It sounds like an ideal scenario if you’re a landlord or listing agent for a residential lease: A licensed sales agent submits a prospective tenant’s application to you with proof of a clean background check and great credit report. But is that tenant’s agent making life easier for you, or is it a scam?

A Rise in Leasing Fraud

The Texas Real Estate Commission’s Enforcement Division is urging license holders to do their own research to avoid being part of the rise in complaint investigations involving leasing fraud.

An unexpected illness, a new opportunity, a change in the market, or a change in your personal life: These are all common reasons why Texas Real Estate Commission (TREC) license holders may take a break from the business.

Whether your break is planned or unexpected, setting your sales agent, broker, or inspector license to inactive status before your renewal or renewing as inactive is the best move if you want return to the real estate business in the future. Here’s why.

The Texas Real Estate Commission met February 13 in Austin. In addition to hearing updates from TREC staff, the Commission elected Mark Woodruff as vice chair and Ben Peña as secretary. Read on for information on adopted and proposed rule changes.

The Texas Real Estate Commission’s advisory committees and working groups have made several recommendations that the Commissioners will discuss and potentially propose or adopt during the TREC Meeting on February 13. Here are the highlights of what will be considered, including inspection report rule changes, proposed SAE requirements, and changes that affect broker responsibility and sales agent oversight of brokerage activity.

Based on recommendations from the Unauthorized Practice of Law Working Group, the Commission proposed at its November 2022 meeting a new rule—Section 537.1, Definitions—and amendments to Section 537.11, Use of Standard Contract Forms. The proposals were published in the Texas Register to allow for public comment.

The Texas Real Estate Inspector Committee met January 17. Three new officers were elected to serve in committee leadership:

• Lee Warren, chair
• Scott Regan, vice-chair
• Steven Rinehart, secretary

The committee also appointed two chairs to two subcommittees:

In a seller’s market, buyers may be tempted to waive an inspection entirely, or hire an inspector to do a walkthrough inspection of their ideal home to point out problems while the buyers take notes.

In a buyer’s market, sellers might think getting a similar inspection will make their listing stand out by disclosing information up front, so buyers will know what to expect.

The Broker Responsibility Working Group (BRWG) met January 11 and got updates from staff, discussed how to identify brokerage associations, and who should receive complaint notifications.

The Education Standards Advisory Committee (ESAC) met January 9 and appointed new leadership, discussed the revised property management course outline, and made recommendations for the Commission to propose an amendment to 535.55.

New Committee Officers

The committee appointed three new officers to serve through 2023:

The form revisions adopted by the Texas Real Estate Commission in early November are now available for voluntary use until February 1, 2023, when their use becomes mandatory. The only exception is the revised Notice to Prospective Buyer (TREC 57-0) form, which will remain a voluntary use form.