TITLE 22. EXAMINING BOARDS

PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 533. PRACTICE AND PROCEDURE

SUBCHAPTER B. GENERAL PROVISIONS RELATING TO PRACTICE AND PROCEDURE

22 TAC §533.11

The Texas Real Estate Commission (TREC) proposes a new 22 TAC §533.11, Temporary Suspensions, in Chapter 533, Practice and Procedure.

Sections 1101.662 and 1102.408 of the Texas Occupations Code require the Commission to temporarily suspend a license when a license holder's continued practice would constitute a continuing threat to the public welfare. The new rule is proposed to clarify the process as to when and how a temporary suspension is utilized.

The proposed new rule was recommended by the Commission's Enforcement Committee.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed new rule 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 new rule. 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 greater accuracy and clarity in the rules.

Except as otherwise provided, for each year of the first five years the proposed new rule is in effect, the rule will not:

create or eliminate a government program;

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

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

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

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 proposal technically create a new regulation, however, the authority and general process to issue a temporary suspension currently exists under sections 1101.662 and 1102.408, Occupations Code.

The Commission requests comments on the proposal, including information related to the cost, benefit, or effect of the proposal, 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 new rule 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 new rule is also proposed under Texas Occupations Code, §§1101.662 and 1102.408 which require the Commission to temporarily suspend a license when a license holder's continued practice would constitute a continuing threat to the public welfare.

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

§533.11. Temporary Suspensions.

(a) Disciplinary Panel.

(1) The three Commission members of the Enforcement Committee appointed by the chair of the Commission shall serve as the disciplinary panel (the "Panel") under §1101.662 and §1102.408, Texas Occupations Code.

(2) The chair of the Commission may appoint a Commission member to act as an alternate member of the Panel in the event a member of the Panel is recused or unable to attend a temporary suspension proceeding.

(b) Motion for Temporary Suspension.

(1) Commission staff may request the Panel temporarily suspend a license in accordance with paragraph (2) of this subsection if:

(A) the Commission has opened a complaint against a license holder; and

(B) credible evidence shows:

(i) a license holder may continue to engage in conduct that may violate Chapters 1101 or 1102, Texas Occupations Code, ("Chapters 1101 or 1102") or Commission rules; and

(ii) the license holder's conduct involves recent or current activity requiring a license under Chapters 1101 or 1102.

(2) Commission staff must request a temporary suspension proceeding in writing by filing a motion for temporary suspension with the Commission's general counsel.

(c) Temporary Suspension Proceeding.

(1) The Panel shall post notice of the temporary suspension proceeding pursuant to §551.045 of the Texas Government Code and §1101.662(d) or §1102.408(d), Texas Occupations Code, and hold the temporary suspension proceeding as soon as possible.

(2) The Panel may make a determination regarding a temporary suspension without notice to the license holder or hearing pursuant to §1101.662(c) or §1102.408(c), Texas Occupations Code, or may, if appropriate in the judgment of the chair of the Panel, provide the license holder with three days' notice of a temporary suspension hearing.

(3) The requirement under §1101.662(c)(1) or §1102.408(c)(1), Texas Occupations Code, that "institution of proceedings for a contested case hearing is initiated simultaneously with the temporary suspension" is satisfied if, on the same day the motion for temporary suspension is filed under subsection (b)(2) of this section, the licensed holder that is the subject of the temporary suspension motion, and SOAH, as applicable, is sent a Notice of Alleged Violation that alleges facts precipitating the need for a temporary suspension.

(4) The Panel may receive information, including testimony, in oral or written form.

(5) Documentary evidence must be submitted to the Commission's general counsel in electronic format at least 24 hours in advance of the time posted for the temporary suspension proceeding in all cases where the Panel will be meeting via teleconference.

(6) If a hearing is held following notice to a license holder, oral arguments will be conducted in accordance with the following:

(A) Commission staff will have the burden of proof and shall open and close.

(B) The party responding to the motion for temporary suspension may offer rebuttal arguments.

(C) Parties may request an opportunity for additional rebuttal subject to the discretion of the chair of the Panel.

(D) The chair of the Panel may set reasonable time limits for any oral arguments and evidence to be presented by the parties.

(E) The Panel may question witnesses and attorneys at the members' discretion.

(F) Information, including testimony, that is clearly irrelevant, unreliable, or unduly inflammatory will not be considered

(7) A temporary suspension proceeding is ancillary to a disciplinary proceeding regarding alleged violations of Chapters 1101 or 1102, Texas Occupations Code, or Commission rules and is not dispositive concerning any such violations.

(d) Determination by Panel.

(1) The determination of the Panel may be based not only on evidence admissible under the Texas Rules of Evidence, but may be based on evidence that is:

(A) necessary to ascertain facts not reasonably susceptible of proof under those rules;

(B) not precluded by statute; and

(C) of a type on which a reasonably prudent person commonly relies in the conduct of the person's affairs.

(2) The Panel shall temporarily suspend a license if the Panel determines from information presented to the Panel that the license holder's continued practice would constitute a continuing threat to the public welfare in accordance with §1101.662 and §1102.408, Texas Occupations Code, and this section.

(e) Temporary Suspension Order.

(1) If the Panel suspends a license, it shall do so by order and the suspension shall remain in effect for the period of time stated in the order, not to exceed the date a final order issued by the Commission in the underlying contested case proceeding becomes effective.

(2) The Panel order must recite the factual and legal basis for imminent peril warranting temporary suspension.

(f) Motion for Rehearing on the Temporary Suspension.

(1) If credible and verifiable information that was not presented to the Panel at a temporary suspension proceeding, which contradicts information that influenced the decision of the Panel to order a temporary suspension, is subsequently presented to the Panel with a motion for rehearing on the suspension, the chair of the Panel will schedule a rehearing on the matter.

(2) The chair of the Panel will determine, in the chair's sole discretion, whether the new information meets the standard set out in this subsection.

(3) A rehearing on a temporary suspension will be limited to presentation and rebuttal of the new information.

(4) The chair of the Panel may set reasonable time limits for any oral arguments and evidence to be presented by the parties.

(5) Panel members may question witnesses and attorneys.

(6) Evidence that is clearly irrelevant, unreliable, or unduly inflammatory will not be considered.

(7) Any temporary suspension previously ordered will remain in effect, unless the Panel holds a rehearing on the matter and issues a new order rescinding the temporary suspension.

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 November 6, 2025.

TRD-202504039

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: December 21, 2025

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

CHAPTER 535. GENERAL PROVISIONS

SUBCHAPTER R. REAL ESTATE INSPECTORS

22 TAC §535.214

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §535.214, Education and Experience Requirements for a License, in Chapter 535, General Provisions.

The proposed changes clarify that qualifying education must be completed prior to beginning the Texas Practicum. This proposal helps ensure that applicants have foundational knowledge that can be applied to the Practicum's required inspections.

The proposed changes were recommended by the Texas Real Estate Inspector Committee.

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

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

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

create or eliminate a government program;

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

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

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

create a new regulation;

expand, limit or repeal an existing regulation;

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

positively or adversely affect the state's economy.

The Commission requests comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, 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, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also proposed under Texas Occupations Code, §1102.111, which authorizes the Commission to provide by rule for the substitution of relevant experience and additional education in obtaining a license.

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

§535.214. Education and Experience Requirements for a License.

(a) Sponsored Experience and Education Requirements for a Real Estate Inspector License. To become licensed as a real estate inspector a person must:

(1) satisfy the 90-hour education requirement for licensure by completing the following coursework:

(A) Property and Building Inspection Module I, total 40 hours;

(B) Property and Building Inspection Module II, total 40 hours; and

(C) Business Operations and Professional Responsibilities Module, total 10 hours;

(2) have been licensed as an apprentice inspector on active status for a total of at least three months within the 12 month period before the filing of the application;

(3) complete 25 inspections; and

(4) pass the licensure examinations set out in §535.209 of this subchapter (relating to Examinations).

(b) Sponsored Experience and Education Requirements for a Professional Inspector License. To become licensed as a professional inspector, a person must:

(1) satisfy the 134-hour education requirement for licensure by completing the following coursework:

(A) Property and Building Inspection Module I, total 40 hours;

(B) Property and Building Inspection Module II, total 40 hours;

(C) Business Operations and Professional Responsibilities Module, total 10 hours;

(D) Texas Law Module, total 20 hours; and

(E) Texas Standards of Practice Module, total 24 hours;

(2) have been licensed as a real estate inspector on active status for a total of at least 12 months within the 24 month period before the filing of the application;

(3) complete 175 inspections; and

(4) pass the licensure examinations set out in §535.209 of this subchapter.

(c) Sponsored Experience Criteria. To meet the experience requirements for licensure under subsections (a) or (b) of this section, or to sponsor apprentice inspectors or real estate inspectors:

(1) the Commission considers an improvement to real property to be any unit capable of being separately rented, leased or sold; and

(2) an inspection of an improvement to real property that includes the structural and equipment/systems of the unit constitutes a single inspection.

(d) Substitute Experience and Education Requirements for a Real Estate Inspector License. As an alternative to subsection (a) of this section, to become a licensed real estate inspector, a person must:

(1) complete a total of 114 hours of qualifying inspection coursework, which must include the following:

(A) Property and Building Inspection Module I, total 40 hours;

(B) Property and Building Inspection Module II, total 40 hours;

(C) Business Operations and Professional Responsibilities Module, total 10 hours; and

(D) Texas Standards of Practice Module, total 24 hours; and

(2) complete the Texas Practicum, as defined by subsection (h) of this section; and

(3) pass the licensure examinations set out in §535.209 of this subchapter; and

(4) be sponsored by a professional inspector.

(e) Substitute Experience and Education Requirements for a Professional Inspector License. As an alternative to subsection (b) of this section, to become a licensed professional inspector, a person must:

(1) complete a total of 154 hours of qualifying inspection coursework, which must include the following:

(A) Property and Building Inspection Module I, total 40 hours;

(B) Property and Building Inspection Module II, total 40 hours;

(C) Business Operations and Professional Responsibilities Module, total 10 hours;

(D) Analysis of Findings and Reporting Module, total 20 hours;

(E) Texas Law Module, total 20 hours;

(F) Texas Standards of Practice Module, total 24 hours; and

(2) complete the Texas Practicum as defined by subsection (h) of this section; and

(3) pass the licensure examinations set out in §535.209 of this subchapter.

(f) Courses completed for a real estate inspector license under this section shall count towards the identical qualifying inspection coursework for licensure as a professional inspector.

(g) Experience Credit. The Commission may award credit for education required under subsections (d) and (e) of this section to an applicant who:

(1) has three years of experience in a field directly related to home inspection, including but not limited to installing, servicing, repairing or maintaining the structural, mechanical and electrical systems found in improvements to real property; and

(2) provides to the Commission two affidavits from persons who have personal knowledge of the applicant's work, detailing the time and nature of the applicant's relevant experience.

(h) Texas Practicum.

(1) An applicant must complete all required qualifying inspection coursework before beginning the Texas Practicum.

(2) [(1)] To receive credit for completion, the Texas Practicum must:

(A) be supervised by a licensed inspector who has:

(i) been actively licensed as a professional inspector for at least five years; and

(ii) at least three years of supervisory or training experience with inspectors; or

(iii) performed a minimum of 200 real estate inspections as a Texas professional inspector;

(B) consist of:

(i) a minimum of five complete and in-person inspections, totaling 40 hours, including the preparation by the applicant of a written inspection report for each completed inspection; and

(ii) no more than four students per supervising inspector; and

(C) include a review of each inspection report prepared by the applicant in which the supervising inspector must find that each report:

(i) is considered satisfactory for release to an average consumer; and

(ii) demonstrates an understanding of:

(I) report writing;

(II) client interaction;

(III) personal property protection; and

(IV) concepts critical for the positive outcome of the inspection process.

(3) [(2)] An applicant may request credit for completing the Texas Practicum by submitting to the Commission the credit request form approved by the Commission.

(4) [(3)] Audits.

(A) The Commission staff may conduct an audit of any information provided on the credit request form, including verifying that the supervising inspector meets the qualifications in paragraph (2)(A) [(1)(A)] of this subsection.

(B) The following acts committed by a supervising inspector conducting the Texas Practicum are grounds for disciplinary action:

(i) making material misrepresentation of fact;

(ii) making a false representation to the Commission, either intentionally or negligently, that an applicant completed the Texas Practicum in its entirety, satisfying all requirements for credit.

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 November 6, 2025.

TRD-202504040

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: December 21, 2025

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