The Texas Real Estate Commission met August 11 and proposed several changes to rules, forms, and licensing systems. TREC will post the changes in the Texas Register for public comment. The commission will vote to adopt the proposed rule changes and forms at its Nov 3 meeting.
New Online License System
TREC Executive Director Chelsea Buchholtz provided a broad overview of the commission’s new online licensing system, the REALM Portal, and stated that the hope is for the new system to be ready to go live before the end of the year. Once it is live, all TREC real estate applications will be available online.
New Definitions
Associated Broker: This refers to a real estate broker who associates with and is paid through another broker under a relationship that is intended to be a continuous relationship, including as an employee or an ongoing independent contractor. This definition is only for purposes related to displaying broker associations on the TREC website and notifying brokers when their associated brokers have complaints against them.
Legal Holiday: These holidays are described in Sections 662.003(a) and 662.003(b)(6) of the Texas Government Code. They include New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, the Friday after Thanksgiving, and Christmas Day.
Conservation Easement: This means an easement (permanent or for a period of years) on a property that restricts the use of all or a part of the property to protect natural resources, wildlife habitat, open space, or historical sites.
Proposed New Form
Water Notice: Seller’s Disclosure about Groundwater and Surface Water Rights
This form arises out of a directive from the Sunset Advisory Commission. It’s for mandatory use to provide information regarding disclosure of groundwater and surface water rights associated with the property.
Proposed Forms Changes
The commission proposed several forms changes, many of which are a direct result of the passage of SB 1968, which goes into effect Jan 1, 2026.
Information About Brokerage Services (IABS Notice)
Adds a paragraph describing the circumstances and timing for when a license holder must enter into a written agreement with a buyer. Adds a paragraph explaining when and how a license holder can show property to a buyer or tenant without representing them. Removes all reference to subagency.
Updates the description of the parties in the contact information.
Unimproved Property Contract, One to Four Family Residential Contract, New Home Contract (Incomplete), New Home Contract (Completed Construction), Residential Condominium Contract (Resale)
Adds the new definition for Legal Holiday mentioned above.
Adds a paragraph where the seller must indicate whether the buyer has received the new water notice mentioned above.
Clarifies the language in Paragraph 12A(1)(b) to state, “an amount not to exceed $___ or ___% of the Sales Price (check one box only), to be applied toward the brokerage fees owed by Buyer to Buyer’s broker.”
Clarifies the language in Paragraph 12A(1)(c) to state, “an amount not to exceed $___ to be applied to Buyer’s Expenses other than brokerage fees.”
Provides Broker Information and Intermediary Information in a new format, separating Intermediary information from Broker Information.
Changes listing broker to seller’s broker.
Changes other broker to buyer’s broker.
Removes reference to subagency in the Broker Information.
Removes the disclosure of broker to broker compensation at the bottom of the Broker Information page.
Seller’s Temporary Residential Lease and Buyer’s Temporary Residential Lease
Removes the paragraph for the landlord’s floodplain and flood notice, since the notice will no longer be required with a short term lease of less than 30 days or a temporary residential lease of 90 days or lease. This is a result of the passage of SB 2349, which goes into effect on Sept 1, 2025.
Farm and Ranch Contract
Adds the new definition for Legal Holiday.
Adds a paragraph where the seller must indicate whether the buyer has received the new water notice mentioned above.
Clarifies the language in Paragraph 12A(1)(b) to state, “an amount not to exceed $___ or ___% of the Sales Price (check one box only), to be applied toward the brokerage fees owed by Buyer to Buyer’s broker.”
Clarifies the language in Paragraph 12A(1)(c) to state, “an amount not to exceed $___ to be applied to Buyer’s Expenses other than brokerage fees.”
Provides Broker Information and Intermediary Information in a new format, separating Intermediary information from Broker Information.
Changes listing broker to seller’s broker.
Changes other broker to buyer’s broker.
Removes reference to subagency in the Broker Information.
Landlord’s Floodplain and Flood Notice
Adds the language, “Not Required with a TREC Temporary Residential Lease.”
This is a result of the recent passage of SB 2349.
Lead-Based Paint Addendum
Changes listing broker to seller’s broker.
Changes other broker to buyer’s broker.
Seller’s Disclosure Notice
There are additional disclosures that the seller must make including the existence of:
A conservation easement
Whether the property is currently covered by insurance
Whether the property is presently covered by windstorm insurance
If the seller has been unable to insure the property for any reason
The existence of a private road that the seller is financially responsible for maintaining
Any aboveground or underground storage tanks on the property
Any aboveground storage tanks on the property that hold 500 gallons or more of stored petroleum or other chemicals.
These new disclosure requirements arise out of a directive from the Sunset Advisory Committee.
Changes Affecting Brokers
All brokers and broker applicants must attend the six-hour Broker Responsibility Course. Delegated supervisors are still required to take the Broker Responsibility Course.
Applicants for a broker’s license who have obtained a bachelor’s degree or higher may obtain up to 300 hours of real estate related education credit (formerly a degree could count up to the required 630 classroom hours). Rental property management in residential transaction may be credited 2.5 points per property per year and rental property management in farm and ranch and unimproved land transactions may be credited 5 points per property per year. Delegated supervisors may receive 3 points per transaction.
Applicants for a broker’s license must also now obtain 720 points of qualifying practical experience (which is double the former requirement). Additional experience points above 720 may now be credited towards education, up to a maximum of 300 classroom hours.
An associated broker must provide to the commission the name of the broker with whom they are associated and report any changes within 10 days.
These changes arise out of the recently enacted SB 1968.
Changes Affecting All License Holders
License holders must provide their business address and business phone number to the commission. This arises out of SB 1968.
Applicants for a real estate license who are military service members, spouses, and veterans may receive a Texas license if they have a current license in good standing issued in another state. The license must also be processed and issued within 10 business days. This is in response to the recently enacted HB 5629.