By Stiles H.B. No. 991
Substitute the following for H.B. No. 991:
By Jones of Lubbock C.S.H.B. No. 991
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of real estate brokers, salesmen, and
1-3 inspectors.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2(1), The Real Estate License Act
1-6 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
1-7 as follows:
1-8 (1) "Real estate" means a leasehold, as well as any
1-9 other interest or estate in land, whether corporeal, incorporeal,
1-10 freehold, or nonfreehold, and whether the real estate is situated
1-11 in this state or elsewhere. The term does not include an interest
1-12 given as securtity for the performance of an obligation.
1-13 SECTION 2. Section 2(5), The Real Estate License Act
1-14 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
1-15 as follows:
1-16 (5) "Person" means an individual, a limited liability
1-17 company, or a corporation, foreign or domestic.
1-18 SECTION 3. Section 5(t), The Real Estate License Act
1-19 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
1-20 as follows:
1-21 (t) The commission may authorize specific employees to
1-22 conduct hearings and render final decisions in contested cases.
1-23 The commission may employ a general counsel, attorneys,
1-24 investigators, and support staff to administer and enforce this
2-1 Act.
2-2 SECTION 4. Section 6, The Real Estate License Act (Article
2-3 6573a, Vernon's Texas Civil Statutes), is amended to read as
2-4 follows:
2-5 Sec. 6. Licensees; Qualification. (a) A person desiring to
2-6 act as a real estate broker in this state shall file an application
2-7 for a license with the commission on a form prescribed by the
2-8 commission. A broker desiring to engage a person to participate in
2-9 real estate brokerage activity shall join the person in filing an
2-10 application for a salesman license on a form prescribed by the
2-11 commission. A person previously licensed as a broker may apply for
2-12 inactive status. A person previously licensed as a salesman may
2-13 apply for inactive status without the participation of a broker.
2-14 The person must apply for inactive status on a form prescribed by
2-15 the commission not later than the first anniversary of the date of
2-16 the expiration of the broker or salesman license.
2-17 (b) To be eligible for a license, an individual must be a
2-18 citizen of the United States or a lawfully admitted alien, be at
2-19 least 18 years of age, and be a legal resident of Texas <for> at
2-20 the time of <least 60 days immediately preceding> the filing of an
2-21 application, and must satisfy the commission as to his honesty,
2-22 trustworthiness, integrity, and competency. However, the
2-23 competency of the individual, for the purpose of qualifying for the
2-24 granting of a license, shall be judged solely on the basis of the
2-25 examination referred to in Section 7 of this Act.
2-26 (c) To be eligible for or to renew a license, a corporation
2-27 must designate one of its officers and a limited liability company
3-1 must designate one of its managers to act for it. The designated
3-2 person must be a <citizen of the United States or a lawfully
3-3 admitted alien, be at least 18 years of age, and be a resident of
3-4 Texas for at least 60 days immediately preceding the filing of an
3-5 application, and must be qualified to be> licensed <individually as
3-6 a> real estate broker as shown in the records of the commission. A
3-7 corporation or limited liability company may not act as a real
3-8 estate broker unless the designated person is a licensed real
3-9 estate broker <However, the competency of the person shall be
3-10 judged solely on the basis of the examination referred to in
3-11 Section 7 of this Act>.
3-12 SECTION 5. Section 6A(a), The Real Estate License Act
3-13 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
3-14 as follows:
3-15 (a) If, at any time before a person applies for a license
3-16 under this Act, the person requests the commission to determine
3-17 whether his moral character complies with the commission's moral
3-18 character requirements for licensing under this Act and the person
3-19 pays a <$10> fee set by the commission for the moral character
3-20 determination, the commission shall make its determination of the
3-21 person's moral character.
3-22 SECTION 6. Sections 7(a), (e), and (f), The Real Estate
3-23 License Act (Article 6573a, Vernon's Texas Civil Statutes), are
3-24 amended to read as follows:
3-25 (a) Competency as referred to in Section 6 of this Act shall
3-26 be established by an examination prepared by or contracted for by
3-27 the commission. The examination shall be given at such times and
4-1 at such places within the state as the commission shall prescribe.
4-2 The examination shall be of scope sufficient in the judgment of the
4-3 commission to determine that a person is competent to act as a real
4-4 estate broker or salesman in a manner to protect the interest of
4-5 the public. The examination for a salesman license shall be less
4-6 exacting and less stringent than the examination for a broker
4-7 license. The commission shall furnish each applicant with study
4-8 material and references on which his examination shall be based.
4-9 When an applicant for a real estate license fails a qualifying
4-10 examination, he may apply for reexamination by filing a request
4-11 therefor together with the proper fee. The examination requirement
4-12 must be satisfied not later than six months after the date on which
4-13 the application for a license is filed. Courses of study required
4-14 for a license may include but are not limited to the following,
4-15 which shall be considered core real estate courses for all purposes
4-16 of this Act:
4-17 (1) Principles of Real Estate (or equivalent) shall
4-18 include but not be limited to an overview of licensing as a real
4-19 estate broker and salesman, ethics of practice, titles to and
4-20 conveyancing of real estate, legal descriptions, law of agency,
4-21 deeds, encumbrances and liens, distinctions between personal and
4-22 real property, contracts, appraisal, finance and regulations,
4-23 closing procedures, real estate mathematics, and at least three
4-24 classroom hours of instruction on federal, state, and local laws
4-25 relating to housing discrimination, housing credit discrimination,
4-26 and community reinvestment.
4-27 (2) Real Estate Appraisal (or equivalent) shall
5-1 include but not be limited to the central purposes and functions of
5-2 an appraisal, social and economic determinant of value, appraisal
5-3 case studies, cost, market data and income approaches to value
5-4 estimates, final correlations, and reporting.
5-5 (3) Real Estate Law (or equivalent) shall include but
5-6 not be limited to legal concepts of real estate, land description,
5-7 real property rights and estates in land, contracts, conveyances,
5-8 encumbrances, foreclosures, recording procedures, and evidence of
5-9 titles.
5-10 (4) Real Estate Finance (or equivalent) shall include
5-11 but not be limited to monetary systems, primary and secondary money
5-12 markets, sources of mortgage loans, federal government programs,
5-13 loan applications, processes and procedures, closing costs,
5-14 alternative financial instruments, equal credit opportunity acts,
5-15 community reinvestment act, and state housing agency.
5-16 (5) Real Estate Marketing (or equivalent) shall
5-17 include but not be limited to real estate professionalism and
5-18 ethics, characteristics of successful salesmen, time management,
5-19 psychology of marketing, listing procedures, advertising,
5-20 negotiating and closing, financing, and the Deceptive Trade
5-21 Practices-Consumer Protection Act, as amended, Section 17.01 et
5-22 seq., Business & Commerce Code.
5-23 (6) Real Estate Mathematics (or equivalent) shall
5-24 include but not be limited to basic arithmetic skills and review of
5-25 mathematical logic, percentages, interest, time-valued money,
5-26 depreciation, amortization, proration, and estimation of closing
5-27 statements.
6-1 (7) Real Estate Brokerage (or equivalent) shall
6-2 include but not be limited to law of agency, planning and
6-3 organization, operational policies and procedures, recruiting,
6-4 selection and training of personnel, records and control, and real
6-5 estate firm analysis and expansion criteria.
6-6 (8) Property Management (or equivalent) shall include
6-7 but not be limited to role of property manager, landlord policies,
6-8 operational guidelines, leases, lease negotiations, tenant
6-9 relations, maintenance, reports, habitability laws, and the Fair
6-10 Housing Act.
6-11 (9) Real Estate Investments (or equivalent) shall
6-12 include but not be limited to real estate investment
6-13 characteristics, techniques of investment analysis, time-valued
6-14 money, discounted and nondiscounted investment criteria, leverage,
6-15 tax shelters depreciation, and application to property tax.
6-16 (10) Law of Agency (or equivalent) shall include but
6-17 not be limited to the principal-agent and master-servant
6-18 relationships, the authority of an agent, the termination of an
6-19 agent's authority, the fiduciary and other duties of an agent,
6-20 employment law, deceptive trade practices, listing or buying
6-21 representation procedures, and the disclosure of agency.
6-22 (e) Each <As a prerequisite for applying for a salesman
6-23 license; each> applicant for a salesman license shall furnish the
6-24 commission satisfactory evidence of having completed 12 semester
6-25 hours, or equivalent classroom hours, of postsecondary education,
6-26 six hours of which must be completed in core real estate courses,
6-27 of which a minimum of two hours must be completed in Principles of
7-1 Real Estate as described in Subsection (a)(1) of this section and a
7-2 minimum of two hours must be completed in Law of Agency as
7-3 described in Subsection (a)(10) of this section. The remaining six
7-4 hours shall be completed in core real estate courses or related
7-5 courses. As a condition for the first renewal of a salesman
7-6 license, the applicant shall furnish the commission satisfactory
7-7 evidence of having completed a minimum of 14 semester hours, or
7-8 equivalent classroom hours, eight hours of which must be completed
7-9 in core real estate courses. As a condition for the second renewal
7-10 of a salesman license, the applicant shall furnish the commission
7-11 satisfactory evidence of having completed a minimum of 16 semester
7-12 hours, or equivalent classroom hours, 10 hours of which must be
7-13 completed in core real estate courses. As a condition for the
7-14 third renewal of a salesman license, the applicant shall furnish
7-15 the commission satisfactory evidence of having completed a minimum
7-16 of 18 semester hours, or equivalent classroom hours, 12 hours of
7-17 which must be completed in core real estate courses.
7-18 (f) Insofar as is necessary for the administration of this
7-19 Act, the commission is authorized to inspect and accredit
7-20 educational programs or courses of study in real estate and real
7-21 estate inspection and to establish standards of accreditation for
7-22 such programs conducted in the State of Texas, other than
7-23 accredited colleges and universities. The commission shall
7-24 determine the acceptability of real estate courses and real estate
7-25 inspection courses offered to satisfy the requirements of this Act,
7-26 and by rule may provide reasonable criteria for the approval of
7-27 those courses. Schools, other than accredited colleges and
8-1 universities, which are authorized to offer real estate educational
8-2 courses pursuant to provisions of this section, shall be required
8-3 to maintain a corporate surety bond, or other security acceptable
8-4 to the commission, in the sum of $10,000, payable to the
8-5 commission, for the benefit of a party who may suffer damages
8-6 resulting from failure of a commission approved school or course to
8-7 fulfill obligations attendant to the approval.
8-8 SECTION 7. Sections 7A(a) and (b), The Real Estate License
8-9 Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
8-10 read as follows:
8-11 (a) To renew an active <a> real estate broker license or an
8-12 active real estate salesman license that is not subject to the
8-13 annual education requirements of this Act, the licensee must
8-14 provide the commission proof of attendance of at least 15 classroom
8-15 hours of continuing education courses approved by the commission
8-16 during the term of the current license. The commission by rule may
8-17 provide for the substitution of relevant educational experience or
8-18 correspondence courses approved by the commission instead of
8-19 classroom attendance. In addition, supervised video instruction
8-20 may be approved by the commission as a course counting as classroom
8-21 hours of mandatory continuing education. At least six hours of
8-22 instruction must be devoted to the rules of the commission, fair
8-23 housing laws, agency laws, antitrust laws, the Deceptive Trade
8-24 Practices-Consumer Protection Act (Subchapter E, Chapter 17,
8-25 Business & Commerce Code), disclosures to buyers and sellers,
8-26 current contract and addendum forms, the unauthorized practice of
8-27 law, case studies involving violations of laws and regulations,
9-1 current Federal Housing Administration and Veterans Administration
9-2 regulations, tax laws, and other legal topics approved by the
9-3 commission. The remaining hours may be devoted to other real
9-4 estate-related topics approved by the commission. The commission
9-5 may consider equivalent courses for continuing education credit.
9-6 The commission, on the request of a provider of education, shall
9-7 review a core real estate course authorized under Section 7 of this
9-8 Act and may approve it as a mandatory continuing education course.
9-9 Real estate related courses approved by the State Bar of Texas for
9-10 minimum continuing legal education participatory credit shall
9-11 automatically be approved as mandatory continuing education courses
9-12 under this Act. The commission may not require examinations except
9-13 for correspondence courses. Daily course segments must be at least
9-14 three hours long but not more than 10 hours long. If the license
9-15 being renewed under this section was issued for less than two
9-16 years, the licensee must provide the commission proof of attendance
9-17 of at least eight classroom hours of continuing education within
9-18 the term of the current license, three classroom hours of which
9-19 must have been devoted to the legal topics specified in this
9-20 section.
9-21 (b) An applicant for an active <a> real estate broker
9-22 license or an active real estate salesman license who is not
9-23 subject to the education requirements of Section 7 of this Act must
9-24 provide the commission with proof of attendance of the number of
9-25 <of at least 15> classroom hours of continuing education that would
9-26 have been required for a timely renewal as specified in Subsection
9-27 (a) of this section during the two-year period preceding the filing
10-1 of the application.
10-2 SECTION 8. Section 11, The Real Estate License Act (Article
10-3 6573a, Vernon's Texas Civil Statutes), is amended to read as
10-4 follows:
10-5 Sec. 11. Fees. (a) The commission shall charge and collect
10-6 the following fees:
10-7 (1) a fee not to exceed $100 for the filing of an
10-8 original application for a real estate broker license;
10-9 (2) a fee not to exceed $100 for annual renewal of a
10-10 real estate broker license;
10-11 (3) a fee not to exceed $50 for the filing of an
10-12 original application for a real estate salesman license;
10-13 (4) a fee not to exceed $50 for annual renewal of a
10-14 real estate salesman license;
10-15 (5) a fee not to exceed $25 for an application for a
10-16 license examination;
10-17 (6) a fee not to exceed $20 <$10> for filing a request
10-18 for a license for each additional office or place of business;
10-19 (7) a fee not to exceed $20 for filing a request for a
10-20 license for a change for a place of business, change of name,
10-21 return to active status, or change of sponsoring broker;
10-22 (8) a fee not to exceed $20 <$10> for filing a request
10-23 to replace a license lost or destroyed;
10-24 (9) a fee not to exceed $400 for filing an application
10-25 for approval of an education program under Section 7(f) of this
10-26 Act;
10-27 (10) a fee not to exceed $200 a year for operation of
11-1 an education program under Section 7(f) of this Act; <and>
11-2 (11) a fee of $15 for transcript evaluation;
11-3 (12) a fee not to exceed $10 for preparing a license
11-4 history; and
11-5 (13) a fee not to exceed $50 for the filing of an
11-6 application for a moral character determination.
11-7 SECTION 9. Section 13A(c), The Real Estate License Act
11-8 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
11-9 as follows:
11-10 (c) If the person has been on inactive status <for 36
11-11 consecutive months or less>, the commission shall remove the person
11-12 from the list on application, payment of the required fee, and
11-13 proof of attendance of at least 15 classroom hours of continuing
11-14 education as specified in Subsection (a) of Section 7A of this Act
11-15 during the two-year period preceding the filing of the application.
11-16 <If the person has been on inactive status for more than 36
11-17 consecutive months, the commission may not remove the person from
11-18 the inactive status list until the person has complied with the
11-19 educational and examination requirements specified in Section 7 of
11-20 this Act.>
11-21 SECTION 10. Sections 14(b) and (c), The Real Estate License
11-22 Act (Article 6573a, Vernon's Texas Civil Statutes), are amended to
11-23 read as follows:
11-24 (b) A resident broker of another state who furnishes the
11-25 evidence required under Section 7(g) of this Act may apply for a
11-26 license as a broker in this state. A resident of another state who
11-27 is not licensed as a broker but who was formerly licensed as a
12-1 salesman or broker in this state may apply for a license in this
12-2 state not later than the first anniversary of the date of the
12-3 expiration of the previous license. An application by a
12-4 nonresident is subject to the requirements under this Act for the
12-5 type of license applied for. A nonresident licensee need not
12-6 maintain a place of business in this state. The commission may in
12-7 its discretion refuse to issue a license to an applicant who is not
12-8 a resident of this state for the same reasons that it may refuse to
12-9 license a resident of this state. The commission shall judge the
12-10 competency of a nonresident applicant solely on the basis of the
12-11 examination conducted under Section 7 of this Act.
12-12 (c) Each nonresident applicant shall file an irrevocable
12-13 consent that legal action may be commenced against him in the
12-14 proper court of any county of this state in which a cause of action
12-15 may arise, or in which the plaintiff may reside, by service of
12-16 process or pleading authorized by the laws of this state, or by
12-17 serving the administrator or assistant administrator of the
12-18 commission. The consent shall stipulate that the service of
12-19 process or pleading shall be valid and binding in all courts as if
12-20 personal service had been made on the nonresident <broker> in this
12-21 state. The consent shall be duly acknowledged, and if made by a
12-22 corporation, shall be authenticated by its seal. A service of
12-23 process or pleading served on the commission shall be by duplicate
12-24 copies, one of which shall be filed in the office of the commission
12-25 and the other forwarded by registered mail to the last known
12-26 principal address which the commission has for the nonresident
12-27 <broker> against whom the process or pleading is directed. No
13-1 default in an action may be taken except on certification by the
13-2 commission that a copy of the process or pleading was mailed to the
13-3 defendant as provided in this section, and no default judgment may
13-4 be taken in an action or proceeding until 20 days after the day of
13-5 mailing of the process or pleading to the defendant.
13-6 Notwithstanding any other provisions of this subsection, a
13-7 nonresident of this state who resides in a city whose boundaries
13-8 are contiguous at any point to the boundaries of a city of this
13-9 state, and who has been an actual bona fide resident of that city
13-10 for at least 60 days immediately preceding the filing of his
13-11 application, is eligible to be licensed as a real estate broker or
13-12 salesman under this Act in the same manner as a resident of this
13-13 state. If he is licensed in this manner, he shall at all times
13-14 maintain a place of business either in the city in which he resides
13-15 or in the city in this state which is contiguous to the city in
13-16 which he resides, and he may not maintain a place of business at
13-17 another location in this state unless he also complies with the
13-18 requirements of Section 14(b) of this Act. The place of business
13-19 must satisfy the requirements of Subsection (a) of Section 12 of
13-20 this Act, but the place of business shall be deemed a definite
13-21 place of business in this state within the meaning of Subsection
13-22 (a) of Section 12.
13-23 SECTION 11. Section 15(c), The Real Estate License Act
13-24 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
13-25 as follows:
13-26 (c) Notwithstanding Subsection (b) of this section, a person
13-27 is not subject to civil liability or criminal prosecution because
14-1 the person did not inquire about, make a disclosure related to, or
14-2 release information related to whether a previous or current
14-3 occupant of real property had, may have had, has, or may have AIDS,
14-4 HIV-related illnesses, or HIV infection as defined by the Centers
14-5 for Disease Control of the U.S. Public Health Service. <A person
14-6 who has actual knowledge that the previous or current occupant of
14-7 real property had or has AIDS, HIV-related illnesses, or HIV
14-8 infection shall provide that information to a potential purchaser
14-9 or lessee of the real property on receiving a specific request for
14-10 the information from the potential purchaser or lessee.>
14-11 SECTION 12. Section 15D, The Real Estate License Act
14-12 (Article 6573a, Vernon's Texas Civil Statutes), is amended as
14-13 follows:
14-14 No licensed real estate broker, licensed real estate
14-15 salesman, or not for profit real estate board or association which
14-16 provides information about real property sales prices or terms of
14-17 sale for the purpose of facilitating the listing, selling, leasing,
14-18 financing, or appraisal of real property shall be liable to any
14-19 other person as a result of so providing such information unless
14-20 the disclosure of same is otherwise specifically prohibited by
14-21 statute <or written contract>.
14-22 SECTION 13. Section 17(b), The Real Estate License Act
14-23 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
14-24 as follows:
14-25 (b) The commission may issue subpoenas for the attendance of
14-26 witnesses and the production of records or documents. Process
14-27 issued by the commission may extend to all parts of the state and
15-1 may be served by any person designated by the commission.
15-2 SECTION 14. Subdivision (a), Section 19, The Real Estate
15-3 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
15-4 amended to read as follows:
15-5 (a) A person acting as a real estate broker or real estate
15-6 salesman without first obtaining a license is guilty of a
15-7 misdemeanor and on conviction shall be punishable by a fine of not
15-8 less than $100 nor more than $500, or by imprisonment in the county
15-9 jail for a term not to exceed one year, or both; and if a
15-10 corporation or a limited liability company, shall be punishable by
15-11 a fine not less than $1,000 nor more than $2,000. A person, on
15-12 conviction of a second or subsequent offense, shall be punishable
15-13 by a fine of not less than $500 nor more than $1,000, or by
15-14 imprisonment for a term not to exceed two years or both; and if a
15-15 corporation or a limited liability company, shall be punishable by
15-16 a fine of not less than $2,000 nor more than $5,000.
15-17 SECTION 15. Section 23, The Real Estate License Act (Article
15-18 6573a, Vernon's Texas Civil Statutes), is amended to read as
15-19 follows:
15-20 Sec. 23. (a) Definitions. In this section:
15-21 (1) "Apprentice inspector" means a person who is in training
15-22 under the direct supervision of a professional <real estate>
15-23 inspector or a real estate inspector <inspector-in-training> to
15-24 become qualified to perform real estate inspections.
15-25 (2) "Committee" means the Texas Real Estate Inspector
15-26 Committee.
15-27 (3) "Core real estate inspection courses" means educational
16-1 courses approved by the commission, including but not limited to
16-2 structural, electrical, mechanical, plumbing, roofing, business,
16-3 legal, standards of practice, report writing, appliances or ethics,
16-4 all of which must relate to a real estate inspection <and ethical
16-5 courses of study>.
16-6 (4) "Direct supervision" means the instruction and control
16-7 by a professional <real estate> inspector or a real estate
16-8 inspector <inspector-in-training> licensed under this section who
16-9 is:
16-10 (A) responsible for the actions of an individual performing
16-11 a real estate inspection or preparing a report of a real estate
16-12 inspection;
16-13 (B) available if and when needed to consult with or assist
16-14 an individual performing a real estate inspection or preparing a
16-15 report of a real estate inspection; and
16-16 (C) physically present at the time and place of the
16-17 inspection.
16-18 (5) "Indirect supervision" means the instruction and control
16-19 by a professional <real estate> inspector licensed under this
16-20 section who is:
16-21 (A) responsible for the actions of an individual performing
16-22 or preparing a real estate inspection; and
16-23 (B) available if and when needed to consult with or assist
16-24 an individual performing a real estate inspection or preparing a
16-25 report of a real estate inspection, but who is not required to be
16-26 physically present at the time and place of the inspection.
16-27 (6) "Inspector" means a person who is licensed as an
17-1 apprentice inspector, real estate inspector, or professional
17-2 inspector under this section <"Inspector-in-training" means a
17-3 person who represents to the public that the person is trained and
17-4 qualified to perform a real estate inspection under the indirect
17-5 supervision of a real estate inspector and who accepts employment
17-6 for the purpose of performing a real estate inspection for a buyer
17-7 or seller of real property>.
17-8 (7) "License" means an apprentice license, a real estate
17-9 inspector license or a professional inspector <an
17-10 inspector-in-training> license issued under this section.
17-11 (8) "Licensee" means a person holding an apprentice
17-12 inspector license, a real estate inspector license or a
17-13 professional inspector <inspector-in-training> license issued under
17-14 this section.
17-15 (9) "Professional inspector" means a person who represents
17-16 to the public that the person is trained and qualified to perform a
17-17 real estate inspection and who accepts employment for the purpose
17-18 of performing a real estate inspection for a buyer or seller of
17-19 real property.
17-20 (10) <(9)> "Real estate inspection" means a written or oral
17-21 opinion as to the condition of the improvements to real property,
17-22 including structural items, electrical items, mechanical systems,
17-23 plumbing systems, or equipment <and systems>.
17-24 (11) <(10)> "Real estate inspector" means a person who
17-25 represents to the public that the person is trained and qualified
17-26 to perform real estate inspections under the indirect supervision
17-27 of a professional inspector and who accepts employment for the
18-1 purpose of performing a real estate inspection for a buyer or
18-2 seller of real property.
18-3 <(11) "Registered" means a person who holds a registration
18-4 as an apprentice inspector issued under this section.>
18-5 (b) Texas Real Estate Inspector Committee. (1) The Texas
18-6 Real Estate Inspector Committee is created. In addition to other
18-7 powers and duties delegated to it by the commission, the committee
18-8 shall recommend:
18-9 (A) rules for the <registration and> licensing of
18-10 <apprentice> inspectors<, inspectors-in-training, and real estate
18-11 inspectors> in this state in accordance with this section;
18-12 (B) rules relating to the education and experience
18-13 requirements for <registration and> licensing as an <apprentice>
18-14 inspector<, inspector-in-training, and real estate inspector> under
18-15 this section;
18-16 (C) rules relating to the qualifying examination required
18-17 for <registration or> licensing as an inspector under this section;
18-18 (D) rules establishing a code of professional conduct and
18-19 ethics for an <apprentice> inspector<, inspector-in-training, and
18-20 real estate inspector> under this section;
18-21 (E) reasonable fees to implement this section, including an
18-22 application fee for <registration or> licensing, an examination
18-23 fee, a renewal fee for a <registration or> license, and any other
18-24 fee required by law;
18-25 (F) rules relating to continuing education requirements for
18-26 a <registered or> licensed inspector;
18-27 (G) rules relating to the standards of practice for a real
19-1 estate inspection;
19-2 (H) rules relating to granting or denying an application for
19-3 the <registration of an apprentice inspector and> licensing of an
19-4 <inspector-in-training and real estate> inspector;
19-5 (I) the form and format for any applications and forms
19-6 required under this section; and
19-7 (J) any other action by the commission as may provide a high
19-8 degree of service and protection to the public when dealing with
19-9 <registered or> licensed inspectors.
19-10 (2) The committee is composed of nine members appointed by
19-11 the commission. The members of the committee hold office for
19-12 staggered terms of six years, with the terms of three members
19-13 expiring February 1 of each odd-numbered year. Each member holds
19-14 office until the member's successor is appointed. Appointments to
19-15 the committee shall be made without regard to the sex, race, color,
19-16 age, handicap, religion, or national origin of the appointees. In
19-17 the event of a vacancy during a term, the commission shall appoint
19-18 a replacement who meets the qualifications for appointment under
19-19 this subdivision to fill the unexpired part of the term. A member
19-20 of the committee must be a professional <licensed real estate>
19-21 inspector actively engaged in the practice of real estate
19-22 inspecting at the time of appointment and must have been primarily
19-23 engaged in the practice of real estate inspecting <inspection
19-24 business> for at least five years before the member's appointment.
19-25 A member of the committee may not hold a real estate broker or
19-26 salesman license. Each member of the committee is entitled to a
19-27 per diem allowance and to reimbursement of travel expenses
20-1 necessarily incurred in performing functions as a member of the
20-2 committee, subject to any applicable limitation in the General
20-3 Appropriations Act. The committee shall annually elect from its
20-4 members a chairman, a vice-chairman, and secretary. A quorum of
20-5 the committee consists of five members.
20-6 (3) The commission may remove a committee member if the
20-7 member:
20-8 (A) does not have at the time of appointment the
20-9 qualifications required by Subdivision (2) of this subsection;
20-10 (B) cannot discharge the member's duties for a substantial
20-11 part of the term for which the member is appointed because of
20-12 illness or disability; or
20-13 (C) is absent from more than half of the regularly scheduled
20-14 committee meetings that the member is eligible to attend during
20-15 each year, unless the absence is excused by the committee.
20-16 (4) The validity of an action of the committee is not
20-17 affected by the fact that it was taken when a ground for removal of
20-18 a committee member exists.
20-19 (5) If the administrator of the commission has knowledge
20-20 that a potential ground for removal exists, the administrator shall
20-21 notify the chairman of the commission that a potential ground
20-22 exists.
20-23 (6) <(3)> The commission shall adopt procedural rules to be
20-24 used by the committee in implementing its powers and duties.
20-25 (7) <(4)> The committee is subject to the open meetings law,
20-26 Chapter 271, Acts of the 60th Legislature, Regular Session, 1967
20-27 (Article 6252-17, Vernon's Texas Civil Statutes), the open records
21-1 law, Chapter 424, Acts of the 63rd Legislature, Regular Session,
21-2 1973 (Article 6252-17a, Vernon's Texas Civil Statutes), and the
21-3 Administrative Procedure and Texas Register Act (Article 6252-13a,
21-4 Vernon's Texas Civil Statutes).
21-5 (8) <(5)> The committee shall meet semiannually and at the
21-6 call of the commission. The committee may also meet at the call of
21-7 a majority of its members.
21-8 (9) <(6)> The committee may act in an advisory capacity to
21-9 <shall> develop and recommend to the commission <for approval the>
21-10 rules <of the commission> under this section. The committee may
21-11 <periodically shall> review commission rules relating to this
21-12 section and recommend changes in the rules to the commission.
21-13 <Notwithstanding Subsection (f), Section 5, Administrative
21-14 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
21-15 Civil Statutes),> The <the> commission shall submit all proposed
21-16 rules, <and> all proposed rule changes and all requests for
21-17 proposed rules or rule changes <additions to the rules> that relate
21-18 to the regulation and licensing of real estate inspectors under
21-19 this section to the committee for development or recommendation.
21-20 The commission may modify the rules developed by the committee if
21-21 the commission finds such modifications are in the public interest.
21-22 This section does not prohibit the commission from developing and
21-23 adopting rules relating to the regulation and licensing of real
21-24 estate inspectors under this section if the committee fails to
21-25 develop or recommend rules under this section within a reasonable
21-26 period of time after the commission submits the proposed rules,
21-27 rule changes or requests for proposed rules or rule changes to the
22-1 committee. The commission may establish an ad-hoc committee
22-2 comprised of members of the commission and members of the committee
22-3 for the purpose of recommending procedural rules to the commission
22-4 to define the procedures by which the committee may communicate its
22-5 recommendations and development of rules or proposed rules to the
22-6 commission and by which the commission may adopt or modify the
22-7 rules under this section <If the commission does not approve a
22-8 rule developed by the committee, the commission shall indicate to
22-9 the committee the reason that the commission did not approve the
22-10 rule and return the rule to the committee for further development>.
22-11 (c) License <or registration> required. (1) A person may
22-12 not act as a professional <real estate> inspector in this state for
22-13 a buyer or seller of real property unless the person possesses a
22-14 professional <real estate> inspector license issued under this
22-15 section.
22-16 (2) A person may not act or attempt to act as a real estate
22-17 inspector <an inspector-in-training> in this state for a buyer or
22-18 seller of real property unless the person possesses a real estate
22-19 inspector <an inspector-in-training> license issued under this
22-20 section and is under the indirect supervision of a professional
22-21 <real estate> inspector.
22-22 (3) A person may not act or attempt to act as an apprentice
22-23 inspector in this state for a buyer or seller of real property
22-24 unless the person is licensed <registered> under this section and
22-25 is under the direct supervision of a real estate inspector or
22-26 professional inspector <inspector-in-training>.
22-27 (d) Eligibility; application. (1) To be eligible for a
23-1 license <registration> as an apprentice inspector, an applicant
23-2 must be an individual, a citizen of the United States or a lawfully
23-3 admitted alien, and a resident of this state at the time of the
23-4 <for at least 60 days immediately before the date of> filing of the
23-5 application. The applicant must be sponsored by a professional
23-6 <real estate> inspector licensed under this section. The applicant
23-7 must be at least 18 years old.
23-8 (2) To be eligible for a license as a real estate inspector
23-9 <an inspector-in-training>, an applicant must have met the
23-10 requirements and been licensed <be registered> as an apprentice
23-11 inspector for at least three months and have performed at least 25
23-12 real estate inspections under direct supervision before filing an
23-13 application. The applicant must satisfy the commission as to the
23-14 applicant's honesty, trustworthiness, integrity, and competency.
23-15 An applicant for an original real estate inspector
23-16 <inspector-in-training> license must submit satisfactory evidence
23-17 to the commission of successful completion of not less than 90
23-18 classroom hours of core real estate inspection courses. The
23-19 commission by rule may specify the length and content of the core
23-20 real estate inspection courses required by this subdivision. The
23-21 commission shall determine the competency of an applicant on the
23-22 basis of an examination required by Subsection (i) of this section.
23-23 The applicant must be sponsored by a professional <real estate>
23-24 inspector licensed under this section. Notwithstanding this
23-25 subdivision of this subsection, an applicant is eligible for and
23-26 has satisfied all requirements for a license as a real estate
23-27 inspector if the applicant was previously licensed as a real estate
24-1 inspector during the preceding 24 month period immediately
24-2 preceding the filing of the application, the applicant is sponsored
24-3 by a professional inspector, and the applicant satisfies the
24-4 commission as to the applicant's honesty, trustworthiness, and
24-5 integrity.
24-6 (3) To be eligible for a license as a professional <real
24-7 estate> inspector, an applicant must have met the requirements and
24-8 have been licensed <registered> as an apprentice inspector for at
24-9 least three months and licensed as a real estate inspector <an
24-10 inspector-in-training> for at least 12 months had have performed at
24-11 least 175 real estate inspections under indirect supervision before
24-12 filing an application. An applicant for an original professional
24-13 <real estate> inspector license must submit satisfactory evidence
24-14 to the commission of successful completion of not less than 30
24-15 classroom hours of core real estate inspection courses and eight
24-16 classroom hours related to the study of standards of <professional>
24-17 practice, legal issues, or <and> ethics related to the profession
24-18 of real estate inspections. These classroom hours are in addition
24-19 to those required for <registration a> an apprentice inspector
24-20 license or a real estate inspector license <licensing as an
24-21 inspector-in-training>. The commission shall determine the
24-22 competency of an applicant on the basis of an examination required
24-23 by Subsection (i) of this section. Notwithstanding this
24-24 subsection, an applicant is eligible for and has satisfied all
24-25 requirements for a license as a professional inspector if the
24-26 applicant was previously licensed as a professional inspector
24-27 during the preceding 24 month period immediately preceding the
25-1 filing of the application and the applicant satisfies the
25-2 commission as to the applicant's honesty, trustworthiness, and
25-3 integrity.
25-4 (4) The commission by rule may provide for the substitution
25-5 of relevant experience or education in lieu of the number of real
25-6 estate inspections required by this section.
25-7 (5) <(4)> An applicant must file an application for
25-8 <registration or> a license with the commission on forms prescribed
25-9 by the commission.
25-10 (e) Issuance of <registration or> license. The commission
25-11 shall issue an apprentice license, <registration>, <an
25-12 inspector-in-training license, or> a real estate inspector license,
25-13 or a professional inspector license to an applicant who possesses
25-14 the required qualifications, passes the appropriate examination if
25-15 required, and pays the fee required by Subdivision (2) of
25-16 Subsection (o) of this section.
25-17 (f) Expiration of <registration or> license; renewal. (1)
25-18 A <registration or> license issued under this section expires one
25-19 year after the date it is issued.
25-20 (2) A person may renew an unexpired <registration or>
25-21 license by paying to the commission before the expiration date of
25-22 the <registration or> license the required renewal fee.
25-23 (3) If a person's <registration or> license has been expired
25-24 for 90 days or less, the person may renew the <registration or>
25-25 license by paying to the commission the required renewal fee and a
25-26 fee that is one-half of the examination fee, if any, for the
25-27 registration or license.
26-1 (4) If a person's <registration or> license has been expired
26-2 for longer than 90 days but less than one year, the person may
26-3 renew the <registration or> license by paying to the commission all
26-4 unpaid renewal fees and a fee that is equal to the examination fee,
26-5 if any, for the <registration or> license.
26-6 (5) If a person's <registration or> license has been expired
26-7 for one year or longer, the person may not renew the <registration
26-8 or> license. The person may obtain a new <registration or> license
26-9 by submitting to reexamination, if <originally> required, and
26-10 complying with the requirements and procedures for obtaining an
26-11 original <registration or> license. However, the commission may
26-12 renew without reexamination an expired license of a person who was
26-13 licensed in this state, moved to another state, and is currently
26-14 licensed and has been in practice in the other state for the one
26-15 year preceding application. The person must pay to the commission
26-16 a fee that is equal to the examination fee for the license.
26-17 (6) At least 30 days before the expiration of a person's
26-18 <registration or> license, the commission shall send written notice
26-19 of the impending <registration or> license expiration to the person
26-20 at the person's last known address according to the records of the
26-21 commission.
26-22 (g) Change of address. A licensee <or person registered>
26-23 under this section shall notify the commission and pay the required
26-24 fee within 30 days after the date a change of place of business
26-25 occurs.
26-26 (h) Fees. (1) The commission shall charge and collect
26-27 reasonable and necessary fees to recover the cost of administering
27-1 this section as follows:
27-2 (A) a fee not to exceed $75 for the filing of an original
27-3 application for a license <registration> as an apprentice
27-4 inspector;
27-5 (B) a fee not to exceed $125 for the filing of an original
27-6 application for a license as a real estate inspector <an
27-7 inspector-in-training>.
27-8 (C) a fee not to exceed $150 for the filing of an original
27-9 application for a license as a professional <real estate>
27-10 inspector.
27-11 (D) a fee not to exceed $125 for the annual license
27-12 <registration> renewal of an apprentice inspector;
27-13 (E) a fee not to exceed $175 for the annual license renewal
27-14 of a real estate inspector <an inspector-in-training>;
27-15 (F) a fee not to exceed $200 for the annual license renewal
27-16 of a professional <real estate> inspector;
27-17 (G) a fee not to exceed $100 for taking a license
27-18 examination; and
27-19 (H) a fee not to exceed $20 for a request for a change of
27-20 place of business or to replace a lost or destroyed license <or
27-21 registration>.
27-22 (2) All fees may be paid by cash, check, cashier's check, or
27-23 money order.
27-24 (3) The fees shall be reviewed annually and reduced to the
27-25 extent that the costs of administering this section are funded by
27-26 the real estate inspector regulation account established under
27-27 Subdivision (4) of Subsection (o) of this section.
28-1 (i) Examination. (1) The commission shall prescribe the
28-2 licensing examinations, which shall be prepared by or contracted
28-3 for by the commission. A licensing examination shall evaluate
28-4 competency in the subject matter of all required core real estate
28-5 inspection courses. The licensing examination shall be offered not
28-6 less often than once every two months in Austin. If a license
28-7 applicant fails the examination, the applicant may apply for
28-8 reexamination by filing a request with the commission and paying
28-9 the examination fee. Each license applicant must satisfy the
28-10 examination requirement not later than six months after the date on
28-11 which the license application is filed. A license applicant who
28-12 fails to satisfy the examination requirement within six months
28-13 after the date on which the license application is filed must
28-14 submit a new license application with the commission and pay the
28-15 examination fee to be eligible for examination. If a license
28-16 applicant fails the examination three consecutive times in
28-17 connection with the same application, the applicant may not apply
28-18 for reexamination or submit a new license application with the
28-19 commission for six months from the date he failed the last
28-20 examination.
28-21 (2) Not later than the 30th day after the date on which a
28-22 licensing examination is administered under this section, the
28-23 commission shall notify each examinee of the results of the
28-24 examination. However, if an examination is graded or reviewed by a
28-25 national testing service, the commission shall notify examinees of
28-26 the results of the examination not later than the 14th day after
28-27 the date on which the commission receives the results from the
29-1 testing service. If the notice of examination results graded or
29-2 reviewed by a national testing service will be delayed for longer
29-3 than 90 days after the examination date, the commission shall
29-4 notify the examinee of the reason for the delay before the 90th
29-5 day.
29-6 (3) If requested in writing by a person who fails a
29-7 licensing examination administered under this section, the
29-8 commission shall furnish the person with an analysis of the
29-9 person's performance on the examination.
29-10 (j) Waiver of out-of-state applicants. The commission may
29-11 waive any license requirement for an applicant with a valid license
29-12 from another state having license requirements substantially
29-13 equivalent to those of this state.
29-14 (k) Continuing education programs. The commission shall
29-15 recognize, prepare, or administer continuing education programs for
29-16 inspectors. Participation in the programs is mandatory. A real
29-17 estate inspector <An inspector-in-training> must submit
29-18 satisfactory evidence to the commission of successful completion of
29-19 at least four classroom hours of core real estate inspection
29-20 courses annually before a licensed renewal is issued. A
29-21 professional <real estate> inspector must submit satisfactory
29-22 evidence to the commission of successful completion of at least
29-23 eight classroom hours of core related real estate inspection
29-24 courses annually before a license renewal is issued.
29-25 (l) Prohibited acts. A professional <real estate>
29-26 inspector, real estate inspector <or inspector-in-training licensed
29-27 under this section> or an apprentice inspector licensed
30-1 <registered> under this section may not:
30-2 (1) accept an assignment for real estate inspection if the
30-3 employment or fee is contingent on the reporting of a specific,
30-4 predetermined condition of the improvements to real property or is
30-5 contingent on the reporting of specific findings other than those
30-6 known by the inspector to be facts at the time of accepting the
30-7 assignment;
30-8 (2) act in a manner or engage in a practice that is
30-9 dishonest or fraudulent or that involves deceit or
30-10 misrepresentation;
30-11 (3) perform a real estate inspection in a negligent or
30-12 incompetent manner;
30-13 (4) act in the dual capacity of <real estate> inspector and
30-14 undisclosed principal in a transaction;
30-15 (5) act in the dual capacity of <real estate> inspector and
30-16 real estate broker or salesman in a transaction;
30-17 (6) perform or agree to perform any repairs or maintenance
30-18 in connection with a real estate inspection pursuant to the
30-19 provisions of any earnest money contract, lease agreement, or
30-20 exchange of real estate; or
30-21 (7) violate the rules adopted by the commission or any
30-22 provisions of this section.
30-23 (m) Offenses. (1) A person commits an offense if the
30-24 person knowingly or intentionally engages in the business of real
30-25 estate inspecting without a license <or registration> under this
30-26 section or performs an inspection during a period in which the
30-27 inspector's license <or registration> is revoked or suspended.
31-1 (2) An offense under this subsection is a Class B
31-2 misdemeanor.
31-3 (3) The commission may <shall> authorize the committee to
31-4 conduct administrative hearings or <and> recommend the entry of
31-5 final orders, or both, in contested cases regarding a <registered
31-6 or> licensed <real estate> inspector. The commission may authorize
31-7 specific employees to conduct hearings and render final decisions
31-8 in contested cases regarding a licensed inspector.
31-9 (4) The commission may investigate the actions of a
31-10 <registered or> licensed <real estate> inspector and may, after
31-11 notice and hearing in accordance with the provisions of Section 17
31-12 of this Act, reprimand, place on probation, suspend or revoke a
31-13 <registration or> license for a violation of this Act or a rule by
31-14 the commission. If the commission revokes a <registration or>
31-15 license of a person, the person may not apply to the commission for
31-16 one year after the revocation.
31-17 (n) Exemptions. This section does not apply to any
31-18 electrician, plumber, carpenter, any person engaged in the business
31-19 of structural pest control in compliance with the Texas Structural
31-20 Pest Control Act (Article 135b-6, Vernon's Texas Civil Statutes),
31-21 or any other person who repairs, maintains, or inspects
31-22 improvements to real property and who does not represent to the
31-23 public through personal solicitation or public advertising that the
31-24 person is in the business of inspecting such improvements. The
31-25 provisions of this section shall not be construed so as to prevent
31-26 any person from performing any and all acts which the person is
31-27 authorized to perform pursuant to a license or registration issued
32-1 by this state or any governmental subdivision of this state.
32-2 (o) Real estate inspection recovery fund. (1) The
32-3 commission shall establish a real estate inspection recovery fund
32-4 which shall be set apart and maintained by the commission as
32-5 provided by this subsection. The fund shall be used in the manner
32-6 provided by this subsection for reimbursing aggrieved persons who
32-7 suffer actual damages by reason of certain acts committed by a duly
32-8 licensed <or registered real estate> inspector, provided the <real
32-9 estate> inspector was licensed <or registered> by the State of
32-10 Texas at the time the act was committed and provided recovery is
32-11 ordered by a court of competent jurisdiction against the <real
32-12 estate> inspector. The use of the fund is limited to an act that
32-13 is a violation of Subsection (l) of this section.
32-14 (2) When a person receives notice that the person has
32-15 successfully completed the licensing examination provided by
32-16 Subsection (i) of this section, the person shall pay, in addition
32-17 to any other fees required by this section, a fee not to exceed
32-18 $200, which shall be deposited in the real estate inspection
32-19 recovery fund prior to the commission's issuing the person an <a
32-20 real estate> inspector license.
32-21 (3) If on December 31 of any year the balance remaining in
32-22 the real estate inspection recovery fund is less than $300,000,
32-23 each <real estate> inspector, on the next renewal of the person's
32-24 license, shall pay, in addition to the license renewal fee, a fee
32-25 of $75, or a pro rata share of the amount necessary to bring the
32-26 fund to $450,000, whichever is less, which shall be deposited in
32-27 the real estate inspection recovery fund.
33-1 (4) If on December 31 of any year the balance remaining in
33-2 the real estate inspection recovery fund is greater than $600,000,
33-3 the amount of money in excess of $600,000 shall be transferred to a
33-4 separate account in the general revenue fund to be known as the
33-5 real estate inspector regulation account. The money in the real
33-6 estate inspector regulation account may be used only for the
33-7 payment of costs incurred by the commission in the regulation of
33-8 <real estate> inspectors.
33-9 (5) No action for a judgment that results in an order for
33-10 collection from the real estate inspection recovery fund shall be
33-11 started later than two years from the accrual of the cause of
33-12 action. When an aggrieved person commences action for a judgment
33-13 that may result in collection from the real estate inspection
33-14 recovery fund, the <real estate> inspector shall notify the
33-15 commission in writing to this effect at the time of the
33-16 commencement of the action.
33-17 (6) When an aggrieved person recovers a valid judgment in a
33-18 court of competent jurisdiction against an <a real estate>
33-19 inspector on the grounds described in Subdivision (1) of this
33-20 subsection, the aggrieved person may, after final judgment has been
33-21 entered, execution returned nulla bona, and a judgment lien
33-22 perfected, file a verified claim in the court in which the judgment
33-23 was entered and, on 20 days' written notice to the commission and
33-24 to the judgment debtor, may apply to the court where the judgment
33-25 was rendered for an order directing payment out of the real estate
33-26 inspection recovery fund of the amount unpaid on the judgment,
33-27 subject to the limitations stated in Subdivision (15) of this
34-1 subsection.
34-2 (7) The court shall proceed on the application forthwith.
34-3 On the hearing on the application, the aggrieved person is required
34-4 to show:
34-5 (A) that the judgment is based on facts allowing recovery
34-6 under Subdivision (1) of this subsection;
34-7 (B) that the person is not a spouse of the debtor or the
34-8 personal representative of the spouse and the person is not an <a
34-9 real estate> inspector, as defined by this section;
34-10 (C) that the person has obtained a judgment under
34-11 Subdivision (6) of this subsection that is not subject to a stay or
34-12 discharge in bankruptcy, stating the amount of the judgment and the
34-13 amount owing on the judgment at the date of the application;
34-14 (D) that based on the best information available, the
34-15 judgment debtor lacks sufficient attachable assets in this state or
34-16 any other state to satisfy the judgment; and
34-17 (E) the amount that may be realized from the sale of real or
34-18 personal property or other assets liable to be sold or applied in
34-19 satisfaction of the judgment and the balance remaining due on the
34-20 judgment after application of the amount that may be realized.
34-21 (8) The court shall make an order directed to the commission
34-22 requiring payment out of the real estate inspection recovery fund
34-23 of whatever sum it finds to be payable on the claim, pursuant to
34-24 and in accordance with the limitations contained in this
34-25 subdivision, if the court is satisfied, on the hearing, of the
34-26 truth of all matters required to be shown by the aggrieved person
34-27 by Subdivision (7) of this subsection and that the aggrieved person
35-1 has satisfied all the requirements of Subdivisions (6) and (7) of
35-2 this subsection. The commission may relitigate any issue material
35-3 and relevant in the hearing on the application that was determined
35-4 in the underlying action on which the judgment in favor of the
35-5 applicant was based. If the court finds that the aggregate of
35-6 claims against an <a real estate> inspector exceeds the limitations
35-7 contained in this section, the court shall reduce proportionately
35-8 the amount it finds payable on the claim.
35-9 (9) A recovery on the judgment against a single defendant
35-10 made before payment from the real estate inspection recovery fund
35-11 must be applied by the creditor first to actual damages.
35-12 (10) A license <or registration> granted under the
35-13 provisions of this section may be revoked by the commission on
35-14 proof that the commission has made a payment from the real estate
35-15 inspection recovery fund of any amount toward satisfaction of a
35-16 judgment against a licensed <or registered real estate> inspector.
35-17 The commission may probate an order revoking a license <or
35-18 registration>. No <real estate> inspector is eligible to receive a
35-19 new license <or registration> until the person has repaid in full,
35-20 plus interest, at the current legal rate, the amount paid from the
35-21 real estate inspection recovery fund on the person's account.
35-22 (11) The sums received by the commission for deposit in the
35-23 real estate inspection recovery fund shall be held by the
35-24 commission in trust for carrying out the purpose of the real estate
35-25 inspection recovery fund. These funds may be invested and
35-26 reinvested in the same manner as funds of the Employees Retirement
35-27 System of Texas, and the interest from these investments shall be
36-1 deposited to the credit of the real estate inspection recovery
36-2 fund. However, investments may not be made that will impair the
36-3 necessary liquidity required to satisfy judgment payments awarded
36-4 pursuant to this subsection.
36-5 (12) When the commission receives notice of entry of a final
36-6 judgment and a hearing is conducted under Subdivision (8) of this
36-7 subsection, the commission may notify the Attorney General of Texas
36-8 of the commission's desire to enter an appearance, file a response,
36-9 appear at the court hearing, defend the action, or take whatever
36-10 other action it deems appropriate. In taking such action, the
36-11 commission and the attorney general shall act only to protect the
36-12 fund from spurious or unjust claims or to ensure compliance with
36-13 the requirements for recovery under this subsection.
36-14 (13) When, on the order of the court, the commission has
36-15 paid from the real estate inspection recovery fund any sum to the
36-16 judgment creditor, the commission shall be subrogated to all of the
36-17 rights of the judgment creditor to the extent of the amount paid.
36-18 The judgment creditor shall assign all his right, title, and
36-19 interest in the judgment up to the amount paid by the commission.
36-20 The amount paid by the commission shall have priority for repayment
36-21 in the event of any subsequent recovery on the judgment. Any
36-22 amount in interest recovered by the commission on the judgment
36-23 shall be deposited to the fund.
36-24 (14) The failure of an aggrieved person to comply with the
36-25 provisions of this subsection relating to the real estate
36-26 inspection recovery fund shall constitute a waiver of any rights
36-27 under this subsection.
37-1 (15) Notwithstanding any other provision, payments from the
37-2 real estate inspection recovery fund are subject to the following
37-3 conditions and limitations:
37-4 (A) payments may be made only pursuant to an order of a
37-5 court of competent jurisdiction, as provided by Subdivision (6) of
37-6 this subsection, and in the manner prescribed by this subsection;
37-7 (B) payments for claims, including attorney fees, interest,
37-8 and court costs, arising out of the same transaction shall be
37-9 limited in the aggregate to $7,500 regardless of the number of
37-10 claimants; and
37-11 (C) payments for claims based on judgments against a
37-12 licensed <or registered real estate> inspector may not exceed in
37-13 the aggregate $15,000 until the fund has been reimbursed by the
37-14 licensee for all amounts paid.
37-15 (16) Nothing contained in this subsection shall limit the
37-16 authority of the commission to take disciplinary action against a
37-17 person licensed <or registered> under this section for a violation
37-18 of this section or the rules of the commission, nor shall the
37-19 repayment in full of all obligations to the real estate inspection
37-20 recovery fund by a person nullify or modify the effect of any other
37-21 disciplinary proceeding brought pursuant to this section.
37-22 (17) A person receiving payment out of the real estate
37-23 inspection recovery fund under Subdivision (15) of this subsection
37-24 shall be entitled to receive reasonable attorney fees as determined
37-25 by the court, subject to the limitations stated in that
37-26 subdivision.
37-27 (18) An <A real estate> inspector licensed <or registered>
38-1 under this section shall notify consumers and service recipients of
38-2 the availability of the real estate inspection recovery fund
38-3 established under this section for reimbursing certain aggrieved
38-4 persons. The notice must include the name, mailing address, and
38-5 telephone number of the commission and any other information
38-6 required by commission rule. The notification may be provided:
38-7 (A) on a written contract for the services of an <a real
38-8 estate> inspector;
38-9 (B) on a brochure distributed by an <a real estate>
38-10 inspector;
38-11 (C) on a sign prominently displayed in the place of business
38-12 of an <a real estate> inspector; or
38-13 (D) in a bill or receipt for service provided by an <a real
38-14 estate> inspector.
38-15 (p) Inactive licenses. The commission by rule may adopt
38-16 terms and conditions by which an inspector may apply for, renew, or
38-17 place a license on inactive status and rules by which an inactive
38-18 inspector may return to active status.
38-19 SECTION 16. Persons licensed as real estate inspectors on
38-20 the effective date of this Act are deemed to be professional
38-21 inspectors for the purposes of this Act. Persons licensed as
38-22 inspectors-in-training on the effective date of this Act are deemed
38-23 to be real estate inspectors for the purposes of this Act. Persons
38-24 registered as apprentice inspectors on the effective date of this
38-25 Act are deemed to be licensed apprentice inspectors for the
38-26 purposes of this Act.
38-27 SECTION 17. For the sole purpose of satisfying eligibility
39-1 requirements under subdivision (2) of subsection (d) of Section 23
39-2 of the Real Estate License Act (Vernon's Article 6573a, Texas Civil
39-3 Statutes), a person who was previously licensed as an
39-4 inspector-in-training or a real estate inspector at any time during
39-5 the 24 month period before the effective date of this Act is deemed
39-6 to have been previously licensed as a real estate inspector.
39-7 SECTION 18. (a) Except as provided by Subsection (b) of
39-8 this section, this Act takes effect September 1, 1993.
39-9 (b) The provision of Section 6 of this Act amending the
39-10 minimum number of hours required to be completed in a course in the
39-11 Law of Agency by an applicant for a salesman license takes effect
39-12 for all applications filed on or after September 1, 1994.
39-13 SECTION 19. The importance of this legislation and the
39-14 crowded condition of the calendars in both houses create an
39-15 emergency and an imperative public necessity that the
39-16 constitutional rule requiring bills to be read on three several
39-17 days in each house be suspended, and this rule is hereby suspended.