Issue
Our association is committed to ensuring the highest standard of service by Texas real estate license holders. Each legislative session, the association helps update and modernize consumer-protection standards and the Texas Real Estate License Act, which allows for a more efficient system.
In 2018, the Texas Real Estate Commission underwent review by the Texas Sunset Commission. The Sunset Commission issued a report in October listing recommendations to improve the service TREC provides to license holders and consumers, and in 2019 the Legislature approved the recommendations and passed related statutory changes in Senate Bill 624. Among other requirements, the bill required TREC to demonstrate improvements in customer service, technology systems, and financial oversight. Further, the Commission was directed to undergo another Sunset review in six years, rather than the standard 12 years.
What does this mean for the real estate industry?
The Texas Real Estate Commission licenses and regulates real estate brokers, salespersons, inspectors, and other related professionals. High standards for real estate professionals ensure the industry’s continued success. Texas REALTORS® supported the recommendations made by the Sunset Commission and is gratified to see TREC working quickly to meet the requirements.
The Texas REALTOR® position
Our association supports legislation that facilitates the administration of the commission and eliminates certain inefficient provisions in the law, when identified.
Legislative outlook
Our association works closely with TREC to identify inefficient and outdated real estate law. We expect lawmakers to consider legislation to continue to closely monitor TREC and its operations for continued improvements, and to make statutory and procedural adjustments as deemed necessary.
Historical perspective
In 2011, during the 82nd legislative session, lawmakers passed SB 1000 designating TREC as a self-directed, semi-independent state agency. This status meant TREC would no longer be subject to the legislative budget or appropriations process at the Legislature—instead, the agency conducts business using the licensing fees it collects.
Also in 2011, SB 747 focused on better preparing license holders to represent consumers in real estate transactions and ensuring education for applicants and license holders is targeted and of the highest quality.
In 2013, HB 2911 amended the law to require real estate inspectors to have the same education and license-renewal requirements as the Texas Real Estate Commission’s others license holders and addressed issues regarding errors and omissions insurance coverage and the real estate inspection recovery fund.
In 2015, SB 699 clarified TREC regulations, explained situations that would require license revocation, created procedures for actions brought against real estate brokers and sales agents, and amended the requirements for licenses, fees, and education.
In 2018, Sunset Commission staff evaluated TREC and made recommendations to the Sunset Advisory Commission. The commission adopted recommendations for the full Legislature to consider.
Following the Sunset Commission’s recommendations, in 2019 SB 624 was passed, allowing TREC to continue as a self-directed, semi-independent agency, while requiring certain improvements in its structures and processes to better and more efficiently serve consumers and real estate licensees.