Record-breaking attendance made the TREC Meeting in Dallas-Fort Worth (DFW) a standout and marks the Commission's second out-of-Austin meeting. Leaving the comforts of the Texas Capitol Complex in Austin—where TREC is headquartered—is an initiative that began last year in an effort to connect with more license holders and Texans. Houston was the first stop in 2023 with roughly 80 attendees.

Irving was the destination for May 20, 2024. The Texas presence was strong, with more than 300 in-person attendees and more than 200 people streaming online. Commissioners paused the meeting to add space and seats for the standing-room only crowd, then the show went on. Here are the highlights.

More Discussion on the Proposed NAR Settlement

Commissioners were debriefed on the Texas Broker-Lawyer Committee’s (BLC) April 12 meeting, during which the committee discussed the National Association of Realtors’ (NAR) and its proposed settlement agreement related to compensation, including whether changes are needed to TREC contract forms because of it.

“We will focus on how best to protect the consumer; this is the mission of TREC. We will do our best to be as responsive and swift as possible,” said TREC’s Executive Director Chelsea Buchholtz.

BLC is seeking stakeholder comments on the following ideas:

• Remove all references to the multiple listing services in the contract forms.
• Include a simple statement that any and all fees to the brokers in the transaction will be paid pursuant to separate agreements between the parties and their brokers or between the brokers.
• Identify the fees to be paid to each broker in a manner similar to the model found in TREC’s Farm and Ranch Contract form (TREC 25-15) or the Texas Realtors commercial contract form.
• Remove all references to brokerage fees in the contract forms and publish an addendum for the payment of brokerage fees using either model found in the Farm and Ranch Contract form or in the Texas Realtors commercial contract form.
• Insert a new subparagraph in Paragraph 12A in which the Seller may agree to pay a specific concession to pay fees payable to the Buyer’s broker.
• In Paragraph 12A, include in the definition of Buyer’s Expenses a statement similar to “broker fees Buyer has agreed to pay” and in the definition of Seller’s Expenses a statement similar to "broker fees Seller has agreed to pay."

You can submit public comment on these potential changes by email or attend the next BLC meeting in person.

Four New Proposed Rules

The following are proposed rules. You can provide public comment on these proposed changes, which could potentially be adopted at the next Commission meeting in August.

Quadrennial Rule Review

Two of the proposed rules are part of a scheduled rule review. Every four years, the Commission is required by state law to determine if rules need to be revised or repealed. As part of this process, rules in Chapters 533 and 534 will be tweaked to correct a typo and certain references.

Content Requirements for QE Courses

One proposed rule change is recommended by the Education Standards Advisory Committee to revise the course approval forms for Principles of Real Estate I and II, and Law of Agency. The changes reorder and remove content to ensure each course is relevant for today’s industry and meet course objectives.

Broker Succession

During the November 2023 TREC Workshop, the Commission set an initiative to address broker succession, or what happens when a broker unexpectedly passes away. Under the proposed new rule, business entities and sponsored sales agents would be given a grace period of 14 days after the death of a designated broker until licenses inactivate. This would give entities time to name a new designated broker and submit the proper documents to TREC.

Currently, when a designated broker of a business entity dies, the entity’s license becomes inactive, as well as that of any sponsored sales agent—generally after 10 days. This means neither the entity nor the agents can perform any real estate services requiring a license, even if in the middle of a transaction.

“This has come to our attention over the last three to four years—where the designated broker has passed away. TREC has always had the ability to work with the entities but there was nothing in the rule that said you have so many days to get someone to take it over. I think this gives business entities a little comfort knowing that they’re going to have enough time to get it done,” said TREC Chair R. Scott Kesner.

Texas Practicum Update

As recommended by the Texas Real Estate Inspector Committee (TREIC), there are proposed amendments that primarily rearrange existing inspector licensure requirements to clarify that the Texas Practicum is an experience requirement separate from an educational course.

Education providers could still offer the Texas Practicum but would no longer need to submit a course application for it to TREC or issue completion certificates to students. Instead, students would submit the credit request form to the agency to obtain credit.

On TREC’s Radar—Fees

TREC is reviewing the potential for fee changes. Proposed changes could be presented to Commissioners at the next meeting. Changes could include a small increase for renewals by sales agents and brokers.

Some of the reasons for this focus on fees include:

• Fees have not been raised since 2014.
• License holder counts have increased, so has the total of TREC staff.
• New license holder application counts have plateaued.

“We’ve made many changes over the last few years to increase the way that we support our license holders,” said Executive Director Buchholtz. “We’ve counted on reserve funding and carry-over funding to fund those initiatives, as directed by our leadership and legislature. As those funds become depleted as intended, we must make shifts to make sure that we stay financially sound.”

Changes could also mean a fee decrease for easement or right-of-way agents.

Fee changes must be made in rule, so if a fee change is proposed, the public will have an opportunity to provide their feedback prior to adoption.

Meeting Materials, Upcoming Meeting Info

TREC’s next meeting is scheduled for August 19 in Austin. Broker license holders and sales agent license holders may earn up to four hours of continuing education (CE) elective credit per two-year renewal cycle by attending any single Commission meeting in person. A license holder cannot earn partial credit across multiple meetings.

The Commission’s May 20 meeting materials and video recording are on the TREC website.