TITLE 22. EXAMINING BOARDS

PART 8. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

CHAPTER 153. RULES RELATING TO PROVISIONS OF THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACT

The Texas Appraiser Licensing and Certification Board (TALCB) proposes amendments to 22 TAC §153.1, Definitions; and §153.15, Experience Required for Licensing.

The proposed amendments are made following TALCB's quadrennial rule review for this Chapter. The amendments add a definition for "Practicum Courses," and adds Practicum Courses approved by either the Appraiser Qualifications Board or TALCB as a type of experience that may be accepted to satisfy the experience requirements under Chapter 1103.

Kathleen Santos, General Counsel, has determined that for the first five-year period the proposed amendments are in effect, there will be no fiscal implications for the state or units of local government as a result of enforcing or administering the proposed amendments. There is no adverse economic impact anticipated for local or state employment, rural communities, small businesses, or micro businesses as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact statement or Regulatory Flexibility Analysis is required.

Ms. Santos has also determined that for each year of the first five years the proposed amendments and rules are in effect the public benefits anticipated as a result of enforcing the proposed amendments will be requirements that are consistent with statutes and easier to understand, apply, and process. Additionally, the rules recognize another avenue for gaining experience that is an alternative to the traditional supervisor/trainee model.

Growth Impact Statement:

For each year of the first five years the proposed amendments and rules are in effect the amendments and rules will not:

- create or eliminate a government program;

- require the creation of new employee positions or the elimination of existing employee positions;

- require an increase or decrease in future legislative appropriations to the agency;

- require an increase or decrease in fees paid to the agency;

- create a new regulation;

- expand, limit or repeal an existing regulation; and

- increase the number of individuals subject to the rule's applicability.

For each year of the first five years the proposed amendments are in effect, there is no anticipated impact on the state's economy.

Comments on the proposed amendments may be submitted to Kathleen Santos, General Counsel, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188 or emailed to general.counsel@talcb.texas.gov. Comments may also be submitted electronically at https://www.talcb.texas.gov/agency-information/rules-and-laws/comment-on-proposed-rules. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules related certifying or licensing an appraiser or appraiser trainee and qualifying education and experience required for certifying or licensing an appraiser or appraiser trainee that are consistent with applicable federal law and guidelines recognized by the Appraiser Qualifications Board (AQB); §1103.152, which authorizes TALCB to prescribe qualifications for appraisers that are consistent with the qualifications established by the AQB; and §1103.153, which authorizes TALCB to adopt rules relating to the requirements for approval of a provider or course for qualifying or continuing education.

The statute affected by these amendments is Chapter 1103 Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§ 153.1. Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) ACE--Appraiser Continuing Education.

(2) Act--The Texas Appraiser Licensing and Certification Act.

(3) Administrative Law Judge--A judge employed by the State Office of Administrative Hearings (SOAH).

(4) Analysis--The act or process of providing information, recommendations or conclusions on diversified problems in real estate other than estimating value.

(5) Applicant--A person seeking a certification, license, approval as an appraiser trainee, or registration as a temporary out-of-state appraiser from the Board.

(6) Appraisal practice--Valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review.

(7) Appraisal report--A report as defined by and prepared under the USPAP.

(8) Appraisal Standards Board--The Appraisal Standards Board (ASB) of the Appraisal Foundation, or its successor.

(9) Appraisal Subcommittee--The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council or its successor.

(10) Appraiser Qualifications Board--The Appraiser Qualifications Board (AQB) of the Appraisal Foundation, or its successor.

(11) Appraiser trainee--A person approved by the Board to perform appraisals or appraiser services under the active, personal and diligent supervision and direction of the supervisory appraiser.

(12) Board--The Texas Appraiser Licensing and Certification Board.

(13) Certified General Appraiser--A certified appraiser who is authorized to appraise all types of real property.

(14) Certified Residential Appraiser--A certified appraiser who is authorized to appraise one-to-four unit residential properties without regard to value or complexity.

(15) Classroom course--A course in which the instructor and students interact face to face, in real time and in the same physical location.

(16) Classroom hour--Fifty minutes of instruction out of each sixty-minute segment of actual classroom session time.

(17) Client--Any party for whom an appraiser performs an assignment.

(18) College--Junior or community college, senior college, university, or any other postsecondary educational institution established by the Texas Legislature, which is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools or like commissions of other regional accrediting associations, or is a candidate for such accreditation.

(19) Executive Director--The Executive Director of the Texas Appraiser Licensing and Certification Board.

(20) Complainant--Any person who has made a written complaint to the Board against any person subject to the jurisdiction of the Board.

(21) Complex appraisal--An appraisal in which the property to be appraised, the form of ownership, market conditions, or any combination thereof are atypical.

(22) Continuing education cycle--the period in which a license holder must complete continuing education as required by the AQB.

(23) Council--The Federal Financial Institutions Examination Council (FFIEC) or its successor.

(24) Day--A calendar day unless clearly indicated otherwise.

(25) Distance education--Any educational process based on the geographical separation of student and instructor, as defined by the AQB. Distance education includes synchronous delivery, when the instructor and student interact simultaneously online; asynchronous delivery, when the instructor and student interaction is non-simultaneous; and hybrid or blended course delivery that allows for both in-person and online interaction, either synchronous or asynchronous.

(26) Feasibility analysis--A study of the cost-benefit relationship of an economic endeavor.

(27) Federal financial institution regulatory agency--The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, or the successors of any of those agencies.

(28) Federally related transaction--Any real estate-related transaction that requires the services of an appraiser and that is engaged in, contracted for, or regulated by a federal financial institution regulatory agency.

(29) Foundation--The Appraisal Foundation (TAF) or its successor.

(30) Inactive certificate or license--A general certification, residential certification, or state license which has been placed on inactive status by the Board.

(31) License--The whole or a part of any Board permit, certificate, approval, registration or similar form of permission required by law.

(32) License holder--A person certified, licensed, approved, authorized or registered by the Board under the Texas Appraiser Licensing and Certification Act.

(33) Licensed Residential Appraiser--A licensed appraiser who is authorized to appraise non-complex one-to-four residential units having a transaction value less than $1 million and complex one-to-four residential units having a transaction value less than $400,000.

(34) Licensing--Includes the Board processes respecting the granting, disapproval, denial, renewal, certification, revocation, suspension, annulment, withdrawal or amendment of a license.

(35) Market analysis--A study of market conditions for a specific type of property.

(36) Nonresidential real estate appraisal course--A course with emphasis on the appraisal of nonresidential real estate properties which include, but are not limited to, income capitalization, income property, commercial appraisal, rural appraisal, agricultural property appraisal, discounted cash flow analysis, subdivision analysis and valuation, or other courses specifically determined by the Board.

(37) Nonresidential property--A property which does not conform to the definition of residential property.

(38) Party--The Board and each person or other entity named or admitted as a party.

(39) Person--Any individual, partnership, corporation, or other legal entity.

(40) Personal property--Identifiable tangible objects and chattels that are considered by the general public as being "personal," for example, furnishings, artwork, antiques, gems and jewelry collectibles, machinery and equipment; all tangible property that is not classified as real estate.

(41) Petitioner--The person or other entity seeking an advisory ruling, the person petitioning for the adoption of a rule, or the party seeking affirmative relief in a proceeding before the Board.

(42) Pleading--A written document, submitted by a party or a person seeking to participate in a case as a party, that requests procedural or substantive relief, makes claims, alleges facts, makes a legal argument, or otherwise addresses matters involved in the case.

(43) Practical Applications of Real Estate Appraisal (PAREA)--Training Programs approved by the AQB that utilize simulated experience training and serve as an alternative to the traditional Supervisor/Trainee experience model.

(45) [(44)] Qualifying real estate appraisal course--Those courses approved by the Appraiser Qualifications Board as qualifying education.

(46) [(45)] Real estate--An identified parcel or tract of land, including improvements, if any.

(47) [(46)] Real estate appraisal experience--Valuation services performed as an appraiser or appraiser trainee by the person claiming experience credit. Significant real property appraisal experience requires active participation; mere observation of another appraiser's work is not real estate appraisal experience.

(48) [(47)] Real estate-related financial transaction--Any transaction involving: the sale, lease, purchase, investment in, or exchange of real property, including an interest in property or the financing of property; the financing of real property or an interest in real property; or the use of real property or an interest in real property as security for a loan or investment including a mortgage-backed security.

(49) [(48)] Real property--The interests, benefits, and rights inherent in the ownership of real estate.

(50) [(49)] Record--All notices, pleadings, motions and intermediate orders; questions and offers of proof; objections and rulings on them; any decision, opinion or report by the Board; and all staff memoranda submitted to or considered by the Board.

(51) [(50)] Report--Any communication, written or oral, of an appraisal, review, or analysis; the document that is transmitted to the client upon completion of an assignment.

(52) [(51)] Residential property--Property that consists of at least one but not more than four residential units.

(53) [(52)] Respondent--Any person subject to the jurisdiction of the Board, licensed or unlicensed, against whom any complaint has been made.

(54) [(53)] Supervisory Appraiser--A certified general or residential appraiser who is designated as a supervisory appraiser, as defined by the AQB, for an appraiser trainee. The supervisory appraiser is responsible for providing active, personal and diligent supervision and direction of the appraiser trainee.

(55) [(54)] Trade Association--A nonprofit voluntary member association or organization:

(A) whose membership consists primarily of persons who are licensed as appraisers and pay membership dues to the association or organization;

(B) that is governed by a board of directors elected by the members; and

(C) that subscribes to a written code of professional conduct or ethics.

(56) [(55)] USPAP--Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation.

(57) [(56)] Workfile--Documentation necessary to support an appraiser's analysis, opinions, and conclusions, and in compliance with the record keeping provisions of USPAP.

§ 153.15. Experience Required for Licensing.

(a) Applicants for a license must meet all experience requirements established by the AQB.

(b) The Board awards experience credit in accordance with current criteria established by the AQB and in accordance with the provisions of the Act specifically relating to experience requirements. An hour of experience means 60 minutes expended in one or more of the acceptable appraisal experience areas. Calculation of the hours of experience is based solely on actual hours of experience. Hours may be treated as cumulative in order to achieve the necessary hours of appraisal experience. Any one or a combination of the following categories may be acceptable for satisfying the applicable experience requirement:

(1) An appraisal or appraisal analysis when performed in accordance with Standards 1 and 2 and other provisions of the USPAP edition in effect at the time of the appraisal or appraisal analysis.

(2) Mass appraisal, including ad valorem tax appraisal that:

(A) conforms to USPAP Standards 5 and 6; and

(B) demonstrates proficiency in appraisal principles, techniques, or skills used by appraisers practicing under USPAP Standard 1.

(3) Appraisal review that:

(A) conforms to USPAP Standards 3 and 4; and

(B) demonstrates proficiency in appraisal principles, techniques, or skills used by appraisers practicing under USPAP Standard 1.

(4) Appraisal consulting services, including market analysis, cash flow and/or investment analysis, highest and best use analysis, and feasibility analysis when it demonstrates proficiency in appraisal principles, techniques, or skills used by appraisers practicing under USPAP Standards 1 and 2 and using appropriate methods and techniques applicable to appraisal consulting.

(5) "Practical Applications of Real Estate Appraisal" (PAREA) programs approved by the AQB.

(c) Experience credit may not be awarded for teaching appraisal courses.

(d) Public Information Act. All information and documentation submitted to the Board in support of an application for license or application to upgrade an existing license, including an applicant's experience log, experience certification, copies of appraisals and work files, may be subject to disclosure under the Public Information Act, Chapter 552, Texas Government Code, unless an exception to disclosure applies.

(e) Applicants claiming experience credit under subsection (b)(1) - (4) of this section must submit a Board-approved Appraisal Experience Log that lists each appraisal assignment or other work for which the applicant is seeking credit and an Appraisal Experience Certification. The Experience Log must include:

(1) the full amount of experience hours required for the license type sought, as required by the AQB;

(2) the required number of hours of experience required for each property type as required by the AQB; and

(3) the minimum length of time over which the experience is claimed, as required by the AQB.

(f) The Board may grant experience credit for work listed on an applicant's Appraisal Experience Log that:

(1) complies with the USPAP edition in effect at the time of the appraisal;

(2) is verifiable and supported by:

(A) work files in which the applicant is identified as participating in the appraisal process; or

(B) appraisal reports that:

(i) name the applicant in the certification as providing significant real property appraisal assistance; or

(ii) the applicant has signed;

(3) was performed when the applicant had legal authority to do so; and

(4) complies with the acceptable categories of experience established by the AQB and stated in subsection (b) of this section.

(g) Consistent with this chapter, upon review of the applicant's real estate appraisal experience, the Board may grant a license or certification contingent upon completion of additional education, experience or mentorship.

(h) Upon review of an applicant's Appraisal Experience Log, the Board may, at its sole discretion, grant experience credit for the hours shown on an applicant's log even if some work files have been destroyed because of the 5-year records retention period in USPAP has passed.

(i) The Board may grant experience credit for applicants claiming experience credit under subsection (b)(5) of this section that submit a valid certificate of completion from an AQB approved PAREA program.

(k) [(j)] The Board may, at its sole discretion, accept evidence other than an applicant's Appraisal Experience Log and Appraisal Experience Certification to demonstrate experience claimed by an applicant.

(l) [(k)] The Board must verify the experience claimed by each applicant generally complies with USPAP.

(1) Verification may be obtained by:

(A) requesting copies of appraisals and all supporting documentation, including the work files; and

(B) engaging in other investigative research determined to be appropriate by the Board.

(2) If the Board requests documentation from an applicant to verify experience claimed by an applicant, the applicant has 60 days to provide the requested documentation to the Board.

(A) In response to an initial request for documentation to verify experience, an applicant must submit a copy of the relevant appraisals, but is not required to submit the associated work files at that time.

(B) If in the course of reviewing the submitted appraisals, the Board determines additional documentation is necessary to verify general compliance with USPAP, the Board may make additional requests for supporting documentation.

(3) Experience involved in pending litigation.

(A) The Board will not request work files from an applicant to verify claimed experience if the appraisal assignments are identified on the experience log submitted to the Board as being involved in pending litigation.

(B) If all appraisal assignments listed on an applicant's experience log are identified as being involved in pending litigation, the Board may audit any of the appraisal assignments on the applicant's experience log, regardless of litigation status, with the written consent of the applicant and the applicant's supervisory appraiser.

(4) Failure to comply with a request for documentation to verify experience, or submission of experience that is found not to comply with the requirements for experience credit, may result in denial of a license application.

(5) A license holder who applies to upgrade an existing license and submits experience that does not comply with USPAP may also be subject to disciplinary action up to and including revocation.

(m) [(l)] Unless prohibited by Tex. Occ. Code §1103.460, applicable confidentiality statutes, privacy laws, or other legal requirements, or in matters involving alleged fraud, Board staff shall use reasonable means to inform supervisory appraisers of Board communications with their respective trainees.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502934

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3088

The Texas Appraiser Licensing and Certification Board (TALCB) proposes amendments to 22 TAC §153.6, Military Service Member, Veteran, or Military Spouse Applications.

The proposed amendments to §153.6 are made as a result of statutory changes enacted by the 89th Legislature in HB 5629, which becomes effective September 1, 2025. HB 5629 modifies several provisions in Chapter 55 of the Texas Occupations Code relating to occupational licensing of military service members, military veterans, and military spouses. The bill modifies the language to require a state agency to issue a license to an applicant that is a military service member, veteran, or spouse and who holds a current license issued by another state that is similar in scope of practice to the license being sought and is in good standing (a defined term) with that state's licensing authority. The bill also modifies the procedure for out-of-state license recognition under §55.0041, Occupations Code. Finally, the bill changes the time period within which a state agency must issue the license, from 30 days to 10 business days from the filing of the application. The amendments to §153.6 are made to reflect these changes in accordance with the reciprocity process in Chapter 1103 Occupations Code.

Kathleen Santos, General Counsel, has determined that for the first five-year period the proposed amendments are in effect, there will be no fiscal implications for the state or units of local government as a result of enforcing or administering the proposed amendments. There is no adverse economic impact anticipated for local or state employment, rural communities, small businesses, or micro businesses as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact statement or Regulatory Flexibility Analysis is required.

Ms. Santos has also determined that for each year of the first five years the proposed amendments and rules are in effect, the public benefits anticipated as a result of enforcing the proposed amendments will be greater clarity in the rules and consistency with applicable law.

Growth Impact Statement:

For each year of the first five years the proposed amendments and rules are in effect the amendments and rules will not:

- create or eliminate a government program;

- require the creation of new employee positions or the elimination of existing employee positions;

- require an increase or decrease in future legislative appropriations to the agency;

- require an increase or decrease in fees paid to the agency;

- create a new regulation;

- expand, limit or repeal an existing regulation; and

- increase the number of individuals subject to the rule's applicability.

- positively or adversely affect the state's economy

For each year of the first five years the proposed amendments are in effect, there is no anticipated impact on the state's economy.

Comments on the proposed amendments may be submitted to Kathleen Santos, General Counsel, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188 or emailed to general.counsel@talcb.texas.gov. Comments may also be submitted electronically at https://www.talcb.texas.gov/agency-information/rules-and-laws/comment-on-proposed-rules. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules related to certificates and licenses that are consistent with applicable federal law and guidelines adopted by the AQB; §1103.152, which authorizes TALCB to prescribe qualifications for appraisers that are consistent with the qualifications established by the Appraiser Qualifications Board; and §1103.154, which authorizes TALCB to adopt rules relating to professional conduct. The amendments are also proposed under Texas Occupations Code, §§55.004 and 55.0041, including as amended by HB 5629, which require the issuance of licenses under certain parameters to military service members, military veterans, or military spouses.

The statute affected by these amendments is Chapter 1103, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§ 153.6. Military Service Member, Military Veteran, or Military Spouse Applications.

(a) Definitions.

(2) [(1)] "Military service member" has the meaning assigned by §55.001(4), Occupations Code. [means a person who is on current full-time military service in the armed forces of the United States or active duty military service as a member of the Texas military forces, as defined by Section 437.001, Government Code, or similar military service of another state.]

(3) [(2)] "Military spouse" has the meaning assigned by §55.001(5), Occupations Code. [means a person who is married to a military service member.]

(4) [(3)] "Military veteran" has the meaning assigned by §55.001(6), Occupations Code. ["Veteran" means a person who has served as a military service member and who was discharged or released from active duty.]

(b) The purpose of this section is to establish procedures authorized or required by Texas Occupations Code Chapter 55 and is not intended to modify or alter rights or legal requirements that may be provided under federal law, Chapter 1103 of the Occupations Code, or requirements established by the AQB.

(c) Expedited application.

(1) The Board will process an application for a military service member, military veteran, or military spouse on an expedited basis.

(2) If an applicant under this section holds a current license issued by a state other than Texas that is similar in scope of practice to the [another state or jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the] license or certification issued in this state, the Board will issue the license not later than the 10th business [30th] day after receipt of the application.

(d) Waiver of fees.

(1) The Board will waive the license application fee and examination fees for an applicant who is a military service member, military veteran, or military spouse. [:]

(2) The executive director or his or her designee may waive the application fee of a military service member, military veteran, or military spouse who is not currently licensed, but within the five years preceding the application date held a license in this state and applies for reinstatement in accordance with subsection (f)(2) of this section.

(e) Credit for military experience.

(1) For an applicant who is a military service member, [or] military veteran, or military spouse the Board shall credit any verifiable military service, training, or education toward the licensing requirements, other than an examination requirement.

(2) The Board shall award credit under this subsection consistent with the criteria adopted by the AQB and any exceptions to those criteria as authorized by the AQB.

(3) This subsection does not apply to an applicant who holds a restricted license issued by another jurisdiction.

(f) Reciprocity and reinstatement.

(1) A [For a] military service member, military veteran, or military spouse who holds a current license issued by a state other than Texas that is similar in scope of practice to the [another jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the] license in this state who wants to practice in Texas may apply by submitting an application for license by reciprocity and any required supplemental documents for military service members, military veterans, or military spouses, using a process acceptable to the Board.

(2) A [For a] military service member, military veteran, or military spouse who is not currently licensed, but within the five years preceding the application date held a license in this state who wants to practice in Texas may apply by submitting [submit] an application for reinstatement and any required supplemental documents for military service members, military veterans, or military spouses, using a process acceptable to the Board.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502936

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3088

The Texas Appraiser Licensing and Certification Board (TALCB) proposes amendments to 22 TAC §153.19, Licensing for Persons with Criminal History and Fitness Determination,

The proposed amendments are made as a result of statutory changes enacted by the 89th Legislature in SB 1080, which became effective on May 27, 2025. SB 1080 modified several provisions of Chapter 53 of the Texas Occupations Code relating to the revocation of an occupational license from certain license holders and the issuance of an occupational license to certain applicants with criminal convictions. Additionally, the proposed change is made as a result of the agency's license management system project. Because of this project, users will be able to provide information to the agency through an online process, rather than by submitting a paper form. As a result, the rule language is clarified to reflect this change.

Kathleen Santos, General Counsel, has determined that for the first five-year period the proposed amendments are in effect, there will be no fiscal implications for the state or units of local government as a result of enforcing or administering the proposed amendments. There is no adverse economic impact anticipated for local or state employment, rural communities, small businesses, or micro businesses as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact statement or Regulatory Flexibility Analysis is required.

Ms. Santos has also determined that for each year of the first five years the proposed amendments and rules are in effect, the public benefit anticipated as a result of enforcing the proposed amendments will be greater clarity in the rules and consistency with applicable law.

Growth Impact Statement:

For each year of the first five years the proposed amendments and rules are in effect the amendments and rules will not:

- create or eliminate a government program;

- require the creation of new employee positions or the elimination of existing employee positions;

- require an increase or decrease in future legislative appropriations to the agency;

- require an increase or decrease in fees paid to the agency;

- create a new regulation;

- expand, limit or repeal an existing regulation; and

- increase the number of individuals subject to the rule's applicability.

- Positively or adversely affect the state's economy.

For each year of the first five years the proposed amendments are in effect, there is no anticipated impact on the state's economy.

Comments on the proposed amendments may be submitted to Kathleen Santos, General Counsel, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188 or emailed to general.counsel@talcb.texas.gov. Comments may also be submitted electronically at https://www.talcb.texas.gov/agency-information/rules-and-laws/comment-on-proposed-rules. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules related certifying or licensing an appraiser or appraiser trainee and qualifying education and experience required for certifying or licensing an appraiser or appraiser trainee that are consistent with applicable federal law and guidelines recognized by the Appraiser Qualifications Board (AQB); §1103.152, which authorizes TALCB to prescribe qualifications for appraisers that are consistent with the qualifications established by the AQB; and §1103.154, which authorizes TALCB to adopt rules relating to professional conduct. The amendments are also proposed under Texas Occupations Code

The statute affected by these amendments is Chapter 1103, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§ 153.19. Licensing for Persons with Criminal History and Fitness Determination.

(a) Subject to the requirements of Chapter 53, Occupations Code, no [No] currently incarcerated individual is eligible to obtain or renew a license. A person's license will be revoked upon the person's incarceration following a felony conviction, felony probation revocation, revocation of parole, or revocation of mandatory suspension.

(b) The Board may suspend or revoke an existing valid license, disqualify an individual from receiving a license, deny to a person the opportunity to be examined for a license or deny any application for a license, if the person has been convicted of a felony, had their felony probation revoked, had their parole revoked, or had their mandatory supervision revoked. Any such action may be taken after consideration of the required factors in Chapter 53, Occupations Code and this section.

(c) A license holder must conduct himself or herself with honesty, integrity, and trustworthiness. After considering the required factors in Chapter 53, Occupations Code, the Board determines that a conviction or deferred adjudication deemed a conviction under Chapter 53, Occupations Code, of the following crimes to be directly related to the duties and responsibilities of a certified general or certified residential appraiser, a licensed appraiser or appraiser trainee:

(1) offenses involving fraud or misrepresentation;

(2) offenses against real or personal property belonging to another;

(3) offenses against public administration, including tampering with a government record, witness tampering, perjury, bribery, and corruption;

(4) offenses involving the sale or other disposition of real or personal property belonging to another without authorization of law; and

(5) offenses of attempting or conspiring to commit any of the foregoing offenses.

(d) When determining whether a conviction of a criminal offense not listed in subsection (c) of this section directly relates to the duties and responsibilities of a licensed occupation regulated by the Board, the Board considers:

(1) the nature and seriousness of the crime;

(2) the relationship of the crime to the purposes for requiring a license to engage in the occupation;

(3) the extent to which a license might offer an opportunity to engage in further criminal activity of the same type as that in which the person previously had been involved;

(4) the relationship of the crime to the ability or capacity required to perform the duties and 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.

(e) When determining the present fitness of an applicant or license holder who has been convicted of a crime, the Board also considers:

(1) the extent and nature of the person's past criminal activity;

(2) the person's age at the time the crime was committed;

(3) the amount of time that has elapsed since the person's last criminal activity;

(4) the person's conduct and work activity before and after the criminal activity;

(5) evidence of the person's compliance with any conditions of community supervision, parole, or mandatory supervision;

(6) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and

(7) other evidence of the applicant's or license holder's present fitness including letters of recommendation.

(f) To the extent possible, it is the applicant's or license holder's responsibility to obtain and provide the recommendations described in subsection (e)(7) of this section.

(g) When determining a person's fitness to perform the duties and discharge the responsibilities of a licensed occupation regulated by the Board, the Board does not consider an arrest that did not result in a conviction or placement on deferred adjudication community supervision.

(h) Fitness Determination. Before applying for a license, a person may request the Board to determine if the prospective applicant's fitness satisfies the Board's requirements for licensing by submitting a request using a process acceptable to [the request form approved by] the Board and paying the required fee. Upon receiving such a request, the Board may request additional supporting materials. Requests will be processed under the same standards as applications for a license.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502933

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3088

The Texas Appraiser Licensing and Certification Board (TALCB) proposes new rules 22 TAC §153.42 and §153.43. The proposed new rule §153.42 outlines the requirements and approval process for Practicum Course Providers and Practicum Courses; and new rule §153.43 which outlines compliance procedures and prohibited activity of Practicum Providers.

Kathleen Santos, General Counsel, has determined that for the first five-year period the proposed new rules are in effect, there will be no fiscal implications for the state or units of local government as a result of enforcing or administering the proposed sections. There is no adverse economic impact anticipated for local or state employment, rural communities, small businesses, or micro businesses as a result of implementing the proposed new rules. There is no significant economic cost anticipated for persons who are required to comply with the proposed new rules. Accordingly, no Economic Impact statement or Regulatory Flexibility Analysis is required.

Ms. Santos has also determined that for each year of the first five years the proposed new rules are in effect the public benefits anticipated as a result of enforcing the rules will be requirements that are consistent with statutes and easy to understand, apply, and process.

Growth Impact Statement:

For each year of the first five years the rules are in effect the rules will not:

- create or eliminate a government program;

- require the creation of new employee positions or the elimination of existing employee positions;

- require an increase or decrease in future legislative appropriations to the agency;

- require an increase or decrease in fees paid to the agency;

- create a new regulation;

- expand, limit or repeal an existing regulation; and

- increase the number of individuals subject to the rule's applicability.

For each year of the first five years the rules are in effect, there is no anticipated impact on the state's economy.

Comments on the proposed new rules may be submitted to Kathleen Santos, General Counsel, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188 or emailed to general.counsel@talcb.texas.gov. Comments may also be submitted electronically at https://www.talcb.texas.gov/agency-information/rules-and-laws/comment-on-proposed-rules. The deadline for comments is 30 days after publication in the Texas Register.

The new rules are proposed under Texas Occupations Code §1103.151, which authorizes TALCB to adopt rules related certifying or licensing an appraiser or appraiser trainee and qualifying education and experience required for certifying or licensing an appraiser or appraiser trainee that are consistent with applicable federal law and guidelines recognized by the Appraiser Qualifications Board (AQB); §1103.152, which authorizes TALCB to prescribe qualifications for appraisers that are consistent with the qualifications established by the AQB; and §1103.153, which authorizes TALCB to adopt rules relating to the requirements for approval of a provider or course for qualifying or continuing education.

The statute affected by these new rules is Chapter 1103 Texas Occupations Code. No other statute, code or article is affected by the proposal.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502935

Kathleen Santos

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3088

PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 531. CANONS OF PROFESSIONAL ETHICS AND CONDUCT

The Texas Real Estate Commission (TREC) proposes an amendment to 22 TAC §531.20, Information About Brokerage Services.

The proposed changes to §531.20 and the form adopted by reference are made to reflect statutory changes enacted by the 89th Legislature in SB 1968, which becomes effective January 1, 2026. Currently, section 1101.558 of the Texas Occupations Code specifies certain information required to be in a notice license holders provide to consumers called the Information About Brokerage Services Notice (IABS). This section further requires the Commission to prescribe by rule the specific text of the IABS. SB 1968 adds additional information that must be described in the IABS: the basic obligations a broker has to a party to a real estate transaction that the broker does not represent. As a result, the language in the IABS has been updated to reflect changes as a result of SB 1968 and the form number listed in §531.20 has been updated.

In addition to these proposed changes, the description of the contact information has been updated to better reflect current terminology.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendment is in effect, there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendment. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendment. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the section as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be increased consumer awareness regarding a license holder's duties and obligations to consumers of real estate brokerage services.

For each year of the first five years the proposed amendment is in effect the amendment will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendment is proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendment is also proposed under Texas Occupations Code, §1101.558, which requires the Commission to prescribe the text of the IABS notice.

The statute affected by this proposal is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendment.

§ 531.20. Information About Brokerage Services.

(a) The Commission adopts by reference the Information About Brokerage Services Notice, TREC No. IABS 1-2 [1-1] (IABS Notice). The IABS Notice is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.

(b) Each license holder shall provide:

(1) a link to a completed IABS Notice in a readily noticeable place on the homepage of each business website, labeled:

(A) "Texas Real Estate Commission Information About Brokerage Services", in at least 10 point font; or

(B) "TREC Information About Brokerage Services", in at least 12 point font; and

(2) the completed IABS Notice at the first substantive communication as required under §1101.558, Texas Occupations Code.

(c) For purposes of §1101.558, Texas Occupations Code, the completed IABS Notice can be provided:

(1) by personal delivery by the license holder;

(2) by first class mail or overnight common carrier delivery service;

(3) in the body of an email; or

(4) as an attachment to an email, or a link within the body of an email, with a specific reference to the IABS Notice in the body of the email.

(d) The link to a completed IABS Notice may not be in a footnote or signature block in an email.

(e) For purposes of this section, business website means a website on the internet that:

(1) is accessible to the public;

(2) contains information about a license holder's real estate brokerage services; and

(3) the content of the website is controlled by the license holder.

(f) For purposes of providing the link required under subsection (b)(1) on a social media platform, the link may be located on:

(1) the account holder profile; or

(2) a separate page or website through a direct link from the social media platform or account holder profile.

(g) License holders may reproduce the IABS Notice published by the Commission, provided that the text of the IABS Notice is copied verbatim and the spacing, borders and placement of text on the page must appear to be identical to that in the published version of the IABS Notice, except that the Broker Contact Information section may be prefilled.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502900

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

CHAPTER 535. GENERAL PROVISIONS

SUBCHAPTER A. DEFINITIONS

The Texas Real Estate Commission (TREC) proposes an amendment to 22 TAC §535.1, Definitions, in Chapter 535, General Provisions.

The proposed change to 22 TAC §535.1 is made to implement statutory changes enacted by the 89th Legislature in SB 1968, which becomes effective January 1, 2026. SB 1968 requires that associated brokers-also defined by the bill-provide the Commission the name of the broker they associate with and allows the Commission, through rulemaking, to provide notice of a complaint to another license holder associated with the respondent. As a result, the same definition found in SB 1968 is added to the §535.1 and the subsections are renumbered accordingly.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendment is in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendment. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendment. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable law.

For each year of the first five years, the proposed amendment is in effect the rule will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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

§ 535.1. Definitions.

The following terms and phrases, when used in this chapter, have the following meanings unless the context clearly indicates otherwise.

(1) Act--Chapter 1101, Texas Occupations Code.

(2) Associated broker--A real estate broker who associates with and is paid through another broker under a relationship that is intended to be a continuous relationship, including as an employee or an ongoing independent contractor.

(3) Business entity--A domestic or foreign corporation, limited liability company, partnership or other entity authorized under the Texas Business Organizations Code to engage in real estate brokerage business in Texas and required to be licensed under the Act.

(4) [(3)] Chapter 1102--Chapter 1102, Texas Occupations Code.

(5) [(4)] Commission--The Texas Real Estate Commission.

(6) [(5)] Compensation--A commission, fee, or other valuable consideration for real estate brokerage services provided by a license holder under the Act.

(7) [(6)] Executive Director--The Executive Director of the Texas Real Estate Commission.

(8) [(7)] Foreign broker--A real estate broker licensed in another country, territory, or state other than Texas.

(9) [(8)] License--Any Commission license, registration, certificate, approval, or similar form of permission required by law.

(10) [(9)] License holder--A person licensed or registered by the Commission under Chapter 1101 or 1102, Texas Occupations Code.

(11) [(10)] Place of business--A place where the license holder meets with clients and customers to transact business.

(12) [(11)] Trade Association--A nonprofit voluntary member association or organization:

(A) whose membership consists primarily of persons who are licensed as real estate license holders and pay membership dues to the association or organization;

(B) that is governed by a board of directors elected by the members; and

(C) that subscribes to a written code of professional conduct or ethics.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502901

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

SUBCHAPTER B. GENERAL PROVISIONS RELATING TO THE REQUIREMENTS OF LICENSURE

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.5, License Not Required, in Chapter 535, General Provisions.

The proposed amendments to §535.5 are made as a result of statutory changes enacted by the 89th Legislature in SB 1172. SB 1172 exempts additional types of transactions from license requirements under Chapter 1101, Occupations Code. The proposed changes modify existing exemption language related to employees of business entities and adds a reference to §1101.005 of the Texas Occupations Code (where the exemptions are located) for clarity.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable rules.

For each year of the first five years, the proposed amendments are in effect the rule will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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

§ 535.5. License Not Required.

(a) Acting as a principal, a person may purchase, sell, lease, or sublease real estate for profit without being licensed as a broker or sales agent.

(b) A person who owns property jointly may sell and convey title to his or her interest in the property, but to act for compensation or with the expectation of compensation as an agent for the other owner, the person must be licensed unless otherwise exempted by the Act.

(c) A real estate license is not required:

(1) for an employee [individual] employed by a business entity for the purpose of buying, selling, or leasing real property for the entity; or

(2) as otherwise provided by §1101.005, Occupations Code.

(d) For purposes of subsection (c) of this section:

(1) An entity is considered to be an owner if it holds record title to the property or has an equitable title or right acquired by contract with the record title holder.

(2) An employee of [individual employed by] a business entity means a person employed and directly compensated by the business entity. An independent contractor is not an employee.

(e) [(d)] Trade associations or other organizations that provide an electronic listing service for their members, but do not receive compensation when the real estate is sold, are not required to be licensed under the Act.

(f) [(e)] Auctioneers are 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 unless the auctioneer is also licensed under the Act.

(g) [(f)] An answering service or clerical or administrative employees identified to callers as such to confirm information concerning the size, price, and terms of property advertised are not required to be licensed under the Act.

(h) [(g)] A business entity which receives compensation on behalf of a license holder that is earned by the license holder while engaged in real estate brokerage is not required to be licensed by the Commission if the business entity:

(1) performs no other acts of a broker;

(2) is:

(A) a limited liability company as defined by §101.001, Business Organizations Code; or

(B) an S corporation as defined by 26 U.S.C. Section 1361;

(3) is at least 51 percent owned by the license holder on whose behalf the business entity receives compensation; and

(4) is registered with the Commission as provided by §535.35 of this chapter (relating to Registration of Certain Business Entities).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502905

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.21, Mailing Address and Other Contact Information, in Chapter 535, General Provisions.

The proposed changes to §535.21 are made to implement statutory changes enacted by the 89th Legislature in SB 1968, which becomes effective January 1, 2026. SB 1968 adds that license holders must provide the Commission with certain business contact information, like a business address and a business phone number. Furthermore, SB 1968 requires that associated brokers provide the Commission the name of the broker they associate with. The changes to §535.21 reflect these additions and add that this information will be provided through a process acceptable to the Commission.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable law.

For each year of the first five years the proposed amendment is in effect the rule will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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

§ 535.21. Mailing Address and Other Contact Information.

(a) Using a process acceptable to the Commission, each [Each] license holder shall provide a mailing address, business address, business phone number, and email address used for business to the Commission and shall report all subsequent changes not later than the 10th day after the date of a change of any of the listed contact information. If a license holder fails to update the contact information, the last known contact information provided to the Commission is the license holder's contact information.

(b) The Commission shall send a notice or correspondence to an active broker or an inactive license holder to the mailing or email address of the broker or license holder as shown in the Commission's records. The Commission shall send a notice or correspondence to an active sales agent to the mailing or email address of the sales agent's sponsoring broker as shown in the Commission's records.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502902

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

SUBCHAPTER E. REQUIREMENTS FOR LICENSURE

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.56, Education and Experience Requirements for a Broker License.

The proposed changes to §535.56(a)(1)(B)(ii) and (a)(1)(C) are made as a result of statutory changes enacted by the 89th Legislature in SB 1968, which becomes effective January 1, 2026. SB 1968 modifies the requirements surrounding the Commission's Broker Responsibility Course. Under the language of the bill, all brokers must take the course, regardless of whether they sponsor sales agents. Additionally, applicants for a broker license must complete the course prior to licensure. The changes to these provisions reflect the statutory changes.

The proposed change to subsection (e) of §535.56 is made as a result of the agency's license management system project. Because of this project, users will be able to access and provide information to the agency through an online process, rather than by submitting a paper form. As a result, the rule language is clarified to reflect this change.

The remainder of the proposed changes are recommended by the Commission's Broker Responsibility Advisory Committee (BRAC). Currently, in order to obtain a broker's license, an applicant must satisfy certain education and experience requirements. In terms of education, an applicant must complete 270 hours of qualifying real estate courses and 630 hours of real estate related education. Currently, a bachelor's degree or higher is deemed to satisfy the 630 hours of real estate related education. In addition to the education requirements, applicants must also have at least four years of active experience during the five years preceding the filing of the application, which must total a minimum of 360 experience points.

In recognition of the importance of experience for a broker applicant, the changes as proposed increase the minimum experience points required to obtain a broker license from 360 to 720 experience points. Because there is no limitation on the subject matter of the bachelor's degree, which may not be related to real estate, the changes also cap the real estate related education credit given for a bachelor's degree at 300 hours, instead of the full 630 hours. At the same time, again recognizing the importance of experience, the changes allow for the substitution of experience for education above and beyond the minimum 720 experience points. For any such experience, an applicant may receive a credit of up to 300 hours of the required 630 hours of real estate related education.

Next, the changes modify the language surrounding the property management experience calculation to a "per property per year" from just "per property" to better reflect industry practices. Finally, recognizing the importance of supervision and management experience, the changes modify the delegated supervision calculation to a points per transaction model (at three points per transaction), which will enable an applicant to accrue more points for this type of activity than is currently available under the rule.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the section as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable law, as well as implementing the BRAC's recommendations to require broker applicants have additional experience and to limit the education credit received for a bachelor's degree.

For each year of the first five years the proposed amendment is in effect, the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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

§ 535.56. Education and Experience Requirements for a Broker License.

(a) Education requirements.

(1) An applicant for a broker license must provide the Commission with satisfactory evidence of completion of:

(A) 270 hours of qualifying real estate courses as required under §535.55 of this subchapter (relating to Education and Sponsorship Requirements for a Sales Agent License), which must include the 30 hour qualifying real estate brokerage course completed not more than two years before the application date; [and]

(B) an additional 630 classroom hours of related education from one or more of the following categories:

(i) qualifying courses defined under §535.64 of this chapter (relating to Content Requirements for Qualifying Real Estate Courses);

(ii) Commission-approved continuing education courses, including the six-hour Broker Responsibility Course; or

(iii) courses taken for credit from an accredited college or university in any of the following areas: accounting, advertising, architecture, business or management, construction, finance, investments, law, marketing, or real estate; and [.]

(2) An applicant who has earned a bachelor's degree or higher from an accredited college or university will be deemed to have satisfied 300 classroom hours of the related education requirements for a broker license. A copy of the college transcript awarding the degree must be submitted as evidence of completion of the degree.

(b) Experience Requirements.

(1) An applicant for a broker license must have four years of experience actively practicing as a broker or sales agent in Texas during the five years preceding the date the application is filed. For purposes of this section:

(A) Experience is measured from the date a license is issued, and inactive periods caused by lack of sponsorship, or any other reason, cannot be included as active experience.

(B) A person licensed in another state may derive the required four years' experience from periods in which the person was licensed in one or more states. A person who is the designated broker of a business entity that is licensed as a real estate broker in another state is deemed to be a licensed real estate broker in another state.

(C) An applicant must have performed at least one transaction per year as described in subsection (c) of this section for at least four of the five years preceding the date the application is filed.

(2) An applicant for a broker license must demonstrate not less than 720 [360] points of qualifying practical experience obtained during the period required by subsection (b)(1) of this section, using TREC No. BL-A, Supplement A-Qualifying Experience Report for a Broker License. An applicant must use TREC No. BL-B, Supplement B-Qualifying Experience Report for a Broker License After an Application Has Been Filed, to report qualifying experience after an application for a broker license is filed.

(A) An applicant will receive credit for such experience according to the point system set forth in subsection (c) of this section.

(B) Upon request by the Commission, either prior to or after licensure, an applicant shall provide documentation to substantiate any or all of the experience claimed by the applicant.

(C) Failure to promptly provide the requested documentation or proof shall be grounds to deny the application. Any false claim of experience shall be grounds to deny the application, or shall be grounds to suspend or revoke the applicant's current license.

(c) Credit for experience. Experience points shall be credited to an applicant in accordance with the following schedule for active licensed sales agent or broker activity only:

(1) Residential transactions including single family, condo, co-op unit, multi-family (1 to 4-unit) and apartment unit leases:

(A) Closed purchase or sale--30 points per transaction.

(B) An executed lease for a landlord or tenant--5 points per transaction.

(C) rental property management rent collection--2.5 points per property per year.

(D) Closed purchase or sale of an unimproved residential lot--30 points per transaction.

(2) Commercial transactions, including apartments (5 units or more), office, retail, industrial, mixed use, hotel/motel, parking facility/garage, and specialty:

(A) Closed purchase or sale--50 points per transaction.

(B) An executed lease, renewal or extension for a landlord or tenant--10 points per year of the lease, renewal or extension up to a five year maximum per transaction.

(C) rental property management rent collection--15 points per property per year.

(3) Farm and Ranch and unimproved land transactions:

(A) Closed purchase or sale--30 points.

(B) An executed lease for a landlord or tenant--5 points per transaction.

(C) Rental property management rent collection--5 points per property per year.

(4) Delegated supervision--3 points per transaction [12 points per month].

(d) Documentation of applicable experience.

(1) An applicant shall have the burden of establishing to the satisfaction of the Commission that the applicant actually performed the work associated with the real estate transaction claimed for experience credit.

(2) If an applicant is unable to obtain documentation and/or the signature of a sponsoring broker to support their claim for experience, the applicant must use TREC No. AFF-A, Affidavit in Lieu of Documentation and/or Signature, to explain that the applicant made a good faith effort to obtain the documentation and/or signature, describing the effort to obtain the documentation and reasons why it is not available. In addition, the applicant must submit two TREC No. AFF-B, Affidavit in Support of Applicant's Claim of Experience, each signed by a different individual who knows the applicant or is familiar with the transaction(s) at issue attesting to the applicant's efforts to obtain the documentation and/or signature, and attesting to the fact that the applicant performed the work for which the applicant is requesting points.

(3) The Commission may request additional documentation, rely on the documentation provided under this section, or utilize any other information provided by the applicant to determine whether the applicant has sufficient experience as required by §1101.356 of the Act and this section.

(e) Experience forms. Forms and affidavits required to be used to report experience under this section are adopted by reference, published by and available from the Texas Real Estate Commission at[, P.O. Box 12188, Austin, Texas 78711-2188,] www.trec.texas.gov.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502907

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.58, License for Military Service Members, Veterans, or Military Spouses, in General Provisions.

The proposed changes are made as a result of statutory changes enacted by the 89th Legislature in HB 5629, which becomes effective September 1, 2025. HB 5629 modifies several provisions in Chapter 55 of the Texas Occupations Code relating to occupational licensing of military service members, military veterans, and military spouses. The bill modifies the language to require a state agency to issue a license to an applicant that is a military service member, veteran, or spouse and who holds a current license issued by another state that is similar in scope of practice to the license being sought and is in good standing (a defined term) with that state's licensing authority. The bill also modifies the procedure for out-of-state license recognition under §55.0041, Occupations Code. Finally, the bill changes the time period within which a state agency must issue the license, from 30 days to 10 business days from the filing of the application. The amendments to §535.58 are made to reflect these changes.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the section as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable law.

For each year of the first five years the proposed amendments are in effect, the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also proposed under Texas Occupations Code, §§55.004 and 55.0041, including as amended by HB 5629, which require the issuance of licenses under certain parameters to military service members, military veterans, or military spouses.

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

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

(a) Definitions.

(2) [(1)] "Military service member" has the meaning assigned by §55.001(4), Occupations Code. [means a person who is on current full-time military service in the armed forces of the United States or active duty military service as a member of the Texas military forces, as defined by §437.001, Government Code, or similar military service of another state.]

(3) [(2)] "Military spouse" has the meaning assigned by §55.001(5), Occupations Code. [means a person who is married to a military service member.]

(4) [(3)] "Military veteran" has the meaning assigned by §55.001(6), Occupations Code. ["Veteran" means a person who has served as a military service member and who was discharged or released from active duty.]

(b) Except as otherwise provide by this section:

(1) a person applying for a sales agent or broker license under this chapter must comply with all requirements of §535.51 of this chapter (relating to General Requirements for a Real Estate License);

(2) a person applying for an inspector license under this chapter must comply with all requirements of §535.208 of this chapter (relating to Application for a License); and

(3) a person applying for a certificate of registration under this chapter must comply with all requirements of §535.400 of this chapter (relating to Registration of Easement or Right-of-Way Agents).

(c) License or certificate issuance [Expedited application].

(1) The Commission shall process a license or certificate for an applicant who is a military service member, military veteran, or military spouse on an expedited basis.

(2) The Commission shall issue a certificate or license not later than the 10th business day after receipt of an application by an applicant who is a military service member, military veteran, or military spouse and:

(A) [If the applicant] holds a current certificate or license issued by a [country, territory, or] state other than Texas that is similar in scope of practice to [has licensing requirements that are substantially equivalent to the requirements for] the certificate or license issued in Texas and is in good standing with that state's licensing authority; or [, the Commission shall issue the license not later than the 30th day after receipt of the application.]

(d) [Waiver of fees and requirements.]

[(1)] The Commission shall waive application and examination fees for an applicant who is a[:]

[(B)] military service member, military veteran, or military spouse [who holds a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the same license in this state].

(e) Credit for military service.

(1) For an applicant who is a military service member or military veteran, the Commission shall credit any verifiable military service, training, or education obtained by an applicant that is relevant to a license toward the requirements of a license.

(2) This subsection does not apply to an applicant who holds a restricted license issued by another jurisdiction.

(f) Alternate methods of competency. The Commission may accept alternative methods for demonstrating an applicant's competency in the place of passing the specific licensing examination, or completing education and/or experience required to obtain a particular license. Based on the applicant's circumstances and the requirements of a particular license, the Commission may consider any combination of the following as alternative methods of demonstrating competency:

(1) education;

(2) continuing education;

(3) examinations (written and/or practical);

(4) letters of good standing;

(5) letters of recommendation;

(6) work experience; or

(7) other methods required by the Executive Director.

(g) Limited reciprocity for military service members and military spouses.

(1) A person who is a military service member or military spouse who holds a current certificate or license issued by a [country, territory, or] state other than Texas that is similar in scope of practice to [has licensing requirements that are substantially equivalent to the requirements for] the certificate or license issued in Texas and is in good standing with that state's licensing authority who wants to practice in Texas in accordance with §55.0041, Occupations Code, must submit an application using a process acceptable to the Commission and include:

(A) a copy of the military orders showing relocation to this state; [notify the Commission of the person's intent to practice in Texas on a form approved by the Commission; and]

(B) if the applicant is a military spouse, a copy of the military spouse's marriage license; [submit a copy of the military identification card issued to the person;] and

(2) Not later than the 10th business day after the date the Commission receives an application [Upon receipt of the documents required] under paragraph (1) of this subsection, the Commission will notify the applicant that:

(A) the Commission recognizes the applicant's out-of-state license; [no later than 30 days, verify that the person is currently licensed and in good standing by another jurisdiction with substantially equivalent licensing requirements to Texas; and]

(B) the application is incomplete; or [upon confirmation from the other jurisdiction that the person is currently licensed and in good standing with that jurisdiction, issue a license to the person for the same period in which the person is licensed or certified by the other jurisdiction.]

(3) [A person may not practice in Texas in accordance with this subsection without receiving confirmation from the Commission that the Commission has verified that the person is currently licensed and in good standing with another jurisdiction. Confirmation is provided by the Commission when the person is issued a license as provided for in paragraph (2) of this subsection.]

[(5)] A [The time period for which a] person may practice under this subsection without meeting the requirements for licensure in Texas only for [is limited to the lesser of:]

[(A)] the period during which the person or person's spouse is stationed at a military installation in this state[; or]

(4) [(6)] A person authorized to practice in this state under this subsection must comply with [will] all other laws and regulations applicable to the license, including any sponsorship requirements.

(5) [(7)] In [Notwithstanding paragraph (5) of this subsection, in] the event of a divorce or similar event that affects a person's status as a military spouse, the former spouse may continue to practice for three years from the date the spouse submitted the application [of the issuance of the license] under this subsection.

(h) The purpose of this section is to establish procedures authorized or required by Texas Occupations Code, Chapter 55, and is not intended to modify or alter rights that may be provided under federal law.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502908

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

SUBCHAPTER I. LICENSE RENEWAL

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.92, Continuing Education Requirements, in Chapter 535, General Provisions.

The proposed changes are made as a result of statutory changes enacted by the 89th Legislature in SB 1968, which becomes effective January 1, 2026. SB 1968 modifies the requirements surrounding the Commission's Broker Responsibility Course. Under the language of the bill, all brokers must take the course, regardless of whether they sponsor sales agents. The changes to these provisions reflect the statutory changes.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the section as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable law.

Except as provided below, for each year of the first five years the proposed amendments are in effect, the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

The proposed changes will expand an existing regulation and increase the number of individuals subject to the rule's applicability, as required by SB 1968.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also proposed under Texas Occupations Code §1101.458, which requires the Commission to prescribe by rule the title, content, and duration of the broker responsibility course.

The statute affected by this proposal is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments.

§ 535.92. Continuing Education Requirements.

(a) Required continuing education. 18 hours of continuing education are required for each renewal of a real estate sales agent or broker license and must include:

(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) three hours on the subject of real estate contracts from one or more Commission approved courses; and

(4) a six - hour Broker Responsibility Course [broker responsibility course], if the license holder:

(A) is a broker [sponsors one or more sales agent at any time during the current license period]; or

(B) [(C)] is a delegated supervisor under §535.2(e) of this chapter (relating to Broker Responsibility).

(b) Awarding continuing education credit. The Commission will award credit to a license holder for an approved continuing education course upon receipt of a course completion roster from a CE provider as required under §535.75 of this chapter (relating to Responsibilities and Operations of Continuing Education Providers).

(c) Continuing education credit for qualifying courses. Real estate license holders may receive continuing education elective credit for qualifying real estate courses or qualifying real estate inspection courses that have been approved by the Commission or that are accepted by the Commission for satisfying educational requirements for obtaining or renewing a license. Qualifying real estate courses must be at least 30 classroom hours in length to be accepted for continuing education elective credit.

(d) Continuing education credit for course taken outside of Texas. A course taken by a Texas license holder to satisfy continuing education requirements of a country, territory, or state other than Texas may be approved on an individual basis for continuing education elective credit in Texas upon the Commission's determination that:

(1) the Texas license holder held an active real estate license in a country, territory, or state other than Texas at the time the course was taken;

(2) the course was approved for continuing education credit for a real estate license by a country, territory, or state other than Texas and, if a correspondence course, was offered by an accredited college or university;

(3) the Texas license holder's successful completion of the course has been evidenced by a course completion certificate, a letter from the provider or other proof satisfactory to the Commission;

(4) the subject matter of the course was predominately devoted to a subject acceptable for continuing education credit in Texas; and

(5) the Texas license holder has filed a Credit Request for an Out-of-State Course, with the Commission.

(e) Continuing education credit for courses offered by the State Bar. To request continuing education elective credit for real estate related courses approved by the State Bar of Texas for minimum continuing legal education participatory credit, a license holder is required to file an Individual Credit Request for State Bar Course.

(f) Continuing education credit for attendance at Commission meeting. A real estate license holder may receive up to four hours of continuing education elective credit per license period for attendance in person at a single quarterly Commission meeting. Credit will only be awarded to license holders who attend the meeting in its entirety; no partial credit for attendance will be awarded. Credit will not be awarded to license holders appearing as a party to a contested case before the Commission.

(g) Continuing education credit for instructors. Instructors may receive continuing education credit for real estate qualifying courses subject to the following guidelines:

(1) An instructor may receive credit for those segments of the course that the instructor teaches by filing an Instructor Credit Request.

(2) An instructor may receive full course credit by attending any segment that the instructor does not teach in addition to those segments the instructor does teach.

(h) Limitations. The Commission will not award credit to a license holder who attends or instructs the same course more than once during:

(1) the term of the current license period; or

(2) the two-year period preceding the filing of a renewal application for a license after the license expiration date as provided for under §535.91 of this subchapter (relating to Renewal of a Real Estate License) or return to active status as provided for under Subchapter L of this chapter (relating to Inactive License Status).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502903

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

SUBCHAPTER N. SUSPENSION AND REVOCATION OF LICENSURE

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.141, Initiation of Investigation, in Chapter 535, General Provisions.

The proposed amendments are made as a result of statutory changes enacted by the 89th Legislature in SB 1968, which becomes effective January 1, 2026. SB 1968 authorizes the Commission to provide the complaint notice sent to the respondent (the person who is the subject of a complaint) to another license holder who is associated with that respondent. The bill further provides that the Commission must adopt rules to specify who may receive this notice. The proposed changes add that a copy of a complaint notice will be sent to the broker or inspector who sponsors the respondent, as applicable, if the respondent is a sales agent or apprentice or real estate inspector, or a broker who is associated with the respondent, if the respondent is an associated broker.

The proposed changes were recommended by the Enforcement Committee.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable law.

For each year of the first five years the proposed amendments are in effect, the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also proposed under Texas Occupations Code §1101.204, as amended by SB 1968, which requires the Commission to adopt rules to specify the persons who may receive the complaint notice.

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

§ 535.141. Initiation of Investigation; Order Requirements.

(a) A complaint which names a licensed real estate sales agent as the subject of the complaint but does not specifically name the sales agent's sponsoring broker, is a complaint against the broker sponsoring the sales agent at the time of any alleged violation for the limited purposes of determining the broker's involvement in any alleged violation and whether the broker fulfilled the broker's professional responsibilities provided the complaint concerns the conduct of the sales agent as an agent for the broker.

(b) The designated broker is responsible for all real estate brokerage activities performed by, on behalf of, or through a business entity. A complaint which names a business entity licensed as a broker as the subject of the complaint but which does not specifically name the designated broker is a complaint against the designated broker at the time of any alleged violation for the limited purposes of determining the designated broker's involvement in any alleged violation and whether the designated broker fulfilled the designated broker's professional responsibilities. A complaint which names a sales agent sponsored by a licensed business entity but which does not specifically name the designated broker of the business entity is a complaint against the designated broker at the time of any alleged violation by the sales agent for the limited purposes of determining the designated broker's involvement in any alleged violation and whether the designated broker fulfilled the designated broker's professional responsibilities provided the complaint concerns the conduct of the sales agent as an agent of the business entity.

(d) [(c)] Using the criteria specified by §1101.204 of the Act, the Commission prioritizes and investigates complaints received by the Commission as follows:

(1) Level 1.

(A) Fraud or misrepresentation that involves loss of $10,000 or more.

(B) Continuing threat to public welfare.

(C) Unlicensed activity.

(2) Level 2.

(A) Fraud or misrepresentation that involves loss of less than $10,000.

(B) Negligence.

(C) Violations of Chapter 1102:

(i) 1102.301 negligence or incompetence by an inspector.

(ii) 1102.302 employment contingent on inspection report.

(iii) 1102.303 acting in conflicting capacities, i.e. inspector, broker, principal.

(iv) 1102.305 agreeing to perform repairs in connection with inspection.

(D) Violations of Standards of Practice, §§535.227 - 535.233 of this chapter.

(3) Level 3.

(A) Technical violations.

(B) Chapter 1102 complaints other than those listed in Level 2 above.

(C) Allegations involving education providers.

(e) [(d)] If information obtained during the course of an investigation of a complaint reveals reasonable cause to believe the respondents to the complaint may have committed other violations of the Act or rules, no additional authorization shall be required to investigate and take action based upon the information.

(f) [(e)] If the Commission suspends or revokes a license or probates an order of suspension or revocation against a license holder, the Commission may monitor compliance with its order and initiate action based on the authority of the original complaint or original authorization by the members of the Commission.

(g) [(f)] A person whose license has been suspended may not during the period of any suspension perform, attempt to perform, or advertise to perform any act for which a license is required by the Act or Commission rules.

(h) [(g)] A person whose license is subject to an order suspending the license must provide notice in writing not later than the third day before the date of the suspension as follows:

(1) if the person is a sales agent, notify his or her sponsoring broker in writing that his or her license will be suspended;

(2) if the person is a broker, notify any sponsored sales agent, or any business entity for which the person is designated broker that:

(A) his or her broker license will be suspended; and

(B) once the suspension is effective, any sponsored sales agent, or who is sponsored by the business entity, will no longer be authorized to engage in real estate brokerage unless:

(i) the sales agent is sponsored by another broker and files a change of sponsorship with the Commission; or

(ii) the business entity designates a new broker and files a change of designated broker with the Commission;

(3) If the person is an apprentice inspector or real estate inspector, notify his or her sponsoring professional inspector that his or her license will be suspended;

(4) if the person is a professional inspector notify any sponsored apprentice or real estate inspectors that:

(A) his or her professional inspector license will be suspended; and

(B) once the suspension is effective any sponsored apprentice or real estate inspectors will no longer be authorized to inspect any real property unless the apprentice or real estate inspectors associate with another professional inspector and file a change of sponsorship with the Commission.

(5) if the person has a contractual obligation to perform services for which a license is required by law or Commission rule, notify all other parties to the contract that the services cannot be performed during the suspension;

(6) if the person is a sales agent and is directly involved in any real estate transaction in which the sales agent acts as an agent, notify all other parties, including principals and other brokers, that the person cannot continue performing real estate brokerage services during the suspension; and

(7) if the person holds money in trust in any transaction in which the person is acting as a broker, remit such money in accordance with the instructions of the principals.

(i) [(h)] If, in conjunction with an application or disciplinary matter, an applicant or license holder agrees to automatic suspension or revocation of his or her license for failing to comply with an administrative term or requirement of an agreed order such as payment of a penalty or completion of coursework, the license may be automatically suspended or revoked with no further action by the Commission.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502904

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

SUBCHAPTER Q. ADMINISTRATIVE PENALTIES

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.191, Schedule of Administrative Penalties, in Chapter 535, General Provisions.

Commission rule §535.191 contains the schedule of administrative penalties, as required by §1101.702, Occupations Code. The rule contains three tiers of administrative penalty ranges: (i) $100 - $1,500 per violation per day; (ii) $500 - $3,000 per violation per day; and (iii) $1,000 - $5,000 per violation per day. Violations of applicable law and Commission rules are categorized within these tiers in accordance with §1101.702. Whether an administrative penalty is ultimately assessed and at what amount is determined in accordance with this statute and §535.191.

The proposed amendment to §535.191(c)(8) is made as a result of statutory changes enacted by the 89th Legislature in SB 1968, which becomes effective January 1, 2026. SB 1968 adds a requirement for a written agreement with a prospective buyer of residential real property to Chapter 1101 of the Texas Occupations Code. The bill also adds the Commission may take disciplinary action if there is a violation of this requirement. In accordance with §1101.702, this new violation is added to subsection (c)(8)--the $100 - $1,500 per violation per day penalty tier.

The proposed amendment to §535.191(c)(9) is also made as a result of SB 1968. SB 1968 requires that associated brokers provide the Commission the name of the broker they associate with. As a result, a new subsection is proposed to be added to Commission rule §535.21, Mailing Address and Other Contact Information, to reflect this requirement. The removal of the reference to subsection (a) in §535.191(c)(9) means that any violation of §535.21--including the new associated broker requirement--will fall into the first tier penalty range.

A clarifying change is made to subsection (e)(18) because of a corresponding change to §535.141, Initiation of Investigation; Order Requirements, which adds a new subsection related to SB 1968 and complaint notices.

Finally, existing violations associated with easement or right-of-way agents were added to subsections (c)(18)-(19), (d)(18)-(19), and (e)(21)-(22) and are categorized according to the criteria set forth in §1101.702.

The Commission's Enforcement Committee recommended the proposed changes.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the section as proposed is in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity and consistency in the rules.

For each year of the first five years the proposed amendments are in effect, the amendments will not:

- create or eliminate a government program;

- require the creation of new employee positions or the elimination of existing employee positions;

- require an increase or decrease in future legislative appropriations to the agency;

- require an increase or decrease in fees paid to the agency;

- create a new regulation;

- expand, limit or repeal an existing regulation;

- increase or decrease the number of individuals subject to the rule's applicability;

- positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendment is also proposed under Texas Occupations Code, §1101.702, which requires the Commission adopt by rule a schedule of administrative penalties.

The statute affected by this proposal is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendment.

§ 535.191. Schedule of Administrative Penalties.

(a) The Commission may suspend or revoke a license or take other disciplinary action authorized by the Act in addition to or instead of assessing the administrative penalties set forth in this section.

(b) The administrative penalties set forth in this section take into consideration all of the criteria listed in §1101.702(b) of the Act.

(c) An administrative penalty range of $100 - $1,500 per violation per day may be assessed for violations of the following sections of the Act and Rules:

(1) §1101.552;

(2) §1101.652(a)(3);

(3) §1101.652(a)(8);

(4) §1101.652(a-1)(3);

(5) §1101.652(b)(23);

(6) §1101.652(b)(29);

(7) §1101.652(b)(33);

(9) [(8)] 22 TAC §535.21[(a)];

(10) [(9)] 22 TAC §535.53;

(11) [(10)] 22 TAC §535.65;

(12) [(11)] 22 TAC §535.91(d);

(13) [(12)] 22 TAC §535.121;

(14) [(13)] 22 TAC §535.154;

(15) [(14)] 22 TAC §535.155;

(16) [(15)] 22 TAC §535.157; [and]

(17) [(16)] 22 TAC §535.300; [.]

(d) An administrative penalty range of $500 - $3,000 per violation per day may be assessed for violations of the following sections of the Act and Rules:

(1) §§1101.652(a)(4) - (7);

(2) §1101.652(a-1)(2);

(3) §1101.652(b)(1);

(4) §§1101.652(b)(7) - (8);

(5) §1101.652(b)(12);

(6) §1101.652(b)(14);

(7) §1101.652(b)(22);

(8) §1101.652(b)(28);

(9) §§1101.652(b)(30) - (31);

(10) §1101.654(a);

(11) 22 TAC §531.18;

(12) 22 TAC §531.20;

(13) 22 TAC §535.2;

(14) 22 TAC §535.6(c) - (d);

(15) 22 TAC §535.16;

(16) 22 TAC §535.17; [and]

(17) 22 TAC §535.144; [.]

(e) An administrative penalty range of $1,000 - $5,000 per violation per day may be assessed for violations of the following sections of the Act 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(g) [(f)];

(19) 22 TAC §§535.145 - 535.148; [and]

(20) 22 TAC §535.156; [.]

(f) The Commission may assess an additional administrative penalty of up to two times that assessed under subsections (c), (d) and (e) of this section, subject to the maximum penalties authorized under §1101.702(a) of the Act, if a person has a history of previous violations.

(g) Payment of an administrative penalty must be submitted in a manner acceptable to the Commission. Payments authorized to be submitted online may be subject to fees set by the Department of Information Resources that are in addition to the administrative penalty assessed by the Commission.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502909

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

SUBCHAPTER T. EASEMENT OR RIGHT-OF-WAY AGENTS

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.405, Employee of Owner or Purchaser, in Chapter 535, General Provisions.

The proposed amendments to §535.405 are made as a result of statutory changes enacted by the 89th Legislature in SB 1172. SB 1172 exempts additional types of transactions from license requirements under Chapter 1101, Occupations Code. The proposed changes modify existing exemption language related to employees of owners or purchasers and adds a reference to §1101.005 of the Texas Occupations Code (where the exemptions are located) for clarity.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity in the rules and consistency with applicable law.

For each year of the first five years the proposed amendments are in effect, the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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

§ 535.405. Registration Not Required [Employee of Owner or Purchaser].

(a) An easement or right-of-way registration is not required:

(1) for an employee [individual] employed by an owner or purchaser for the purpose of selling, buying, leasing or transferring an easement or right-of-way for the owner or purchaser; or

(b) A person is considered to be an owner if it holds an interest in [or wishes to acquire] an easement or right-of-way or has an equitable title or right acquired by contract with the record title holder.

(c) [(b)] An employee of [easement or right-of-way agent employed by] an owner or purchaser means a person employed and directly compensated by an owner or purchaser. An independent contractor is not an employee.

(d) [(c)] Withholding income taxes and Federal Insurance Contributions Act (F.I.C.A.) taxes from wages paid to another person is considered evidence of employment.

(e) [(d)] An employee of a business easement or right-of-way certificate holder is required to have an individual easement or right-of-way registration to sell, buy, lease, or transfer an easement or right-of-way.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502906

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

CHAPTER 537. PROFESSIONAL AGREEMENTS AND STANDARD CONTRACTS

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §537.20, Standard Contract Form TREC No. 9-17, Unimproved Property Contract; §537.22, Standard Contract Form TREC No. 11-8, Addendum for "Back-Up" Contract; §537.26 Standard Contract Form TREC No. 15-6, Seller's Temporary Residential Lease; §537.27 Standard Contract Form TREC No. 16-6, Buyer's Temporary Residential Lease; §537.28, Standard Contract Form TREC No. 20-18, One to Four Family Residential Contract (Resale); §537.30, Standard Contract Form TREC No. 23-19, New Home Contract (Incomplete Construction); §537.31, Standard Contract Form TREC No. 24-19, New Home Contract (Completed Construction); §537.32, Standard Contract Form TREC No. 25-16, Farm and Ranch Contract; §537.37, Standard Contract Form TREC No. 30-17, Residential Condominium Contract (Resale); §537.61, Standard Contract Form TREC No. 54-0, Landlord's Floodplain and Flood Notice; §537.62, Standard Contract Form TREC No. 55-0, Seller's Disclosure Notice; §537.63, Standard Contract Form TREC No. OP-L, Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law; and new rule §537.68, Standard Contract Form TREC No. 61-0, Water Notice: Seller's Disclosure about Groundwater and Surface Water Rights, in Chapter 537, Professional Agreements and Standard Contracts.

Each of the rules correspond to contract forms adopted by reference. Texas real estate license holders are generally required to use forms promulgated by TREC when negotiating contracts for the sale of real property. These forms are drafted and recommended for proposal by the Texas Real Estate Broker-Lawyer Committee, an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by TREC, and one public member appointed by the governor. The Texas Real Estate Broker-Lawyer Committee recommended revisions to the contract forms adopted by reference under the proposed amendments and new rule. The changes listed below apply to all contract forms unless specified otherwise. Paragraph numbers referenced are from the One to Four Family Residential Contract (Resale).

In Paragraph 5A(2), a definition of "Legal Holiday" has been added to provide better clarity. The term is also capitalized in the Addendum for "Back-Up" Contract.

In Paragraph 5 and the receipt page, the terms "option fee," "earnest money," and "contract" are now in lower case because they are not considered defined terms.

In the Commission's recent Special-Purpose Review by the Sunset Advisory Commission, Sunset directed the Commission to add language to contract forms to provide prospective buyers with relevant information on groundwater and surface water rights associated with a property. To that end, a new Paragraph 7(I) has been added to the contract forms and a new Water Notice: Seller's Disclosure About Groundwater and Surface Water Rights has been created.

The Sunset Advisory Commission also directed, as part of that review, that the TREC Seller's Disclosure Notice be updated to: (i) provide a prospective buyer with information on whether the property is presently covered by insurance, including windstorm insurance, and whether the current seller has been unable to insure their property for any reason; (ii) inform a prospective buyer if there is a private road on or adjoining the property that the prospective buyer would be financially responsible for maintaining; (iii) provide a prospective buyer with information on the existence of aboveground storage tanks on the property that are more than 500 gallons and have stored petroleum products or other chemicals; and (iv) tell a prospective buyer whether their property is located in a conservation easement. The Seller's Disclosure Notice is updated to reflect those directives.

In light of changes to industry practices surrounding compensation, Paragraph 12A(1)(b) and (c) are amended to clarify when such provisions should be used. Additionally, the disclosure at the bottom of Page 10 related to compensation between brokers has been removed to help eliminate confusion.

The Broker Information page has been revised, in part, due to changes made as a result of SB 1968, enacted by the 89th Legislature, which becomes effective January 1, 2026. That bill removed references to the concept of "subagency" throughout Chapter 1101, Occupations. As a result, the term "subagent" is removed from the Broker Information page and the page been further reorganized with updated formatting and terminology to better reflect industry practice, including in light of SB 1968.

The proposed changes to the Buyer's Temporary Residential Lease, the Seller's Temporary Residential Lease, and the Landlord's Floodplain and Flood Notice are made as a result of SB 2349, enacted by the 89th Legislature, which becomes effective September 1, 2025. The bill clarifies that the flood notice is not required to be provided with the temporary residential leases. As a result, the paragraph referencing that requirement in the temporary residential leases is removed and the notice at the top of the Landlord's Floodplain and Flood Notice is amended to state that the notice is not required with a "TREC Temporary Residential Lease".

The terms "Listing Broker" and "Other Broker" have been replaced with the terms "Seller's Broker" and "Buyer's Broker" in the Farm and Ranch Contract and the Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefits anticipated as a result of adopting the sections as proposed will be improved clarity and greater transparency for members of the public and license holders who use these contract forms.

For each year of the first five years the proposed amendments and new rules are in effect, the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability; or

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, Deputy General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments and new rule are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments and rules are also adopted under Texas Occupations Code, §1101.155, which authorizes the Commission to adopt rules in the public's best interest that require license holders to use contract forms prepared by the Texas Real Estate Broker-Lawyer Committee and adopted by the Commission.

The statute affected by these amendments and new rules is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments and new rules.

§ 537.20. Standard Contract Form TREC No. 9-18 [9-17], Unimproved Property Contract.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 9-18 [9-17] approved by the Commission in 2025 [2024] for mandatory use in the sale of unimproved property where the intended use is for one to four family residences.

§ 537.22. Standard Contract Form TREC No. 11-9 [11-8 ], Addendum for "Back-Up" Contract.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 11-9 [11-8] approved by the Commission in 2025 [2024] for mandatory use as an addendum to be attached to promulgated forms of contracts which are second or "back-up" contracts.

§ 537.26. Standard Contract Form TREC No. 15-7 [15-6], Seller's Temporary Residential Lease.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 15-7 [15-6] approved by the Commission in 2025 [2022] for mandatory use as a residential lease when a seller temporarily occupies property after closing.

§ 537.27. Standard Contract Form TREC No. 16-7 [16-6], Buyer's Temporary Residential Lease.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 16-7 [16-6] approved by the Commission in 2025 [2022] for mandatory use as a residential lease when a buyer temporarily occupies property before closing.

§ 537.28. Standard Contract Form TREC No. 20-19 [20-18], One to Four Family Residential Contract (Resale).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 20-19 [20-18] approved by the Commission in 2025 [2024] for mandatory use in the resale of residential real estate.

§ 537.30. Standard Contract Form TREC No. 23-20 [23-19], New Home Contract (Incomplete Construction).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 23-20 [23-19] approved by the Commission in 2025 [2024] for mandatory use in the sale of a new home where construction is incomplete.

§ 537.31. Standard Contract Form TREC No. 24-20 [24-19], New Home Contract (Completed Construction).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 24-20 [24-19] approved by the Commission in 2025 [2024] for mandatory use in the sale of a new home where construction is completed.

§ 537.32. Standard Contract Form TREC No. 25-17 [25-16], Farm and Ranch Contract.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 25-17 [25-16] approved by the Commission in 2025 [2024] for mandatory use in the sale of a farm or ranch.

§ 537.37. Standard Contract Form TREC No. 30-18 [30-17], Residential Condominium Contract (Resale).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 30-18 [30-17] approved by the Commission in 2025 [2024] for mandatory use in the resale of a residential condominium unit.

§ 537.61. Standard Contract Form TREC No. 54-1 [54-0], Landlord's Floodplain and Flood Notice.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 54-1 [54-0] approved by the Commission in 2025 [2022] for voluntary use [as an addendum to be added to a residential lease, including a promulgated temporary residential lease form,] to fulfill the disclosure requirements of §92.0135, Texas Property Code.

§ 537.62. Standard Contract Form TREC No. 55-1 [55-0], Seller's Disclosure Notice.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 55-1 [55-0] approved by the Commission in 2025 [2023] for voluntary use to fulfill the disclosure requirements of Texas Property Code §5.008.

§ 537.63. Standard Contract Form TREC No. 56-0 [OP-L], Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 56-0 [OP-L] approved by the Commission in 2025 [2011] for voluntary use to comply with federal regulation to furnish a lead paint disclosure in properties constructed prior to 1978.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 15, 2025.

TRD-202502940

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057

CHAPTER 543. RULES RELATING TO THE PROVISIONS OF THE TEXAS TIMESHARE ACT

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §543.5, Forms, in Chapter 543, Rules Relating to the Provisions of the Texas Timeshare Act.

The proposed amendments to §543.5 are made as a result of the agency's license management system project. Because of the license management system project, users will be able to provide more information and make payment to the agency utilizing an online process, rather than by submitting a paper form or check. As a result, the rule language is clarified to reflect this change. This includes the removal of references to most of the forms listed in §543.5 (the Consent to Service of Process form adopted by reference is updated with a new title to differentiate the form from other consent forms and contains terminology changes).

Abby Lee, General Counsel, has determined that for the first five-year period the proposed new rules are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed new rules. There is no significant economic cost anticipated for persons who are required to comply with the proposed new rules. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the section as proposed are in effect, the public benefit anticipated as a result of enforcing the section will be greater clarity and consistency in the rules.

For each year of the first five years the proposed new rules are in effect the new rules and amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability;

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The changes are proposed under the Texas Property Code, §221.024, which authorizes the Texas Real Estate Commission to prescribe and publish forms and adopt rules necessary to carry out the provisions of The Texas Timeshare Act.

The statute affected by this proposal is Chapter 221, Property Code. No other statute, code or article is affected by the proposed new rules.

§ 543.5. Timeshare Consent to Service of Process [Forms].

[(a)] The Commission adopts by reference the Timeshare Consent to Service of Process, Form TSR 7-1, which must [following forms to ] be used in connection with the registration [, amendment, or renewal] of a timeshare plan if the developer is a foreign corporation, limited liability company, or partnership that is not qualified to transact business in Texas. [:]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 14, 2025.

TRD-202502910

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: September 28, 2025

For further information, please call: (512) 936-3057