TITLE 22. EXAMINING BOARDS

PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 535. GENERAL PROVISIONS

SUBCHAPTER D. THE COMMISSION

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.46, Broker Responsibility Advisory Committee, in Chapter 535, General Provisions.

Section 2110.002 of the Texas Government Code requires that the composition of an advisory committee that advises a state agency regarding an industry or occupation regulated or directly affected by the agency must provide a balanced representation between: (i) the industry or occupations; and (ii) consumers of services provided by the agency, industry, or occupation. To help ensure that balanced representation, the proposed changes replace two of the broker member positions with public member positions and corresponding changes are made throughout the rule.

The Commission's Executive Committee recommends the amendments be proposed.

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 new rule. 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 the more balanced committee representation.

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 Commission requests comments on the proposal, including information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis, from any person required to comply with the proposal or any other interested person, which 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, §1101.158, which authorizes the Commission to appoint advisory committees to perform functions assigned by the Commission, as well as §1101.151, which authorizes the Commission to adopt and enforce rules necessary to administer 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.

§535.46. Broker Responsibility Advisory Committee.

(a) The Commission establishes a Broker Responsibility Advisory Committee to regularly examine issues surrounding broker responsibility within the real estate industry, make recommendations regarding possible legislative changes associated with broker responsibility, and examine Commission rules related to broker responsibility.

(b) The committee consists of 9 members appointed by the Commission as follows: [~~who must meet the following requirements:~~]

(1) Seven brokermembers who:

(A) [~~must~~] hold an active real estate broker license issued by the Commission; and

(B) [~~(2)~~] [~~members must~~] have been actively engaged in the practice of brokerage activity for at least five years prior to appointment; and [~~and be actively engaged in that practice.~~]

(2) Two members who represent the public.

(d) Appointments to the committee shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointee.

(e) Broker members [~~Members~~] of the committee serve staggered four-year terms with terms beginning on January 1. Public members of the committee serve two-year terms with terms beginning January 1.

(f) Notwithstanding subsection (e) of this section, the Commission shall initially appoint nine members as follows:

(1) three members to serve a two-year term to expire on December 31, 2026, regardless of the date the members are appointed;

(2) three members to serve a three-year term to expire on December 31, 2027, regardless of the date the members are appointed; and

(3) three members to serve a four-year term to expire on December 31, 2028, regardless of the date the members are appointed.

(g) A member whose term has expired holds office until the member's successor is appointed. If a vacancy occurs during a member's term, the Commission shall appoint a person to fill the unexpired term.

(h) At a regular meeting in January of each year, the committee shall elect from its members a presiding officer, assistant presiding officer, and secretary.

(i) The Commission may remove a committee member if the member:

(1) does not have the qualifications required by subsection (b) of this section;

(2) cannot discharge the member's duties for a substantial part of the member's term;

(3) is absent from more than half of the regularly scheduled committee meetings that the member is eligible to attend during each calendar year, unless the absence is excused by majority vote of the committee; or

(4) violates Chapter 1101 or Chapter 1102.

(j) If the executive director of the Commission has knowledge that a potential ground for removal exists, the executive director shall notify the presiding officer of the Commission that the potential ground exists.

(k) The validity of an action of the committee is not affected by the fact that it is taken when a ground for removal of a committee member exists.

(l) The committee may meet at the call of a majority of its members. The committee shall meet at the call of the Commission.

(m) A quorum of the committee consists of five members.

(n) The committee shall conduct its meetings in substantial compliance with Robert's Rules of Order.

(o) The secretary of the committee shall work with Commission staff to prepare and approve written minutes of each meeting and submit the minutes for filing with the Commission.

(p) At least twice a year, the presiding officer of the committee shall report on the activities of the committee to the Commission. The committee may submit its written recommendations concerning broker responsibility to the Commission at any time the committee deems appropriate. If the Commission submits a rule to the committee for development, the presiding officer of the committee or the presiding officer's designate shall report to the Commission after each meeting at which the proposed rule is discussed on the committee's consideration of the rule.

(q) The committee is automatically abolished on September 1, 2031, unless the Commission subsequently establishes a different date.

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 May 8, 2026.

TRD-202601973

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 21, 2026

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

SUBCHAPTER F. REQUIREMENTS FOR EDUCATION PROVIDERS, COURSES AND INSTRUCTORS FOR QUALIFYING EDUCATION

22 TAC §535.62, §535.65

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.62, Approval of Qualifying Courses; and §535.65, Responsibilities and Operations of Providers of Qualifying Courses, in Chapter 535, General Provisions.

The proposed changes are made as a result of the agency's updated license management system - the REALM Portal. The changes to §535.62 update terminology in subsection (i) for better consistency with current practice and to align language with other rules.

The changes to §535.65 update the requirements for course completion certificates (proposed to be renamed "course completion records" to more accurately capture the type of documents being provided). The REALM Portal will allow for more efficiencies and automation in the processing of qualifying real estate coursework, which currently requires a manual process that is labor intensive. A requirement to include either the student's license number or application number on the course completion record allows this automation to occur. The remaining changes to this rule also are made to align the language with the requirements currently found in §535.75, which deals with provider requirements for continuing education, and to streamline the information required to be provided by education providers to the Commission.

The Commission's Executive Committee recommends the amendments be proposed.

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 and consistency in the rules, as well as greater efficiency in agency processes.

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 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 and 1102. No other statute, code or article is affected by the proposed amendments.

§535.62. Approval of Qualifying Courses.

(a) Application for approval of a qualifying course.

(1) For each qualifying course a provider intends to offer, the provider must:

(A) submit the course application and course approval forms, including all materials required using a process acceptable to the Commission; and

(B) pay the fee required by §535.101 or §535.210 of this title.

(2) A provider may file a single application for a qualifying course offered through multiple delivery methods. A fee is required for content and examination review of each qualifying course and for each distinct delivery method utilized by a provider for that course.

(3) A provider who seeks approval of a new delivery method for a currently approved qualifying course must submit a new application and pay all required fees, including a fee for content and examination review.

(4) The Commission may:

(A) request additional information be provided to the Commission relating to an application;

(B) terminate an application without further notice if the applicant fails to provide the additional information not later than the 60th day after the Commission mails the request; and

(C) prior to approval of a proposed qualifying real estate inspector course, submit the course to the Texas Real Estate Inspector Committee for review and recommendation.

(b) Standards for course approval. To be approved as a qualifying course by the Commission, a provider must satisfy the Commission that the course:

(1) covers all topics and units for the course subject required by the Act, Chapter 1102 and this chapter;

(2) covers all units within the prescribed topic;

(3) contains sufficient content to satisfy the number of hours for which credit is being requested as evidenced by:

(A) word count studies;

(B) samples of student time studies; or

(4) will be scheduled for the full clock hours of time for which credit is awarded and presented in full hourly units;

(5) does not have daily course segments that exceed 12 hours;

(6) will be delivered by one of the following delivery methods:

(A) classroom delivery;

(B) distance education delivery; or

(C) a combination of (A) and (B) of this paragraph, if at least 50% of the combined course is offered by classroom delivery;

(7) include at a minimum, the following methods to assess a student's comprehension of the course material:

(A) topic quizzes, with at least three questions related to the subject matter in each course topic;

(B) at least one scenario-based learning exercise per every increment of 10 credit hours or less; and

(i) prevent the student from moving from one topic to the next topic until the student answers all topic quiz questions correctly and receives a passing grade on the scenario based learning exercises; and

(ii) for quiz questions answered incorrectly, employ a method to present the rationale behind the correct answer and ask a subsequent related quiz question that will count toward passing the topic if answered correctly; and

(8) include at least four versions of a final examination, and ensure that each version of the examination:

(A) covers each topic required by the Act or Rules for the specific course;

(B) does not contain any true/false questions;

(D) for all qualifying courses other than a real estate math course:

(i) consists of at least two questions per credit course hour; and

(ii) draws from a question bank consisting of at least four questions per credit course hour; and

(E) for all qualifying real estate math courses, consists of at least 20 questions that are drawn from a question bank consisting of at least 40 questions.

(c) If the course is currently certified by a distance learning certification center acceptable to the Commission, the provider will be deemed to have met requirements for verification of clock/course hours for distance education delivery.

(d) Approval of currently approved courses by a secondary provider.

(1) If a secondary provider wants to offer a course currently approved for another provider, the secondary provider must:

(A) submit, using a process acceptable to the Commission:

(i) the course application and approval forms including all materials required; and

(ii) authorization to the Commission from the owner of the rights to the course material granting permission for the secondary provider to offer the course; and

(B) pay the fee required by §535.101 or §535.210 of this title.

(2) If approved to offer the previously approved course, the secondary provider is required to:

(A) offer the course as originally approved, assume the original expiration date, include any approved revisions, use all materials required for the course; and

(B) meet the requirements of §535.65 of this title.

(e) Required revision of a currently approved qualifying course.

(1) Providers are responsible for keeping current on changes to the Act and Commission Rules and must revise or supplement materials for approved courses when changes are adopted on or before the effective date of those statutes or rules.

(2) If the Commission adopts new requirements for a course, including but not limited to a course approval form that divides selected qualifying course subjects into topics and units, the Commission will determine, at the time the Commission adopts the new requirements, whether a provider must revise the course or supplement the course. Any provider currently offering a course that is subject to change must:

(A) revise or supplement any currently approved classroom qualifying course covering that subject no later than 12 months after the effective date of the new requirements; and

(B) revise or supplement any currently approved qualifying course offered by distance or combination delivery no later than 15 months after the effective date of the new requirements.

(3) If the Commission determines that a qualifying course should be supplemented, a provider must submit the supplemental materials required by the Commission. No fee will be required and the course will maintain its original expiration date.

(4) If the Commission determines that a qualifying course should be revised, a provider must:

(A) submit the course application and approval forms including all materials required using a process acceptable to the Commission; and

(B) pay the fee required by §535.101 or §535.210 of this title.

(5) A provider may not offer a course for qualifying credit after the deadlines established by this subsection following a required revision or supplement if the provider has not received written approval from the Commission to offer the revised or supplemented course.

(6) If a provider paid a fee for the initial course approval, the provider will receive a prorated credit on the fee paid under this subsection for a revised course for the unexpired time remaining on that initial approval. The Commission will calculate the prorated credit by dividing the fee paid for the initial approval by 48 months and multiplying that amount by the number of full months remaining between the approval date of the revised course and the expiration date of the currently approved version of the course.

(7) A revised course approved under this subsection expires four years from the date of approval of the revision.

(8) No later than 90 days before the effective date of a revised or supplemented course, a provider shall send written notice to all students who have purchased the currently approved course and not completed it, that credit will no longer be given for the current course as of the effective date of the revised or supplemented course.

(9) If an approved provider fails to give the notice set out in paragraph (8) of this subsection, the provider shall allow the student to take the revised or supplemented course at no additional charge.

(f) Voluntary revision of a currently approved qualifying course.

(1) A provider who voluntarily revises a currently approved course, shall, prior to implementation of any course materials:

(A) file any updated course materials and revisions of the course outline with the Commission; and

(B) pay the fee required by §535.101 and §535.210 of this title.

(2) If after review the Commission is not satisfied with the updated course materials and revised course outline, the Commission may direct a provider to:

(A) further revise the materials;

(B) cease use of materials; or

(3) If a provider paid a fee for the initial course approval, the provider will receive a prorated credit on the fee paid under this subsection for the unexpired time remaining on that initial approval. The Commission will calculate the prorated credit by dividing the fee paid for the initial approval by 48 months and multiplying that amount by the number of full months remaining between the approval date of the revised course and the expiration date of the currently approved version of the course.

(4) A revised course approved under this subsection expires four years from the date of approval of the revision.

(5) No later than 90 days before the effective date of a revised course, a provider shall send written notice to all students who have purchased the currently approved course and not completed it, that credit will no longer be given for the current course as of the effective date of the revised course.

(6) If an approved provider fails to give the notice set out in paragraph (5) of this subsection, the provider shall allow the student to take the revised course at no additional charge.

(g) Approval and Expiration of approval.

(1) A Qualifying provider shall not offer qualifying education courses until the provider has received written notice of the approval from the Commission.

(2) A Qualifying course expires four years from the date of approval and providers must reapply and meet all current requirements of this Section to offer the course for another four years.

(3) Courses approved for use by a secondary provider under subsection (d) of this section or approved for additional delivery methods under subsection (a)(3) of this section expire on the same date that the originally approved course expires.

(h) Renewal of course approval.

(1) Not earlier than 90 days before the expiration of a course approval, a provider may apply for a renewal of course approval for another four-year period.

(2) Approval of an application to renew course approval shall be subject to the standards for initial approval set out in this section.

(3) The Commission may deny an application to renew course approval if the provider is in violation of a Commission order.

(i) Course preapproval for exempt providers.

(1) Providers exempt from approval by the Commission may submit courses to the Commission for preapproval by meeting the standards for course approval under this section, including submitting all applicable forms and fees.

(2) Any course offered by an exempt provider without preapproval by the Commission will be evaluated by the Commission to determine whether it qualifies for credit at such time as a student submits a transcript or other course completion record [~~certificate~~] to the Commission for credit.

(3) The Commission will determine whether or not a course offered by an exempt provider without preapproval by the Commission qualifies for credit using the standards set out under this section.

(4) An exempt provider may not represent that a course qualifies for credit by the Commission unless the exempt provider receives written confirmation from the Commission that the course has been preapproved for credit.

§535.65. Responsibilities and Operations of Providers of Qualifying Courses.

(a) Responsibility of Providers.

(1) A provider is responsible for:

(A) the administration of each course, including, but not limited to, compliance with any prescribed period of time for any required course topics required by the Act, Chapter 1102, and Commission rules;

(B) maintaining student attendance records and pre-enrollment agreements;

(D) proper examination administration;

(E) validation of student identity acceptable to the Commission;

(F) maintaining student course completion records;

(G) ensuring all advertising complies with subsection (c) of this section;

(H) ensuring that instructors or other persons do not recruit or solicit prospective sales agents, brokers, easement or right-of-way agents, or inspectors during course presentation; and

(I) ensuring staff is reasonably available for public inquiry and assistance.

(2) A provider may not promote the sale of goods or services during the presentation of a course.

(3) A provider may remove a student and not award credit if a student does not participate in class, or disrupts the orderly conduct of a class, after being warned by the provider or the instructor.

(4) If a provider approved by the Commission does not maintain a fixed office in Texas for the duration of the provider's approval to offer courses, the provider shall designate a resident of this state as attorney-in-fact to accept service of process and act as custodian of any records in Texas that the provider is required to maintain by this section. A power-of-attorney designating the resident must be filed with the Commission in a form acceptable to the Commission.

(b) Use of Qualified Instructor.

(1) Except as provided by this subsection, a provider must use an instructor that is currently qualified under §535.63 of this subchapter (relating to Qualifications for Instructors of Qualifying Courses) to teach the specified course.

(2) Each instructor shall be selected on the basis of expertise in the subject area of instruction and ability as an instructor.

(3) A provider shall require specialized training or work experience for instructors teaching specialized subjects such as law, appraisal, investments, taxation or home inspection.

(4) An instructor shall teach a course in substantially the same manner represented to the Commission in the instructor's manual or other documents filed with the application for course approval.

(5) A provider may use the services of a guest instructor who does not meet the instructor qualifications under §535.63 of this subchapter for qualifying real estate, easement or right-of-way, or inspector courses provided that person instructs for no more than 10% of the total course time.

(1) The following practices are prohibited:

(A) using any advertising which does not clearly and conspicuously contain the provider's name on the first page or screen of the advertising;

(B) representing that the provider's program is the only vehicle by which a person may satisfy educational requirements;

(C) conveying a false impression of the provider's size, superiority, importance, location, equipment or facilities, except that a provider may use objective information published by the Commission regarding pass rates if the provider also displays next to the passage rate in a readily noticeable fashion:

(i) A hyperlink to the Commission website's Education Provider Exam Passage Rate page labeled "TREC Provider Exam Pass Rates" for digital media; or

(ii) A URL to the Commission website's Education Provider Exam Passage Rate page labeled "TREC Provider Exam Pass Rates" for non-digital media;

(D) promoting the provider directly or indirectly as a job placement agency, unless the provider is participating in a program recognized by federal, state, or local government and is providing job placement services to the extent the services are required by the program;

(E) making any statement which is misleading, likely to deceive the public, or which in any manner tends to create a misleading impression;

(F) advertising a course under a course name other than the course name approved by the Commission; or

(G) advertising using a name that implies the course provider is the Texas Real Estate Commission, including use of the acronym "TREC", in all or part of the course provider's name.

(2) Any written advertisement by a provider that includes a fee that the provider charges for a course must display any additional fees that the provider charges for the course in the same place in the advertisement and with the same degree of prominence.

(3) The provider shall advertise a course for the full clock hours of time for which credit is awarded.

(4) The provider is responsible for and subject to sanctions for any violation of this subsection by any affiliate or other third party marketer or web hosting site associated with or used by the provider.

(d) Pre-enrollment agreements for approved providers.

(1) Prior to a student enrolling in a course, a provider approved by the Commission shall provide the student with a pre-enrollment agreement that includes all of the following information:

(A) the tuition for the course;

(B) an itemized list of any fees charged by the provider for supplies, materials, or books needed in course work;

(C) the provider's policy regarding the refund of tuition and other fees, including a statement addressing refund policy when a student is dismissed or withdraws voluntarily;

(D) the attendance requirements;

(E) the acceptable makeup procedures, including any applicable time limits and any fees that may be charged for makeup sessions;

(F) the procedure and fees, if applicable, associated with exam proctoring;

(G) the procedure and fees for taking any permitted makeup final examination or any permitted re-examination, including any applicable time limits; and

(H) the notices regarding potential ineligibility for a license based on criminal history required by §53.152, Texas Occupations Code.

(2) A pre-enrollment agreement must be signed by a representative of the provider and the student prior to commencement of the course.

(e) Refund of fees by approved provider.

(1) A provider shall establish written policies governing refunds and contingency plans in the event of course cancellation.

(2) If a provider approved by the Commission cancels a course, the provider shall:

(A) fully refund all fees collected from students within a reasonable time; or

(B) at the student's option, credit the student for another course.

(3) The provider shall inform the Commission when a student requests a refund because of a withdrawal due to the student's dissatisfaction with the quality of the course.

(4) If a provider fails to give the notice required by subsection (d)(1)(H) of this section, and an individual's application for a license is denied by the Commission because the individual has been convicted of a criminal offense, the provider shall reimburse the individual the amounts required by §53.153, Texas Occupations Code.

(f) Course materials.

(1) Before the course starts, a provider shall give each student copies of or, if a student has online access, provide online access to any materials to be used for the course.

(2) A provider shall update course materials to ensure that current and accurate information is provided to students as provided for under §535.62 of this subchapter (relating to Approval of Qualifying Courses).

(g) Presentation of courses.

(1) Classroom Delivery.

(A) The location for the course must:

(i) be conducive to instruction, such as a classroom, training room, conference room, or assembly hall that is separate and apart from work areas;

(ii) be adequate for the class size;

(iii) pose no threat to the health or safety of students; and

(iv) allow the instructor to see and hear each student and the students to see and hear the instructor, including when offered through the use of technology.

(B) The provider must:

(i) verify the identification of each student at class sign up and when signing in for each subsequent meeting of the class;

(ii) ensure the student is present for the course for the hours of time for which credit is awarded;

(iii) provide a 10 minute break per hour at least every two hours; and

(iv) not have daily course segments that exceed 12 hours.

(C) For a qualifying or non-elective continuing education classroom delivery course delivered through the use of technology where there are more than 20 students registered for the course, the provider will also use a monitor to verify identification of each student, monitor active participation of each student and facilitate questions for the instructor.

(D) Makeup Session for Classroom Courses.

(i) A provider may permit a student who attends at least two-thirds of an originally scheduled qualifying course to complete a makeup session to satisfy attendance requirements.

(ii) A member of the provider's staff must approve the makeup procedure to be followed. Acceptable makeup procedures are:

(I) attendance in corresponding class sessions in a subsequent offering of the same course; or

(II) the supervised presentation by audio or video recording of the class sessions actually missed.

(iii) A student shall complete all class makeup sessions no later than the 90th day after the date of the completion of the original course.

(iv) A student who attends less than two-thirds of the originally scheduled qualifying course is not eligible to complete a makeup session. The student shall automatically be dropped from the course with no credit.

(2) Distance Education Delivery. The provider must ensure that:

(A) the student taking all topics of the course and completing all quizzes and exercises is the student receiving credit for the course through a student identity verification process acceptable to the Commission;

(B) a qualified instructor is available to answer students' questions or provide assistance as necessary in a timely manner;

(C) a student has completed all instructional modules and attended any hours of live instruction required for a given course; and

(D) a qualified instructor is responsible for providing answers and rationale for the grading of the course work.

(3) A provider is not required to present topics in the order outlined for a course on the corresponding course approval form.

(4) The periods of time prescribed to each unit of a topic for a qualifying course as outlined on the corresponding course approval form are recommendations and may be altered to allow instructors flexibility to meet the particular needs of their students.

(5) Notwithstanding subsections (3) - (4) of this section, all units must be presented within the prescribed topic.

(h) Course examinations.

(1) The final examination given at the end of each course must be given in the manner submitted to and approved by the Commission.

(2) Final examination questions must be kept confidential and be significantly different from any quiz questions and exercises used in the course.

(3) A provider shall not permit a student to view or take a final examination before the completion of regular course work and any makeup sessions required by this section.

(4) A provider must rotate all versions of the examination required by §535.62(b)(7) of this subchapter throughout the approval period for a course in a manner acceptable to the Commission and must require an unweighted passing score of 70%.

(5) A provider must administer the examination under conditions that ensure the student taking the examination is the student who registered for and took the course.

(6) A provider may not give credit to a student who fails a final examination and a subsequent final examination as provided for in subsection (i) of this section.

(i) Subsequent final course examination.

(1) If a student fails a final course examination, a provider may permit the student to take a subsequent final examination only after the student has completed any additional course work prescribed by the provider.

(2) A student shall complete the subsequent final examination no later than the 90th day after the date the original class concludes. The subsequent final examination must be a different version of the original final examination given to the student and must comply with §535.62(b)(8) of this subchapter and subsection (h) of this section.

(3) If a student fails to timely complete the subsequent final examination as required by this subsection, the student shall be automatically dropped from the course with no credit.

(4) A student who fails the final course examination a second time is required to retake the course and the final course examination.

(j) Course completion records [~~certificate~~].

(1) Upon successful completion of a qualifying course, a provider shall submit course completion records to the Commission using a process acceptable to the Commission not sooner than the number of course credit hours has passed and not later than the 10th calendar day after the date a course is completed [~~issue a course completion certificate~~].

(2) The course completion record [~~certificate~~] shall include:

(A) the provider's name and approval number;

(B) the student's name [~~the instructor's name~~];

(D) course number [~~numbers~~];

(E) the number of [~~classroom~~] credit hours;

(F) the course delivery method;

(G) the dates the student began and completed the course; and

(H) for qualifying real estate courses completed on or after October 1, 2026, one of the following issued by the Commission:

(i) the student's license number, or

(ii) if no license number has been issued by the Commission, the student's application number [~~the printed name and signature of an official of the provider on record with the Commission~~].

(3) [~~(2)~~] A provider may withhold any official completion documentation required by this subsection from a student until the student has fulfilled all financial obligations to the provider.

(4) [~~(3)~~] A provider shall maintain adequate security against forgery for official completion documentation required by this subsection.

(k) Instructor and course evaluations.

(1) A provider shall provide each student enrolled in a course with an instructor and course evaluation form or provide a link to an online version of the form that a student can complete and submit any time after course completion.

(2) An instructor may not be present when a student is completing the evaluation form and may not be involved in any manner with the evaluation process.

(3) When evaluating an instructor or course, a provider shall use all of the questions from the evaluation form approved by the Commission, in the same order as listed on that form. A provider may add additional questions to the end of the Commission evaluation questions or request the students to also complete the provider's evaluation form.

(4) A provider shall maintain any comments made by the provider's management relevant to instructor or course evaluations with the provider's records.

(5) At the Commission's request, a provider shall produce instructor and course evaluation forms for inspection by Commission staff.

(l) Maintenance of records for a provider of qualifying courses.

(1) A provider shall maintain records of each student enrolled in a course for a minimum of four years following completion of the course, including course and instructor evaluations and student enrollment agreements.

(2) A provider shall maintain financial records sufficient to reflect at any time the financial condition of the school.

(3) A school's financial statement and balance sheets must be available for audit by Commission staff, and the Commission may require presentation of financial statements or other financial records.

(4) All records may be maintained electronically but must be in a common format that is legible and easily printed or viewed without additional manipulation or special software.

(m) Changes in ownership or operation of an approved provider of qualifying courses.

(1) An approved provider shall obtain the approval of the Commission at least 30 days in advance of any material change in the operations of the provider by submitting the Qualifying Education Provider Supplement Application using a process acceptable to the Commission, including but not limited to changes in:

(A) operations or records management; and

(B) the location of the main office and any other locations where courses are offered.

(2) An approved provider requesting approval of a change in ownership shall provide all of the following information or documents using a process acceptable to the Commission:

(A) an Education Provider Application reflecting all required information for each owner and the required fee;

(B) a Principal Information Form for each proposed new owner who holds at least 10% interest in the school;

(C) financial documents to satisfy standards imposed by §535.61 of this subchapter (relating to Approval of Providers of Qualifying Courses), including a $20,000 surety bond for the proposed new owner; and

(D) business documentation reflecting the change.

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 May 8, 2026.

TRD-202601975

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 21, 2026

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

SUBCHAPTER G. REQUIREMENTS FOR CONTINUING EDUCATION PROVIDERS, COURSES AND INSTRUCTORS

22 TAC §535.75

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.75, Responsibilities and Operations of Continuing Education Providers, in Chapter 535, General Provisions.

The changes to §535.75 update the requirements for the course completion roster (proposed to be renamed "course completion records" to more accurately capture the type of documents being provided) to streamline the information required to be provided by education providers to the Commission and to align language with other rules.

The Commission's Executive Committee recommends the amendments be proposed.

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.

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 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.

§535.75. Responsibilities and Operations of Continuing Education Providers.

(a) Except as provided by this section, CE providers must comply with the responsibilities and operations requirements of §535.65 of this chapter (relating to Responsibilities and Operations of Providers of Qualifying Courses).

(b) Use of Qualified Instructor.

(1) Except as provided by this subsection, a CE provider must use an instructor that:

(A) is currently qualified under §535.74 of this subchapter (relating to Qualifications for Continuing Education Instructors); and

(B) has expertise in the subject area of instruction and ability as an instructor;

(2) A CE instructor shall teach a course in substantially the same manner represented to the Commission in the instructor's manual or other documents filed with the application for course approval form;

(3) A CE provider may use the services of a guest instructor who is not qualified under §535.74 of this subchapter for real estate, easement or right-of-way, or inspector elective CE courses provided that:

(A) the guest instructor instructs for no more than a total of 50% of the course; and

(B) a CE instructor qualified under §535.74 of this subchapter remains in the classroom during the guest instructor's presentation.

(4) A CE provider may use the services of a guest instructor who is not qualified under §535.74 of this subchapter for 100% of a real estate, easement or right-of-way, or inspector elective CE courses provided that:

(A) The CE provider is:

(i) a public school or an accredited college or university;

(ii) a professional trade association that is approved by the Commission as a CE provider under §535.71 of this subchapter (relating to Approval of Continuing Education Providers); or

(iii) an entity exempt under §535.71 of this subchapter; and

(B) the course is supervised and coordinated by a CE instructor qualified under §535.74 of this subchapter who is responsible for verifying the attendance of all who request CE credit.

(1) For real estate CE courses, examinations are only required for non-elective CE courses and must comply with the requirements in §535.72(g) of this subchapter (relating to Approval of Non-elective Continuing Education Courses) and have a minimum of four questions per course credit hour.

(2) For inspector CE courses, examinations are only required for CE courses offered through distance education delivery and must comply with the requirements in §535.72(g) of this subchapter and have a minimum of four questions per course credit hour.

(d) Course completion records [~~roster~~]. Upon completion of a course, a CE provider shall submit course completion records [~~a class roster~~] to the Commission as outlined by this subsection.

(1) A provider shall maintain [a] course completion records [~~roster~~] and submit information contained in the records [~~roster~~] by electronic means acceptable to the Commission not sooner than the number of course credit hours has passed and not later than the 10th calendar day after the date a course is completed.

(2) A course completion record [~~roster~~] shall include:

(A) the provider's name and approval number [~~license~~];

(B) the student's name and license number [~~a list of all instructors whose services were used in the course~~];

(D) the course approval numbers;

(E) the number of [~~classroom~~] credit hours;

(F) the course delivery method; and

(G) the dates the student started and completed the course.

(3) A provider may withhold any official completion documentation required by this subsection from a student until the student has fulfilled all financial obligations to the provider.

(4) A provider shall maintain adequate security against forgery for official completion documentation required by this subsection.

(e) Maintenance of records. Maintenance of CE provider's records is governed by this subsection.

(1) A CE provider shall maintain records of each student enrolled in a course for a minimum of four years following completion of the course, including course and instructor evaluations and student enrollment agreements.

(2) All records may be maintained electronically but must be in a common format that is legible and easily printed or viewed without additional manipulation or special software.

(3) A CE provider shall maintain any comments made by the provider's management relevant to instructor or course evaluations with the provider's records.

(4) Upon request, a CE provider shall produce instructor and course evaluation forms for inspection by Commission staff.

(f) Changes in ownership or operation of an approved CE Provider. Changes in ownership or operation of an approved CE provider are governed by this subsection.

(1) An approved provider shall obtain the approval of the Commission at least 30 days in advance of any material change in the operation of the provider, including but not limited to changes in:

(A) ownership;

(B) management; and

(2) An approved provider requesting approval of a change in ownership shall provide a CE Provider Application including all required information and the required fee.

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 May 8, 2026.

TRD-202601976

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 21, 2026

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

SUBCHAPTER I. LICENSE RENEWAL

22 TAC §535.92

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

The proposed change to §535.92 updates terminology in subsection (b) (from course completion roster to course completion records) to more accurately capture the types of documents provided and to align language with other rules.

The Commission's Executive Committee recommends the amendments be proposed.

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 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 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.

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.

The Commission requests comments on the proposal, including information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis, from any person required to comply with the proposal or any other interested person, which may be submitted through the online comment submission format 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 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, if the license holder:

(A) is a broker; or

(B) 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 records [~~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 May 8, 2026.

TRD-202601977

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 21, 2026

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

SUBCHAPTER R. REAL ESTATE INSPECTORS

22 TAC §§535.223, 535.227 - 535.233

The Texas Real Estate Commission (TREC) proposes amendments to §535.227, Standards of Practice: General Provisions; §535.228, Standards of Practice: Minimum Inspection Requirements for Structural Systems; §535.229, Standards of Practice: Minimum Inspection Requirements for Electrical Systems; §535.230, Standards of Practice: Minimum Inspection Requirements for Heating, Ventilation, and Air Conditioning Systems; §535.231, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems; §535.232, Standards of Practice: Minimum Inspection Requirements for Appliances; §535.233, Standards of Practice: Minimum Inspection Requirements for Optional Systems; and §535.223, Standard Inspection Report Form, and the form adopted by reference, in Subchapter R of Chapter 535, General Provisions.

To align the rule language with the Commission's current four-year statute of limitations for investigating a complaint, the proposed amendments to §535.227 add that inspectors must maintain completed inspection reports for at least four years from the date of inspection.

The proposed amendments to §535.228(c) clarify that inspectors must inspect the roof by walking the surface of the roof, as long as safe to do so and without damaging the roof covering materials. The amendments to subsection (f) relating to exterior walls, doors, and windows require that the inspector report as deficient the presence of doors and emergency escape and rescue openings that require a key or special knowledge or effort to be more consistent with applicable safety standards. A typographical error was also corrected.

The proposed amendments to §535.229 update the requirements for electrical systems to better reflect current code requirements, including clarifying dimensions at which electrical cabinets and panel boards are not accessible, reporting as deficient equipment service receptacles within 25 feet of equipment, and reporting the absence of carbon monoxide alarms inside each sleeping room containing a fuel fired appliance.

The proposed amendments to §535.230 clarify reporting requirements when there is a lack of a permanently installed heat source and when there is present and visible exposed electrical conductors or equipment. The changes also correct a typographical error. Finally, the subsections involving range hoods and exhaust systems, mechanical exhaust systems and bathroom heaters, and dryer exhaust systems have been moved from §535.232, Standards of Practice: Minimum Inspection Requirements for Appliances, to this rule to keep ventilation related items together and for better consistency in the rule.

The proposed amendments to §535.231 update and clarify terminology, and the rule language is modified in several sections to better reflect current code requirements. The amendments also remove redundant language related to the condition of gas distribution systems.

The proposed amendments to §535.233(g) update the language related to private sewage disposal systems by clarifying what an inspector must inspect and report. The proposed amendments also add a new subsection (h) related to sewer line inspections by camera or scope to provide better guidance to inspectors and better clarity to consumers in the event an inspector performs this type of inspection.

The proposed amendments to §535.223 update the form number of the form adopted by reference (the Property Inspection Report Form). The form itself has also been updated to correct a typographical error and been modified to correspond with the changes to the rules.

The Texas Real Estate Inspector Committee recommends the proposed amendments.

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 sections are improved clarity for license holders and greater consumer protection.

Except as noted 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 amendments to §535.233(h) add new language regarding sewer line inspections by camera or scope to provide better guidance in this area.

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. The amendments to §535.223 are also proposed under Texas Occupations Code 1102.003, which requires the Commission by rule to prescribe the standard inspection form and require its use.

The statute affected by this proposal is Chapter 1102, Texas Occupations Code. No other statute, code or article is affected by the proposed amendments.

§535.223. Standard Inspection Report Form.

The Commission adopts by reference Property Inspection Report Form REI 7-7 [~~7-6~~], approved by the Commission for use in reporting inspections results. This document is published by and available from the Commission website: www.trec.texas.gov, or by writing to the Commission at Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

(1) Except as provided by this section, inspections performed for a prospective buyer or prospective seller of substantially complete one-to-four family residential property shall be reported on Form REI 7-7 [~~7-6~~] adopted by the Commission ("the standard form").

(2) If an inspector uses computer software or other means to produce an inspection report, the inspector must reproduce the text of the standard form verbatim and the spacing, borders and placement of text must be identical to the standard form.

(3) An inspector may make the following changes to the standard form:

(A) delete the line for name and license number, of the sponsoring inspector, if the inspection was performed solely by a professional inspector;

(B) change the typeface; provided that it is no smaller than a 10 point font;

(D) use legal sized (8-1/2" by 14") paper;

(E) add a cover page to the report form;

(F) add footers to each page of the report except the first page and may add headers to each page of the report;

(G) place the property identification and page number at either the top or bottom of the page;

(H) add subheadings under items, provided that the numbering of the standard items remains consistent with the standard form;

(I) list other items in the corresponding appropriate section of the report form and additional captions, letters, and check boxes for those items;

(J) delete inapplicable subsections of Section VI., Optional Systems, and re-letter any remaining subsections;

(K) delete "Other" subsections of Section I. through Section VI.;

(L) as the inspector deems necessary:

(i) allocate such space for comments in:

(I) the "Additional Information Provided by the Inspector" section; and

(II) each section provided for comments for each inspected item;

(ii) attach additional pages of comments; or

(iii) both;

(M) include a service agreement/inspection contract or contractual terms between the inspector and a client with the standard form under the "Additional Information Provided by the Inspector" section or as an attachment to the standard form;

(N) attach additional pages to the form if:

(i) it is necessary to report the inspection of a component, or system not contained in the standard form; or

(ii) the space provided on the form is inadequate for a complete reporting of the Inspection;

(O) attach additional reporting information produced by computer software so long as the standard report form is provided before that information; and

(P) Remove the Commission's logo or substitute the inspector's logo in place of the Commission's logo.

(4) The inspector shall renumber the pages of the standard form to correspond with any changes made necessary due to adjusting the space for comments or adding additional items and shall number all pages of the report, including any addenda.

(5) The inspector shall indicate, by checking the appropriate boxes on the form, whether each item was inspected, not inspected, not present, or deficient and explain the findings in the corresponding section in the body of the report form. If multiple boxes are checked, the inspector must also include an explanation as to the reason for checking multiple boxes in the applicable section of the report form.

(6) This section does not apply to the following:

(A) re-inspections of a property performed for the same client;

(B) inspections performed for or required by a lender or governmental agency;

(D) quality control construction inspections of new homes performed for builders, including phased construction inspections, inspections performed solely to determine compliance with building codes, warranty or underwriting requirements, or inspections required by a municipality and the builder or other entity requires use of a different report, and the first page of the report contains a notice either in bold or underlined reading substantially similar to the following: "This report was prepared for a builder or other entity in accordance with the builder's requirements. The report is not intended as a substitute for an inspection of the property by an inspector of the buyer's choice. Standard inspections performed by a license holder and reported on Commission promulgated report forms may contain additional information a buyer should consider in making a decision to purchase." If a report form required for use by the builder or builder's employee does not contain the notice, the inspector may attach the notice to the first page of the report at the time the report is prepared by the inspector; or

(E) an inspection of a building or addition that is not substantially complete.

§535.227. Standards of Practice: General Provisions.

(a) Scope.

(1) These standards of practice apply when a professional inspector or real estate inspector who is licensed under this chapter accepts employment to perform a real estate inspection for a prospective buyer or seller of real property.

(2) These standards of practice define the minimum requirements for a real estate inspection conducted on a one to four family unit that is substantially completed. Substantially completed means the stage of construction when a new building, addition, improvement, or alteration to an existing building can be occupied or used for its intended purpose.

(3) For the purposes of these standards of practice a real estate inspection:

(A) is a limited visual survey and basic performance evaluation of the systems and components of a building using normal controls that provides information regarding the general condition of a residence at the time of inspection;

(B) is not intended to be a comprehensive investigation or exploratory probe to determine the cause or effect of deficiencies noted by the inspector; and

(C) requires the use of reasonable and appropriate tools to satisfy the requirements of the standards of practice. However an inspection does not require the use of:

(i) specialized equipment, including but not limited to:

(I) thermal imaging equipment;

(II) moisture meters;

(III) gas or carbon monoxide detection equipment;

(IV) environmental testing equipment and devices;

(V) elevation determination devices;

(VI) ladders capable of reaching surfaces over one story above ground surfaces;

(VII) cameras or other tools used to inspect the interior of a drain or sewer line; or

(VIII) drones; or

(ii) specialized procedures, including but not limited to:

(I) environmental testing;

(II) elevation measurement;

(III) calculations; or

(IV) any method employing destructive testing that damages otherwise sound materials or finishes.

(4) These standards of practice do not prohibit an inspector from providing a higher level of inspection performance than required by these standards of practice or from inspecting components and systems in addition to those listed under the standards of practice. If an inspector provides services beyond the scope required by these standards of practice, including the use of specialized equipment, or inspects components and systems in addition to those listed under the standards of practice, the inspector must possess the competency required to do so.

(b) Definitions.

(1) Accessible--In the reasonable judgment of the inspector, capable of being approached, entered, or viewed without:

(A) hazard to the inspector;

(B) having to climb over obstacles, moving furnishings or large, heavy, or fragile objects;

(D) disassembling items other than covers or panels intended to be removed for inspection;

(E) damaging property, permanent construction or building finish; or

(F) using a ladder for portions of the inspection other than the roof or attic space.

(2) Chapter 1102--Texas Occupations Code, Chapter 1102.

(3) Component--A part of a system.

(4) Cosmetic--Related only to appearance or aesthetics, and not related to performance, operability, or water penetration.

(5) Deficiency--In the reasonable judgment of the inspector, a condition that:

(A) adversely and materially affects the performance of a system, or component; or

(B) constitutes a hazard to life, limb, or property as specified by these standards of practice.

(6) Deficient--Reported as having one or more deficiencies.

(7) Gas distribution system--All gas lines between the point of delivery and appliance shutoff valves.

(A) The point of delivery for a natural gas system is:

(i) the outlet of the service meter assembly;

(ii) the outlet of the service regulator; or

(iii) the service shut valve where a meter is not provided. Where a system shutoff valve is provided after the outlet of the service meter assembly, such valve shall be considered to be downstream of the point of delivery.

(B) The point of delivery for undiluted liquefied petroleum gas systems is the outlet of the service pressure regulator, exclusive of line gas regulators, in the system.

(8) Inspect--To operate in normal ranges using ordinary controls at typical settings, look at and examine accessible systems or components and report observed deficiencies as specified by these standards of practice.

(9) Performance--Achievement of an operation, function or configuration relative to accepted industry standard practices with consideration of age and normal wear and tear from ordinary use.

(10) Report--To provide the inspector's opinions and findings regarding systems and components required by the standards of practice.

(11) Standards of practice--§§535.227 - 535.233 of this title.

(1) operate fixed or installed equipment and appliances listed herein in at least one mode with ordinary controls at typical settings;

(2) visually inspect accessible systems or components from near proximity to the systems and components, and from the interior of the attic and crawl spaces; and

(3) complete the standard inspection report form as required by §535.222 and §535.223 of this title; and

(4) maintain each completed inspection report in a format that is readily available to the Commission for at least four years from the date of inspection.

(d) General limitations. The inspector is not required to:

(1) inspect:

(A) items other than those listed within these standards of practice;

(B) elevators;

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

(E) sub-surface drainage systems;

(F) automated or programmable control systems, automatic shutoff, photoelectric sensors, timers, clocks, metering devices, signal lights, lightning arrestor system, remote controls, security or data distribution systems, solar panels or smart home automation components; or

(G) concrete flatwork such as driveways, sidewalks, walkways, paving stones or patios;

(2) report:

(A) past repairs that appear to be effective and workmanlike except as specifically required by these standards;

(B) cosmetic or aesthetic conditions; or

(3) determine:

(A) the presence or absence of pests, termites, or other wood-destroying insects or organisms;

(B) the presence, absence, or risk of:

(i) asbestos;

(ii) lead-based paint;

(iii) mold, mildew;

(iv) corrosive or contaminated drywall "Chinese Drywall"; or

(v) any other environmental hazard, environmental pathogen, carcinogen, toxin, mycotoxin, pollutant, fungal presence or activity, or poison;

(D) the cause or source of a condition;

(E) the cause or effect of deficiencies; or

(F) any of the following issues concerning a system or component:

(i) insurability or warrantability;

(ii) suitability, adequacy, compatibility, capacity, reliability, marketability, or operating costs;

(iii) recalls, counterfeit products, or product lawsuits;

(iv) life expectancy or age;

(v) energy efficiency, vapor barriers, or thermostatic performance;

(vi) compliance with any code, listing, testing or protocol authority;

(vii) utility sources; or

(viii) manufacturer or regulatory requirements, except as specifically required by these standards;

(4) anticipate future events or conditions, including but not limited to:

(A) decay, deterioration, or damage that may occur after the inspection;

(B) deficiencies from abuse, misuse or lack of use;

(D) the consequences of the inspection or its effects on current or future buyers and sellers;

(E) common household accidents, personal injury, or death;

(F) the presence of water penetrations; or

(G) future performance of any item;

(5) operate shutoff, safety, stop, pressure or pressure-regulating valves or items requiring the use of codes, keys, combinations, or similar devices;

(6) designate conditions as safe;

(7) recommend or provide engineering, architectural, appraisal, mitigation, physical surveying, realty, or other specialist services;

(8) review historical records, installation instructions, repair plans, cost estimates, disclosure documents, or other reports;

(9) verify sizing, efficiency, or adequacy of the ground surface drainage system;

(10) verify sizing, efficiency, or adequacy of the gutter and downspout system;

(11) operate recirculation or sump pumps;

(12) remedy conditions preventing inspection of any item;

(13) apply open flame or light a pilot to operate any appliance;

(14) turn on decommissioned equipment, systems or utility services; or

(15) provide repair cost estimates, recommendations, or re-inspection services.

(e) In the event of a conflict between the general provisions set out in this section, and the specific provisions specified elsewhere in the standards of practice, specific provisions shall take precedence.

(f) Departure provision.

(1) An inspector may depart from the inspection of a component or system required by the standards of practice only if:

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

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

(i) conditions exist that prevent inspection of an item;

(ii) conditions or materials are hazardous to the health or safety of the inspector; or

(iii) the actions of the inspector may cause damage to the property; or

(D) the item is a common element of a multi-family development and is not in physical contact with the unit being inspected, such as the foundation under another building or a part of the foundation under another unit in the same building.

(2) If an inspector departs from the inspection of a component or system required by the standards of practice, the inspector shall:

(A) notify the client at the earliest practical opportunity that the component or system will not be inspected; and

(B) make an appropriate notation on the inspection report form, stating the reason the component or system was not inspected.

(3) If the inspector routinely departs from inspection of a component or system required by the standards of practice, and the inspector has reason to believe that the property being inspected includes that component or system, the inspector shall not perform the inspection of the property until the inspector notifies the client, or the prospective client, that the component or system will not be inspected.

(g) Enforcement. Failure to comply with the standards of practice is grounds for disciplinary action as prescribed by Chapter 1102.

§535.228. Standards of Practice: Minimum Inspection Requirements for Structural Systems.

(a) Foundations.

(1) The inspector shall:

(A) render a written opinion as to the performance of the foundation;

(B) report:

(i) the type of foundations; and

(ii) the vantage point from which the crawl space was inspected;

(i) binding, out-of-square, non-latching doors;

(ii) framing or frieze board separations;

(iii) sloping floors;

(iv) window, wall, floor, or ceiling cracks or separations; and

(v) rotating, buckling, cracking, or deflecting masonry cladding; and

(D) report as Deficient:

(i) deteriorated materials;

(ii) deficiencies in foundation components such as; beams, joists, bridging, blocking, piers, posts, pilings, columns, sills or subfloor;

(iii) deficiencies in retaining walls related to foundation performance;

(iv) exposed or damaged reinforcement;

(v) crawl space ventilation that is not performing; and

(vi) crawl space drainage that is not performing.

(2) The inspector is not required to:

(A) enter a crawl space or any area where headroom is less than 18 inches or the access opening is less than 24 inches wide and 18 inches high;

(B) provide an exhaustive list of indicators of possible adverse performance; or

(b) Grading and drainage.

(1) The inspector shall report as Deficient:

(A) drainage around the foundation that is not performing;

(B) deficiencies in grade levels around the foundation; and

(2) The inspector is not required to:

(A) inspect flatwork or detention/retention ponds (except as related to slope and drainage);

(B) determine area hydrology or the presence of underground water; or

(1) The inspector shall:

(A) inspect the roof covering materials by walking [~~from~~] the surface of the roof;

(B) report:

(i) type of roof coverings;

(ii) vantage point from where the roof was inspected;

(iii) evidence of water penetration; and

(iv) evidence of previous repairs to the roof covering material, flashing details, skylights and other roof penetrations; and

(i) fasteners;

(ii) adhesion;

(iii) roof covering materials;

(iv) flashing details;

(v) skylights; and

(vi) other roof penetrations.

(2) The inspector is not required to:

(A) inspect the roof by walking [~~from~~] the surface of the roof [~~level~~] if, in the inspector's reasonable judgment:

(i) the inspector cannot safely reach or stay on the roof; or

(ii) significant damage to the roof covering materials may result from walking on the roof;

(B) determine:

(i) the remaining life expectancy of the roof covering; or

(ii) the number of layers of roof covering material;

(D) exhaustively examine all fasteners and adhesion; or

(E) provide an exhaustive list of locations of deficiencies and water penetrations.

(d) Roof structures and attics.

(1) The inspector shall:

(A) report:

(i) the vantage point from which the attic space was inspected;

(ii) approximate average depth of attic insulation; and

(iii) evidence of water penetration; and

(B) report as Deficient:

(i) attic space ventilation that is not performing;

(ii) deflections or depressions in the roof surface as related to adverse performance of the framing and decking; and

(iii) missing insulation; and

(iv) deficiencies in:

(I) installed framing members and decking;

(II) attic access ladders and access openings; and

(III) attic ventilators.

(2) The inspector is not required to:

(A) enter attics or unfinished spaces where openings are less than 22 inches by 30 inches or headroom is less than 30 inches;

(B) operate powered ventilators; or

(e) Interior walls, ceilings, floors, and doors.

(1) The inspector shall:

(A) report evidence of water penetration; and

(B) report as Deficient:

(i) deficiencies in the condition and performance of doors and hardware;

(ii) deficiencies related to structural performance or water penetration; and

(iii) the absence of or deficiencies in fire separation between the garage and the living space and between the garage and its attic.

(2) The inspector is not required to:

(A) report cosmetic damage or the condition of floor, wall, or ceiling coverings; paints, stains, or other surface coatings; cabinets; or countertops; or

(B) provide an exhaustive list of locations of deficiencies and water penetrations.

(f) Exterior walls, doors, and windows.

(1) The inspector shall:

(A) report evidence of water penetration; and

(B) report as Deficient:

(i) the absence of performing emergency escape and rescue openings in all sleeping rooms;

(ii) the presence of doors and emergency escape and rescue openings that require a key or special knowledge or effort;

(iii) [~~(ii)~~] an attached garage doorway that is not equipped with self-closing or automatic closing devices;

(iv) [~~(iii)~~] a door between the residence and an attached garage that is:

(I) a solid wood door less than 1-3/8 inches thick;

(II) a solid or honeycomb core steel door less than 1-3/8 inches thick; or

(III) not a 20-minute fire-rated door;

(v) [~~(iv)~~] missing or damaged screens;

(vi) [~~(v)~~] deficiencies related to structural performance or water penetration; and

(vii) [~~(vi)~~] deficiencies in:

(I) weather stripping, gaskets or other air barrier materials;

(II) claddings;

(III) water resistant materials and coatings;

(IV) flashing details and terminations;

(V) the condition and performance of exterior doors, garage doors and hardware; and

(VI) the condition and performance of windows and components.

(2) The inspector is not required to:

(A) report the condition of awnings, blinds, shutters, security devices, or other non-structural systems;

(B) determine the cosmetic condition of paints, stains, or other surface coatings;

(D) provide an exhaustive list of locations of deficiencies and water penetrations.

(g) Exterior and interior glazing.

(1) The inspector shall report as Deficient:

(A) insulated windows that are obviously fogged or display other evidence of broken seals;

(B) deficiencies in glazing, weather stripping and glazing compound in windows and doors;

(D) the absence of fall protection at windows that are located less than 24 inches from the finished floor and greater than 72 inches from the finished grade.

(2) The inspector is not required to:

(A) exhaustively inspect insulated windows for evidence of broken seals;

(B) exhaustively inspect glazing for identifying labels; or

(h) Interior and exterior stairways.

(1) The inspector shall report as Deficient:

(A) spacing between intermediate balusters, spindles, or rails for steps, stairways, guards, and railings that permit passage of an object greater than 4 inches in diameter, except that on the open side of the staircase treads, spheres less than 4-3/8 inches in diameter may pass through the guard rail balusters or spindles; and

(B) deficiencies in steps, stairways, landings, guardrails, and handrails.

(2) The inspector is not required to exhaustively measure every stairway component.

(i) Fireplaces and chimneys.

(1) The inspector shall report as Deficient:

(A) built-up creosote in accessible areas of the firebox and flue;

(B) the presence of combustible materials in near proximity to the firebox opening;

(D) deficiencies in the:

(i) damper;

(ii) lintel, hearth, hearth extension, and firebox;

(iii) gas fixture installed in the fireplace not associated with the gas distribution system;

(iv) circulating fan;

(v) combustion air vents; and

(vi) chimney structure, termination, coping, crown, caps, and spark arrestor.

(2) The inspector is not required to:

(A) verify the integrity of the flue;

(B) perform a chimney smoke test; or

(j) Porches, Balconies, Decks, and Carports.

(1) The inspector shall:

(A) inspect:

(i) attached balconies, carports, and porches; and

(ii) abutting porches, decks, and balconies that are used for ingress and egress; and

(B) report as Deficient:

(i) on decks 30 inches or higher above the adjacent grade, spacings between intermediate balusters, spindles, or rails that permit passage of an object greater than four inches in diameter; and

(ii) deficiencies in accessible components.

(2) The inspector is not required to:

(A) exhaustively measure every porch, balcony, deck, or attached carport components; or

(B) enter any area where headroom is less than 18 inches or the access opening is less than 24 inches wide and 18 inches high.

§535.229. Standards of Practice: Minimum Inspection Requirements for Electrical Systems.

(a) Service entrance and panels.

(1) The inspector shall report as Deficient:

(A) a drop, weatherhead or mast that is not securely fastened to the building;

(B) the absence of or deficiencies in the grounding electrode system;

(D) conductors not protected from the edges of electrical cabinets, gutters, or cutout boxes;

(E) electrical cabinets and panel boards not appropriate for their location; such as a clothes closet, bathrooms or where they are exposed to physical damage;

(F) electrical cabinets and panel boards that are not accessible or do not have a minimum unobstructed workspace of 36-inches of clearance in front, 30-inches in width, and 78 inches in height [~~of them~~];

(G) deficiencies in:

(i) electrical cabinets, gutters, cutout boxes, and panel boards;

(ii) the insulation of the service entrance conductors, drip loop, separation of conductors at weatherheads, and clearances;

(iii) the compatibility of overcurrent devices and conductors;

(iv) the overcurrent device and circuit for labeled and listed 250 volt appliances;

(v) bonding and grounding;

(vi) conductors; and

(vii) the operation of installed ground-fault or arc-fault circuit interrupter devices; and

(H) the absence of:

(i) trip ties on 250 volt overcurrent devices or multi-wire branch circuit;

(ii) appropriate connections;

(iii) anti-oxidants on aluminum conductor terminations; and

(iv) main disconnecting means.

(2) The inspector is not required to:

(A) determine present or future sufficiency of service capacity amperage, voltage, or the capacity of the electrical system;

(B) conduct voltage drop calculations;

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

(E) verify the effectiveness of overcurrent devices; or

(F) operate overcurrent devices.

(b) Branch circuits, connected devices, and fixtures.

(1) The inspector shall:

(A) manually test the installed and accessible smoke and carbon monoxide alarms;

(B) report the type of branch circuit conductors; and

(i) the absence of ground-fault circuit interrupter protection in all:

(I) bathroom receptacles;

(II) garage and accessory building receptacles;

(III) outdoor receptacles;

(IV) crawl space receptacles and lighting outlets;

(V) basement receptacles;

(VI) 125 volt and 250 volt receptacles that serve the kitchen [~~countertops~~];

(VII) receptacles that are located within six feet of the outside edge of a sink, shower, or bathtub;

(VIII) 125 volt and 250 volt laundry area receptacles;

(IX) indoor damp and wet location receptacles;

~~[(X) kitchen dishwasher receptacle; and]~~

(X) [~~(XI)~~] electrically heated floors; and

(XI) equipment service receptacles within 25 feet of equipment;

(ii) the absence of arc-fault protection in the following locations:

(I) kitchens;

(II) family rooms;

(III) dining rooms;

(IV) living rooms;

(V) parlors;

(VI) libraries;

(VII) dens;

(VIII) bedrooms;

(IX) sunrooms;

(X) recreation rooms;

(XI) closets;

(XII) hallways; and

(XIII) laundry area;

(iii) the failure of operation of ground-fault circuit interrupter protection devices;

(iv) missing or damaged receptacle, switch or junction box covers;

(v) the absence of:

(I) equipment disconnects; and

(II) appropriate connections, such as copper/aluminum approved devices, if branch circuit aluminum conductors are discovered in the main or sub-panel based on a random sampling of accessible receptacles and switches;

(vi) receptacles less than five and a half feet above the floor that are not tamper resistant;

(vii) deficiencies in 125 volt receptacles by determining the:

(I) presence of power;

(II) correct polarity; and

(III) presence of grounding;

(viii) deficiencies in 250 volt receptacles by determining the:

(I) presence of power; and

(II) presence of a 3-prong receptacle;

(ix) deficiencies in:

(I) switches;

(II) bonding or grounding;

(III) wiring, wiring terminations, junction boxes, devices, and fixtures, including improper location;

(IV) doorbell and chime components; and

(V) smoke and carbon monoxide alarms;

(x) improper use of extension cords;

(xi) deficiencies in or absences of conduit, where applicable;

(xii) the absence of smoke alarms:

(I) in each sleeping room;

(II) outside each separate sleeping area in the immediate vicinity of the sleeping rooms; and

(III) in the living space of each story of the dwelling; and

(xiii) the absence of carbon monoxide alarms outside each separate sleeping area in the immediate vicinity of the sleeping rooms when either of the following conditions exist:

(I) fuel fired appliance are installed in the dwelling; or

(II) an attached garage with an opening into the dwelling unit; and[.]

(xiv) the absence of carbon monoxide alarms inside each sleeping room containing a fuel fired appliance.

(2) The inspector is not required to:

(A) inspect low voltage wiring;

(B) disassemble mechanical appliances;

(D) verify interconnectivity of smoke alarms;

(E) activate smoke or carbon monoxide alarms that are or may be monitored or require the use of codes;

(F) verify that smoke alarms are suitable for the hearing-impaired;

(G) remove the covers of junction, fixture, receptacle or switch boxes unless specifically required by these standards; or

(H) test arc-fault circuit interrupter devices when the property is occupied or damage to personal property may result, in the inspector's reasonable judgment.

§535.230. Standards of Practice: Minimum Inspection Requirements for Heating, Ventilation, and Air Conditioning Systems.

(a) Heating equipment.

(1) General requirements. The inspector shall:

(A) report:

(i) the type of heating systems; and

(ii) the energy sources; and

(B) report as Deficient:

(i) inoperative units;

(ii) deficiencies in the thermostats;

(iii) inappropriate location;

(iv) the lack of protection from physical damage;

(v) burners, burner ignition devices or heating elements, switches, and thermostats that are not a minimum of 18 inches above the lowest garage floor elevation, unless the unit is listed for garage floor installation;

(vi) the absence of an opening that would allow access to equipment for inspection, service, repair or replacement without removing permanent construction or building finish;

(vii) when applicable; a floored passageway and service platform that would allow access for equipment inspection, service, repair or replacement; [~~and~~]

(viii) deficiencies in mounting and performance of window and wall units; and[.]

(ix) the lack of a permanently installed heat source.

(2) Requirements for electric units. The inspector shall report deficiencies in:

(A) performance of heat pumps;

(B) performance of heating elements; and

(3) Requirements for gas units. The inspector shall report as Deficient:

(A) gas leaks at [in] the heating equipment not associated with the gas distribution system;

(B) flame impingement, uplifting flame, improper flame color, or excessive scale buildup; and

(i) combustion, and dilution air; and

(ii) the vent pipe, draft hood, draft, proximity to combustibles, and vent termination point and clearances.

(b) Cooling equipment.

(1) Requirements for cooling units other than evaporative coolers.

(A) the inspector shall:

(i) report the type of systems;

(ii) measure and report the temperature difference between the supply air and the returned air or report industry-accepted method used to determine performance; and

(iii) generally report extraneous factors or conditions, present on the day of the inspection, that would adversely impact the temperature differential of an otherwise performing unit; and

(B) the inspector shall report as Deficient:

(i) inoperative units;

(ii) deficiencies in the performance of the cooling system that:

(I) fails to achieve a 15 degrees Fahrenheit to 22 degrees Fahrenheit temperature differential; or

(II) fails to cool adequately as determined by other industry-accepted methods;

(iii) the absence of an opening that would allow access to equipment for inspection, service, repair or replacement without removing permanent construction or building finish;

(iv) when applicable; a floored passageway and service platform that would allow access for equipment inspection, service, repair or replacement;

(v) noticeable vibration of blowers or fans;

(vi) water in the auxiliary/secondary drain pan;

(vii) a primary drain pipe that discharges in a sewer vent;

(viii) missing or deficient refrigerant pipe insulation;

(ix) dirty coils, where accessible;

(x) condensing units lacking adequate clearances or air circulation or that has deficiencies in the fins, location, levelness, or elevation above grade surfaces; and

(xi) deficiencies in:

(I) the condensate drain and auxiliary/secondary pan and drain system;

(II) mounting and performance of window or wall units; and

(III) thermostats.

(2) Requirements for evaporative coolers.

(A) the inspector shall report:

(i) type of systems; and

(ii) the type of water supply line; and

(B) the inspector shall report as Deficient:

(i) inoperative units;

(ii) inadequate access and clearances;

(iii) deficiencies in performance or mounting;

(iv) missing or damaged components;

(v) the presence of active water leaks; and

(vi) the absence of backflow prevention.

(1) the inspector shall report as Deficient:

(A) damaged duct systems or improper material;

(B) damaged or missing duct insulation;

(D) the presence of gas piping and sewer vents concealed in ducts, plenums and chases;

(E) present and visible exposed electrical conductors or equipment;

(F) [~~(E)~~] ducts or plenums in contact with earth; and

(G) [~~(F)~~] deficiencies in:

(i) filters;

(ii) grills or registers; and

(iii) the location of return air openings.

(d) For heating, ventilation, and air conditioning systems inspected under this section, the inspector is not required to perform the following actions:

(1) program digital thermostats or controls;

(2) inspect:

(A) for pressure of the system refrigerant, type of refrigerant, or refrigerant leaks;

(B) winterized or decommissioned equipment; or

(C) duct fans, humidifiers, dehumidifiers, air purifiers, motorized dampers, electronic air filters, multi-stage controllers, sequencers, heat reclaimers, wood burning stoves, boilers, oil-fired units, supplemental heating appliances, de-icing provisions, or reversing valves;

(3) operate:

(A) setback features on thermostats or controls;

(B) radiant heaters, steam heat systems, or unvented gas-fired heating appliances; or

(i) cooling equipment when the outdoor temperature is less than 60 degrees Fahrenheit; and

(ii) heat pumps, in the heat pump mode, when the outdoor temperature is above 70 degrees Fahrenheit;

(4) verify:

(A) compatibility of components;

(B) tonnage and manufacturer match of indoor coils and outside coils or condensing units;

(D) the integrity of the heat exchanger; or

(5) determine:

(A) sizing, efficiency, or adequacy of the system;

(B) balanced air flow of the conditioned air to the various parts of the building; or

(e) Range hoods and exhaust systems. The inspector shall report as Deficient:

(1) inoperative units;

(2) deficiencies in performance or mounting;

(3) missing or damaged components;

(4) ducts that do not terminate outside the building, if the unit is not of a re-circulating type or configuration; and

(5) improper duct material.

(f) Mechanical exhaust systems and bathroom heaters. The inspector shall report as Deficient:

(1) the lack of mechanical ventilation in a bathroom if no operable window is present;

(2) inoperative units;

(3) deficiencies in performance or mounting;

(4) missing or damaged components;

(5) ducts that do not terminate outside the building; and

(6) a gas heater that is not vented to the exterior of the building unless the unit is listed as an unvented type.

(g) Dryer exhaust systems. The inspector shall report as Deficient:

(1) missing or damaged components;

(2) the absence of a dryer exhaust system when provisions are present for a dryer;

(3) ducts that do not terminate to the outside of the building;

(4) screened terminations; and

(5) ducts that are not made of metal with a smooth interior finish.

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

(a) Plumbing systems.

(1) The inspector shall:

(A) report:

(i) location of water meter;

(ii) location of homeowners main water supply shutoff valve; and

(iii) static water pressure;

(iv) visible material used for water supply lines and drain lines;

(B) report as Deficient:

(i) the presence of active leaks;

(ii) water pressure exceeding 80 PSI;

(iii) the lack of a pressure reducing valve when the water pressure exceeds 80 PSI;

(iv) the lack of a visible expansion control device [~~tank~~] when a pressure reducing valve, check valve, or backflow preventer is in place at the water supply line/system;

(v) the absence of:

(I) fixture shutoff valves;

(II) dielectric unions, when applicable;

(III) back-flow devices, including when irrigation systems are installed, anti-siphon devices, or air gaps at the flow end of fixtures; and

(vi) deficiencies in:

(I) water supply pipes and waste pipes;

(II) the installation and termination of the vent system;

(III) the performance of fixtures and faucets not connected to an appliance;

(IV) water supply, as determined by viewing functional flow in two fixtures operated simultaneously;

(V) fixture drain performance;

(VI) orientation of hot and cold faucets;

(VII) installed mechanical drain stops; and

(VIII) commodes, fixtures, showers, tubs, and enclosures.[~~; and~~]

~~[(IX) the condition of the gas distribution system.]~~

(2) The inspector is not required to:

(A) operate any main, branch, or shut-off valves;

(B) operate or inspect sump pumps or waste ejector pumps;

(i) the bathtub overflow;

(ii) clothes washing machine drains or hose bibbs; or

(iii) floor drains;

(D) inspect:

(i) any system that has been winterized, shut down or otherwise secured;

(ii) circulating pumps, free-standing appliances, solar water heating systems, water-conditioning equipment, filter systems, water mains, private water supply systems, water wells, pressure tanks, sprinkler systems, swimming pools, or fire sprinkler systems;

~~[(iii) inaccessible gas supply system components for leaks;]~~

(iii) [~~(iv)~~] for sewer clean-outs; or

(iv) [~~(v)~~] for the presence or performance of private sewage disposal systems; or

(E) determine:

(i) quality, potability, or volume of the water supply; or

(ii) effectiveness of backflow or anti-siphon devices.

(b) Water heaters.

(1) General Requirements.

(A) The inspector shall:

(i) report:

(I) the energy source;

(II) the capacity of the units;

(ii) report as Deficient:

(I) inoperative units;

(II) leaking or corroded fittings or tanks;

(III) damaged or missing components;

(IV) the absence of a cold water shutoff valve;

(V) if applicable, the absence of a pan or a pan drain system that does not terminate over a waste receptor or to the exterior of the building above the ground surface;

(VI) inappropriate locations;

(VII) the lack of protection from physical damage;

(VIII) burners, burner ignition devices or heating elements, switches, or thermostats that are not a minimum of 18 inches above the lowest garage floor elevation, unless the unit is listed for garage floor installation;

(IX) the absence of an opening that would allow access to equipment for inspection, service, repair or replacement without removing permanent construction or building finish;

(X) when applicable; a floored passageway and service platform that would allow access for equipment inspection, service, repair or replacement;

(XI) the absence of or visible deficiencies in the temperature and pressure relief valve and discharge piping; and

(XII) a temperature and pressure relief valve that failed to operate, when tested manually.

(B) The inspector is not required to:

(i) verify the effectiveness of the temperature and pressure relief valve, discharge piping, or pan drain pipes;

(ii) operate the temperature and pressure relief valve if the operation of the valve may, in the inspector's reasonable judgment, cause damage to persons or property; or

(iii) determine the efficiency or adequacy of the unit.

(2) Requirements for electric units. The inspector shall report as Deficient deficiencies in:

(A) performance of heating elements; and

(B) condition of conductors; and

(3) Requirements for gas units. The inspector shall report as Deficient:

(A) gas leaks in water heater not associated with the gas distribution system;

(B) flame impingement, uplifting flame, improper flame color, or excessive scale build-up; and

(i) combustion and dilution air; and

(ii) vent pipe, draft hood, draft, proximity to combustibles, and vent termination point and clearances; and[.]

(iii) pan and pan materials.

(1) The inspector shall report as Deficient:

(A) inoperative units;

(B) the presence of active leaks;

(D) missing and damaged components;

(E) the absence of an opening that would allow access to equipment for inspection, service, repair or replacement without removing permanent construction or building finish; and

(F) the absence or failure of operation of ground-fault circuit interrupter protection devices; and[.]

(G) a pump motor, blower, or other electrical equipment that lacks bonding.

(2) The inspector is not required to determine the adequacy of self-draining features of circulation systems.

(d) Gas distribution systems.

(1) The inspector shall:

(A) report:

(i) location of gas meter; and

(ii) visible material used for gas distribution system;

(B) report as Deficient:

(i) noticeable gas leaks;

(ii) the absence of a gas shutoff valve within six feet of the appliance;

(iii) the absence of a gas appliance connector or one that exceeds six feet in length;

(iv) gas appliance connectors that are concealed within or extended through walls, floors, partitions, ceilings or appliance housings;

(v) deficiencies in:

(I) gas shutoff valves;

(II) access to a gas shutoff valves that prohibits full operation;

(III) gas appliance connector materials; and

(IV) the condition and type of gas distribution lines and fittings;

(vi) lack of visible bonding on gas distribution system, including corrugated stainless steel tubing (CSST); and

(vii) lack of visible sediment traps.

(2) Specific limitation for gas lines. The inspector is not required to:

(A) inspect:

(i) sacrificial anode bonding or for its existence; or

(ii) inaccessible gas supply system components for leaks;

(B) pressurize or test gas system, drip legs or shutoff valves;

(D) light or ignite pilot flames.

§535.232. Standards of Practice: Minimum Inspection Requirements for Appliances.

(a) Dishwashers. The inspector shall report as Deficient:

(1) inoperative units;

(2) deficiencies in performance or mounting;

(3) rusted, missing or damaged components;

(4) the presence of visible active water leaks; and

(5) the absence of visible backflow prevention.

(b) Food waste disposers. The inspector shall report as Deficient:

(1) inoperative units;

(2) deficiencies in performance or mounting;

(3) missing or damaged components; and

(4) the presence of visible active water leaks.

[(c) Range hoods and exhaust systems. The inspector shall report as Deficient:]

[(1) inoperative units;]

[(2) deficiencies in performance or mounting;]

[(3) missing or damaged components;]

[(4) ducts that do not terminate outside the building, if the unit is not of a re-circulating type or configuration; and]

[(5) improper duct material.]

(1) inoperative units;

(2) missing or damaged components;

(3) combustible material within thirty inches above the cook top burners;

(4) absence of an anti-tip device, if applicable;

(5) gas leaks in the gas range, cooktops and ovens not associated with the gas distribution system; and

(6) deficiencies in:

(A) thermostat accuracy (within 25 degrees Fahrenheit at a setting of 350 degrees Fahrenheit); and

(B) mounting and performance.

(d) [~~(e)~~] Microwave ovens. The inspector shall inspect built-in units and report as Deficient:

(1) inoperative units;

(2) deficiencies in performance or mounting; and

(3) missing or damaged components.

[(f) Mechanical exhaust systems and bathroom heaters. The inspector shall report as Deficient:]

[(1) the lack of mechanical ventilation in a bathroom if no operable window is present;]

[(2) inoperative units;]

[(3) deficiencies in performance or mounting;]

[(4) missing or damaged components;]

[(5) ducts that do not terminate outside the building; and]

[(6) a gas heater that is not vented to the exterior of the building unless the unit is listed as an unvented type.]

(e) [~~(g)~~] Garage door operators. The inspector shall report as Deficient:

(1) inoperative units;

(2) deficiencies in performance or mounting;

(3) missing or damaged components;

(4) installed photoelectric sensors located more than six inches above the garage floor;

(5) deficiencies in performance or absence of auto reversing mechanisms and manual detachment device; and

(6) door locks or side ropes that have not been removed or disabled.

[(h) Dryer exhaust systems. The inspector shall report as Deficient:]

[(1) missing or damaged components;]

[(2) the absence of a dryer exhaust system when provisions are present for a dryer;]

[(3) ducts that do not terminate to the outside of the building;]

[(4) screened terminations; and]

[(5) ducts that are not made of metal with a smooth interior finish.]

(f) [~~(i)~~] General provisions. The inspector is not required to:

(1) operate or determine the condition of other auxiliary components of inspected items;

(2) test for microwave oven radiation leaks;

(3) inspect self-cleaning functions;

(4) disassemble appliances;

(5) determine the adequacy of venting systems;

(6) determine proper routing and lengths of duct systems;

(7) operate or determine the condition of clothes washer, clothes dryer, or refrigerator; or

(8) operate or determine the condition of other built in appliances, except as provided for under §535.233(h), of this title.

§535.233. Standards of Practice: Minimum Inspection Requirements for Optional Systems.

(a) An inspector is not required to inspect the components or systems described under this section.

(b) If an inspector agrees to inspect a component or system described under this section, the general provisions under §535.227 of this title and the provisions and requirements of this section applicable to that component or system apply.

(1) The inspector shall:

(A) manually operate all zones or stations on the system through the controller;

(B) report as Deficient:

(i) the absence of a rain or moisture sensor,

(ii) inoperative zone valves;

(iii) surface water leaks;

(iv) the absence of a backflow prevention device;

(v) the absence of shutoff valves between the water meter and backflow device;

(vi) deficiencies in the performance and mounting of the controller;

(vii) missing or damaged components; and

(viii) deficiencies in the performance of the water emission devices; such as, sprayer heads, rotary sprinkler heads, bubblers or drip lines.

(2) The inspector is not required to inspect:

(A) for effective coverage of the irrigation system;

(B) the automatic function of the controller;

(D) sizing and effectiveness of backflow prevention device; or

(E) report on the performance of an underground zone.

(d) Swimming pools, spas, hot tubs, and equipment.

(1) The inspector shall:

(A) report the type of construction;

(B) report as Deficient:

(i) the presence of a single blockable main drain (potential entrapment hazard);

(ii) a pump motor, blower, or other electrical equipment that lacks bonding;

(iii) the absence of or deficiencies in safety barriers;

(iv) water leaks in above-ground pipes and equipment;

(v) the absence or failure in performance of ground-fault circuit interrupter protection devices; and

(vi) deficiencies in:

(I) surfaces;

(II) tiles, coping, and decks;

(III) slides, steps, diving boards, handrails, and other equipment;

(IV) drains, skimmers, and valves;

(V) filters, gauges, pumps, motors, controls, and sweeps;

(VI) lighting fixtures; and

(VII) the pool heater that these standards of practice require to be reported for the heating system.

(2) The inspector is not required to:

(A) disassemble filters or dismantle or otherwise open any components or lines;

(B) operate valves;

(D) fill the pool, spa, or hot tub with water;

(E) inspect any system that has been winterized, shut down, or otherwise secured;

(F) determine the presence of sub-surface water tables;

(G) determine the effectiveness of entrapment covers;

(H) determine the presence of pool shell or sub-surface leaks; or

(I) inspect ancillary equipment such as computer controls, covers, chlorinators or other chemical dispensers, or water ionization devices or conditioners other than required by this section.

(e) Outbuildings.

(1) The inspector shall report as Deficient the absence or failure in performance of ground-fault circuit interrupter protection devices in grade-level portions of unfinished accessory buildings used for storage or work areas, boathouses, and boat hoists; and

(2) The inspector shall report as Deficient deficiencies in the structural, electrical, plumbing, heating, ventilation, and cooling systems that these standards of practice require to be reported for the principal building.

(f) Private water wells.

(1) The inspector shall:

(A) operate at least two fixtures simultaneously;

(B) recommend or arrange to have performed coliform testing;

(i) the type of pump and storage equipment;

(ii) the proximity of any known septic system; and

(D) report as Deficient deficiencies in:

(i) water pressure and flow and performance of pressure switches;

(ii) the condition of accessible equipment and components; and

(iii) the well head, including improper site drainage and clearances.

(2) The inspector is not required to:

(A) open, uncover, or remove the pump, heads, screens, lines, or other components of the system;

(B) determine the reliability of the water supply or source; or

(g) Private sewage disposal systems.

(1) The inspector shall:

(A) inspect:

(i) by opening panels, lids, covers, risers or manholes intended for service or inspection;

(ii) visible system components, including the interior of the tanks; and

(iii) by excavating a lid, cover, riser, or manhole if it is below grade; and

(B) [~~(A)~~] report:

(i) the type of system;

(ii) the location of the drain or distribution field; and

(iii) the proximity of any known water wells, underground cisterns, water supply lines, bodies of water, sharp slopes or breaks, easement lines, property lines, soil absorption systems, swimming pools, or sprinkler systems; and

(iv) any components of the system that were not accessible and could not be inspected; and

(i) visual or olfactory evidence of effluent seepage or flow at the surface of the ground;

(ii) inoperative aerators, [or] dosing pumps, floats, alarms, or control panels; and

(iii) deficiencies in:

(I) accessible components;

(II) functional flow;

(III) site drainage and clearances around or adjacent to the system; and

(IV) the aerobic discharge system;[.]

(iv) the absence of fasteners in plastic risers or lids; and

(v) the absence of safety barriers in the risers.

(2) The inspector is not required to:

~~[(A) excavate or uncover the system or its components;]~~

(A) [~~(B)~~] determine the size, adequacy, or efficiency of the system; or

(B) [~~(C)~~] determine the type of construction used.

(h) Sewer line inspections by camera or scope.

(1) The inspector shall:

(A) inspect the drain line by camera or scope from the cleanout or other access point to the city's sewer connection or a septic tank, and the end of the accessible interior drain line;

(B) report pipe material; and

(i) blockages, debris, cracks, or root intrusion;

(ii) deterioration, corrosion, misalignment or other damage to the condition of the pipe;

(iii) bellies or sagging sections of the pipe where waste can collect;

(iv) improper slope;

(v) evidence of leaking; and

(vi) separated joints.

(2) The inspector is not required to:

(A) inspect all branches of drains, waste, or vent lines;

(B) inspect from a roof vent;

(D) inspect portions of the drain line over 100' from a cleanout or access point; or

(E) inspect portions past obstructions that, in the inspector's opinion, risk damage to the inspector's equipment.

(i) [~~(h)~~] Other built-in appliances. The inspector shall report deficiencies in condition or operation of other built-in appliances not listed under §535.232 of this title.

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 May 8, 2026.

TRD-202601978

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: June 21, 2026

For further information, please call: (512) 936-3092