By Barrientos S.B. No. 1398
74R7385 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain residential real estate
1-3 rental locators; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Real Estate License Act (Article 6573a,
1-6 Vernon's Texas Civil Statutes) is amended by adding Section 24 to
1-7 read as follows:
1-8 Sec. 24. RESIDENTIAL RENTAL LOCATORS. (a) In this section:
1-9 (1) "Client" means a person using the services of a
1-10 residential rental locator to find a rental residence.
1-11 (2) "Compensation" includes:
1-12 (A) a set fee paid by the prospective tenant; or
1-13 (B) a commission paid by the owner or manager of
1-14 real property on execution of a rental agreement or lease with a
1-15 prospective tenant of the property who is a client of a residential
1-16 rental locator.
1-17 (3) "Inquiry" includes a request for information
1-18 submitted in person, by mail, or through telephone or facsimile
1-19 machine.
1-20 (4) "Residential rental locator" means a person who
1-21 offers, for compensation, to locate residential real property for
1-22 lease to a prospective tenant.
1-23 (b) A person may not engage in business as a residential
1-24 rental locator in this state unless the person holds a license
2-1 issued under this Act to operate as a real estate broker or real
2-2 estate salesman.
2-3 (c) If a residential rental locator advertises real property
2-4 for lease through a print or broadcast medium, the locator must
2-5 submit to a client or prospective client on request, and maintain
2-6 available for inspection by clients and prospective clients for at
2-7 least 30 days after the date on which the advertising was ordered,
2-8 proof that the advertised real property was:
2-9 (1) completely as described in the advertising;
2-10 (2) available for lease at the time the advertising
2-11 was ordered; and
2-12 (3) available for the price listed in the advertising.
2-13 (d) On receipt of an inquiry from a client or prospective
2-14 client about a property advertised for lease by a residential
2-15 rental locator, the locator shall inform the client or prospective
2-16 client, either personally or through the locator's employees:
2-17 (1) whether that specific property is still available
2-18 for lease; and
2-19 (2) of any comparable property that is available for
2-20 lease that is represented by the locator and that:
2-21 (A) reasonably meets the physical description of
2-22 the advertised property; and
2-23 (B) is available for a rent equal to or below
2-24 that listed for the advertised property.
2-25 (e) Each residential rental locator shall post in a
2-26 conspicuous place accessible to clients and prospective clients the
2-27 locator's license, a statement that the locator is licensed by the
3-1 commission, and the name, mailing address, and telephone number of
3-2 the commission as provided by Section 5(q) of this Act.
3-3 (f) A violation of this section by a residential rental
3-4 locator constitutes grounds under this Act for the suspension or
3-5 revocation of the person's license, and for the assessment of an
3-6 administrative penalty under Section 19A of this Act.
3-7 (g) A person commits an offense if the person engages in
3-8 business as a residential rental locator in this state without a
3-9 license issued under this Act. An offense under this subsection is
3-10 a Class B misdemeanor.
3-11 SECTION 2. (a) The change in law made by Section 24(g), The
3-12 Real Estate License Act (Article 6573a, Vernon's Texas Civil
3-13 Statutes), as added by this Act, applies only to an offense
3-14 committed on or after the effective date of this Act. For purposes
3-15 of this section, an offense is committed before the effective date
3-16 of this Act if any element of the offense occurs before that date.
3-17 (b) An offense committed before the effective date of this
3-18 Act is governed by the law in effect when the offense was
3-19 committed, and the former law is continued in effect for that
3-20 purpose.
3-21 SECTION 3. This Act takes effect September 1, 1995.
3-22 SECTION 4. The importance of this legislation and the
3-23 crowded condition of the calendars in both houses create an
3-24 emergency and an imperative public necessity that the
3-25 constitutional rule requiring bills to be read on three several
3-26 days in each house be suspended, and this rule is hereby suspended.