1. ©OnCourse Learning. All Rights Reserved.

2. Licensing Laws and Professional Affiliation ©OnCourse Learning. All Rights Reserved. Chapter 9

3. ©OnCourse Learning. All Rights Reserved. In This Chapter You will cover the various licensing law requirements, emphasizing the provisions of the Texas Real Estate License Act.

4. Rationale for a Real Estate Licensing Does the public have a vested interest in seeing that real estate salespersons & brokers have the qualifications of honesty, truthfulness, good reputation, & real estate knowledge before they are allowed to negotiate real estate transactions on behalf of others? ©OnCourse Learning. All Rights Reserved.

5. It was this concern that brought about real estate licensing laws as we know them today. ©OnCourse Learning. All Rights Reserved.

6. Real Estate Agent A person who, for compensation or promise of compensation, lists or offers to list, sells or offers to sell, buy or offers to buy, negotiates or offers to negotiate either directly or indirectly for the purpose of bring about a sale, purchase or option to purchase, exchange, auction, lease, or rental of real estate, or any interest in real estate Must hold a valid real estate license. ©OnCourse Learning. All Rights Reserved.

7. License Types Real Estate Broker  A person who, for another person and for a fee, commission, or other valuable consideration, or with the intention or in the expectation or on the promise of receiving or collecting a fee, commission, or other valuable consideration from another person for conducting real estate brokerage activity as defined by TRELA. Real Estate Salesperson  A person associated with a Texas licensed real estate broker for the purposes of performing acts or transactions comprehended by the definition of "real estate broker" as defined in this TRELA. ©OnCourse Learning. All Rights Reserved.

8. Exemptions 1. An attorney. 2. An attorney in fact. 3. A public official in the conduct of official duties. 4. A person conducting an auction. 5. A person acting under a court. 6. A person employed by an owner in the sale of structures and land on which said structures are located if the structures are erected by the owner. 7. An on-site manager of an apartment complex. ©OnCourse Learning. All Rights Reserved.

9. Exemptions 8. An owner or his employees in renting or leasing the owner's own real estate. 9. A partnership or limited liability partnership performing an act constituting an act of a broker or salesman through a partner who is duly licensed as a real estate broker. 10. Transactions involving mineral or mining interest. 11. Transactions involving cemetery lots. 12. Transactions involving hotels or motels. 13. The sale of real property under a power of sale. ©OnCourse Learning. All Rights Reserved.

10. Texas Salesperson Requirements Before applying for a real estate Salesperson License requiring 12 semester hours or 180 classroom hours, individuals must furnish evidence of successfully completing the following: Principles of Real Estate course (60 classroom hours) Law of Agency course (30 classroom hours) Law of Contracts course (30 classroom hours) Promulgated Contract Forms course (30 classroom hours) Real Estate Finance course (30 classroom hours) additional requirement for the salesperson’s first renewal: completion of 18 semester hours of core real estate courses.

11. Texas Broker License 900 classroom hours or 60 semester hours To be eligible to apply for a real estate Broker License: Four (4) years active experience & 3600 points of qualifying practical experience plus 270 classroom hours of core real estate courses including a 30-hour Real Estate Brokerage course plus An additional 630 classroom hours in related courses ©OnCourse Learning. All Rights Reserved.

12. Continuing Education - MCE A licensee must furnish TREC proof of completing at least 15 classroom hours of continuing education course every 2 years approved by TREC taken during the term of the current license. ©OnCourse Learning. All Rights Reserved.

13. License Required A person may not act as a professional inspector in this state for a buyer or seller of real property unless the person possesses a professional inspector license issued under this section. ©OnCourse Learning. All Rights Reserved.

14. Home Inspectors Professional inspector means a person who represents to the public he is trained & qualified to perform a real estate inspection & who accepts employment for the purpose of performing a real estate inspection for a buyer or seller of real property. Real estate inspector means a person who represents to the public that the person is trained and qualified to perform real estate inspections under the indirect supervision of a professional inspector and who accepts employment for the purpose of performing a real estate inspection for a buyer or seller of real property. ©OnCourse Learning. All Rights Reserved.

15. A licensed inspector may not:  accept an assignment for real estate inspection if the employment or fee is contingent on the reporting of a specific, predetermined condition of the improvements to real property or is contingent on the reporting of specific findings other than those known by the inspector to be facts at the time of accepting the assignment.  act in a manner or engage in a practice that is dishonest or fraudulent or that involves deceit or misrepresentation.  perform a real estate inspection in a negligent or incompetent manner.  act in the dual capacity of inspector and undisclosed principal in a transaction.  act in the dual capacity of inspector and real estate broker or salesperson in a transaction.  perform or agree to perform any repairs or maintenance in connection with a real estate inspection pursuant to the provisions of any earnest money contract, lease agreement, or exchange of real estate. ©OnCourse Learning. All Rights Reserved.

16. http://www.TREC.state.Tx.us

17. TREC Mailing Address: Texas Real Estate Commission P. O. Box 12188 Austin, TX 78711-2188 Street Address: Texas Real Estate Commission Stephen F. Austin Building 1700 N. Congress Ave., Suite 400 Austin, TX 78701 Phone : (512) 936-3000 Email: information@trec.texas.gov ©OnCourse Learning. All Rights Reserved.

18. Chapter 1101, Texas Occupations Code - The Real Estate License Act (Real Estate Brokers and Salespersons) and Chapter 1102, Texas Occupations Code (Real Estate Inspectors), which include revisions made by H.B. 3507, H.B. 1508 and S.B. 287, 78th Leg., R.S. (2003). ©OnCourse Learning. All Rights Reserved.

19. Commission Membership 9 members appointed by the governor for 6 year terms 6 from real estate 3 from general public ©OnCourse Learning. All Rights Reserved.

20. License Suspension & Revocation The commission may, on its own motion, and shall, on the signed complaint in writing of any person, provided the complaint, or the complaint together with evidence, documentary or otherwise, presented in connection with the complaint, provides reasonable cause, investigate the actions and records of a real estate broker or real estate salesperson. The commission may suspend or revoke a license issued under the provisions of this Act or take other disciplinary action authorized by this Act at any time when it has been determined that: See Appendix A in text ©OnCourse Learning. All Rights Reserved.

21. Recovery Fund Will pay damages in the event a judgment is obtained against a licensee and there are no other funds recoverable from licensee. Limits are $50,000 per transaction and $100,000 against any one licensee. ©OnCourse Learning. All Rights Reserved.

22. Securities License property being sold is an investment contract in real estate rather than real estate itself state and federal laws requiring the registration of real estate securities ©OnCourse Learning. All Rights Reserved.

23. Broker Affiliation Training – complement, enhance, and encourage your personal development. Compensation – usually a percentage of earned commissions. Support – what services do they offer. Franchise offices ©OnCourse Learning. All Rights Reserved.

24. Independent Contractor Paid only if a sale produces a commission and is responsible for income taxes and social security. Employment Contract ©OnCourse Learning. All Rights Reserved.

25. REALTOR® Registered trade name Member of NAR not synonymous with real estate agent Code of ethics first adopted in 1913 GRI designation by taking sponsored education courses by NAR ©OnCourse Learning. All Rights Reserved.

26. Texas Association of REALTORS ® headquartered in Austin, represents over 50,000 members statewide involved in all aspects of the real estate industry. www.Texasrealtors.com 1115 San Jacinto Blvd., Ste. 200 Austin, TX 78701-1906 ©OnCourse Learning. All Rights Reserved.

27. Code of Ethics www.Realtor.org ©OnCourse Learning. All Rights Reserved.

28. Key Terms Broker Independent contractor License revocation License suspension Licensee REALTOR ® Recovery fund Sales associate Salesperson TREC ©OnCourse Learning. All Rights Reserved.