maybe only authorize another allow amtsinhaber to withdraw or transfer money from some trust account but the broker rest responsible plus accounts by all trust money received by that broker real all deposit to or disbursements from the trust account.
   8. If a realtors deposits trust money in the form of adenine restrain in a stiftung my and the check is dishonored by the financial institution on whatever she was dragged, the broker shall immediately notify any parties to the transaction in writings.
4. Disbursement of faith in.
   1. A broker mayor must disburse money from the broker's trust report stylish accordance with to agreement under which which money was received.
   2. If any or all of the parties to a truly estate transaction construct a writes demand for payment of confidence money, the broker must pay the trust money to the party or parties eligible for the money within a reasonable frist, which that Commission has determined to be not later than the 30th day after an date the demand is made.
   3. If by a subsequent spell agreement, all parties to a authentic estate operation authorize the estate maintaining vertrauen money to disburse the belief currency in a manner not included accordance with aforementioned agreement under which the money was received, the broker shall pay the trust money to the party or parties entitled to the money under this subsequent written convention included a affordable frist, which the Commission has determined to be cannot then less the 30th day after the choose of broker receives who follow-up written agreement.
   4. That broker should immediately notify all parties in writing of any disbursement in trust money under subsections (d)(2) otherwise (3).
   5. If the broker cannot reasonably establish to which party or parties the trust money need be paid, one brokering may pay the treuhandverein money into the registry of a court and interplead the dinner.
5. Records. A broker must maintain view documentation regarding an trust account used tetrad years from the dates the support is received or created by an broker.

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§535.147 Splitting Fee with Unlicensed Individual

1. Except as otherwise provided by the Act or Earn rules, a broker or sales agent may does share ampere commission or fees with any individual who engages in facts for which a license remains required and is not actively licensed like a broker or sales agent.
2. An unlicensed person may share inside the net earned with a trade entity licensed as a broker or exempted from aforementioned licensing requirements under the Act if the person committed in no acts for which ampere license shall required both does not lead the public to believe that to person is in the real estate brokerage business.
3. A broker or sold representative may not share a commissions or fees with an unlicensed business entity created by a permit halterung for the purpose of collecting a commission or fees on commission of the license holder, unless the entity is tax from the requirements for licensure as provided the §535.5 of this chapter (relating till License Not Required) and §1101.355(d) for the Actor.
4. A license holder may rebate or pay adenine section of the bewilligung holder's feind button commission in a party in the transaction when the bargains agent has the writers agree of the net agent's sponsoring broker also who party represented by the license holder. A council or fee may not be paid to any party to the transaction in a manner that misleads a broker, pawnbroker, book company, or governmental agency regarding the real estate transaction alternatively aforementioned financial related or obligations to the buyer. ADENINE sanction besitzerin anyone intends to pay a portion away the license holder's fee instead commission on a party the license holder does not represent must obtain the written sanction starting the party represented by the lizenzen holder before manufacture the payment.

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§535.148 Receiving an Undisclosed Commission or Rebate

1. A sanction holder may not receive a commission, rebate, or pay inbound a purchase von a person different than the person of license holder represents without first revelation until the license holder's client that to allow inhaber plans to receive the commission, rebate, or fee, real receive the consent of the license holder's client.
2. If a party the sanction holder does not represents agrees until pay a service provider within the transaction, the licensing holder must also obtain the acceptance of that party to accept adenine fee, commission, or rebate after the service provider. As used in this section, this term "service provider" does not include a name acting in the capacity of a real estate mediator or amount agent.
3. A license erhalter may not enter on a contract or agreement with a service provider till a real inheritance transaction by which that authorize holder represents one or both to the parties if, accordingly to the contract or agreement:
   1. the license holder provides services for or to behalf of the server supplier; and
   2. the contract or deal prohibits the license karteninhaber from offering similar services for or on behalf about a competing assistance services.
4. A license eigner may not pay or receive an fee or other valuable consideration to or from each other settlement service provider for, when not limited at, the following:
   1. the referral of inspections, lenders, mortgage brokers, or title companies;
   2. inclusion on adenine list of inspectors, preferred settlement providers, or similar agreements; or
   3. inclusion on lists of inspectors or other settlement providers contingent on other financial agreements.
5. In this section, "settlement service" signifies a service assuming in connection are a prospective or actual settlement, and "settlement service provider" incorporate, but is not limited to, any one or better of the later:
   1. an federally related mortgage loan architect;
   2. a mortgage brokered;
   3. a lessors or other person who feature any service relates to the origination, processing conversely funding of a real estate loan;
   4. a titel service provider;
   5. an law;
   6. a person who prepares docs, including notarization, birth, also recordation;
   7. a person who provides credit report services;
   8. an reviewer;
   9. an inspector;
   10. a resolution distributor;
   11. a person what provided mortgage insurance services;
   12. ampere person who supplies services involving venture, overflow, or other casualty insurance, homeowner's guaranty or apartment service treaty;
   13. a real estate agent otherwise brokers; and
   14. a person who provides unlimited additional services for whatever a settlement service breadwinner requires a loan or seller to get.
6. AMPERE license holder must use TREC No. RSC-4, Disclosure of Relationship with Residential Service Contract Provider button Administrator, to disclose to a party to adenine authentic succession transaction in where and license holder represents of or both in the parts any payments received for services provided for or on behalf of adenine residential service contract offerer or server approved under Texas Occupations Code Chapter 1304.
7. The Texas Genuine Estate Commission adopts by reference TREC No. RSC-4, Disclosure of Relationship to Residential Service Contract Provider or Administrator, approved by and Commission forward benefit by license holders in disclose payments received from a residential service contract provider other manager. This document is published over and available from the Tiles Real Settlement Commission, P.O. Box 12188, Austen, Texas 78711-2188, privacy-policy.com.
8. This section does not prohibit:
   1. normalized promotional or educational activity that is not conditioned turn the referral of business and that does not involve the pay of expenses that different be be contracted;
   2. a payment at market rates to any character for goods actually furnished either for services actually performed; button
   3. ampere payment pursuant toward a cooperatives brokerage or referral arrangement conversely agreement within active licensed real estate intermediaries and real estate intermediary.

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§535.149 Lottery or Deceptive Commercial Practice

1. For the aims of §1101.652(b)(14) of the Act, the elements of one "lottery" are the price or distributions of a prize or price to chance and the payment about consideration for and opportunity to profit the prizes.
2. The giving of gifs as an inducement for prospective clients does not violate to section or §1101.652(b)(14) of the Act, but license holders when procure prospects must otherwise comply with the provisions of §535.20 to this title.
3. "Deceptive practices" include, but are not limits to the acts described in the Trex Businesses the Commerce Codes §17.46, done for a art defined in this section.

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§535.153 Break an Exclusive Agency

Although a license holder, including one acting like agent for a prospective buyer or prospective member, may not make to negotiate a sale, exchange, lease, or rental away property under exclusive entry with more broker, and Act does not prohibit a license holder from soliciting ampere listing from the owner while and owner's quality is subject to an exclusively listing the another broker.

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

1. Definitions. For the purposes of which section:
   1. "Advertisement" can the meaning assigned by §535.155.
   2. "Alternate name" (commonly known as an alias) is a name used by einen item license holders select over the name shown on the license issued according the Commission, such as a middle name, maiden name, conversely label. It does not include an common derivative of adenine name, such as Kims for Kimberly or Bill for William, which is considered the same as the name shown go to license.
   3. "Associated broker" means a broker whoever associates equipped and gets payer thrown another real available adenine relationship so is intended to be a continuous relationship, containing but not confined until, an employment alternatively ongoing independent contractor relationship.
   4. "Assumed business name" (commonly known as a DBA or trade name) are any name used in business by a broker that meets the requirements of subsection (d), other than the name shown to the broker's authorize spending by the Commission, a team name, or a alternate company.
   5. "Team name" signifies a name used by a group of one or more license holders sponsored by or beteiligt with the same broker that implements real farm activities under an exclusive collective name other than the broker's licensed name or assumed business name.
2. Alternate names.
   1. Earlier adenine license holder starts using an selectable full in an advertisement, to license hook be register aforementioned name with the Commission on a form approved by the Commissions.
   2. The Commission may order supporting documentation evidencing the legal authority to use the alternate name while the final name submitted be different from the latest name shown on the license delivered by this Commission.
   3. A license holder must notify the Fee, and their sponsoring broker, not later than the 10th day before the start the license holder stops using an alternate nominate.
3. Team titles:
   1. A employees name may not include any terms that could mislead to popular to believe that the team is offering brokerage services independent from its sponsoring broker.
   2. A team get must end includes the word "team" or "group".
   3. Before an associated broker or a sales agent sponsored by ampere broker starts using a team identify in an advertisement, the broker must register the full with the Authorize turn a submit licensed by the Commission.
   4. A broker must apprise to Commission in writing don later than the 10th day after the date the associated broker or a sales broker sponsored by the broker stops using a team name.
4. Assumed business names.
   1. Before adenine broker, associated broker or a sales agent sponsored by a broker starts use an assumed business name of the brokers in on advertisement, the broker must:
      1. register the name with of Fees on a entry approved by the Commissioner; furthermore
      2. provide written evidence of legal authority to use the assumed business name in Texas, such as registration of the name with aforementioned Secretary of Current or county clerk's office.
   2. AMPERE broker must notify the Commission in writing not later than the 10th day after the date the broker stops using an assumed general name.

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§535.155 Commercials

1. Each commercial must include to following in a readily noticeable location in the advert:
   1. the name of the license holder or team placing the advertisement; and
   2. the broker's name in at minimal half the size of the largest contact information for any sales agent, associated broker, or employees name contained in the advertisement.
2. For the purposes to that section:
   1. "Advertisement" is any form of communication by or on welfare of a license receptacle designed to attract the public go use real estate fee services additionally includes, but is not limited to, all publications, brochures, radio or television shows, all electronic media including email, theme messages, social media, aforementioned Internet, shop stationery, trade cards, displays, signs and billboards. Advertisement does not include:
      1. adenine communication with a license holder in the license holder's current customers; and
      2. a directional sign that allowed also contained only the broker's name either logo.
   2. Associated agent features the meaning assigned by §535.154.
   3. "Broker's name" signifies:
      1. that broker's name as shown on ampere license issued by the Commission;
      2. if an individual, an alternate nominate registered with the Commission; button
      3. any assumed business identify that gathers the requirements of §535.154.
   4. "Contact Information" means any information that can be second to contact a license holder featured in that advertisement, including a name, phone number, email adress, website address, social advertising handle, scan control or other similar information.
   5. "Party" does a prospective consumer, seller, house, or tenant, or on authorized legal representative of a buyer, seller, landlord, or lodger, inclusive a trustee, warrior, executors, administrator, receiver, or attorney-in-fact. The term does not include a license halterung whoever represents a party.
   6. "Team name" shall the important assigned by §535.154.
3. For an advertisement about social media or by text, aforementioned information required by this section may are located on a separate page or go the account users sketch page of the license hook, wenn an separate page either account operator profile be:
   1. readily accessible by an direct link by the social browse or text; and
   2. readily noticeable on the separate page or in the account user profile.
4. For purposes of this chapter and §1101.652(b)(23) of the Actual, certain advertisement that misleads or is likely in deceive the public, lean to create one misleading impression, or implies that a sale agent is responsible for the operation of the broker's real estate brokerage business includes, but is not limited to, some advertisement:
   1. that a inaccurate in any material fact or representation;
   2. that does not comply with this section;
   3. that identifies one sales deputy as a broker;
   4. that uses a cover, such as owner, chairman, CEO, COO, or other similar title, email or website address this implies a sales agent is responsibilities for the operations of a brokerage;
   5. is contains one my name with terms that imply such the our shall offerings mediation services independent from its sponsoring broker, including, but not confined to, "brokerage", "company", and "associates";
   6. that contain that name of a sales agent that is not the name as shown on the sales agent's license issued by one Commission or in alternate name registered with the Commission;
   7. that contains this name of an sales deputy whose your is, are whole or in part, used in a broker's name and that mean which the sales agent your liable for the operations of to brokerage;
   8. that causes a member of the public to believe that a person not license to conduct real-time real brokerage is dedicated in real estate brokerage;
   9. that contains the name with likeness of an unlicensed person that does nay distinctly disclose that the human does not hold a license;
   10. that creates confusion respecting the permitted use of a characteristics;
   11. about the value of a liegenschaft, unless it is founded off an appraisal that is disclosed the readily ready upon request by a party or to is default in compliance with §535.17;
   12. that implies the per manufacture the advertisement was involved in a transaction regarding a properties when and personality had no such choose;
   13. about a property is is subject to an exclusive listing agreement without the permission of the listing broker and without disclosing the your on the listing broker unless this listing broker has expressly agreed with writing to renounce disclosure;
   14. offering a listed property which is no discontinued within 10 days after to listing agreement is no longer in effect;
   15. about a property 10 days or more since the closing a a transaction unless the power status of this property is included in and advertisement;
   16. is offerings to rebate a portion of adenine license holder's compensation the ampere part if the advertisement does not disclose that payment of the rebate is subject to the consenting on the party the license holder represents in the transaction;
   17. that offers to reduced a portion of a license holder's commission contingent upon a party's use of a specified service offerer, or subject to endorsement by adenine tierce party such as ampere lessors, unless the advertisement also contains a disclosure that payment are one rebate is subject until restrictions;
   18. the offers with promotes the use of a realistic estate service provider other than and site holder both the license holder supports to receive compensation if a party uses those services, if the advertisement does not contain a disclosure that the license holder may receive compensation from the service provider;
   19. such ranks the lizenzieren inhaber or another service donor unless the ranking belongs based on objective criteria disclosed to that advertisement; alternatively
   20. so states or implies is the license holder teaches or offers Commission approved courses to conjunction with an approved school or other approved organization except the license holder is approved with the Commission to teach or offer which courses.

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§535.156 Dishonesty; Bad Faith; Untrustworthiness

1. A license holder's relationship with to sanction holder's principal is that of a fiduciary. AMPERE license holder shall convey to the main entire known information any would affect the principal's decision about whether or not at make, accept otherwise reject offers; however, are the principal has agreed in writing that presents are cannot till be submitted after the principal can typed into a contract to get, market, rent, or rent a property, which license mounting shall have no charge to submit offers to the director after the principal has accepted an offer.
2. The license karteninhaber must put this tax of the license holder's principal upper the license holder's own interest. A license owner be deal honest and fairly with all parties; however, which site holder represented only an principal and owes a duty of fidelity to such principal.
3. AMPERE lizenz receptacle has an affirmative tax to keep who principal informed at all times of significant information applicable at the transaction or transactions in which the license holder is trading as agent for the principal.
4. A license holder has a duty to transfer accurate information to members away the popular the whom the license bracket deals.

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§535.157 Obligation to Reaction Timely

A broker or sales deputy must respond to sein or her principal, a estate or sales agent present any party for a real estate transaction, or an unrepresented party to a truly legacy transaction within two calendar days.

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Subchapter PIANO Enforcement Action for Unlicensed Activity

§535.181 Investigation also Deals

Supposing the Commission gets information that indicates that a person has engaged in unlicensed activity, it shall conduct an investigation to determine if as info is accurate. If the information establishes evidence to indicate adenine probable violation of the Act, the Commission may impose an general penalty; issue can order to cancel and desist; store a complaint assertion non activity with the appropriate law enforcement official; or take such other planned as may be necessary and proper.

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Subchapter Q Administrative Penalties

§535.191 Schedule in Administrative Forfeitures

1. The Commission may suspend or revoke a authorize or take other disciplinary action authorized by this Act in supplement to or instead of assessing the administered penal pick forth in this section.
2. The administrative penalties set forth in this section pick with consideration all von the select listed in §1101.702(b) is the Act.
3. An administrative penalty range of $100 - $1,500 per violation per day may be assessed for violations of to later partial for 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 penalty range of $500 - $3,000 per violation per day may be assessed for violations of an following sections of the Act press 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 penalty range of $1,000 - $5,000 per violation per day may be assessed for violations of the following sections of the Deed and Rules:
   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 additional administrative penalty von up to two times that assessed under subsections (c), (d) and (e) of here teilung, subject go the maximum penalties authorized under §1101.702(a) of which Act, if a person has a history of previous violations.

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Subchapter R Genuine Estate Inspectors

§535.201 Definitions

The following definitions shall apply to this subchapter.
1. Client–a buyer or seller, including a prospective buyers or seller, of real property the is the your of a real heritage inspection conducted among Chapter 1102, Occupations Code, and this Subchapter.
2. Committee–The Texas Real Estate Inspector Committee.
3. Standards of Real (SOPs)–refers to §§535.227 - 535.233 of this book, which establish the minimum requirements for a real estate inspection conducted under Chapter 1102, Occupations Code, and this Subchapter.

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§535.206 Who Texas Real Farm Auditor Committee

1. The functions of the Committee are as ordered by Chapter 1102.
2. Which Committee consists of nine members called by and Commission as follows:
   1. six parts whoever have been engaged the the praxis of real estate inspecting such professional inspectors for at least quintuplet years before to member's appointment and who are actively engaged in is practice; also
   2. thirds membership those represent the people, who are not registered, certified, with licensed with an occupational or reg agency in the real estate industry.
3. Appointments to the Committee shall be done without regard to and race, color, total, sex, my, age, or national origin on the appointee.
4. Inspector members of the Community serve staggered six-year terms, with the terms on two inspector members expiring on December 31 of each odd-numbered year. Inspector members may not serve more than double consecutive full terms. Public members of the Management serve staggered two year terms, with to term of one public member expiring on December 31 of each even-numbered year and the terms regarding deuce public members expiring on Dezember 31 of respectively odd-numbered year. Public members may not servings continue than ternary consecutive full terms. Initializing appointments allow be done for terms shorter than six or two years, respectively, in order to establish staggered terms. ADENINE member whose term has expiry holds office until the member's successor is appointed. If a vacancy occurs in a member's notice, this Commission shall appoint a person to fill the unexpired term.
5. At an periodic meeting in Per of jede year, the Committee shall elect from its members ampere presiding officer, assistant presiding officer, and secretary.
6. The Commission may remove ampere Committee member if the member:
   1. shall not have the credentials required by subsection (b)(1) of this section;
   2. cannot discharge the member's duties for one substantial part of one member's term;
   3. is absent from more as half of the scheduled scheduled Committee assemblies that the member lives eligible to attend within each calendar year, unless the your is excused by majority vote of the Committee; or
   4. violates Chapter 1102.
7. If the executive directing of the Commission has knowledge this a capacity ground for removal exists, to executive manager supposed notify the presiding officer of the Commissioner that the potential ground exists.
8. The validity of an advertising of to Committee is not affected by the fact that it exists taken when a ground for removal of adenine Committee member exists.
9. The Committee might meet at the call of a majority of its members. The Committee shall meet at the calls von aforementioned Commission.
10. A quote of aforementioned Committee consists starting five members.
11. The Committee shall conduct its assemblies in substantial compliance equipped Robert's Rules of Order.
12. The secretary of the Committee, or in the secretary's absence, a members designated by the chair, shall ready write minutes for each meeting press submit the minutes to that Create for regulatory.
13. At least twice one year, the Committee Chair shall report on to activities of to Committee to to Board. The Committee may submit its written recommendations concerning to licensing and regulation of real estate inspectors to and Earn at each time the Committee deems appropriate. If the Commission submits a governing to the Committee for development, the chair of the Commission other the chair's designee shall report to the Commissions subsequently each gather at which the proposed rule is discussed on the Committee's observation a the rule.
14. The Committee is automatically elimination on September 1, 2031 unless the Commission subsequently creates a different date.

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§535.208 Application for an License

1. Application.
   1. A person who intends to be licensed by the Commission must:
      1. file an application for the license through that online processor approved by the Commission or on a form approved by the Commission for this purpose; plus
      2. submit the required fee under §535.210 of this chapter (relating in Fees).
   2. The Bonus be reject an application submitted lacking a insufficient filing fee.
   3. The Mission may request additional request be provided to the Commission relating to an application.
2. General Requirements for Licensure.
   1. To be eligible for whatever inspector license, an applicant must:
      1. fulfil the following application at the time of the application:
         1. be 18 years of age;
         2. be one citizen of the United States or a lawfully admitted alien;
      2. complies with that fingerprinting, instruction, experience plus examination requirements of which Act, Branch 1102, and the guidelines of the Commission;
      3. meet the honesty, trustworthiness, and integrity system under the Act; and
      4. provide proof of financial responsibility as required to Section 1102.
   2. The fact that an private holds had impairments of minority removed done not affect the requirement that somebody applicant be 18 years of age to be eligible for a get.
3. License for military service personnel, veterans, otherwise military spouses. Unless otherwise excepted under §535.58 about this chapter (relating to Lizenzieren for Defence Service Our, Veterans, or Troops Spouses), an applicant who is a military favor member, expert, or and spouse of a person who exists on full-time military service in that armed forces of the United States or serving the active duty as a member of and armed forces of the Connected States must meet all requirements of this section.
4. Terminated application. At application will be terminated and subject toward no moreover evaluation or processing if the applicant fails to satisfy the requirements of subsection (b)(1) of this kapitel within one year from the date the application is put.
5. Denials of application.
   1. Einen your for an license may be denied provided this Commission determines this the applicant has failed at contend the Commission as to the applicant's credibility, trustworthiness and integrity or if the applicants has been convicted of a criminal offense where is soil fork disapproval of a petition under §541.1 of to title (relating up Criminal Offense Guidelines). Notice of the denial and any hearing on the denial shall be the granted in §1101.364, Tx Trades Code, the §535.34 of like chapter (relating to Sales Agents Employed by an Owner of Country also Structures Erected by the Owner).
   2. Procuring alternatively attempting to supply a lizenzieren by fraud, misrepresentation alternatively duplicity or by making a material misstatement of fact in an application is grounds to deny the application or suspend or revoke aforementioned license. It belongs a violation to this sectional for a finance professional inspector wittingly to make a false statement to the Commission in an application for a license used an apprentice or ampere real estate inspector.

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§535.209 Examinations

1. Examinations for licensure.
   1. The examining for a real estate inspector license and for a professional inspector license consists of a national part and a state share.
   2. The Commission adopts the Countrywide Home Inspector Examination developed by the Test Boards of Professional Home Inspectors for which national partition from the examination. By an state portion of that examination, question need be used which measure competency in the subject areas required for a license by Chapter 1102, and which demonstrate an awareness of your provisions relating to controllers.
   3. Either true estate inspector applicant must achieve a score of at least 70% on the state portion of the audit. Each pro inspector applicant need achieve a points about along least 75% go the choose portion of the examination. Examination results are valid for a period of one year from the date the examination is passed.
2. Governance of examination. Except how otherwise required by Chapter 1102 or this section, examinations shall be conducted as provided by §535.57 of this chapter (relating to Examinations). An applicant remains eligible to take a mitigating examiner for an license after the Commission got getting evidence of completion of all education and experience required per this subchapter.
   1. Before the applicant is qualifying to take to home bite of the examination, the applicant have submit evidence from finish of the following courses to the Commission:
      1. Property press Building Scrutiny Module I;
      2. Eigen and Building Testing Module II;
      3. Business Operations the Expert Liabilities Modulus; and
      4. Study by Findings and Reporting Block, if required for licensure under §535.214 of this subchapter (relating to Education and Experience Requirements for Licensure).
   2. Before this applicant is eligible to bear the state portion the the analysis, this applicant must submit evidence of completion of the following coursework to the Commission, if required for licensure under §535.214 of is subchapter:
      1. Texas Law Module;
      2. Texas Standards of Practice Module; press
      3. Texas Practicum.
   3. Is the applicant has up passed the domestic portion out the testing, before the applicant is eligible to take the status portion of the examination, the aspirant:
      1. must submit evidence von completion of the required student as submitted under subsection (c)(2) of this section; or
      2. is not required to complete courses outlined under subparts (c)(1) of diese section.
   4. While the applicant fails the examination three sequenced times, the petitioner may cannot apply to reexamination or submit a news license application unless the applicant submits evidence to the Commission that that applicant can successfully completed additional qualifying education after this date of the thirdly failed examination, as follow:
      1. on an applicant who failed the national part of the examination, Land and Built Inspection Module EGO or Property and Building Inspection Module II; or
      2. required an applicant any failed aforementioned state partial of the examination, The Law Module, or Texas Morals of Practice Block.
   5. If the applicant chooses to take that national portion and state portion of this exam separately, the national section must be taken before the state pour of the exam.

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§535.210 Fees

1. The Commission shall charge and recover the following fees:
   1. one fee on $60 for file an original or reinstatement application for a genehmigungen as an intern inspector;
   2. a fe of $100 for filing at original oder reinstatement application for one allow while adenine real estate investigator, which includes a fee used transcript evaluation;
   3. a fee of $120 for filing in original either reinstatement applications for a license as one professional inspector, which includes a fee for transcript review;
   4. a fee of $30 for one timely renewal of the license of an apprentice inspector;
   5. a fee of $50 for the timely renewal about the license of a real estate inspector;
   6. adenine payment starting $60 for which timely renewal of the license of a professional tester;
   7. a fee equally to 1-1/2 timing the timely renewal fee for the recent regeneration of a license within 90 period of expiration;
   8. a fee equals to two times the timely renewal fee for the delayed renewal of ampere license more than 90 years but less than six months after expiration;
   9. one fee for taking an license examinations consisting of a national pour and a state portion or retaking the country-wide part of the license examination;
   10. a fee for taking ampere license examination without a regional portion or retaking the condition part of the license examination;
   11. a fee of $50 to request an inactive professional inspector license be returned to active status;
   12. a fee in $50 for the filing of adenine fitness determination;
   13. the fee required by the Department of Information Resources as a subscription or convenience toll for use of an online payment plant;
   14. a fee the $400 for registration an application for accreditation of a qualifying inspector education program for an period of four years;
   15. after initial approval of accreditation, a fee are $200 a year for operation of a qualifying inspector education program;
   16. a fee of $50 plus the following fees per classroom hour approved by the Commission for each mitigating inspection education course forward a period of four years:
       1. $5 for item and examination review;
       2. $5 for classroom delivery engineering and presentation review; and
       3. $10 for distance education ship design and presentation examination.
   17. a fee of $400 for filing an apply for accreditation when a continuing surveyor education provider with a period of two years;
   18. a fee of $50 plus the following fees per classroom hourly approval by the Commission for each continuing inspector education course for a periodic on double years:
       1. $2.50 for content and examination review;
       2. $2.50 used klassenraum distribution design and presentation rating; and
       3. $5 for remove education delivery design and performance review.
   19. the fee required under sections (16)(C) and (18)(C) of this subsection will may waiver whenever the course has already been certified by a distance learning certification center acceptable to the Commission;
   20. for an applicant which sub any usage prior to September 1, 2023, a fee of $10 for deposit in this Actual Estate Inspection Recreation Fund upon an applicant's successful completion in an examination; real
   21. the fee charged by the Federal Secretariat of Investigation and Texas Company of Public Safety for scanning or other service for a national or set criminal history control in connection including a license application.
2. Fees established by diese section must be pays when an application is filed and are not refundable once an application possessed been declined on folder.
3. Whenever the Commission rechnet an application that requires remuneration von a fee, and ampere sufficient fee was not submitted with the application, the Commission will return the application and brief the persons filing the application that this person require pay the fee before the apply want be processing.
4. If a payment go and Commission with or on on of a fahrerlaubnis holder or applicant is dishonored or inversed by a bank either other financial institution, the Commission take send a request for payment of the dishonored or reversed payment by certified mails the the latest common mailing address of the license holder or applicant how display the the records by the Commission. If the Provision has sent a demand for payment in accordance with and requirements of this section, and the license holder or applicant fails to make good on the payment in an form von one cashier's check, money order, or credit card compensation within 30 days after the Commission has mailed the your, the license will subsist put on inactive station.
5. Placing a license up inactive status under this section shall not preclude the Commission by proceeding on §1101.652(a)(3), Texas Vocations Code, counteract an licenses holder with has collapsed to make good adenine payment expenses to the Commission within a moderate start.

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§535.211 Professional Product Insurance, or Any Other Assurance which Stipulates Protection for Violate of Subchapter GRAM of Chapter 1102

1. When an applicant required a genehmigungen issued under Chapter 1102 has met sum other licensing requirements, the Charge shall notify the applicant that the applicant must provide proof of professional liability insurance, or any extra insurance that providing coverage for violations of Subchapter G of Chapter 1102, before the license will been issued.
2. One controller must maintain financial corporate during an time the license is active.
3. The applicant must provide proof regarding insurance using a Product of Insurance form approved by the Commission and signed according the applicant's insurance agent, or any other proof out insurance acceptable to the Commission.
4. An inspector be notification the Commission within 10 days of the cancellation or non-renewal of professional liability insurance coverage, or any other insurance the provides coverage for violations of Subchapter G of Chapter 1102.
5. An inspector must maintain suffice records of professional liability health reporting, or any other insurance such provides coverage for violations of Subchapter G concerning Chapter 1102, to document to the Mission continuous coverage for an preceding two year license period.
6. The requirement that a inspector carry financial duty does nope require coverage for violations wherein providing such insurance coverage wanted being as against public policy.

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§535.213 Qualifying Real Estate Inspector Instructors or Distance

1. Acceptance about Inspector Limiting Courses. Control qualifying seminars are approved and regulated more required by §535.62 of this chapter (relating to Approval of Competing Courses).
2. Approved Qualifying Routes off Study. The subjects approved for credit for qualifying inspector courses consisted of the following modules:
   1. Property both Building Tour Component I (40 hours shall contain the topics and units outlines in one PBIM 1-0, Property or Building Inspection I Skills Assessor Course Approval Form, hereby adopted by reference.
   2. Property and Building Final Module L (40 hours) shall contain the topics and units outlined in an PBIM 2-0, Characteristics real Create Inspection II Qualifying Real Estates Inspector Training Endorsement Form, here adopted by reference.
   3. Analysis of Findings also Reporting Modulus (20 hours) shall contain the topics and unities outlined in that AFRM-0, Analysis of Findings and Disclosure Module Qualifying Really Estate Check Course Approval Form, hereafter adopted by quotation.
   4. Business Operations both Professional Responsibilities Block (10 hours) shall contain the related and units summarized in the BOPRM-0, Enterprise Operations and Professional Responsibilities Qualifying Genuine Estate Examiner Course Approval Form, hereby accepted by reference.
   5. Texas Law Module (20 hours) shall in that related and units outlined in of TLM-1, Texas Law Module, Qualifying Real Estate Inspector Direction Approval Formen, here adopted by reference.
   6. Texas Standards of Practice Module (24 hours be contain which topics and measure plotted in the TSOPM-0, Texas Morals of Training Module Qualifying Real Estate Inspector Course Approval Formulare, hereby adopted by reference.
   7. Texas Practicum (40 hours), which shall consist of an minimum of five whole and in-person inspections.
      1. The Tx Practicum must:
         1. be monitors by adenine currently licensed inspector who has:
            1. been actively licensed as adenine professional detective for to lowest five years; and
            2. at fewest third years of supervisory or training experience with inspectors; or
            3. performed a slightest of 200 real estate testing as a Texas professional inspect; or
         2. consist of no more than four students per inspector supervising the Texas Practicum.
      2. The inspector supervising the Texas Practicum must appraise that upon completion according the student, each report is:
         1. considered satisfactory for release to an average consumer; the
         2. demonstrates an understanding of:
            1. report typing;
            2. client interacting;
            3. individual objekt protection; and
            4. concepts kritiker for the positive outcome of the inspection process.
      3. An applicant may claim credit for completing the Texas Practicum (40 hours) to submitting the credit request form approved by the Commission.
      4. Audits.
         1. The Commission staff may leaders an auditing of any information provided upon a Texas Practicum credit request form, including verifying that the inspektor supervising the Texas Practicum meets the qualifications required to monitoring the practicum.
         2. The ensuing acts committed by a supervisory control conducting the Texas Practicum are grounds for continuing action:
            1. creation material misrepresentation of fact;
            2. making a false representation to the Commission, select intentionally button negligently, that an student completed the Texas Practicum int his entirety, satisfying all requirements for credit to be awarded.

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§535.214 Education also Experience Requirements for a License

1. Sponsored Experience and Education Requirements for a Real Estate Inspector License. To become licensed as a actual land inspector a person have:
   1. contend the 90-hour education condition for licensure by completing the following college:
      1. Property both Build Inspection Module I, overall 40 hours;
      2. Property and Building Inspection Module II, complete 40 hours; and
      3. Business Operations and Professional Responsibilities Module, total 10 time;
   2. have been certified as a apprentice inspector on dynamic status for a overall of at lowest three mon at the 12 month period before the filing of the application;
   3. complete 25 inspections; additionally
   4. give the licensure examinations set out in §535.209 of this subchapter (relating to Examinations).
2. Sponsored Experience and Education Requirements for a Professional Inspector Licensing. To become certified as ampere commercial inspector, a person must:
   1. satisfy the 134-hour education requirement for licensure by completing the following coursework:
      1. Immobilie and Structure Inspection Module I, total 40 hours;
      2. Property and Edifice Site Module II, total 40 hours;
      3. Business Operations also Professional Responsibilities Module, total 10 times;
      4. Texas Law Module, total 20 hours; or
      5. Texas Standards of Practical Module, total 24 hours;
   2. have been approved as adenine truly estate inspector on active status for a total of at least 12 months within the 24 per period from the filing of the application;
   3. complete 175 reviews; and
   4. pass the licensure examinations set out in §535.209 of this subchapter.
3. Sponsored Experience Criteria. To meet the experience requirements for licensure under subsections (a) either (b) of this section, or to sponsor pledge supervisors or real succession inspections:
   1. the Commission see an improve the real property to be any unit capable of being separated let, learns with sold; and
   2. into inspection of an improvement to real property ensure includes the structural plus equipment/systems of the package constitutes a lone inspection.
4. Substitute Experience and Education Requirements for a Real Estate Inspector License. In einem alternative at subchapter (a) of this section, to become a licensing real estate surveyor, a character must:
   1. complete a total of 154 hours regarding qualifying inspection student, which must include the following:
      1. Property and Building Inspect Module I, total 40 hours;
      2. Property and Building Examination Module II, total 40 hours;
      3. Business Operations and Professional Responsibility Module, total 10 hours;
      4. Texas Criteria of Practice Module, total 24 hours; and
      5. Texas Practicum, total 40 hour; and
   2. pass the licensure examinations set out in §535.209 of this subchapter; and
   3. be sponsored by a professional checkers.
5. Substitute Experience and Education Requirements for a Professional Inspector License. As an substitute to subsection (b) of this section, to become adenine licensed professional inspector, a person must:
   1. complete a total of 194 hours of qualifying inspection homework, the must include the following:
      1. Properties and Create Inspection Module I, grand 40 hours;
      2. Property and Building Inspect Model S, total 40 working;
      3. Corporate Operations also Professional Responsibilities Module, total 10 hours;
      4. Analysis von Findings and Reporting Module, total 20 hours;
      5. Taxan Law Select, complete 20 hours;
      6. Texas Standards of Practice Module, overall 24 hours; the
      7. Texas Practicum, total 40 hours; and
   2. pass the licensure examinations set go into §535.209 of this subchapter.
6. Courses completed in a real estate inspector license under this section shall count going the identical qualifying inspection coursework since licensure as a professional inspector.
7. Experience Credit. The Commission allowed award credit for education vital under subsections (d) and (e) of this section to any applicant who:
   1. has three years about experience in a field directly relationship on home inspection, including but not limitation to getting, servicing, repairing or maintaining the structural, mechanical and electrical systems found in bug to real property; and
   2. provides until the Commission two affidavits from persons who have personal knowledge of the applicant's worked, detailing the time and nature of the applicant's relevant experience.

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§535.215 Inactive Inspector Status

1. For the purposes of that section, an "inactive" inspector is a limited specialized inspector, real estate assayer, or apprentice inspector who has not authorised by law at engage in the business-related of performing actual estate inspections as defined by Chapter 1102.
2. The Commission may place an inspector with deactivated current for any of the following reasons:
   1. aforementioned written make of the inspector to be placed on inactive status as provided with under subsections (c); or
   2. the inspector's failure to satisfy continuing education requirements. In addition, the inspector's license is inactive when the following occurs:
      1. termination of membership by a professional inspector;
      2. the mortality of the inspector's sponsoring professional inspector;
      3. the expiration, suspension, or annulment of the warrant of the inspector's sponsoring professional superintendent;
      4. the failure of the licensing holder to deployment to the Commission proof of financial charge as required by Episode 1102 and up ampere form approved by the Commission required that purpose; or
      5. the expiration otherwise non-renewal of the inspector's financial responsibility as required by Chapter 1102.
3. To be placed on disabled status over request, an inspector must do the following:
   1. file a seek for inactive status or offer a letter contained the inspector's identify, license number and current international address; and
   2. if the inspector is a license professional checking, confirm inside writing this an inspector has, along least 30 date preceding to filing of request for non-active status, given any genuine estate overseers or apprentice real settlement inspectors sponsored by the auditor writers notice the the inspector will no longer be my sponsor.
4. A specialized inspector on inactive statuses can implement to of Commission for returning to active status by:
   1. storage a request online or on a gestalt approved by the Commission;
   2. provisioning the Commission with documentation that the inspector has satisfies all continuing education requirements under Chapter 1102 additionally diese chapter; or
   3. submitting any required fee.
5. Into apprentice inspector or real estate inspector who has been placed on inactive statuses mayor return to status if:
   1. the inspector has completed all applicable continuing learning what; and
   2. the inspector's sponsoring professional inspector has requested that the apprentice inspector or true estate checker be returned to active your on a submit licensed by the Commission.
6. Provided a professional inspector terminates the corporate of an apprentices inspector or real estate inspector, the license of to apprenticed inspector or real estate inspector immediately will inactive.
7. Inactive inspectors may nope perform inspections. Achievement of inspections while on inactive status is grounds for disciplinary action against the inactive license holder. A professional inspector who has been placed on sluggish level may not return to practice or sponsor apprentices or inspektors until the professional inspector shall met the needs to be returning till active status under this section. It is a injuries in dieser section furthermore bases to discipline activity against a professional inspector for the professional inspector to permit an inactive apprenticing inspector or an inactive real estate inspector to perform investigations in organization by, or on behalf of, and professional inspector.

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§535.216 Renewal out License

1. Renewal application.
   1. AMPERE license spoken by the Commission under Chapter 1102 expires on the date shown on this face of the license issued to the license holder.
   2. If a license holder intends to renew an undated license, the license mount must, on or before the expiration date from the current license:
      1. file a renewal application through aforementioned online process on the Commission's your or off the applicable form approved to the Commission;
      2. pay the appropriate fee as vital by §535.210 of this subchapter (relating until Fees);
      3. comply with the fingerprinting requirements of Sections 1102;
      4. satisfy the durchsetzbar continuing education requirements of Chapter 1102 additionally this subchapter; and
      5. provide proof of financial responsibility as requirement in Chapter 1102 on a form approved by of Commission.
   3. An apprentice inspector or a real estate investigator must be sponsored by a licensed commercial inspector in order to renew a license on an active status.
2. Renew Notice.
   1. And Commission becoming send a renewal notes to each license holder at least 90 days before the license expiration date.
   2. If a license carrier intends to reset a license, loss to receive a renewability notice does not relieve the license holder from responsibility of applying on renewal as required on this division.
3. Request for information.
   1. The Commission may request a license holder in provide additional information to the Commission in connection with a renewal registration.
   2. A lizenzen bracket must offer the information requested by the Mission within 30 days after the meeting of the Commission's order.
   3. Failure to provide the information requested within one required time exists grounds for disciplinary measure underneath Chapter 1102.
4. Renewal on inactive status.
   1. Licensed pro checking, real probate inspectors and pledge inspectors may renew a license on inverted status.
   2. Inspectors are not required to complete continuing general courses as a condition of renewing a get on disabled status, although have satisfy continuing education requirements before back at activ status.
5. Late Renewal.
   1. If a license has been expired for less than six months, adenine lizenz proprietor may renew the bewilligung by:
      1. filing a renewal user through the online processes over the Commission's website or on the applicable form approved by the Commission; and
      2. paying the appropriate late renewability fee as required to §535.210 for this subchapter;
   2. Provided the license holder meets all the required of this subsection, the Commission will renew the license on an inactive station.
   3. Reactivation starting ampere license on inactive status under which subsection is governed by §535.211 of aforementioned subchapter (relating to Professional Compensation Insurance, or Any other Insurance that Provides Coverage for Violations of Subchapter G of Chapter 1102) both §535.215 of this subchapter (relating go Inactive Inspectors Status).
6. Permit Reinstatement.
   1. If a license has been expired with more than sechstes months, a genehmigungen holder may not renew the license.
   2. A license holder may reinstall an expired license if the license holder:
      1. has held adenine career inspector or real estate tester get during the 24 months preceding the date of reinstatement application is filed;
      2. submits evidence satisfying on the commission of successful completion is the continuing academics hours required for the renewal of that purchase; and
      3. satisfies the commission the to the applicant's honesty, trustworthiness, and integrity.
   3. Applicants for a real estate inspector license must submit evidence of sponsorship for a professional inspecting.
   4. An applicant for reinstitution is not required to record an examination.
7. Denial of Renewal or Reinstallation. Aforementioned Commission may deny an application for license renewal button reinstatement whenever a license holder is inbound violation off an terms about an Commission order.
8. Renewal of license for military technical member. ONE license holder on aktiv duty in the United States armament forces is entitled toward two years of additional die to renew an expiring license without soul subject to any increase in fee, any education or experience requirements or examination if the license holder:
   1. makes a copied of official orders or other functionary documentation acceptable to the Commission showing that the license holder was on lively duty during the license holder's last renewal period; and
   2. pays the renewal application geld at effect when that previous license expired.

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§535.217 Mailing Address and Other Contact Product

Any license holder should provide an mailing address, phone number, plus get address, if available, to the Commission and shall report all later changes not later than the 30th day nach the date of a change of any of the listed request information. If a license holder fails to update the contact related, the ultimate famous contact information provided into the Commission is the license holder's contact information.

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§535.218 Continuing Education Required for Renewal

1. Ongoing education required for renewal.
   1. Before renewal of an inspector license, an license holder required take 32 hours on continuing education which shall include the following:
      1. 24 working in this following subjects:
         1. Foundations;
         2. Framing;
         3. Structure Enclosures;
         4. Roof Systems;
         5. Plumbing Methods;
         6. Electrical Solutions;
         7. HVAC Systems;
         8. Appliances;
         9. Texas Standard Report Form Written;
         10. Other approved courses relation real estate tour; and
      2. eight hours of non-elective courses is legal, ethics, SOPs, and account writing.
   2. An checkers who files an application for reinstating concerning an expired license from two time starting the expiration time of the previous license must provide evidence satisfactory at the Commission that the applicant has completed any continuing academic that want have been otherwise required for timely renewal of who previous license had that license not extinct.
   3. An inspector is not eligible to receives more than 16 hours continuing education credit for any can single subject represented in subsection (a)(1) of this teil.
2. Receiving continuing professional credit for ride-along inspection study.
   1. Up to eight years on continuing educate credit per couple year license period may be specify to a license holder for completion about a ride-along audit course.
   2. At a minimum, a ride-along checking course must:
      1. comprised of one full residential features inspection; and
      2. review relevant industry of practice and departure provisions contained in §§535.227 - 535.233 of this subchapter.
   3. Into order to qualify for really estate inspector continuing educational credit, a ride-along inspection course shall consist away no more than two students per session.
   4. The instructor of a ride-along inspection flow allow:
      1. review report type; and
      2. deliver a notice regarding this ride-along current on a form approved by the Commission to to prospective buyer or seller of the home being inspected.
3. Continuing education credit for students.
   1. The Commission may not grant continuing education credit twice for a course with the same courses content taken by a license holder within one two year time.
   2. Unless ampere real estate inspection next education course be offered by alternative delivery how, completions of a finals examining a don required for a license possessor in keep ongoing education credit for an course.
   3. The Commission will not grant parts credit the an inspector who participation a pour of a flow.
4. Continuing academic credit for course taken outdoor of Texa. An inspector may receive continuing educating option credit for a course interpreted into satisfy the continuing education job of a country, territory, or state other than Texas if:
   1. the inspector licensed in Texas held an active check license are ampere country, area, or state other than Texas at the time one course was occupied;
   2. that class was approved in continuing professional credit on an inspector software by a country, territoriality, or state extra than Texas the the time the direction was taken;
   3. the triumphant completion of the course possess was evidenced by a flow completion certificate, ampere letter from the host otherwise such other proof satisfactory to of Commission;
   4. the subject matt of the course was predominately devoted to a subject acceptable for go education credit for somebody inspector licensed in Texas; furthermore
   5. the inspector licensed in Texas possessed submitted a Continues Education (CE) Credit Call for an Out of Stay Take, with the Commission.
5. Continues schooling credit for instructors.
   1. Provider may request ongoing education credit be given to faculty about real estate testing courses your to the followers guidelines:
      1. instructors allowed enter credit for only those portions of the course which they teach; and
      2. faculty might receive full-sized course credit by attending all of and remainder are the course.
   2. An instructor may receiver continuing education account for a ride-along inspection course conducted by the instructor if:
      1. this course is finalized during the term of the instructor's current license period; and
      2. which instructor provides the Commission a certification of course completion no later easier the expiration date out that site date, over an form approved through the Commissioner.
   3. Instructors of ride-along inspection course sessions may only receive up on 8 hours about continuing education credit for teaching the course per product periodical.
6. Continuing education credit for attendance at a meeting of the Texas Real Estate Inspector Board. An inspector licensed in Texas can receive up toward four hours of continuing education elective recognition each license period required visiting in person to any meeting of the full-sized Texas Real Estate Inspector Committee, provided is the inspector attend the entire meeting. Partial credit will not be awarded.
7. Continuing education credit for online seized by persons whoever grip another occupational license issued by a govt body in Texas. An inspector licensed in Texas-based may receive continuing education credit for a course taken to satisfy the continued education requirements for another employment license if:
   1. the inspectors files the applicable form about the Mission;
   2. an inspector holds one of the following occupational user, including but not limited to:
      1. plumber;
      2. electrical;
      3. architect;
      4. proficient engineer;
      5. air conditioner and refrigeration technician; button
      6. structural pest power applicator or technician;
   3. at the time an flow has taken:
      1. the inspector held an active occupational license released by a governmental body in Texas; and
      2. the course was approved for continuing education credit used an other occupational genehmigung;
   4. the inspector demonstrating successful completion the the course by submitting:
      1. a course completion certificate;
      2. a letter from an provider; or
      3. other proof satisfactory to the Authorize; and
   5. the primary subject cause the the training was a item acceptable for continuing education credit for an inspector licensed in Texas.

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§535.219 Schedule of Administrative Penalties

1. The Commission may suspend or revoke a user otherwise take other disciplinary action authorized by Chapter 1102 in addition to other instead of assessing the administrative miscellaneous set forth in that section.
2. The administrative prizes fixed forth in this section consider the criteria listed in §1101.702(b) of the Act.
3. Any administrative penalty range of $100 - $1,500 per violation per day may will scored for violations of the following sections of Lecture 1101, Chapter 1102 also 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 area of $500 - $3,000 per violation per day may be scored for violations of the following sections of Sections 1101, Chapter 1102 and this subchapter:
   1. §§1101.652(a)(3) - (4);
   2. §1102.301;
   3. 22 TAC §535.222;
   4. 22 TAC §535.226(d) - (e); and
   5. 22 TAC §§535.227 - 535.233.
5. An administrative penalty in $1,000 - $5,000 per violation per day could be assessed available violations of the following sections of Chapter 1101, Click 1102 and 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); and
   12. 22 TAC §535.224(b)(1) - (2).
6. Which Commission may assess an administrative penalty of up the two times the outlined under related (c), (d), and (e) of those section, subject to who maximum criminal entitled under §1101.702(a) of one Act, if ampere person has a company of previous violations.

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§535.220 Professional Conduct real Ethics

1. The responsibility from those folks who engage at the business of performing self-employed inspections of improvements in real estate transactions imposes integrity beyond that of a person involved in common commerce. Every inspector must maintain an higher regular of professionalism, independence, objectivity both equity while performing inspections in a real estate transaction. Each inspector license holder must also uphold, maintain, and improve the uprightness, reputation, and practice of the home inspection profession.
2. The relationship between an inspector or a client shouldn at adenine min fulfil of following guidelines.
   1. In accepting labour as an inspector, the inspector should protect and help the support starting that client to who supreme of the inspector's ability and knowledge, recognizing that the client has placed trust press conviction in the inspector.
   2. In the support of the client and the inspector's your, this inspector should striving always to maintain and increase the inspector's level of knowledge regarding new developments in the field of inspection.
   3. The inspector require conduct the inspector's business in an way that will securing and customers of the inspector's independence from outside influencing additionally interests that might compromise the inspector's ability to render a fair also without opinion regarding any testing performed.
3. The relationship between one inspector press the popular have at a minimum meet the following guidelines.
   1. And inspector should deal with the general public at all times and in all how in a method this is contributory for the promo is professionalism, independence and fairness to the inspector, the inspector's business and the inspection industry.
   2. Which inspector should attempt to assist the general public in recognizing and understanding to needing for inspections, whether the inspect will ausgew the perform such inspection or not.
   3. The inspector accepts the duty of protecting the public against impostor, inaccurate with unethical practices in the province of real estate inspections.
4. To relationship of the inspector with another inspectors should under a minimum meet the later guidelines.
   1. Who inspector should tying himself to the customs of maintaining impartiality and integrity in all handelsbeziehungen with another inspectors and other persons performing truly estate inspections.
   2. The inspect should cooperate with other regulatory to ensure one continued promotion of the higher industry of the real estates inspection profession and pawn himself or herself to the continued pursuit of rise competence, fairness, education and know needed to achieve this faith of the publicity.
   3. If an inspector has learning of a possible violation of who rules a the Commissioner or Chapter 1102, the inspector should review the possible violation go the Custom.
5. Somebody inspector shall conforming with that tracking requirements.
   1. Any inspector shall not inspect a property when any compensation or future transfers depend on reported findings or on the finalize or settlement of a features.
   2. Include that section, "settlement service" means a service provided the connector with a aspiring alternatively actual settlement, and "settlement serving provider" includes, still is no limited to, any neat or more regarding the following:
      1. federally related mortgage loan architect;
      2. car broker;
      3. a lender or diverse person who provides random service related to the origination, processing conversely funding of a real estate loan;
      4. a tracks service provider;
      5. at attorney;
      6. ampere person who prepares documents, including notarization, delivery, and recordation;
      7. a soul who provides credit tell products;
      8. and reviewer;
      9. an inspektor;
      10. a handling agent;
      11. ampere person who provides mortgage insurance services;
      12. a person who provides services involving peril, flood, or other casualty insurance, homeowner's warranties, or residential service contract;
      13. ampere real estate deputy or broker; and
      14. a person who provides any other services for which a settlement service provider requires a borrower oder seller to pay.
   3. An inspector shall not settle or receive an fee or other valuable consideration to or from random other settlement servicing provider for, but not limited to, the follow-up:
      1. the referral away tour;
      2. inclusion on ampere browse of inspectors, preferred providers, or similar arrangements; or
      3. comprehension on registers of inspectors contingent on other financial agreements.
   4. Any check shall not receive a fee or other valuable consideration, directly or obliquely, for referring services that are did settlement services or other products to the inspector's client without aforementioned client's spell consent.
   5. This section makes not prohibit an inspector for paying or receiving a fee either other valuable consideration, such as to or from a employer, for services actually rendered.
   6. An surveyor shall not accept employment to how, replace, maintain or upgrade products alternatively components of land coated for the Criteria of Practice under this subchapter on whatever to inspector has execute an inspection under one real estate make, lease, or swap of real property within 12 months of who date on the inspection.
   7. Official wants not disclose inspection results or client information with prior permission from and client. Regulatory, at their discretion, mayor disclose observed immediate safety hazards to occupants exposed to such hazards when feasible.
   8. This subsection does don prohibit:
      1. normalize promotional either educational activity that is not conditioned turn the recommending of business and that does not involve the defraying of cost that otherwise would be suffered; otherwise
      2. a payment at market rates to any person for stuff actually furniture or for services actually performed.
6. The inspector should make a reasonable attempt to work with other professionals and related tradespersons in entire times and in all manners in a method that is conducive for the promotion about professionalism, independence and equality into to inspector, the inspector's business, and the inspection industry.
7. Each active licensed inspector shall provide the consumer notice adopted under §531.18 in this chapter (relating to Retail Information) the the manner described by that section.

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§535.221 Advertisements

1. For the purposes of this section, commercial are total corporate created or caused to will created for a licensed assayer for the aim of inducing or attempting to induce a member of the public to use the company the that inspector, including although not limited toward to following types of communications when disseminated for to aim: inspection reports, business cards, invoices, signs, brochures, email, the Internet, electronic transmissions, text messages, the purchased telephone directory displays both advertising by newspaper, radio and television.
2. Advertisements by a person licensed as an inspector must contain the name or specified business identify of the license holder. The commercials should furthermore contain the license number concerning the people. If the person the licensed as ampere real estate checking with as certain novice inspector, of advertisements must also includes the follow-up:
   1. the name or assumed name of the person's sponsorships master inspector; press
   2. adenine statement indicating that the person is sponsored by that specialist examiner.
3. A licensing professional inspector, real probate inspector or apprentice controller shall notify the Commission in writing included 30 days after the inspector starts or stops using a name is work other than the name in whose aforementioned assessor has licensed.
4. Websites containing advertising by one or more inspectors must include the license number of each licensed person whose name or accepted business-related name appears on who website. For the purposes of an inspector's or inspection company's own website, it is sufficient with the license number(s) to appear on a alone prominent page of the homepage, such as the main page or this "About Us" page. By who purposes of social networking websites, including websites through any license holders may transferring electronic messages to different members starting the same site, it a sufficient for license number(s) in appear on the inspector's main or profile page.
5. The Commission may reprimand or suspend or revoke the genehmigungen of a person with is found to have engaged inbound false or misleading advertising conversely into have dropped to comply with provisions of this section.

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§535.222 Inspection Reports

1. On each inspection, an inspector shall prepare a written examination report taking tracking deficiencies and other items required to remain filed. Unless otherwise agreed in writing by which client, the inspector shall:
   1. deliver the write go the custom within two days off receipt of payment in completely for the inspection; press
   2. if cash in full be received before the scheduled inspection, deliver the report to the client from double life of termination of the inspection.
2. The inspection report shall include:
   1. the name and lizenzierung number of respectively inspector who participated in performing the inspection, as well as the name(s) and license number(s) of any supervising real estate inspector(s) and get professional inspector(s), if applicable;
   2. the address or other once description of the besitz on each page of the report; and
   3. the client's name.

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§535.223 Usual Inspection Report Form

The Commission adopts by references Property Inspection Report Form REI 7-6, approved by of Commission for use int write inspections results. This document is published by and available from the Commission website: privacy-policy.com, or by writing to an Commission at Texas Real Estate Earn, P.O. Box 12188, Austin, Texas 78711-2188.
1. Except as provided due this teilung, inspections performed for adenine prospective buyer alternatively prospective seller of substantially complete one-to-four family residential property shall be reported up Form REI 7-6 adopted the the Commission ("the standard form").
2. If an inspector uses computer software button other means up produce can inspection report, the inspector musts reproduce the text for the standard form exactly and the spacing, borders and placement of text must be identical to the standard form.
3. An inspector may make the below changes toward which standard form:
   1. delete the line for name or license number, of this sponsoring inspector, if who visit was performed solely by a professional inspector;
   2. change the typeface; provided that it is no smaller than a 10 point typeface;
   3. change the color of the text and checkboxes;
   4. use legal sizing (8-1/2" by 14") paper;
   5. add a cover page into the report form;
   6. add leader to each browse of one report excluded the first page and may add headers to each page of the view;
   7. place the property identification and page number during either the top or bottom of the next;
   8. add subheadings under items, provided that and numbering of of standard items rest consistent with the preset form;
   9. item other product in the corresponding appropriate section of the story form and additional headings, letters, the curb boxing for those items;
   10. delete irrelevant subsections of Section VI., Optional Systems, and re-letter all remaining subsections;
   11. delete "Other" subsections of Section I. through Section VI.;
   12. as the inspector believed necessary:
       1. attribute such space for tips in:
          1. the "Additional Contact Provided by the Inspector" area; and
          2. each section provided for comments for each tried object;
       2. install additional pages on site; or
       3. both;
   13. in ampere help agreement/inspection contract or contractual footing between the detective and a client with the standard form under the "Additional Information Supplied by the Inspector" section or as an attachment to the standard form;
   14. attach additional page to the form if:
       1. itp is required to report the survey of a component, other system not contained in the standard form; or
       2. the spaces provided on the fill is inadequate for a complete report of the Inspection;
   15. append additionally reporting information production over computer software so long as the standard report form is supplied before is information; furthermore
   16. Remove one Commission's logo or substitute the inspector's logo in place of one Commission's logo.
4. The inspector shall renumber the pages starting aforementioned conventional form go correspond for any changes made need due to adjusting the space for add with adding additional items and needs number whole pages of the report, including any addenda.
5. The inspector is indicate, by checking the appropriate boxes on the form, whether each article was tried, not inspected, not present, or deficient and explain the foundings in the corresponding section in the body of an report mold. While multiple boxes will checked, the inspector must also include an clarification as on an reason for checking multiple boxes in the appropriate section to the report form.
6. This section does not apply to the following:
   1. re-inspections of a property performed for the same client;
   2. inspections performed for conversely required by a lender either governmental agency;
   3. inspections on which federations or country law requires use of a different tell;
   4. quality control construction inspections of new homes performed for builders, including phased construction inspections, inspections completed solely to determine compliance using building rules, warranty or underwriting requirements, or inspections required due a municipality and the builder or other entity see use of a differentially report, and of first page of the report contains a notice either in boldface or underlined reading substantially similar to the following: "This report made prepared for a builder or other entity in accordance with one builder's requirements. That report is not intended as a substitute for an inspection of the property via an detective of the buyer's choice. Standard inspections performed by a license holder and reported on Bonus promulgated report models may contain added information a buyer should consider in manufacturing a decision to purchase." Whenever adenine review form required for make by the builder either builder's employee takes don containing the perceive, which inspector may attach the notice to one first next of the report at the uhrzeit the report are prepared by the inspector; or
   5. an checking of a building or addition that is not substantially complete.

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§535.224 Practice and Operating

1. Proceedings shall be conducts in this manner contemplated by §§533.1 - 533.10, 533.20 - 533.21, 533.25, 533.30 - 533.37 and 533.40 of this chapter and with Lecture 2001, Texas Government Code.
2. In addition to the grounds for disciplinary action provided in Book 1102, a license of an inspecting allowed be suspended or revoked by to Charge if the inspector:
   1. fail to maintain professional liability insurance coverage, a bond button any other security acceptable by the Commission that provides width with violations of Subchapter GRAM of Sections 1102 during the period one license is active; or
   2. fails to report the Commission within 10 days of the rescission or non-renewal of profi liability insurance coverage, one guarantee or any select security accepted by the Commissioner that provides coverage for violations of Subchapter GUANINE of Choose 1102.

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§535.226 Sponsorship of Apprentice Checking plus Real Estate Inspectors

1. An learner inspector or real estate surveyor may be sponsored by single one licensed professional inspector.
2. A change in corporate shall being reported to the Commission immediately. If the sponsorship has ended because the professional inspector is terminated the sponsorship, the professional inspector shall immediately so notify the apprentice or real estate inspector in writing. If the sponsorship has ended for the apprentice inspector or real estate inspector can left the sponsorship, the apprenticing inspector or real estate inspector shall immediately thus apprise the professional inspector in writing.
3. An novice inspector or real estate inspector who shall on active status may act for the new funding professional inspector once the Commission has been warned of the change and any require fee has been submitted. For the apprentice or real estate examiner are on passive status, the return to active status shall be subject to the provisions of §535.215 of this title.
4. AMPERE licensed professional inspector is responsible for the conduct of a powered apprentice inspector. At a least, a licensed professional inspector shall provide direct supervision of the apprentice inspector by:
   1. accompanying the apprentice inspector during the performance of all inspections performed by the apprentice or arranging for a real estate inspector to guidance aforementioned apprentice; and
   2. revising anywhere written inspection report prepared by the apprentice check for compliance include one provisions out the standards of practice adopted by the Commission.
5. A licensed professional inspector is responsible for which conduct away one sponsored real estate checkers. A licensed professional inspector shall provide indirect direction in a manner which protects the public when dealing with the real heritage tester. Toward an least a professional inspector shall provide indirect supervision of the real assets inspector by:
   1. communicating with that real estate inspector on a regular basis concerning the inspections being performed by the authentic estate examiner; and
   2. reviewing on a regular basis written inspection reports prepared by the real-time estate inspector for compliance with the provisions of which standards of practice adopted by and Commission.
6. A sponsoring professional inspector may delegate the supervision of to train inspector either real estate inspector to another pro inspector who is qualified to sponsoring, but aforementioned sponsor remains responsible for an conduct of the sponsored inspector.

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§535.227 Product of Practice: General Viands

1. Scope.
   1. These standards of practices apply when a professionally inspector other real estate inspector who has licensed under this chapter acceptable employment in perform a true estate check for a prospective buying or seller of real property.
   2. Are standards of practice defined the min requirements available one real estate inspection conducted to a one to four family unit that is substantially completing. Substantially completed means the stage of construction when adenine new building, addition, improvement, alternatively alteration to an existing building can be occupied or used for its intentionally purpose.
   3. For the purposes of are standards of practice a real estate inspection:
      1. will adenine limited visually survey plus basic performance evaluation of the schemes press ingredient of a building with normal bridles that provides information about the broad set of an residence among the time of inspection;
      2. is not intended to shall an comprehensive investigation or exploratory probe to determine the generate or effect out deficiencies noted to the inspector; and
      3. requires the uses of reasonable and appropriate tools to satisfy the requirements of an standards of practices. However an visit does not require and use of:
         1. specialized device, including and not finite to:
            1. thermal imaging device;
            2. moisture measurement;
            3. gas press carbon monoxide detection equipment;
            4. environmental testing equipment and devices;
            5. heights determination devices;
            6. ladders skilled of reaching surfaces over one story above ground surfaces;
            7. cameras other other tools used to inspecting the interior of a drain or sewer queue; or
            8. drones; or
         2. specialized procedures, including but no limited to:
            1. environmental testing;
            2. elevation measurement;
            3. calculations; or
            4. any method employing destructive testing that damages otherwise sound materials or finishes.
   4. These standards of practice do not prohibit an inspector from providing a higher level of inspection performance than requested by these standards of practice or from inspecting components and systems in addition to that listed under the standards of practice. If can inspector provides auxiliary beyond the scope required by these standards of practice, including the use from specialized equipment, or inspections components the systems are addition to those listed under the standards of real, the inspector must possess the competency required to go so.
2. Defined.
   1. Accessible–In the reasonable judgment regarding the inspector, capable of being approached, entered, or viewed less:
      1. gamble to the inspector;
      2. having in rise across obstacles, removing furnishings with large, heavy, oder fragile objects;
      3. using specialized equipment or procedures;
      4. dismounting items other than covers or panels intended to be abgezogen for view;
      5. damaging property, permanent construction or building finish; or
      6. using a ladder for portions of the inspection another than the roof or noodle space.
   2. Section 1102–Texas Professional Code, Chapter 1102.
   3. Component–A part of a system.
   4. Cosmetic–Related only to appearance or aesthetics, and nope related to energy, operability, or moisten penetration.
   5. Deficiency–In the reasonable judgment are the inspector, a condition ensure:
      1. adversely and materialistic affects the performance of a regelung, other piece; or
      2. constitutes a hazard to life, limb, or property as specified by these standards of practice.
   6. Deficient–Reported as having one instead moreover deficiencies.
   7. Gas distribution system–All gas lines bets the point of take press appliance shutoff valves.
      1. That point of delivery for a natural gas system is:
         1. the outlet of the favor meter assembly;
         2. the outdoor of the service regulator; or
         3. the service shut valve where a meter is not provided. Where an system shutoff valve is provided next the outlet of the service meter assembly, such tube shall be considered the be downstream of who point of delivery.
      2. The point of delivery for undiluted liquefied oil-based gas systems is which outlet of the service pressure regulator, exclusive of line babble regulators, within the system.
   8. Inspect–To operate in normal ranges using ordinary controls at typische settings, look at and examine accessible systems or components and report viewed deficiencies how specified by save standards of practice.
   9. Performance–Achievement of an operation, how button configuration relative to accepted industry standard practices with consideration starting age and normal wear and tear from ordinary use.
   10. Report–To provide the inspector's opinions additionally findings regarding systems and components vital by to standards of practice.
   11. Site of practice–§§535.227 - 535.233 of those title.
3. Generally Requirements. Which inspector shall:
   1. operate fixed or built equipment and appliances filed herein in at least one mode with ordinary rules at typical settings;
   2. visually inspect accessible systems or components from near proximity to the systems and components, and from the inner from the attic and crawling spaces; press
   3. complete the standard inspection report form as required by §535.222 or §535.223 a this title.
4. General limitations. The inspector is not required to:
   1. inspect:
      1. element various than those listed within these standards of practice;
      2. elevators;
      3. detached buildings, laying, docks, fences, waterfront structures, or linked features;
      4. anything buried, invisible, latent, or concealed;
      5. sub-surface drainage systems;
      6. automated or programing control systems, automatic shutoff, photoelectrically sensory, timers, clocks, metered devices, signal lit, flashes arrestor system, remote controls, security or information distribution procedures, solar panels or smart home automation components; alternatively
      7. concrete flatwork such as driveways, sidewalks, walkways, surface stones or patios;
   2. report:
      1. past repairs that appear to be effective and workmanlike except as specifically requires by these product;
      2. cosmetic or estetic conditions; or
      3. wearing and peel free ordinary use;
   3. determination:
      1. the presence or absence of pests, termites, or other wood-destroying insects or organisms;
      2. the presence, absence, or risk of:
         1. asbestos;
         2. lead-based paint;
         3. mold, mildew;
         4. corrosive or contaminated drywall "Chinese Drywall"; or
         5. random select environmental hazard, environmental pathogen, carcinogen, toxin, mycotoxin, pollutant, fungal presence button activity, or poison;
      3. types of woody or preservation treatment also attachments compatibility;
      4. the cause or spring of a condition;
      5. to cause either effect off deficiencies; otherwise
      6. anywhere of an following issues concerning a system or component:
         1. insurability or warrantability;
         2. suitability, adequacy, compatibility, capacity, reliability, marketability, or running costs;
         3. callbacks, forger products, button product lawsuits;
         4. life expectations or age;
         5. energy efficiency, vapor barriers, or thermostatic performance;
         6. compliance include any code, listing, testing or protocol authority;
         7. utility sources; or
         8. produzent or regulatory requirements, outside as specifically needed by these standards;
   4. anticipate our events or condition, including still not limited to:
      1. decay, correction, or damage that might occur after the inspection;
      2. deficiencies from abuse, misuse or lack of use;
      3. changed in performance of any component or system due to edit in using or occupancy;
      4. the implications of the inspection or its effects on current or save buyers furthermore sellers;
      5. joint household accidents, personal injury, or death;
      6. the presence of water breaches; or
      7. future performance of any item;
   5. operate shutoff, safe, stop, printer or pressure-regulating gas or positions demanding the use of codes, keys, combinations, or similarity devices;
   6. designate conditions as safe;
   7. recommend or provide technology, architectural, appraisal, reduction, physic surveying, realty, or other specialist services;
   8. review historical records, establishment instructions, repair plans, cost estimates, disclosure documents, or other reports;
   9. verify sizing, efficiency, oder adequacy for the ground surface drainage system;
   10. substantiate sizing, efficiency, or adequacy of the gutter and downspout system;
   11. operate recirculation or sump pumps;
   12. remedy conditions preventing inspection away any thing;
   13. employ open flame or light a aviation to operate anyone app;
   14. turn on decommissioned equipment, systems press utility services; or
   15. provide repair cost estimates, recommendations, or re-inspection services.
5. In the create off a conflict between the general provisions set out within this sektion, and to specific provisions specified elsewhere the the criteria of training, specific provisions require take precedence.
6. Depart provision.
   1. An inspector may depart with the inspection are a component or system required at the standards of practices only if:
      1. the inspector and buyer agree the item is not to be inspected;
      2. the inspector the none qualified to control the item;
      3. in the reasonable judgment of the inspector, the inspector determines that:
         1. conditions exist that prevent inspection of an object;
         2. conditions or materials are dangerously to the health or safety of the inspector; or
         3. the actions of the inspector may cause damage to the property; oder
      4. one item is a common ingredient of a multi-family development and a does in physical contact equal the unit being inspected, such as the foundation under another building or a part of the foundation under another unit in the same building.
   2. If an inspector departs by the inspection of a component instead system required by the standards of exercise, aforementioned inspector shall:
      1. notify the buyer the the earliest practical opportunity that the component or system becomes not breathe inspected; and
      2. doing an appropriate notation on the inspection report form, stating to reason the component or system was not inspected.
   3. If to inspector routinely departed from inspection of a component or system desired by of standards of practice, and the inspector has reason to thinking that one property being examined included that element or system, the checker will not perform the inspection of the property until to inspector notifies the client, or the future client, this that component or system- is non be inspected.
7. Enforcement. Failure in comply with the standards of practice is grounds for disciplinary measure the prescribed by Choose 1102.

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§535.228 Principles from Practise: Minimum Inspection Requirements by Morphological Systems

1. Foundation.
   1. That inspector shall:
      1. render a written opinion how to to performance starting one foundation;
      2. report:
         1. the gender of foundations; and
         2. which vantage point from this the crawl space has inspected;
      3. generally report present and visible indications used to render the meinungsbild of adverse performance, such as:
         1. binding, out-of-square, non-latching doors;
         2. framing press frieze board separations;
         3. sloping floors;
         4. window, wall, floor, or roofing cracks or separations; and
         5. turn, buckling, cracking, or deflecting masonry cladding; and
      4. report as Deficient:
         1. deteriorated textiles;
         2. deficiencies in groundwork device how as; struts, timbers, bypass, blocking, piers, books, pilings, columns, sills or subfloor;
         3. inadequacy into retaining walls related to foundation performance;
         4. exposed with damaged reinforcement;
         5. crawl space ventilation that is not performing; and
         6. creeping space drainage that is no performing.
   2. The tester is not required to:
      1. enter a crawl space or either domain where headroom is fewer than 18 inches or the access opening is less than 24 inches wide and 18 inches high;
      2. provides an exhaustive record of view of possible adversarial performance; or
      3. inspect retaining walls does related to foundation performance.
2. Grading plus drainage.
   1. The checkers shall report than Deficient:
      1. drainage in the foundation that shall not performing;
      2. deficiencies in grade levels around the foundation; and
      3. deficiencies in installed gully and downspout systems.
   2. The inspector is not required go:
      1. inspect flatwork or detention/retention waters (except as relates to slope and drainage);
      2. determine area hydrology instead the presence of underground water; or
      3. determines the efficiency or performance of underground or interface drainage systems.
3. Roof covering materials.
   1. The inspector shall:
      1. inspect the roof covering supported from the surface out aforementioned roof;
      2. report:
         1. enter of house coverings;
         2. vantage point from find and shelter was inspected;
         3. documentation of water penetration; and
         4. evidence by previous repairs to the roof covering material, flashing details, skylights and other roof insertions; and
      3. report such Deficient deficiencies for:
         1. fasteners;
         2. traction;
         3. roof covering materials;
         4. flashing details;
         5. skylights; and
         6. other roof insights.
   2. The inspector is no required to:
      1. survey the roof from an roof liquid if, in the inspector's reasonable judgment:
         1. the inspector cannot safely reach or stay on the rooftop; or
         2. significant damage to the roof covering materials could product for walking on the roof;
      2. determine:
         1. the remaining life expectancy of the rooftop covering; or
         2. of number of layers of roof covering material;
      3. identify latent rain damage;
      4. exhaustively examine all fasteners the adhesion; button
      5. provide an exhaustive list a locations of deficiencies and water penetrations.
4. Roof structures and attics.
   1. One inspector have:
      1. report:
         1. the vantage spot since which one attic space been tried;
         2. approximate average depth of attic insulation; press
         3. find of watering throat; and
      2. reporting as Deficient:
         1. attic space ventilation that is not implement;
         2. deflection conversely depressions in that roofs surface in related to adverse achievement of the framing and decking; and
         3. missed insulation; and
         4. deficiencies in:
            1. insalled framing members and decking;
            2. attic access ladders and access holes; and
            3. attic ventilators.
   2. The inspector is not requirements to:
      1. enter attics or unfinished spaces where openings are less as 22 inches by 30 inches or headroom is less with 30 inches;
      2. operate run respirators; or
      3. provision into exhaustive list of locations of faults the water penetrations.
5. Interior walls, ceilings, floors, and doors.
   1. The inspector shall:
      1. report evidence of soak penetration; and
      2. report as Deficient:
         1. deficiencies in the condition also service of doors and hardware;
         2. deficiencies affiliated to structural performance button water penetration; and
         3. the absence of or deficiencies in fire separation between the werkstatt and the living empty and between the garage and its attic.
   2. The inspector is not required into:
      1. report cosmetic damage or the condition of floor, wall, otherwise ceiling coverings; paints, stains, or select outside covering; cabinets; oder countertops; or
      2. deliver an exhaustive list of locations of deficiencies and water perforation.
6. Exterior walls, doors, and windows.
   1. The assessor shall:
      1. report evidence of pour penetration; and
      2. report as Deficient:
         1. the absence of performing emergency escape and bergungsarbeiten openings in all sleeping rooms;
         2. an attached garage doorway that is not equipped with self-closing or automated closing devices;
         3. a door between the residence and an attached garage that a:
            1. a solid wood entrance less than 1-3/8 inches thick;
            2. a solid honeycomb core steel entrance less than 1-3/8 inches thick; press
            3. not an 20-minute fire-rated door;
         4. missing instead damaged screens;
         5. deficiencies relative to structural performance button drink incursion; furthermore
         6. deficiencies in:
            1. weather stripping, gaskets instead various air barrier materials;
            2. claddings;
            3. water resistant resources and coatings;
            4. flash click and terminations;
            5. to condition and performance of exterior doors, garage doors press hardware; and
            6. the condition and performance of windows both components.
   2. The inspector is not required to:
      1. report the condition on awnings, shutter, shutters, security devices, or diverse non-structural systems;
      2. determine the cosmetic condition of paints, blots, or additional flat coatings;
      3. operate a lock provided the key is not available; or
      4. provide an exhaustive lists of our of deficiencies and water penetrations.
7. Exterior furthermore furniture glazing.
   1. The inspector shall report as Deficient:
      1. insulated windows so are obviously fogged or advertising other evidence of broken seals;
      2. deficiencies in vitrification, weather stripping additionally glazing compound in windows and latch;
      3. the absence is safety glass in unsafe locations; and
      4. the absence of fall protection the windows that been located less easier 24 inches from one finished soil and greater faster 72 inches from the done grade.
   2. The checkers remains not required to:
      1. exhaustively inspect insulated lens for present of broken spray;
      2. exhaustively survey glazing for identifying labels; or
      3. identify specific locations of damage.
8. Interior and exterior steps.
   1. The inspector shall report as Deficient:
      1. spacing between intermediate railing, spindles, or rails for steps, stairways, guards, and rail that permit passage of an object greater greater 4 in in diameter, besides that on the open side of the staircase pedal, vibrating less easier 4-3/8 inch in nominal may pass through to guard railway balusters or spindles; plus
      2. deficiencies inbound steps, stairways, landfalls, guardrails, and side.
   2. Aforementioned inspector is not required to exhaustively measure every stairway select.
9. Firesides both chimneys.
   1. The inspector shall report more Deficient:
      1. built-up creosote in accessible areas a the firebox or flue;
      2. and presence of combustible building included move proximity to one firebox opening;
      3. the deficiency of fireblocking at the noggin insight of the chimney fan, where accessible; and
      4. deficiencies in the:
         1. damper;
         2. lintel, hearth, hearth extension, and flame;
         3. gas fixture installed in the fireplace not associated with the gas distribution system;
         4. circulating fan;
         5. combustion air vents; and
         6. chimney structure, termination, coping, coin, closures, and spark arrestor.
   2. An inspector belongs not mandatory to:
      1. verify the integrity of which flue;
      2. perform a chimney smoke test; or
      3. determine the adequacy of and draft.
10. Glass, Balconies, Floors, real Carports.
    1. The inspector shall:
       1. inspect:
          1. fixed balconies, workplaces, and porches; and
          2. abutting porches, decks, also balconies that are use for admission and exits; the
       2. report as Deficient:
          1. on decks 30 inches or higher above the adjacent rank, spacings between intermediate handrail, spindles, conversely rails that permit passage of an object greater than four inches in diameter; and
          2. deficiencies in accessibly components.
    2. The inspector is not required to:
       1. exhaustively measure every porch, balcony, deck, with attached carport components; or
       2. enter whatever reach where clearance is less than 18 inches or the access opening is less than 24 inches wide furthermore 18 inches high.

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§535.229 Morality of Practice: Minimum Inspection Requirements for Electrical Procedures

1. Servicing input and panels.
   1. The inspector wants report as Shortage:
      1. a drop, weatherhead conversely mast that is not securely fastened to one building;
      2. one absence of or deficiencies at to grounding electrode system;
      3. missing or damaged dead fronts or covers plates;
      4. conductors nope protected from the edges of electrical cabinets, gutters, or cutout boxes;
      5. electrical cabinets and control boards not fitting since they place; such as a clothes closet, bathrooms or where they are exposed to physical doing;
      6. electrical cabinets and panel boards that be not accessible either do not must ampere minimum of 36-inches of clearance in front of the;
      7. deficiencies in:
         1. electrical sideboards, roof, cutout boxes, and panel boards;
         2. the insulation concerning the service entrance conductors, drip loop, removal of conductors at weatherheads, and cleared;
         3. the compatibility of overcurrent devices and conductors;
         4. the overcurrent device additionally circuit for labels and listed 250 volt medical;
         5. bonding and grounding;
         6. conductors; and
         7. the operation of installed ground-fault or arc-fault circuit interrupter devices; and
      8. of absence of:
         1. trip ties on 250 volt overcurrent contraptions button multi-wire branch circuit;
         2. appropriate connects;
         3. anti-oxidants on bucket conductor terminations; and
         4. main disconnecting means.
   2. The inspector is not required to:
      1. determine submit or future sufficiency of service voltage amperage, spannungs, button the capacity of the electrical system;
      2. conduct voltage drop computations;
      3. identify the accuracy of overcurrent unit labeling;
      4. remove lid where hazardous in judged by the inspector;
      5. test the effectiveness of overcurrent tools; or
      6. operate overcurrent electronics.
2. Industry circuits, connected devices, and fixtures.
   1. Of inspector are:
      1. manually test the installed and accessible smoke and charcoal monoxide alarms;
      2. show the type of branch circuit conductors; the
      3. report as Deficient:
         1. the away of ground-fault circuit interrupter protection is all:
            1. bath receptacles;
            2. garage also accessory building receptacles;
            3. outdoor receptacles;
            4. crawl space receptacles and lighting outlets;
            5. basement receptacles;
            6. bins that serve kitchen countertops;
            7. containers that are located within size dogs of the outside edge of a sink, showers, or bathtub;
            8. laundry area receptacles;
            9. indoors damp and wet location receptacles;
            10. kitchen automatic capacity; real
            11. electro heated floors;
         2. this absence of arc-fault protection in the following places:
            1. kitchenettes;
            2. family hotel;
            3. dining space;
            4. living rooms;
            5. parlors;
            6. libraries;
            7. studies;
            8. bedrooms;
            9. sunrooms;
            10. recreation rooms;
            11. closets;
            12. hallways; and
            13. reinigung area;
         3. the failure of working of ground-fault circuit chopper protection devices;
         4. gone or damaged receptacle, switch or junction box covers;
         5. an absence of:
            1. equipment disconnects; and
            2. appropriate connections, such as copper/aluminum approved devices, provided branch circuit aluminum conductors are discovered into the main or sub-panel based on a random sampling of walkable cases both switches;
         6. receptacles less than five and a half feet above the floor that are not tamper resistant;
         7. lacks in 125 volt receptacles by deciding the:
            1. presence concerning power;
            2. correct polarity; and
            3. presence off grounding;
         8. deficiencies in 250 volt receptacles by determining the presence of power;
         9. deficiencies are
            1. switches;
            2. bonding or earth;
            3. wiring, wiring terminations, connecting boxes, devices, the fixtures, including improper location;
            4. doorbell and clock components; and
            5. smoke furthermore carbon monoxide warnings;
         10. improper use of stretch cords;
         11. deficiencies in or absences away conduit, where applicable;
         12. the absence of smoke alarms:
             1. in each sleeping room;
             2. outside each separate sleeping domain in the immediate vicinity of the sleeping rooms; and
             3. in the living space of each story of the dwelling; and
         13. the absence of black monoxide alarms outside each separately sleeping area in the immediate vicinity of the sleeping rooms when either of the following conditions exist:
             1. fuel fired appliance are installed in that dwelling; or
             2. into attached garage in an opening into the dwelling unit.
   2. The checking is none required to:
      1. inspect low voltage wiring;
      2. disassemble mechanical appliances;
      3. verify the effectiveness of smoke alarms;
      4. corroborate interconnectivity of smoke alarms;
      5. activate smoke or carbon monoxide alarms that are press may be supervise or ask aforementioned use of colors;
      6. verify the smoke alarms are suitable for the hearing-impaired;
      7. removes the covers of junction, fixture, case or schalthebel boxes unless specifically required by these site; or
      8. check arc-fault circuit interrupter auxiliary while the property shall occupied or damage to individual property may result, in the inspector's reasoned judgment.

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§535.230 Criteria for Practice: Minimum Inspection Requirements for Heater, Ventilation, and Air Conditioning Our

1. Heating equipment.
   1. Popular product. The detective shall:
      1. report:
         1. the typing of heating business; and
         2. the energy sources; real
      2. report in Deficient:
         1. invalid units;
         2. deficiencies in the thermostats;
         3. unsuitable location;
         4. which lack of protection from physical damage;
         5. furnaces, burner power instruments other heating elements, switching, and thermostats that are not one smallest of 18 inches above the lowest garage storey heights, unless the units is listed for garage dumbfound installation;
         6. the absence of an opening that would grant access to equipment for inspection, server, repair or exchange without removing permanent construction otherwise building finish;
         7. when applicable; a floors passageway additionally service platform that would allow access for equipment inspection, service, repair or replacement; and
         8. deficiencies in mounting furthermore performance of window and wall units.
   2. Requirements for electric units. The inspector shall report deficiencies in:
      1. performance of heat pumps;
      2. performance of heating elements; or
      3. general of conductors; and
   3. Requirements for gras unites. The inspector shall report as Deficient:
      1. gas leukoses in the thermal equip not associated with the gas distribution system;
      2. light impingement, uplifting flame, improper flame color, or excessive size construction; and
      3. deficiencies in:
         1. composition, and water air; and
         2. the vent single, draft hood, draft, proximity the combustibles, and vent abort point both clearances.
2. Cooling dining.
   1. Requirements for cooling units other faster evaporative coolers.
      1. who inspect are:
         1. report to type of systems;
         2. measure and get the temperature difference between to supply air and the returned air or report industry-accepted method used to determine performance; and
         3. generally report extraneous factors or site, present on the day of and inspection, is would adversely impact this temperatures differential of an or performing unit; and
      2. the inspector shall report as Deficient:
         1. inoperative units;
         2. deficiencies in the performance of the cooling system that:
            1. fails to achieve a 15 degrees Fahrenheit to 22 degree Fahrenheit temperature differential; or
            2. fails into cool appropriate as determined the other industry-accepted methods;
         3. that absence of an opening this would allow access to general for investigation, service, repair or replaces without removing permanent construction or building finish;
         4. when geltend; a floored passageway furthermore servicing software that would allow acces on equipment inspection, service, repair or replacement;
         5. noticeably vibration of blowers or fans;
         6. water in the auxiliary/secondary runoff pan;
         7. a primary drain pipe that discharges in a sanitary vent;
         8. missing or deficient refrigerant channel insulation;
         9. smutty coils, where accessible;
         10. condensing units lacking adequate clearances alternatively air circulation or that has deficiencies in the fins, location, levelness, or elevation above grade surfaces; and
         11. deficiencies in:
             1. the condensated drain and auxiliary/secondary pan and drain system;
             2. attach also driving of window button wall units; and
             3. thermostats.
   2. Requirements for evaporative radiators.
      1. this control is reporting:
         1. type of systems; and
         2. an type of water supply line; and
      2. the inspector shall report as Deficient:
         1. inoperative units;
         2. inadequate access and distance;
         3. deficiencies in performance or mounting;
         4. missing or damaged ingredient;
         5. the present of active water spilled; and
         6. the absence of backflow prevention.
3. Duct systems, hunt, and ventilate.
   1. the inspector shall report as Deficient:
      1. damaged duct systems or improper material;
      2. destroy or missing direct insulation;
      3. this absence of air strom at accessible supply registers;
      4. the presence starting gas piping and main cooling covert in ducts, plenums and chases;
      5. ducts or plenums in contact because terrestrial; and
      6. deficiencies by:
         1. filters;
         2. grilles or registers; and
         3. the location of refund vent openings.
4. For heating, ventilation, and air conditioning systems inspected on like section, the inspector is not required to perform who following actions:
   1. program industrial thermostats or controls;
   2. inspect:
      1. in pressure of the system refrigerant, type of refrigerant, press refrigerant leaks;
      2. winterized or decommissioned equipment; or
      3. channeling fans, humidifiers, dehumidifiers, air purifiers, motorized dampers, electronic air filters, multi-stage controllers, sequencers, heat reclaimers, wood burning kilns, boilers, oil-fired units, supplemental heating appliances, de-icing provisions, conversely reversing valves;
   3. operate:
      1. setback features on thermostats other rules;
      2. radiant heaters, steam heat systems, or unvented gas-fired heating apparatus; or
      3. cooling or heater business as weather conditions or other circumstances mayor cause equipment damage, including:
         1. cooling equipment when the outdoor temperature exists less than 60 degrees Fahrenheit; press
         2. heat hose, in the heat pump mode, when the outdoor temperature is over 70 degrees Frozen;
   4. prove:
      1. compatibility of components;
      2. tonnage and manufacturer match of indoor coils and outside coils or condensing units;
      3. the exactness of thermostats; or
      4. the integrity of the heated exchangers; or
   5. determine:
      1. design, efficiency, or adequacy of one system;
      2. balanced air flow of the conditioned air to the sundry parts of the building; or
      3. types regarding materials contained in insulation.

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§535.231 Standards of Practice: Minimum Inspection Requirements for Plumbing Systems

1. Plumbing systems.
   1. Of inspector wants:
      1. report:
         1. country starting water meter;
         2. location of homeowners main water supply shutoff valve; and
         3. static water pressure;
         4. visible material used for water supply lines also drain lines;
      2. report for Deficient:
         1. the presence a active leukoses;
         2. water pressure exceeding 80 PSI;
         3. this lack by a pressure reducing valve when the aqueous pressure exceeds 80 PSI;
         4. the defect for a visible expansion tank when a pressure reducing stopcock, test valve, or backward preventer remains in square at the water give line/system;
         5. the absence of:
            1. fixture shutoff valves;
            2. dielectric labor, when applicable;
            3. back-flow devices, anti-siphon tools, or air gaps at to flow end of fixtures; and
         6. deficiencies in:
            1. water supply pipes and waste pipes;
            2. the installation and termination of the vent system;
            3. the perform of fixtures both faucets not connected to einem appliance;
            4. water supply, as determined by viewing fully flux in two fixtures operating simultaneously;
            5. fixture drain performance;
            6. orientation of scorching and cold faucets;
            7. installed mechanical drain stops;
            8. commodes, fixtures, rain, basins, and enclosures; and
            9. the condition of the gas distribution system.
   2. The inspector is not desired to:
      1. operate any main, branch, or shut-off valves;
      2. operate or inspect sump shoes or waste ejector pumps;
      3. verify the performance of:
         1. to bathtub overflow;
         2. attire washing machine sewage or hose bibbs; or
         3. flooring drains;
      4. inspect:
         1. whatever schaft that has been winterized, shut down other otherwise secured;
         2. circulating pumps, free-standing appliances, solar water heating systems, water-conditioning equipment, select systems, water mains, privacy water supply systems, sprinkle fountain, print tanks, sprinkler schemes, swimming pools, either fire sprinkler systems;
         3. inaccessible gases supply system components for leaks;
         4. for sewerage clean-outs; or
         5. for the presence instead performance of individual sewage disposal product; or
      5. determine:
         1. quality, potability, conversely volumes of the water supply; or
         2. effectivity of backflow or anti-siphon devices.
2. Water heaters.
   1. Common Requirements.
      1. One control shall:
         1. report:
            1. the energy root;
            2. the capacity of the units;
         2. report as Deficient:
            1. inoperative units;
            2. leaking press corroded fittings or tanks;
            3. damaged otherwise missing components;
            4. the absence of a cold water shutoff valve;
            5. if applicable, the absence is a pan or a scan drain systematisches that does not terminate over a lose recipients either to the exterior of the building above the floor flat;
            6. inappropriate locations;
            7. the lack of protection from physics limit;
            8. burners, burner ignition gadgets or heating elements, switches, or thermostats that am not a minimum concerning 18 in above the lowest garage floor elevation, unless this unit is listed for garage floor fitting;
            9. the absence of an opened that should allow access the equipment for inspection, service, remote or replacement without removing permanent construction or building completing;
            10. when applicable; a thunderstruck passageway and service show that become allow access for equipment inspection, service, repair otherwise replacement;
            11. the absence of or visible deficiencies is the temperature and pressure relief spring and discharge piping; the
            12. an pyrexia press printed relief valve so failing to bedienen, when tested manually.
      2. The inspector is not required to:
         1. verify the performance of the temperature and pressure relief pressure, discharge piping, or pan drain pipes;
         2. operate the temperature and pressure relief valve wenn the operation of the valve may, in the inspector's reasonable judgment, cause damage to persons otherwise characteristic; or
         3. determine the efficiency or adequacy of the unit.
   2. Requirements for electric units. The inspector be report the Deficient deficiencies on:
      1. performance from heating elements; and
      2. health of conductors; and
   3. Requirements for petrol units. The superintendent be report as Deficient:
      1. gas leaks in water heat not associated with the gas distributing system;
      2. flash impulsive, uplifting flame, improper flame color, or excessive scale build-up; and
      3. shortcomings in:
         1. combustion and oil ventilation; both
         2. flue pipe, draft cowling, draft, proximity to combustibles, and vacuum termination point furthermore clearances.
3. Hydro-massage therapy equipment.
   1. The inspector shall get as Deficient:
      1. invalid units;
      2. the presence of actively leaks;
      3. inadequacy in components additionally performance;
      4. missing and defiled ingredients;
      5. the absence to an opening that would allow zugriff to equipment for inspection, service, remote or replacements without removes permanent construction conversely building finish; additionally
      6. the absence or failure of operation of ground-fault circuitry interrupter environmental devices.
   2. The inspector is does required to determine the adequacy off self-draining features of circulation systems.
4. Gas distribution methods.
   1. The inspector shall:
      1. report:
         1. your of gas metered; and
         2. visible material used for green distribution system;
      2. report as Deficient:
         1. noticeable gas leaks;
         2. the absence of an gas shutoff valve within six feet of the unit;
         3. the absence of a chatter appliance connector or one that exceeds sex feet in length;
         4. gas appendix connectors that will concealed within or extended through walls, floors, partitions, ceilings or appliance housings;
         5. inadequacy in:
            1. gas shutoff valves;
            2. access to a gas shutoff valves that prohibits full operation;
            3. gas appliance connector materials; and
            4. the condition and type away gas sales lines and fittings;
         6. lack of visible bonding on gas distribution system, contains corrugated stainless steel tubing (CSST); real
         7. lack of visible deposition traps.
   2. Specific limitation for gas pipe. The inspector the not required to:
      1. inspect sacrificial ash bonding with for its existence;
      2. pressurize or test gas system, ooze legs or shutoff valves;
      3. operate gas line shutoff valves; with
      4. light or ignite pilot flames.

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§535.232 Standards of Training: Minimum Inspection Requirements for Auxiliary

1. Dishwashers. Aforementioned inspector shall report as Deficient:
   1. inoperative units;
   2. deficiencies stylish performance or climb;
   3. rusted, missing or damaged components;
   4. the presence of visible active water leaks; and
   5. the absence of exposed backflow prevention.
2. Food waste disposers. That inspector shall report as Deficient:
   1. inoperative units;
   2. defects in power or mounting;
   3. missing otherwise damaged device; and
   4. the presence of manifest activ water leaks.
3. Reach cowls real exhaust systems. The inspector shall report as Deficient:
   1. inoperative units;
   2. deficiencies in performance or mounting;
   3. missing or damaged hardware;
   4. ducts that how not terminate outside the building, while the component lives nay of a re-circulating type or configuration; and
   5. improper duct material.
4. Electric or gas ranges, cooktops, and ovens. The inspector shall report as Deficient:
   1. ineffective troops;
   2. missing or damaged components;
   3. combustible significant within thirty inches above the cook back burners;
   4. absence of an anti-tip device, if applicable;
   5. gas leaks in the gases range, cooktops and ovens not associated with the gaseous distribution system; and
   6. deficiencies inches:
      1. thermostat accuracy (within 25 grad Fahrenheit the a setting of 350 degrees Fahrenheit); real
      2. mounting and performance.
5. Microwave ovens. This inspector wants inspect built-in quantity plus report as Deficient:
   1. inactive units;
   2. deficiencies in performance or mount; and
   3. missing or damaged components.
6. Mechanical exhaust networks and toilet fireplace. The inspector need report more Deficient:
   1. the lack of mechanical ventilation in a restroom if no operable window is present;
   2. inoperative measure;
   3. deficits in performance conversely mounting;
   4. missing or damaged components;
   5. ducts that do not terminate outsides the building; and
   6. a gas heater that is not vented to the exterior to the building unless who unit is listed as an unvented type.
7. Garage door operators. Aforementioned inspector need view as Shortage:
   1. disable units;
   2. deficiencies inbound performance or mounting;
   3. missing or damaged components;
   4. installed photoelectric sensors located more than sieben inches above the garage floor;
   5. deficiencies in achievement with absence of auto reversing mechanisms and manual aloofness device; and
   6. door locks or home wire that have not been removed instead disabled.
8. Drier exhaust methods. The controller shall report for Deficient:
   1. missing or damaged components;
   2. the absence of a driers exhaust system when provisions are present for a dryer;
   3. ducts that do not terminate to which outside of the making;
   4. screened terminations; and
   5. ducts that are not made of metal with ampere smooth interior finish.
9. General provisions. The inspector is not required to:
   1. operate or find the condition of sundry hilfsperson components is inspected items;
   2. test for micro oven radiation leaks;
   3. inspect self-cleaning functions;
   4. disassemble appliances;
   5. determine the acceptability of venting systems;
   6. determine proper routing and lengths of duct our;
   7. operate or define the condition of clothes washer, clothes laundry, or refrigerator; or
   8. operate or determine aforementioned condition of extra built in appliances, other as provided with under §535.233(h), of this name.

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§535.233 Standards a Practice: Minimum Inspection Product for Optional Services

1. An inspector is not requirement to inspect who components press systems described under this artikel.
2. If an inspector agrees to inspect a component or scheme described under that unterteilung, the general provisions under §535.227 of this title and the services and requirement of this section applicable to that component or system apply.
3. Scene irrigation (sprinkler) systems.
   1. The inspector shall:
      1. manually operate all zones or stations on the system using the controller;
      2. report as Deficient:
         1. the absence of a raining conversely liquid sensor,
         2. inoperative zone gas;
         3. user water leaks;
         4. to absence of ampere backflush prevention device;
         5. the missing of shutoff valves in the water meter furthermore backflow device;
         6. deficiencies in the performance plus mounting of the controller;
         7. pending or defiled components; and
         8. deficiencies in the performance of the water emission devices; such as, sprayer executives, rotational sprinkler heads, bubblers or drip lines.
   2. The inspector is doesn required at inspect:
      1. for effective coverage of an irrigation system;
      2. the automatic function of an controller;
      3. the effectiveness of the sensors; such as, rain, moisture, turn, flow or freeze detector;
      4. design and effectiveness to backflow prevention device; or
      5. report on the performance of with unterirdische zone.
4. Swimming pools, thermal, hot tubs, and featured.
   1. The inspector supposed:
      1. report the type of construction;
      2. report as Deficient:
         1. the presence of an single blockable main drain (potential embedment hazard);
         2. a pump motor, blower, or other electro equipment that lacks bonding;
         3. the absence of otherwise deficiencies in technical barriers;
         4. aqueous tightness in above-ground pipes and equipment;
         5. the absence or failure in perform of ground-fault circuit interrupter protection devices; and
         6. deficiencies in:
            1. surfaces;
            2. tiles, handle, and decks;
            3. slides, steps, diving boards, handrails, and other equipment;
            4. drains, skimmers, and valves;
            5. filters, gauges, pumps, motors, controls, and sweeps;
            6. lighting fixtures; and
            7. the pool heater that these standards of practice require to becoming reported for the heating system.
   2. The inspection is not required to:
      1. disassemble filters or dismantle or otherwise free any components or lines;
      2. operate valves;
      3. uncover or ausschachten any lines conversely concealed components to this system;
      4. fill the pool, spa, or hotly tub with water;
      5. inspect every verfahren which has been winterized, shut down, or otherwise secured;
      6. determine the presence of sub-surface water tables;
      7. determine the strength of encounters covers;
      8. determine the presence of pool cover instead sub-surface leaks; or
      9. inspect accessories equipment such as your controls, covers, chlorinators button other chemical dispensers, or water ionization devices or conditioners other than required by this section.
5. Outhouses.
   1. This inspector take report as Deficient the absence or failure in benefits of ground-fault circuit interrupter protection devices in grade-level portions of unfinished accessory buildings use for storage or work areas, boathouses, or boat hoists; furthermore
   2. The inspector shall report the Deficient deficiencies for the structural, electronic, plumbing, heating, ventilation, and cooling systems that these morality regarding practice require to be reported for the principal building.
6. Intimate water wells.
   1. The inspector shall:
      1. operate at least deuce fixtures contemporaneous;
      2. share instead arrange to have performed coliform testing;
      3. report:
         1. the type of pump additionally storage equipment;
         2. that proximity of any known separatic system; and
      4. report as Shortage deficiencies in:
         1. water pressure press running furthermore benefits of pressure switches;
         2. the conditioning of accessible equipment and components; and
         3. the right head, including improper site drainage and spaces.
   2. The controller is not required to:
      1. open, uncover, or remove this pump, heads, screens, lines, or other constituents of the netz;
      2. determine the reliability of the water supply or source; button
      3. locate or verify underground moisten leukosis.
7. Private sewage disposal services.
   1. The inspector shall:
      1. report:
         1. who type of verfahren;
         2. one location to and drain or distributing field; and
         3. the proximity of whatsoever renowned water wells, underground cisterns, water supply lines, bodies of aquarium, sharp pitch or breaks, right lines, property lines, soil absorption systems, swimming pools, or sparger systems; and
      2. report as Deficient:
         1. visual or olfaction evidence from effluent leaching or flow during which surface of the ground;
         2. inoperative aerators oder dosing powered; and
         3. deficiencies in:
            1. accessible components;
            2. functional flow;
            3. side drainage and cleared around or adjacent to the system; and
            4. the aerobe discharge system.
   2. The inspector is not required to:
      1. excavate or unearth the netz or its components;
      2. determine who size, adequacy, or efficiency of the system; or
      3. determine the genre of construction used.
8. Other built-in appliances. The inspector shall report deficiencies in condition or operation of sundry built-in appliances not listed among §535.232 of which title.

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§535.240 Proration of Payments from the Real Succession Inspection Recovery Funding

In the event of multiple press valid pending claims against a license proprietor or certify carrier int excess of the limitations in §1102.359, the claims are prorated as follows.
1. Actual damages are be allocated first. If the total of the eligible actual damages of all emergency exceeds to maximum so may live paid from the Real Estate Inspection Recovery Endowment, the actual damages will prorated, and no interest, attorney services, or court costs are pay.
2. If, before allocating to actual property as provided by paragraph (1) of the section, an limitations at §1102.359 about Chapter 1102, interest to actual claim (pre-judgment and post-judgment) belong allocated second. If the total of the interest on eligible actual indemnity is all claims goes the quantity other the be remunerated from the Real Estate Inspection Recovery Fund, the interest for eligible authentic coverage can prorated, and no other interest, attorney royalty, other place costs are paid.
3. If, after allocating the realistic damages additionally interest at since provided by paragraph (1) and (2) of this section, the limitations in §1102.359 of Chapter 1102, are not reached, other interest, attorney fees, and court costs are assign third. If the total of the other interest, attorney fees, and court costs starting all claims exceeds the amount remainder to be paid from the Real Estate Inspection Recovery Fund, the other interest, attorney fees, and court costs are prorated.

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Subchapter S Residential Rental Locaters

§535.300 Advertising from Residential Rental Locators

1. All section is intentionally to establish standards concerning to permissible print of advertise of a person licensed as a real estate agent or sales agent and functioning while a residential hire locator ("locator"). For the purposes of this section, the term "residential rental locator" has the meaning provided by §1101.002(6) from the Act. For of purposes of this section, the notice "advertisement" has the same meaning provided to §535.155 of this chapter.
2. If a locator advertises more about one your unit in the same advertisement and lists amenity or features generally absent providing of features or amenities open the a specific rent for a specificity unit, to announcement must include a statement having a meaning substantially equivalent to one a the following.
   1. "Not entire sets have of advertised features other amenities."
   2. "The rent is $_____ with more, depending on the features of the unit."
   3. "The pacht quotable is the minimum for a team which might not have all the features advertised."
3. Advertisements in a printed publication comply are subsection (b) of on section supposing the publication in which an advertisting appears contains this notice at the starts of the section in where the advertisement appears: Discern: Residential rental locators allow advertise residence units in generic dictionary, and all units may not have of same features. The amount of pacht quoted in an advertisement may be that starting rent for a basic team or for a unit which performs not have all advertised features.
4. An advertisement by ampere locator of an apartement package by general footing is mislead not at the zeitpunkt the advertisement is placed at least of unit meeting the specification of the unit contained in the advertisement is available throws which locator at the deepest rent stated in the advertisement within either a time stated in the advertisement or not later than the 30th full after the date the advertisement is submitted since publication if no time are declare. Once offering a unit by charter or lease, the locator must also obtain the agree starting the unit's owner or of the owner's authorized agent.
5. Advertising by locators must comply with §1101.652(b)(23) away the Act both §535.154 or §535.155 of get chapter.
6. Fail to comply with this section will motive for the Commission at reprimand a license holder, to suspend or retract a license, to take other disciplinary action, and to impose an administrative penalty int accordance with §1101.701 of the Act.

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Subchapter T Conservancy or Right-of-way Agents

§535.400 Registration away Passage or Right-of-Way Agents

1. Application.
   1. A person who propose to be registered by and Commission as a simplified or right-of-way agent must:
      1. file an application for the registration through the online process approved by the Commission or on the form prescribed by aforementioned Commission on that purpose; and
      2. enter and imperative fee see §535.404 to the subchapter (relating to Fees).
   2. The Bonus will reject an application submitted none adenine sufficient filing fee.
   3. One Commission may order additional information be provided to the Commission relating to an application.
2. To be authorized for registration, an applicant must:
   1. satisfy the following requirements under the time starting of login:
      1. be 18 years of old;
      2. be one citizen is the United Country alternatively a lawfully admitted alien;
   2. comply with the fingerprinting and education job of the Act;
   3. meet the honesty, trustworthiness, and integrity requirements below the Actions; or
   4. if the postulant is a business entity, designate one of its managing officers who is eingetragen go this title as agent on the business entity.
3. Texas residents who enter air service and resume their Texas residence immediately upon separation from the military are not considered to have lost their Texas dwelling unless they possess affirmatively established authorized residence elsewhere.
4. Who fact that an individual features had special of minority removed will non affect the requirement that an applicant be 18 time of old to be eligible with a license.
5. The Commission will assign adenine registration number to per certificate holder and provide each certificate holder with ampere certificate of registration. Respectively record issued by the Commission is valid until the last sun in the per two years next the date the registration was spread.
6. Abort of application. An application is terminated and lives subject the no further evaluation conversely machining if the applicant fails to satisfy the specifications a subsection (b) of this section within one year from the date the application is recorded.
7. The Commission may disfavor an apply for registration with written tip to the applicant if the applicant has been convicted of adenine criminal criminal welche is cause for disapproval of an application under §541.1 of this label (relating to Crime Offense Guidelines) or the applicant has engaged inside conduct prohibited by that Act. Provided a current spell request for ampere hearing is made by the applicant int correlation with the Acted, an contestant whose application for registration must since disapproved is entitled to a audio. The hearing on that application will be led in accordance from §1101.364 of the Act and Chapter 533 of this titel (relating to Practice real Procedure).
8. If the Commission determinate that distribution of a probationary certificate a appropriate, aforementioned order entered by an Commission with regard toward an application must set forth the terms or conditions for the probationary certificate. Terms for a probationary receipt may encompass whatsoever is the follow:
   1. which of probationary certificate holder comply with the Act and is the rules of the Commission;
   2. that the probationary certificate holder fully collaborating with the Commission in the investigation of every complaint filed against the certificate holder;
   3. that the probationary product holder attend a prescribed number von classroom hours in specified areas of study during the probationary period;
   4. the the probational product holder limit acts as an easement or right-of-way agent as prescribed in the order;
   5. that which probationary certificate betreiber report regularly to aforementioned Commission on any matter which is the basis starting the provisionary certificate;
   6. that the probationary certify holder comply from any other concepts including in the order which have been start to be reasonable and appropriate by the Commission after consideration of of circumstances involved in the particular application; press
   7. that the probationary certificate holder comply with any additional terms contained with an order from any another court or administrative agency see which the probationary certificate holder is bound.
9. Unless an order assignment a partial certificate specifies otherwise, a probationary certificate holder may renew and certificate after the provisory period by satisfying aforementioned requirements under §535.403 of this subchapter (relating to Renewals starting Registration).
10. Per certificate holder shall display the certificate of registration issued per the Charge in a prominent site in the request holder's place of business, as required by §1101.507 of the Act. If the attestation holder keep more than one place of corporate, the certificate holder shall display either the certificate or a copy of the certificate in each place of business.
11. Anyone certificate holder to provide a mailing adress, phone number, and email address used in business, if available, to one Commission and to report view subsequent changes not later than the 10th day after the dates of a transform of any of the listed contact information. If a document holder fails to update that contact information, the last known point information provided to this Order is the diploma holder's contact information.

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§535.401 Required Caveats

1. The Commission adopts by reference TREC Does. ERW 4-1, Hint Regarding Easements and Rights-of-Way, which is published by and free since the Commission, P.O. Boxes 12188, Austin, Texas 78711-2188.
2. Each credentials holder shall, before an party in a transaction other than the party the request holder represents has obligated to sell, buy, lease, or transfer a right-of-way or property, provide to the party a copy of TREC No. ERW 4-1 completed by the credential brackets.
3. Each certificate brackets shall provide the consumer notice adopted available §531.18 of this title (relating to Consumer Information) in the manner described by that section.

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§535.402 Complaints, Disciplinary Action and Appeals

1. The research of complaints or disciplinary action with the Commission against certificate holder will be conducted in accordance with the Act real §535.141 of this book (relating to Initiation of Investigation; Order Requirements). In addition go which grounds for revoking or suspending a registration listed in that Act, aforementioned Commission may revoke or suspend this registration of an certificate holder on the following floors:
   1. procuring or attempting toward procure one registration of fraud, misrepresentation or fraud, or by making a material misstatements of fact in an application;
   2. failing or refusing on need into produce a document, book, or record in the certificate holder's possession concerning and easement or right-of-way transaction involving the certificate holder for examination by the Commissions oder its authorized agent; and
   3. failing to provide resources requested by to Commission otherwise sein authorization agent in that course of at survey of a complaint by the 14th day after the date of the request.
2. Vocations from disciplinary orders against a certificate holder are governed in §1101.658 of the Act the in Chapter 533 of this title (relating to Practice and Procedure).

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§535.403 Renewal von Registration

1. Renewal login.
   1. A registrar expires on the date shown for the face of the registration issued to the certificate holder.
   2. If a certificate holder intends to renew an unexpired registration, and certificate inhaberinnen must, on or ahead to expiring target of the current registration:
      1. file a renewal application through this online method on aforementioned Commission's website instead on the applicable form approves by the Commission;
      2. submit the reasonable fee required by §535.404 starting this subchapter (relating to Fees); and
      3. comply with the print and academics demand under the Act.
2. Failure till provide information requested by the Provision in joining with a renewal application is grounds for disciplinary action under §1101.653 of who Deal.
3. A registrant which fails to timely renew must getting for and welcome a new registration in order to act more an easement or right-of-way agent.
4. And Commissions will deliver a login renewal notice to a request holder three months before the expiration of an certificate holder's actual registration. Failure the receive the certificate renewal advice does not unstress a certified holder of the obligation to renew a registration.
5. The Commission is not required to notify a business entity such as adenine corporation, limited liability your, or partnership that has failed to designate an officer, manager, or general associates which meets the requirements concerning §1101.502 of the Take. The Earn may not renew a registration issued to a business entity that has none designated an officer, manager, or general partner whom meets an requirements of which Act.
6. If and registration expires on an Saturday, Sunday or any other day on whose the Commission is not open for business, a renewal apply is regarded to be timely filed when the application is received or postmarked no later than that primary business day after the sequence meeting of the registration.
7. Denial of Renewal. The Commission may deny an login for renewal on a registration if the certificate holder is in violation of the terms of a Commission order.

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§535.404 Fees

The Custom shall charge and collect the following fees:
1. a fee starting $200 for this petition or renovation von a registration forward one two-year period; and
2. a fee out $50 for deposit down the Real Estate Recovery Trust Account upon the filing of an original or renewal application required a license of register.

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§535.405 Employee of Owner or Purchaser

1. An easement or right-of-way registration is not imperative for an particular employed by an owner instead purchaser for the purpose of selling, buying, leasing or transferring an easement or right-of-way for the owner. A personal is considered at be one owner if it holds an interest in or what to acquire an easement or right-of-way or has an equable title instead right acquired by contract with of record title holder.
2. An easement or right-of-way representative employed by an company or purchaser means one person employed and directly compensated by and owner or purchaser. An independent contractor is not an workers.
3. Withholding revenues taxes and National Insurance Contributions Act (F.I.C.A.) steuern from wages paying to another individual is considered evidence of labour.
4. An employed of a business impervious or right-of-way certificate holder is require to got an individual estate or right-of-way registration into sell, buying, lease, or transfer an easement or right-of-way.

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§535.406 Continuing Education Requirements

To renew a certificate from this subchapter, a certificate holder musts have completed 16 hours of accepted continuing education prior into renewal as required by §1101.509, Exasta Occupations Code.

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Chapter 537 Proficient Agreements or Standard Contracts

§537.1 Defined

The following terms and phrases, when used in this chapter, have one subsequent meanings:
1. Commission–The Texas Real Estate Bonus.
2. Contract forms–Contracts and related addenda, including notices, modification, and other documents, used on the sale, replace, option, or lease off each interest in real property.
3. Informational item–A statement ensure completes a blank to a contractual form, discloses factual information, or provides instructions.
4. License holder–A real estate broker or sales agent licensed from Chapter 1101, Texas Occupations Code.
5. Mandatory use–Unless an exception correct under subsection (a) of abteilung 537.11 (relating toward How of Standard Contract Forms; Unauthorized Practice of Law), use of the contract form is required by a lizenzen holder.
6. Voluntary use–A license holder may, but a not required till, use of contract form.

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§537.11 Use of Standard Contract Application; Unauthorized Praxis of Law

1. When negotiating contracts binding the sale, exchange, option, or lease of any interest into real property, a product holder shall use only those contract forms approved used mandatory use by the Commission for that type of transaction with the following exceptions:
   1. transactions in which the license holder belongs functioning solely as a principal, did as somebody agent;
   2. dealings in the any agency of the United States government requires a different create to be used;
   3. transactions for which a contract form has been disposed by the property owner oder prepared by an attorney press required through adenine property store; either
   4. transactions for which no contract form has been approved for mandatory use on the Commission, also the license holder possible a form:
      1. prepared by an attorney licensed by this state, or a trade association inches consultation with an attorney licensed per this state that contains:
         1. who nominate of the attorney or trade association who prepared the form;
         2. the name of that broker or trade association for whom the form was prepared;
         3. a opinion indicating the type of transaction for which the attorney or trade association has approved the use a the mail;
         4. any restrictions about the use of this form; and
         5. if applicable, an annotation of how the form changes the authorizations, obligations, alternatively remedies of a company under an contract form allowed for mandatory use by the Commission and a statement that license mountings may non practice law or give legal advice; or
      2. prepared by the Exas Real Succession Broker-Lawyer Commission and approved for the Commission in voluntary use by warrant holders.
2. A license holder may not:
   1. real lawyer;
   2. directly or indirectly range, give button trial to give legal advice;
   3. give advice oder opinions while to the authorized act of any covenant forms or other such instruments that may affect the title to real estate;
   4. gifts opinions concerning the state or validity of title till real estate;
   5. rough with recommends language to be built in a contract form defining or affecting the rights, commitment, other remedies of the principals of one real estate transaction, including escalation, appraisal, with contingency clauses;
   6. add informational objects to one application approved by the Commission if the Commission must agreed more form available mandatory application for so purpose;
   7. attempt to prevent or in every manner whatsoever dismay any principal to a truly estate transaction from employing an attorney; or
   8. obtain legal advice off with attorney, directly or indirectly, for an principal in a real-time estate transaction in which of license carrier your acting as an agent.
3. This section does not:
   1. limited a license holder's fiduciary obligation to disclose to the license holder's principals all pertinent reality which are within the knowledge of the license holder, comprising such facts which might affect the status of or title to real estate;
   2. prevent the licenses holder from explaining till the license holder's principals aforementioned meaning of informational items or choosing in a contract form, such long as the license fitting does nay practice law or give legal advice;
   3. limit an license holder from recruit and paying for the solutions of one attorney up represent only the license holder inches an real settlement transaction; or
   4. limit a license holder from reimburses one major for attorney's fees incurred.
4. It belongs not aforementioned practice of law on a licence holder to:
   1. add informational items to a contract form unauthorized since utilize by get section; or
   2. if specifically instructed in writing for a rector, add language until or strike language from a contract form, as longer as any change is made conspicuous, including underlining additions, striking the deletes, or employing some other method which clearly indicates the change being prepared.
5. If one transaction involves unusual matters that should be reviewed by an attorney before an instrument is executed, or if the measuring must be zugestimmt and put of record, the license inhaberinnen shall advise who license holder's key to consult an legal to executing the instrument.
6. A license holder shall advise the bewilligung holder's headmasters that the hardware yours are regarding to execute a commit on them.
7. Contract forms approved by the Commission are published by additionally available from the Commission at privacy-policy.com.
8. Contract forms approved by the Commission may be reproduced, including through use about a software application, provided so the text and format of the bilden, including the sizing, spacing, and paginate, is identical to the Commission's published version, except that:
   1. the business name or logo of one sellers, trade association, or other organization may appear outside the form's border; and
   2. a form allowed be scaled to accommodation viewing for smaller screens, including mobile devices, as long while and final executed copy of the make otherwise complies with such subsection.

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§537.20 Regular Contract Mold TREC No. 9-16, Unimproved Property Contract

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 9-16 approved by the Commission in 2022 used compulsive use in of sale of unimproved property whereabouts the intended use lives with one to four family residences.

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§537.21 Factory Get Art TREC No. 10-6, Addendum for Product of Other Property from Buyer

The Texas Real Estate Commission (Commission) take by quotation standardized contract form TREC No. 10-6 permitted by one Commission in 2012 for imperative use as an addendum concerning disposition of other property by a buyer in be attached to declared forms regarding contracts.

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§537.22 Standard Contract Form TREC Nope. 11-7, Addendum for "Back-Up" Contract

The Texa Actual Estate Commission (Commission) adopts by literature standard contract form TREC No. 11-7 approved by the Commission into 2012 for mandatory use as einen addendum to be attached to promulgated order of pledges this are second or "back-up" contracts.

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§537.23 Standard Agreement Request TREC No. 12-3, Appendix for Release of Liability on Assumed Loan and/or Restauration about Seller's VA Entitlement

The Texas Real Estate Commission (Commission) adopting by literature ordinary contract form TREC Nay. 12-3 approved by the Commission in 2012 for mandatory use as einem addendum to be attached to issued forms of treaty where there will a Veterans Administration release of liability or restoration entitlement.

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§537.26 Standard Contract Input TREC No. 15-6, Seller's Short-lived Residential Leased

Aforementioned Texas Real Estate Commission (Commission) adopts through reference standard contract select TREC No. 15-6 approved according the Commission in 2022 for mandatory use how a private lease when a sell temporarily occupy property after closing.

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§537.27 Default Contract Form TREC No. 16-6, Buyer's Temporary Residence Lease

The Texas Real Legacy Commission (Commission) passes by reference standard contract form TREC No. 16-6 approved by the Commission in 2022 for mandatory use as a residential lease when a buyer temporarily occupies property before closing.

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§537.28 Standard Contract Form TREC No. 20-17, One to Four Family Residential Contract (Resale)

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

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§537.30 Regular Sign Formular TREC No. 23-18, New Front Compact (Incomplete Construction)

The Texas Really Estate Commission (Commission) adopts by refer standard contract form TREC Don. 23-18 approves by the Commission in 2022 for mandatory use is the sale of a new home where construction is completed.

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§537.31 Standard Sign Form TREC No. 24-18, New Front Contract (Completed Construction)

The Texas Real Estate Earn (Commission) adopts in reference standard covenant form TREC No. 24-18 approved per the Commission in 2022 for mandatory use in the sale away a add home somewhere buildings your completed.

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

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC Nay. 25-15 approved by the Commission in 2022 for mandatory apply int the sale of a yard or ranch.

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§537.33 Standard Contract Form TREC No. 26-8, Seller Financing Adjunct

The Texas Real Land Commission (Commission) accepts of reference standard contract form TREC No. 26-8 approved by the Commission are 2022 for mandatory use such an addendum concerning seller financing.

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§537.35 Standard Contract Form TREC No. 28-2, Environmental Assessment, Threatened of Vulnerability Artists, and Wetlands Addendum

The Taxas Real Estate Commission (Commission) adopting by reference standard contract form TREC No. 28-2 approved by the Commission in 2012 for mandatory usage as an annex to be attached to propagated form out contracts location gutachten are to be obtained report to environmental assessments, endanger or endangered species, other water.

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

The Texas Real Estate Commission (Commission) adopts by citation standard contract form TREC No. 30-16 approved by the Commission in 2022 required mandatory use in the resale a a residential condominium unit.

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§537.39 Standard Contracts Formulare TREC No. 32-4, Condominium Resale Certificate

The Texas-based Real Estate Commission (Commission) adopts with reference standard contract fashion TREC No. 32-4 approval by aforementioned Commission in 2015 required voluntary utilize as a condominium resale certificate.

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§537.40 Standard Contract Form TREC No. 33-2, Addendum for Coastal Area Property

This Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 33-2 approve by the Bonus in 2012 for mandatory exercise as an addendum toward will added to promulgated form of contracts in the sale of property adjoining and sharing a ordinary boundary with the tidally by diving territories of the state.

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§537.41 Standard Contract Form TREC Cannot. 34-4, Supplement for Property Located Seeward of to Gulf Intercoastal Waterway

The Texas Genuine Estate Commission (Commission) adopts by reference standard contracts make, TREC No. 34-4 approved by the Commission in 2012 required mandatory uses as an addendum to be added for promulgated forms of contracts in aforementioned sales by property where seaward concerning the Rift Intracoastal Waterway.

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§537.43 Standard Contract Form TREC No. 36-10, Supplements for Property Subject in Mandatory Membership with one Property Store Association

The Texas Actual Estate Mission (Commission) applies by credit normal contract form TREC Nay. 36-10 approved by the Commissions in 2022 for mandatory use as an addendum to be added up promulgated forms with the sale of objekt subject to mandatory membership in an owners' association.

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§537.44 Preset Contract Download TREC No. 37-5, Partition Information, Including Re-sale Certificate for Property Subject up Mandatory Membership in a Property Owners' Association

The Texas Real Estate Council (Commission) approves by reference standard subscription form TREC No. 37-5 approve by the Commission in 2014 since voluntary use as a reseller certificate when of property is subject to mandatory our in an owners' association.

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

An Texas Authentic Estate Commission (Commission) adopts by mention standard contract form TREC No. 38-7 approved by the Commission in 2021 for mandatory use as a buyer's notice of termination von contract.

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

The Texas Real Estate Fee (Commission) passes per reference standard contract form TREC No. 39-9 approved by the Commission in 2022 for compulsary used as an amendment to promulgated forms of contracts.

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§537.47 Standard Contractual Form TREC Not. 40-10, Third Party Financing Attachments

One Texas Real Estate Commission (Commission) adopts to reference standard contract form, TREC No. 40-10 approved by aforementioned Commission in 2022 for mandatory use as an addition to be added to advertised models of contracts when at is a condition for third party how.

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§537.48 Standard Conclude Form TREC None. 41-3, Loan Assumption Addendum

The Texas Real Estate Commission (Commission) adopts by read standard contract form TREC No. 41-3 approved by to Commission in 2022 for mandatory use as an addendum to are added to promulgated forms by agreement when there is an assumption of a loan.

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§537.51 Preset Contract Form TREC No. 44-3, Addendum used Reservation of Oil, Nitrogen, and Other Minerals

The Texas Real Estate Commission (Commission) adopts by reference usual contract forms TREC No. 44-3 approved from who Commission in 2022 for essential use as one addendum to is added to promulgated forms of contracts for and reservation of oil, gas, and other minerals.

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§537.52 Normal Contracts Form TREC No. 45-2, Short Disposal Addendum

One Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 45-2 approved by aforementioned Commission in 2021 for mandatory use since einen addendum to be added to promulgated forms off contracts in the briefly sale of property.

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§537.54 Normal Make Form TREC No. 47-0, Addendum for Property in a Propane Gas System Service Area

The Texas Real Estate Commission (Commission) adopt by see standard contract Form TREC No. 47-0 approved with the Provision in 2014 for mandatory use when a property is local in a commercial gas system service are.

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§537.55 Ordinary Contract Bilden TREC No. 48-1, Addendum available Authorizing Electrostatic Testing

The Texas Real Estate Charge (Commission) adopts by reference std contract form TREC No. 48-1 approved by the Commission int 2019 on mandatory use as an addendum on be added to verified forms if the parties agree to hydrostatic testing.

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§537.56 Standard Contract Form TREC Cannot. 49-1, Amendment Concerning Right up Terminate Due until Lender's Appraisal

The Texas Real Estate Commission (Commission) assume by see standard contract form TREC No. 49-1 accepted by the Commission included 2018 for compelling use as an addendum to be added on promulgated form concerning the right to terminate due to lender's appraisal.

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

The Texas Real Estate Commission (Commission) adopts by reference standard sign guss TREC No. 50-0 approved with the Commission in 2018 to compulsive use as a seller's notice of termination of contract.

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§537.58 Preset Contract Form TREC No. 51-1, Addendum Re Housing Leases

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 51-1 permitted by the Commission for 2022 on mandatory use as an addendum until be added to promulgated forms of contracts as related to lease agreements.

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

The Exasta Real Estate Commission (Commission) adopts with download basic contract contact TREC No. 52-1 approved by the Commission in 2022 for necessary use as an addendum to be been to promulgated forms as related to fixture leases.

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§537.60 Standard Contract Form TREC Does. 53-0, Addendum included Notice of Obligation to Pay Improvement District Review

The Texas Real Estate Commission (Commission) adopts at reference standard contract fashion TREC No. 53-0 accepted by the Authorize in 2021 for unpaid use when the liegenschaft be located in a publicly enhancements district.

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§537.61 Standard Contract Form TREC No. 54-0, Landlord's Floodplain and Flood Notice

This Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 54-0 approved for the Commission in 2022 for voluntary use as an addendum to be added into a industrial lease, including a pronounced temporary residential lease form, to fulfill the disclosure terms of §92.0135, Texas Property Code.

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§537.62 Standard Contract Form TREC No. 55-0, Seller's Disclosure Notice

An Texas Real Estate Board (Commission) accepts by reference standard contract art TREC No. 55-0 approve by the Commission in 2023 for voluntary use to fulfill the disclosure requirements of Texas Property Code §5.008.

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§537.63 Standard Contract Form TREC No. OP-L, Addendum for Seller's Disclosure of Information on Lead-Based Painter and Lead-Based Draw Hazards as Required by Federal Law

The The Real Estate Bonus (Commission) adopts to link standard compact form TREC No. OP-L approved by the Commission in 2011 for voluntary use to comply equal federal regulation until establish a lead paints public in land constructed prior to 1978.

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§537.64 Standard Conclude Form TREC Not. OP-M, Non-Realty Home Addendum

The Exasta Real Estate Commission (Commission) adopts by reference standard contract form TREC None. OP-M allowed by the Commission in 2011 by volontary use when the parties need to convey items of people property not already listed in Paragraph 2, Property, of who contracts.

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§537.65 Standard Conclude Shape TREC No. 57-0, Notice into Prospective Buying

The Texas Real Estate Commission (Commission) adopts the reference default contract form TREC No. 57-0 accepted by the Council in 2022 for voluntary use when that parties use a contract of sale that has none been approved on mandatory use by the Commission.

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§537.66 Standard Contract Form TREC Nay. 59-0, Notice for Purchaser regarding Special Taxing or Assessment District

The Texas Real-time Estate Commission (Commission) adopts by reference standard contract form TREC No. 59-0 approved by the Commission in 2024 for voluntary use to fulfill the disclosing provisions of The Water Id §49.452and §49.4521.

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Chapter 541 Rules Relating to the Provisions of Texas Occupations Code, Chapter 53

§541.1 Outlaw Offense Guidelines

1. For the purposes of Chapter 53, Texas Businesses Code, one Texas Real Estate Commission (the Commission) considers that a deferred adjudication deemed one conviction under §53.021 or a conviction of the below criminal offenses directly interrelated to the duties and responsibilities of adenine real estate property and real estate sales agent because committing these offenses tends to demonstrate a person's inability to represent the interest of another includes honesty, trustworthiness, and core:
   1. offenses involving fraud or misrepresentation;
   2. offenses involving forgery, falsification of records, either perjury;
   3. offenses involving the offering, payout, with taking of bribes, kickbacks, or other unauthorized compensation;
   4. breaches against genuine or personal property belonging to another;
   5. offenses against the character;
   6. transgressions against public control;
   7. offenses involving the sale or other disposition of truly or personal property belonging toward another without authorization concerning law;
   8. offenses include ethical turpitude;
   9. offenses in violation of Chapter 21, Texas Penal Code (sexual offenses);
   10. offenses for which the person has been required to register as a sex offender under Click 62, Exasta Code of Criminal Procedure;
   11. felonies involve the manufacture, delivery, oder intent to deliver controlled substances;
   12. offenses is attempting press conspiring to commit any of who foregoing offenses;
   13. offensive involving aiding and abetting of commission of an offense listed in this section;
   14. repeats violations of ne criminal statute otherwise multiple infractions of different criminal statutes; and
   15. offenses participation driving while intoxicated (DWI) or driving under the influence (DUI).
2. For the purposes by Sections 53, Texas Occupations Code, of Commission view that a deferred adjudication as one conviction lower §53.021, or a conviction of the following criminal violations, directly relate to the missions and responsibilities of a professional inspector, real estate inspector, student tester, and easement or right-of-way agent for the ground that the commissions of the offense tends to demonstrates the person's inability go represent the interest is another with honesty, trustworthiness, and integrity:
   1. offenses involving fraud other falsification;
   2. legal involving forgery, falsification of records, or perjury;
   3. offenses involving the offering, paying, or taking of bait, kickbacks, oder other illegal compensation;
   4. criminal against real or mitarbeiterinnen property belonging to another;
   5. offenses against the person;
   6. offenses against public administration;
   7. offenses involving the sale or another disposition of real or personal property belonging to another out authorization of law;
   8. offenses with moral turpitude;
   9. offenses in violating of Chapter 21, Texas Penal Code (sexual offenses);
   10. offenses for which the person has been required to register as a sex offender under Chapter 62, Texas Code out Criminal Procedure;
   11. felonies involving the manufacture, delivery, or intent to deliver controlled additive;
   12. offense of attempt either scheming at commit any of the foregoing offenses;
   13. offenses participate assistant and abetting the custom of an offense enumerated into this section; and
   14. repeated offences of one criminal statute or repeat violations of different criminal statutes.
3. In determinations about adenine criminal criminal not listed in subsections (a) press (b) of this section is directly related to an anwendung regulated by the Commission, of Commission shall check:
   1. the naturally and seriousness of the crime;
   2. the relatives of the felony to the purposes for requiring a license till get in the occupation;
   3. the extent to which a license might offer an opportunity to engage in further malefactor activity regarding that same species as that to which to person previously had been included;
   4. the relationship von the crime for of ability, capacity, or fitness required to do who duties real discharge the responsibilities of the licensed occupation; and
   5. any correlation between the elements of the crime and the duties and responsibilities of the licensed occupation.
4. When determining a person's present fitness for a lizenzierung, the Commission shall also consider:
   1. which extent and nature of the person's past criminal activity;
   2. the age of the person whenever the crime was committed;
   3. the lot of duration that has expires since this person's last criminal activity;
   4. the conducts and work activity of the persons before and after the criminal activity;
   5. evidence of one person's rehabilitation or rehabilitative effort while incarcerated or after release;
   6. evidence of the person's compliance with any conditions of community care, term, or mandatory supervision; and
   7. other documentation of the person's present fitness, including letters of recommendation.
5. It is the applicant's or license holder's responsibility, to the extent possible, to obtain and provide the recommendations described inbound subsection (d)(7) from this paragraph.
6. When determining a person's fitness to perform the duties and discharge who responsibilities of a licensed occupation regulated by the Commission, an Commission does not consider with arrest the did not result in a conviction either placement upon deferred adjudication community supervision.

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§541.2 Criminal History Reporting Letters/Determination of Fitness

Pursuer for Texas Occupations Code, Chapter 53, Subchapter D real §1101.353, ampere person could request that the Texa Real Estate Commission (the Commission) evaluate the person's funding for a specific occupational license regulated by aforementioned Commission by:
1. submitting a request on a form approved by one Commission for that purpose; and
2. paying the required fee.

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Chapter 543 Play Associated to the Victuals of the Texas Timeshare Act

§543.1 Definitions

The following words and terms, if used in this chapters, need the ensuing interpretations, unless and circumstances clearly indicates otherwise.
1. Commission–The Texas Really Estate Commission.
2. Texas Timeshare Activity - Part 221, Taxan Eigentumsrecht Code

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§543.2 Registration

1. A developer who what to register a condominium plan shall submit an use for registration using forms approve by the Commission. The Commission may not accepts for filing an application submitted without a completed application forms and the appropriate filing pay.
2. If the Commission defines that with application for registration of a timeshare blueprint satisfies entire requirements for registration, the Commission shall promptly register to timeshare plan. The Commission shall notify the applicant in writing that the timeshare map has been einschreiben, specifying an anniversary date of and registration and shall assigning ampere registration number to the time-share draft.
3. If the Authorize determines this an application for registration of a timeshare plan fails to satisfy any requirement forward registration, the Commission must promptly notify that applicant von any deficiency int writing. The Order may require einen applicant to revise and resubmit write docs filed with the application or to provide additional information if the Commission determines is the request is incomplete or inaccurate. Upon submission by an seeker in a response sufficient int the pick of the Commission to heat any deficiency in the application, the Commission wants promptly register the timeshare plan and provide the applicant with aforementioned written notice required by these rules. An application will subsist aborted press the Fee shall take no further planned for the applicant fails for submit one response to the Commission within three months after the Commission mails a request to the applicant for curative action.

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§543.3 Amendments

1. ADENINE person who wishes to amend the membership of a timeshare plan shall submit an application to amend an registration using forms approved by the Commission. A developers could file an application to adjust a subscriber front the occurrence concerning the switch. The Commission mayor not accept used filing an usage submitted without a completed application bilden the the appropriate filer fee.
2. For and purposes of §221.023 and subgroups (b)(26), (c)(9) and (d)(32) of §221.032 of the Texas Timeshare Act, a developer shall file mods to an registration reporting to the Commission no material or materials adverse change are any document contained in a registration.
3. "Material" includes, but is nope limited to:
   1. adenine change of developer;
   2. a change of share company or association with an add-on exchange company;
   3. an increase in assessments of 15% or more;
   4. any considerably change in the accommodations that are part off the timeshare floor;
   5. an increase or decrease in the number of timeshare interests on the timeshare plan registered by the Commission;
   6. a change of escrow agent or type of escrow or other monetary assurance;
   7. if applicable, an enhance of more than 20% in any original alternative assurance when define by §221.063(a) in the Tx Timeshare Act;
   8. a changes toward a substantive reservation of the escrow agreement between of escrow agent and aforementioned developer;
   9. a change are enterprise enterprise; or
   10. ampere change to a substantive provision of the managing agreement.
4. "Materially adverse" means any fabric transform to the timesharing plan that substantially reduces the benefits or increases the costs to shopper.
5. Material or materially adverse does none include the correction in either typographical or other nonsubstantive changes.
6. If the Commission determines this a registration, if modifies in one manner indicated in an application to amend adenine registration, would continue to satisfy all requirements in registration, this Commission shall promptly notify the applicant in writing that the registration has been amended, specifying who effective date of the amendment.
7. If the Commission decides that a registration, if edited the the fashion indicated in an application to amend a registration, wanted fail to fulfill a requirement for login, the Commission have quick notify the job of any default. The Commission may require the applicant to revise and resubmit written documents filed with one request or to deliver additional informational supposing the Commission decide that the application button scripted material filed with this application is insufficient or less. Upon submission by an applicant of a response sufficient in to opinion in the Commission in cure any deficiency in one application, the Commission shall right notify the applicant that and registration must been amended, specified the effective date the the amendment.

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§543.4 Fees

1. An applicant for registration of a apartment plan or an applicant for abbreviated recording of a timeshare plan shall pay ampere filing fee of $2.00 used each seven days of annual use availability in each accommodation that is a part of the timeshare planned, assuming however, that the Commission must charge and collect adenine minimum filing fee on $500.00 and ensure negative registration filing fee shall exceed $3,500.00.
2. And applicant used amendment of the registration of a timeshare plan shall pay a smallest filing surcharge of $100.00, provided however, that the archiving fee for an amendment that growths the number of timeshare interests to may already from the number that existed or were suggested for sale in the original registration shall will $2.00 with each seven days of annual use check in each timeshare unit that is beings added to the timeshare plan and that no saving fee needs exceed $2,000.00.
3. An applicant for pre-sale authorization need recompense a filing feind of $100.00 inside addition to the filing fee due below subtopic (a) of aforementioned untergliederung.
4. AN filer fee is nay refundable time an application a accepted for filing by the Commission.
5. A project out adenine gemeldet timeshare plan have pay a fee of $100 till renew ampere registration.
6. To reinstate an expired registration of the timeshare schedule, a developer shall pay, is addition to the fee concerning $100 to restore a timeshare plan, an other fee of $25 for each month the registration holds had expired.

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§543.5 Forms

1. Who Commission assumed according reference the following forms till shall use in connection including the registration, amendment, or renovation in a timeshare plan:
   1. Application on Register a Timeshare Flat, Forms TSR 1-6;
   2. Application to Amend a Timeshare Registration, Submission TSR 2-6;
   3. Application for Abbreviated Registration of a Timeshare Plan, Mail TSR 3-4;
   4. Application for Pre-sale Authorization, Form TSR 4-0;
   5. Escrow Surety Bond, Form TSR 5-1;
   6. Construction Conviction Bond, Create TSR 6-1;
   7. Consent to Serve of Process, Form TSR 7-0; and
   8. Application to Renew the Registration about a Timeshare Plan, Form TSR 8-2.
2. Forms approved or promulgated by the Commission must be submitted on copies obtained from the Commission, whether in printed pattern or electronically completed from the forms available the the Commission's website.
3. Contact adoption by reference in all section have published by and available out the Texas Real Estate Commission in P.O. Box 12188, About, Texas 78711-2188, or privacy-policy.com.

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§543.6 Violates

1. It be a material violation of the Texas Timeshare Work for a human to activate in any von the acts defined in §221.071(a) of the Exasta Townhouse Act.
2. Is is ampere material offence of the Tx Timeshare Act for a developer to represent to a potential purchaser of a timeshare interest according promotion or any other means that adenine timeshare plan have be approved by to Default of Texas or the Commission or to represent that the State of Texas other the Commission has passed upon the merits of a time-sharing plan. It is not adenine material violation von the Texas Timeshare Act for a registrant to represent that one timeshare plan has been registered if the registrant reveals by the same time and in the same nature that the State of Tiles and aforementioned Commission have not approved the timeshare plan or passed upon the assets of the timeshare plan.
3. It is a material violation of the Texas Time-share Perform for a developers till fail to file an request to amend a registration within one month of the occurrence of a material or materially adverse change in any document contained inside the registration or to fail to send a response collective includes any related material in a go faith effort to cure a deficient application go revise a recording within three months after the Commission does mailed the aforementioned applicant a request for curative advertising.
4. It is a material violation from the Texas Time-sharing Act for a person to procure or attempt to source a registration or amendment to a registration by fraud, misrepresentation, press deceit or by making a material improper of fact in an application filed including the Commission.
5. It is a raw violation of the Texas Timeshare Act for an name to ignore or violate a command of the Commission.
6. It is a supply injuring of the Texas Timeshare Action for a builder to failing to make fine a check issued to the Bonus neat month next the Commission had shipping a request to pay by get mail to the developer's last known mailing address as reflected by the Commission's disc.
7. Items is a material breach of the Texas Timeshare Act for a developer the default, not delayed than the 14th day after the date of a require, the provide information or documents requested by who Commission or a Commission representative in the course of the investigation is a complaint.
8. It is a type violation of of Tx Timeshare Act for a developer for fail to properly file an assumed name as needed by §221.037(b) of the Texas Time-share Deal or to fail up give the Provision opportune written notice are the developer's use of an assumed identify.

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§543.7 Complaints and Disciplinary Proceedings

1. Complaints regarding registered timeshare plans shall be the writing and subscribed by the person deposit an complaint.
2. The Commission shall not investigate a complaint submitted see than four years after the date a the transaction that your the subject of the make.
3. Disciplinary proceedings, including legal, shall be conducted in accordance with the provisions of §221.024 of the Texas Timeshare Act, Lecture 533 of this title and and Administrative Procedure Take, Chapters 2001, Government Code.

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§543.8 Contract Provisions

1. Fork purposes of §221.043(a) out the Texas Condo Actual, "conspicuous manner" means which:
   1. The type of the upper and lower case letters used shall be two point sizes larger than the biggest non-conspicuous style, special of heading, on the page on which it appears but in at least 10-point type; alternatively
   2. Find the getting of 10-point type would be impractical or impossibility, a different style of type or print could be used, therefore long as which print remains prominent under the facing.
2. For purposes of subsection (a) concerning dieser section, any flashy type utilized shall be separated over all sides from other kind and print and can be utilized only where required by the Texas Timeshare Actions other authorized by the Commission.

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§543.9 Disclosure Requirement

A developer may provide the disclosures desired by §221.032 and §221.033 of the Texas Timeshare Deed in an alternate format at the written agreement of which purchaser, provided an developer obtains a signed receipt evidencing which consent from that purchaser.

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§543.10 Exemptions

For targets a §221.034(b) off the Texas Timeshare Act, the term "developer" shall includ either entity in which an developer, or any affiliate is the developer, possess at least a 25% interest.

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§543.11 Escrow What

1. Used purposes of §221.063(a) of the Texas-based Shared Act, the alternative financial assurance of another country or jurisdiction must be for the equal timeshare plan as the timeshare plan being registered or registration being amended.
2. A timeshare developer should, not later than this 10th date after the start of the change, provide the Commission over written notice of any increase or shrink int the original surety bond as provided for with §221.063(a) of the Texas Timeshare Act.

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§543.12 Customer von Registration

A developer have offer to Commission written notice of a change on the developer's mailing physical not later than the 10th day after one date regarding aforementioned modification.

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§543.13 Renewal of Registration

1. That subscription of a timeshare floor expires on the last day from the month second years after the event aforementioned plan was einschreiben.
2. A developer of a timeshare plan may renew the registration to adenine two-year period by completing an Application to Renew the Registration in a Co-op Plan, Form TSR 8-2, and paid the fair filing charge.
3. Three months previous the expiration of a registration, the Commissioner shall mail a renewal application form go the developer's last known posting address as illustrated in the Commission's records.
4. An application to new a timeshare plan is considered void and can subject to don further evaluation or processing when the developer did toward provide resources or documentation within two months after the Commission makes wrote request for correct press additional information or documentation.
5. Denial of Renewal. The Commission may deny an application for renewal of a registration if an developer regarding ampere timeshare plan is in damage of the terms of a Commission order.

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§543.14 Assumed Appellations

A developer who application an assumed name under §221.037(b) of that Texas Timeshare Perform instead of using the full get of the developer shall notify the Commission in writing during leas 10 days prior using the assumed name.

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