1-1 By: Haywood S.B. No. 577
1-2 (In the Senate - Filed February 12, 1997; February 18, 1997,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 18, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 13, Nays 0; April 18, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 577 By: Nelson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to licensing and registration requirements under The Real
1-11 Estate License Act; providing a penalty.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subdivision (5), Section 2, The Real Estate
1-14 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
1-15 amended to read as follows:
1-16 (5) "Person" means an individual or any other entity,
1-17 including but not limited to[,] a governmental body, limited
1-18 liability company, limited liability partnership, partnership, or
1-19 [a] corporation, foreign or domestic.
1-20 SECTION 2. Section 3, The Real Estate License Act (Article
1-21 6573a, Vernon's Texas Civil Statutes), is amended to read as
1-22 follows:
1-23 Sec. 3. The provisions of this Act shall not apply to any of
1-24 the following persons and transactions, and each and all of the
1-25 following persons and transactions are hereby exempted from the
1-26 provisions of this Act:
1-27 (1) an attorney at law licensed in this state or in
1-28 any other state;
1-29 (2) an attorney in fact under a duly executed power of
1-30 attorney authorizing the consummation of a real estate transaction;
1-31 (3) a public official in the conduct of his official
1-32 duties;
1-33 (4) a person calling the sale of real estate by
1-34 auction under the authority of a license issued by this state
1-35 provided the person does not perform any other act of a real estate
1-36 broker or salesman as defined by this Act;
1-37 (5) a person acting under a court order or under the
1-38 authority of a will or a written trust instrument;
1-39 (6) a salesperson employed by an owner in the sale of
1-40 structures and land on which said structures are situated, provided
1-41 such structures are erected by the owner in the due course of his
1-42 business;
1-43 (7) an on-site manager of an apartment complex;
1-44 (8) transactions involving the sale, lease, or
1-45 transfer of any mineral or mining interest in real property;
1-46 (9) an owner or his employees in renting or leasing
1-47 his own real estate whether improved or unimproved;
1-48 (10) transactions involving the sale, lease, or
1-49 transfer of cemetery lots; [or]
1-50 (11) transactions involving the renting, leasing, or
1-51 management of hotels or motels;
1-52 (12) a partnership or limited liability partnership
1-53 performing an act constituting an act of a broker or salesman, as
1-54 defined by this Act, through a partner who is duly licensed as a
1-55 real estate broker; or
1-56 (13) a person registered under Section 9A of this Act
1-57 who sells, buys, leases, or transfers an easement or right-of-way
1-58 for use in connection with telecommunication, utility, railroad, or
1-59 pipeline service.
1-60 SECTION 3. Section 4, The Real Estate License Act (Article
1-61 6573a, Vernon's Texas Civil Statutes), is amended to read as
1-62 follows:
1-63 Sec. 4. A person who, directly or indirectly for another,
1-64 with the intention or on the promise of receiving any valuable
2-1 consideration, offers, attempts, or agrees to perform, or performs,
2-2 a single act defined in Subdivisions 2 and 3, Section 2 of this
2-3 Act, whether as a part of a transaction, or as an entire
2-4 transaction, is deemed to be acting as a real estate broker or
2-5 salesman within the meaning of this Act. The commission of a
2-6 single such act by a person required to be licensed or registered
2-7 under this Act and not so licensed or registered shall constitute a
2-8 violation of this Act.
2-9 SECTION 4. Subsection (m), Section 5, The Real Estate
2-10 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
2-11 amended to read as follows:
2-12 (m) The commission shall charge and collect as a condition
2-13 for issuance and for renewal of a real estate broker license the
2-14 fee under Section 11(a)(14) of this Act. The commission shall
2-15 charge and collect as a condition for issuance and for renewal of a
2-16 registration under Section 9A of this Act the fee under Section
2-17 11(a)(14) of this Act. The commission shall charge and collect as
2-18 a condition for issuance and for renewal of a real estate salesman
2-19 license the fee under Section 11(a)(15) of this Act. The
2-20 commission shall transmit the fees under this subsection quarterly
2-21 to Texas A&M University for deposit in a separate banking account.
2-22 The money in the separate account shall be expended for the support
2-23 and maintenance of the Texas Real Estate Research Center and for
2-24 carrying out the purposes, objectives, and duties of the center.
2-25 However, all money expended from the separate account shall be as
2-26 determined by legislative appropriation.
2-27 SECTION 5. Section 6, The Real Estate License Act (Article
2-28 6573a, Vernon's Texas Civil Statutes), is amended by adding
2-29 Subsection (d) to read as follows:
2-30 (d) For an individual to be eligible for a registration or a
2-31 renewal of a registration under Section 9A of this Act, the
2-32 individual must be a citizen of the United States or a lawfully
2-33 admitted alien and be at least 18 years of age. For a corporation,
2-34 limited liability company, partnership, limited liability
2-35 partnership, or any other entity to be eligible for a registration
2-36 or renewal of a registration under Section 9A of this Act, it must
2-37 designate one of its officers, partners, or managers to act for it.
2-38 The designated person must be an individual registered under
2-39 Section 9A of this Act.
2-40 SECTION 6. Section 8, The Real Estate License Act (Article
2-41 6573a, Vernon's Texas Civil Statutes), is amended to read as
2-42 follows:
2-43 Sec. 8. (a) The commission shall establish a real estate
2-44 recovery fund which shall be set apart and maintained by the
2-45 commission as provided in this section. The fund shall be used in
2-46 the manner provided in this section for reimbursing aggrieved
2-47 persons who suffer actual damages by reason of certain acts
2-48 committed by a duly licensed real estate broker or salesman, a duly
2-49 registered person under Section 9A of this Act, or by an unlicensed
2-50 employee or agent of a broker or salesman, provided the registrant,
2-51 broker, or salesman was registered or licensed by the State of
2-52 Texas at the time the act was committed and provided recovery is
2-53 ordered by a court of competent jurisdiction against the
2-54 registrant, broker, or salesman. The use of the fund is limited to
2-55 an act that constitutes a violation of Section 15(a)(3) or (6) of
2-56 this Act if the judgment debtor was at the time of the violation a
2-57 licensed real estate broker, a real estate salesman, or an
2-58 unlicensed agent or employee of the broker. The use of the fund is
2-59 limited to an act that constitutes a violation of Section 9A(c)(1)
2-60 of this Act if the judgment debtor was at the time of the violation
2-61 registered under Section 9A of this Act.
2-62 (b) On application for an original license pursuant to this
2-63 Act, the applicant shall pay, in addition to his original license
2-64 application fee, a fee of $10 which shall be deposited in the real
2-65 estate recovery fund. On application for an original registration
2-66 under Section 9A of this Act and for each renewal of such
2-67 registration, the registrant shall pay, in addition to the
2-68 registrant's original application fee or renewal fee, a fee of $50,
2-69 which shall be deposited in the real estate recovery fund.
3-1 (c) If on December 31 of any year the balance remaining in
3-2 the real estate recovery fund is less than $1 million, each real
3-3 estate broker and each real estate salesman, on the next renewal of
3-4 his license, shall pay, in addition to his license renewal fee, a
3-5 fee of $10, which shall be deposited in the real estate recovery
3-6 fund, or a pro rata share of the amount necessary to bring the fund
3-7 to $1.7 million, whichever is less. If on December 31 of any year
3-8 the balance remaining in the real estate recovery fund is more than
3-9 $3.5 million or more than the total amount of claims paid from the
3-10 fund during the previous four fiscal years, whichever is greater,
3-11 the amount of money in excess of the greater amount shall be
3-12 transferred to the general revenue fund.
3-13 (d) No action for a judgment which subsequently results in
3-14 an order for collection from the real estate recovery fund shall be
3-15 started later than two years from the accrual of the cause of
3-16 action. When an aggrieved person commences action for a judgment
3-17 which may result in collection from the real estate recovery fund,
3-18 the registrant, real estate broker, or real estate salesman shall
3-19 notify the commission in writing to this effect at the time of the
3-20 commencement of the action.
3-21 (e) When an aggrieved person recovers a valid judgment in a
3-22 court of competent jurisdiction against a registrant, real estate
3-23 broker, or real estate salesman, on the grounds described in
3-24 Subsection (a) of this section that occurred on or after May 19,
3-25 1975, the aggrieved person may, after final judgment has been
3-26 entered, execution returned nulla bona, and a judgment lien
3-27 perfected, file a verified claim in the court in which the judgment
3-28 was entered and, on 20 days' written notice to the commission, and
3-29 to the judgment debtor, may apply to the court for an order
3-30 directing payment out of the real estate recovery fund of the
3-31 amount unpaid on the judgment, subject to the limitations stated in
3-32 Subsection (n) of this section.
3-33 (f) The court shall proceed on the application forthwith.
3-34 On the hearing on the application, the aggrieved person is required
3-35 to show that:
3-36 (1) the judgment is based on facts allowing recovery
3-37 under Subsection (a) of this section;
3-38 (2) he is not a spouse of the debtor, or the personal
3-39 representative of the spouse; and he is not a registrant under
3-40 Section 9A of this Act or a real estate broker or salesman, as
3-41 defined by this Act, who is seeking to recover a real estate
3-42 commission or any compensation in the transaction or transactions
3-43 for which the application for payment is made;
3-44 (3) he has obtained a judgment under Subsection (e) of
3-45 this section that is not subject to a stay or discharge in
3-46 bankruptcy, stating the amount of the judgment and the amount owing
3-47 on the judgment at the date of the application;
3-48 (4) based on the best available information, the
3-49 judgment debtor lacks sufficient attachable assets in this state or
3-50 any other state to satisfy the judgment; and
3-51 (5) the amount that may be realized from the sale of
3-52 real or personal property or other assets liable to be sold or
3-53 applied in satisfaction of the judgment and the balance remaining
3-54 due on the judgment after application of the amount that may be
3-55 realized.
3-56 (g) A recovery on the judgment against a single defendant
3-57 made before payment from the recovery fund must be applied by the
3-58 creditor first to actual damages.
3-59 (h) The court shall make an order directed to the commission
3-60 requiring payment from the real estate recovery fund of whatever
3-61 sum it finds to be payable on the claim, pursuant to and in
3-62 accordance with the limitations contained in this section, if the
3-63 court is satisfied, on the hearing, of the truth of all matters
3-64 required to be shown by the aggrieved person by Subsection (f) of
3-65 this section and that the aggrieved person has satisfied all of the
3-66 requirements of Subsections (e) and (f) of this section. The
3-67 commission may relitigate any issue material and relevant in the
3-68 hearing on the application that was determined in the underlying
3-69 action on which the judgment in favor of the applicant was based.
4-1 If the court finds that the aggregate amount of claims against a
4-2 registrant, real estate broker, or salesman exceeds the limitations
4-3 contained in this section, the court shall reduce proportionately
4-4 the amount it finds payable on the claim.
4-5 (i) A license or registration granted under the provisions
4-6 of this Act may be revoked by the commission on proof that the
4-7 commission has made a payment from the real estate recovery fund of
4-8 any amount toward satisfaction of a judgment against a registrant
4-9 under Section 9A of this Act or a licensed real estate broker or
4-10 salesman. The commission may probate an order revoking a license.
4-11 No registrant, broker, or salesman is eligible to receive a new
4-12 registration or license until he has repaid in full, plus interest
4-13 at the current legal rate, the amount paid from the real estate
4-14 recovery fund on his account.
4-15 (j) The sums received by the real estate commission for
4-16 deposit in the real estate recovery fund shall be held by the
4-17 commission in trust for carrying out the purposes of the real
4-18 estate recovery fund. These funds may be invested and reinvested
4-19 in the same manner as funds of the Texas State Employees Retirement
4-20 System, and the interest from these investments shall be deposited
4-21 to the credit of the real estate recovery fund, provided, however,
4-22 that no investments shall be made which will impair the necessary
4-23 liquidity required to satisfy judgment payments awarded pursuant to
4-24 this section.
4-25 (k) When the real estate commission receives notice of entry
4-26 of a final judgment and a hearing is scheduled under Subsection (h)
4-27 of this section, the commission may notify the Attorney General of
4-28 Texas of its desire to enter an appearance, file a response, appear
4-29 at the court hearing, defend the action, or take whatever other
4-30 action it deems appropriate. In taking such action the real estate
4-31 commission and the attorney general shall act only to protect the
4-32 fund from spurious or unjust claims or to insure compliance with
4-33 the requirements for recovery under this section.
4-34 (l) When, on the order of the court, the commission has paid
4-35 from the real estate recovery fund any sum to the judgment
4-36 creditor, the commission shall be subrogated to all of the rights
4-37 of the judgment creditor to the extent of the amount paid. The
4-38 judgment creditor shall assign all his right, title, and interest
4-39 in the judgment up to the amount paid by the commission which
4-40 amount shall have priority for repayment in the event of any
4-41 subsequent recovery on the judgment. Any amount and interest
4-42 recovered by the commission on the judgment shall be deposited to
4-43 the fund.
4-44 (m) The failure of an aggrieved person to comply with the
4-45 provisions of this section relating to the real estate recovery
4-46 fund shall constitute a waiver of any rights under this section.
4-47 (n) Notwithstanding any other provision, payments from the
4-48 real estate recovery fund are subject to the following conditions
4-49 and limitations:
4-50 (1) payments may be made only pursuant to an order of
4-51 a court of competent jurisdiction, as provided in Subsection (e) of
4-52 this section, and in the manner prescribed by this section;
4-53 (2) payments for claims, including attorneys' fees,
4-54 interest, and court costs, arising out of the same transaction
4-55 shall be limited in the aggregate to $50,000 regardless of the
4-56 number of claimants; and
4-57 (3) payments for claims based on judgments against any
4-58 one licensed real estate broker, licensed real estate [or]
4-59 salesman, or registrant under Section 9A of this Act may not exceed
4-60 in the aggregate $100,000 until the fund has been reimbursed by the
4-61 licensee or registrant for all amounts paid.
4-62 (o) Nothing contained in this section shall limit the
4-63 authority of the commission to take disciplinary action against a
4-64 registrant or licensee for a violation of this Act or the rules and
4-65 regulations of the commission; nor shall the repayment in full of
4-66 all obligations to the real estate recovery fund by a registrant or
4-67 licensee nullify or modify the effect of any other disciplinary
4-68 proceeding brought pursuant to this Act.
4-69 (p) Any person receiving payment out of the real estate
5-1 recovery fund pursuant to Section 8 of this Act shall be entitled
5-2 to receive reasonable attorney fees as determined by the court,
5-3 subject to the limitations stated in Subsection (n) of this
5-4 section.
5-5 (q) A registrant, broker, or salesman registered or licensed
5-6 under this Act shall notify consumers and service recipients of the
5-7 availability of the real estate recovery fund established under
5-8 this section for reimbursing certain aggrieved persons. The notice
5-9 must include the name, mailing address, and telephone number of the
5-10 commission and any other information required by commission rule.
5-11 The notification may be provided with the notice required by
5-12 Section 5(q) of this Act or:
5-13 (1) on a written contract for the services of a
5-14 registrant, broker, or salesman;
5-15 (2) on a brochure distributed by a registrant, broker,
5-16 or salesman;
5-17 (3) on a sign prominently displayed in the place of
5-18 business of a registrant, salesman, or broker; or
5-19 (4) in a bill or receipt for service provided by a
5-20 registrant, broker, or salesman.
5-21 SECTION 7. Section 9, The Real Estate License Act (Article
5-22 6573a, Vernon's Texas Civil Statutes), is amended to read as
5-23 follows:
5-24 Sec. 9. (a) When an applicant has satisfactorily met all
5-25 requirements and conditions of this Act, a license or certificate
5-26 of registration shall be issued which may remain in force and
5-27 effect so long as the holder of the certificate of registration or
5-28 license remains in compliance with the obligations of this Act,
5-29 which include payment of the renewal fee as provided in Section 11
5-30 of this Act. Each active salesman license issued shall be
5-31 delivered or mailed to the broker with whom the salesman is
5-32 associated and shall be kept under his custody and control.
5-33 (b) An applicant is not permitted to engage in the real
5-34 estate business either as a broker or salesman until a license
5-35 evidencing his authority to engage in the real estate business has
5-36 been received. A person may not engage in the business of selling,
5-37 buying, leasing, or transferring an easement or right-of-way for
5-38 another for compensation until the person is licensed or registered
5-39 under this Act.
5-40 (c) The commission by rule may adopt a system under which
5-41 licenses and registrations expire on various dates during the year.
5-42 Dates for payment of the renewal fee shall be adjusted accordingly.
5-43 For the year in which the renewal date is changed, renewal fees
5-44 payable shall be prorated on a monthly basis so each licensee or
5-45 registrant shall pay only that portion of the fee which is
5-46 allocable to the number of months during which the license or
5-47 registration is valid. On renewal of the license or registration
5-48 on the new renewal date, the total renewal fee is payable.
5-49 (d) Any other provision of this Act notwithstanding, the
5-50 commission may issue licenses and registrations valid for a period
5-51 not to exceed 24 months and may charge and collect renewal fees for
5-52 such period; provided, however, that such renewal fees shall not,
5-53 calculated on an annual basis, exceed the amounts established in
5-54 Section 11 of this Act, and further provided that the educational
5-55 conditions for renewal established in Subsection (e) of Section 7
5-56 of this Act shall not be waived by the commission.
5-57 (e) The commission shall require, in any application for a
5-58 broker or salesman license or a renewal of a broker or salesman
5-59 license, the applicant to disclose whether the applicant has
5-60 entered a plea of guilty or nolo contendere to, been found guilty
5-61 of, or been convicted of a felony and the time for appeal has
5-62 elapsed or the judgment or conviction has been affirmed on appeal,
5-63 irrespective of an order granting probation following the
5-64 conviction or suspending the imposition of sentence.
5-65 SECTION 8. The Real Estate License Act (Article 6573a,
5-66 Vernon's Texas Civil Statutes) is amended by adding Section 9A to
5-67 read as follows:
5-68 Sec. 9A. (a) A person may not sell, buy, lease, or transfer
5-69 an easement or right-of-way for another for compensation for use in
6-1 connection with telecommunication, utility, railroad, or pipeline
6-2 service unless the person is:
6-3 (1) licensed as a real estate broker or real estate
6-4 salesman under this Act;
6-5 (2) exempt from this Act for the purpose of selling,
6-6 buying, leasing, or transferring an easement or right-of-way; or
6-7 (3) registered with the commission under this section.
6-8 (b) The commission shall maintain a registry of persons who
6-9 are required to register under this section.
6-10 (c) The commission shall investigate a signed complaint
6-11 received by the commission that relates to the acts of a person
6-12 registered under this section. The commission may refuse to issue
6-13 or renew and may revoke or suspend the registration of a registrant
6-14 under this section who:
6-15 (1) engaged in dishonest dealings, fraud, deceptive
6-16 acts, misrepresentations, bad faith, unlawful discrimination, or
6-17 untrustworthiness;
6-18 (2) failed within a reasonable time to make good a
6-19 check to the commission after the commission has mailed a request
6-20 for payment to the registrant's last known address as reflected in
6-21 the commission records;
6-22 (3) failed to provide to a party in a transaction a
6-23 written notice promulgated by the commission that is to be given
6-24 before the party is obligated to sell, buy, lease, or transfer a
6-25 right-of-way or easement and that contains the name of the
6-26 registrant, the certificate number of the registrant, the name of
6-27 the person the registrant represents, a statement advising the
6-28 party that the party may seek representation from a lawyer or real
6-29 estate broker in the transaction, and a statement generally
6-30 advising the party that the right-of-way or easement may affect the
6-31 value of the property; or
6-32 (4) disregarded or violated a provision of this Act or
6-33 a rule of the commission relating to registrants under this
6-34 section.
6-35 (d) The commission may adopt rules to administer and enforce
6-36 this section.
6-37 SECTION 9. Subsection (a), Section 10, The Real Estate
6-38 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
6-39 amended to read as follows:
6-40 (a) If the commission declines or fails to register or
6-41 license an applicant, it shall immediately give written notice of
6-42 the refusal to the applicant. Before the applicant may appeal to a
6-43 district court as provided in Section 18 of this Act, he must file
6-44 within 10 days after the receipt of the notice an appeal from the
6-45 ruling, requesting a time and place for a hearing before the
6-46 commission. The commission shall set a time and place for the
6-47 hearing within 30 days from the receipt of the appeal, giving 10
6-48 days' notice of the hearing to the applicant. The time of the
6-49 hearing may be continued from time to time with the consent of the
6-50 applicant. Following the hearing, the commission shall enter an
6-51 order which is, in its opinion, appropriate in the matter
6-52 concerned.
6-53 SECTION 10. Section 11, The Real Estate License Act (Article
6-54 6573a, Vernon's Texas Civil Statutes), is amended to read as
6-55 follows:
6-56 Sec. 11. (a) The commission shall charge and collect the
6-57 following fees:
6-58 (1) a fee not to exceed $100 for the filing of an
6-59 original application for a real estate broker license;
6-60 (2) a fee not to exceed $100 for annual renewal of a
6-61 real estate broker license;
6-62 (3) a fee not to exceed $50 for the filing of an
6-63 original application for a real estate salesman license;
6-64 (4) a fee not to exceed $50 for annual renewal of a
6-65 real estate salesman license;
6-66 (5) a fee not to exceed $25 for an application for a
6-67 license examination;
6-68 (6) a fee not to exceed $20 for filing a request for a
6-69 license for each additional office or place of business;
7-1 (7) a fee not to exceed $20 for filing a request for a
7-2 license or certificate of registration for a change of place of
7-3 business, change of name, return to active status, or change of
7-4 sponsoring broker;
7-5 (8) a fee not to exceed $20 for filing a request to
7-6 replace a license or certificate of registration lost or destroyed;
7-7 (9) a fee not to exceed $400 for filing an application
7-8 for approval of an education program under Section 7(f) of this
7-9 Act;
7-10 (10) a fee not to exceed $200 a year for operation of
7-11 an education program under Section 7(f) of this Act;
7-12 (11) a fee of $15 for transcript evaluation;
7-13 (12) a fee not to exceed $10 for preparing a license
7-14 or registration history;
7-15 (13) a fee not to exceed $50 for the filing of an
7-16 application for a moral character determination;
7-17 (14) an annual fee of $20 from each real estate broker
7-18 and each registrant under Section 9A of this Act to be transmitted
7-19 to Texas A&M University for the Texas Real Estate Research Center
7-20 as provided by Section 5(m) of this Act; [and]
7-21 (15) an annual fee of $17.50 from each real estate
7-22 salesman to be transmitted to Texas A&M University for the Texas
7-23 Real Estate Research Center as provided by Section 5(m) of this
7-24 Act;
7-25 (16) an annual fee of $80 from each registrant under
7-26 Section 9A of this Act; and
7-27 (17) any fee authorized under Section 8 of this Act
7-28 for the real estate recovery fund.
7-29 SECTION 11. Section 12, The Real Estate License Act (Article
7-30 6573a, Vernon's Texas Civil Statutes), is amended by adding
7-31 Subsection (e) to read as follows:
7-32 (e) The certificate of registration of a registrant under
7-33 Section 9A of this Act shall at all times be prominently displayed
7-34 in the registrant's place of business. Within 10 days after a move
7-35 from a previously designated address, the registrant shall notify
7-36 the commission of the move and obtain a new certificate of
7-37 registration reflecting the new location.
7-38 SECTION 12. Subsections (a) and (b), Section 16, The Real
7-39 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),
7-40 are amended to read as follows:
7-41 (a) A license or registration granted under the provisions
7-42 of this Act shall be suspended or revoked by the commission on
7-43 proof that the licensee or registrant, not being licensed and
7-44 authorized to practice law in this state, for a consideration,
7-45 reward, pecuniary benefit, present or anticipated, direct or
7-46 indirect, or in connection with or as a part of his employment,
7-47 agency, or fiduciary relationship as a licensee, drew a deed, note,
7-48 deed of trust, will, or other written instrument that may transfer
7-49 or anywise affect the title to or an interest in land, except as
7-50 provided in the subsections below, or advised or counseled a person
7-51 as to the validity or legal sufficiency of an instrument or as to
7-52 the validity of title to real estate.
7-53 (b) Notwithstanding the provisions of this Act or any other
7-54 law, the completion of contract forms which bind the sale,
7-55 exchange, option, lease, or rental of any interest in real property
7-56 by a registrant under Section 9A of this Act, a real estate broker,
7-57 or a real estate salesman incident to the performance of the acts
7-58 of a broker as defined by this Act [article] does not constitute
7-59 the unauthorized or illegal practice of law in this state, provided
7-60 the forms have been promulgated for use by the commission for the
7-61 particular kind of transaction involved, or the forms have been
7-62 prepared by an attorney at law licensed by this state and approved
7-63 by said attorney for the particular kind of transaction involved,
7-64 or the forms have been prepared by the property owner or prepared
7-65 by an attorney and required by the property owner.
7-66 SECTION 13. Subsection (a), Section 19, The Real Estate
7-67 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
7-68 amended to read as follows:
7-69 (a) A person acting as a real estate broker or real estate
8-1 salesman without first obtaining a license or a person acting as an
8-2 agent in a transaction involving the sale, purchase, lease, or
8-3 transfer of a right-of-way or easement without first obtaining a
8-4 certificate of registration under Section 9A of this Act is guilty
8-5 of a misdemeanor and on conviction shall be punishable by a fine of
8-6 not less than $100 nor more than $500, or by imprisonment in the
8-7 county jail for a term not to exceed one year, or both; and if a
8-8 corporation or a limited liability company, shall be punishable by
8-9 a fine of not less than $1,000 nor more than $2,000. A person, on
8-10 conviction of a second or subsequent offense, shall be punishable
8-11 by a fine of not less than $500 nor more than $1,000, or by
8-12 imprisonment for a term not to exceed two years, or both; and if a
8-13 corporation or a limited liability company, shall be punishable by
8-14 a fine of not less than $2,000 nor more than $5,000.
8-15 SECTION 14. This Act takes effect January 1, 1998.
8-16 SECTION 15. Transactions included within the provisions of
8-17 Section 9A, The Real Estate License Act (Article 6573a, Vernon's
8-18 Texas Civil Statutes), as added by this Act, shall be governed by
8-19 this Act from and after its effective date. Transactions executed
8-20 prior to that date are validated in all respects with regard to
8-21 compliance with the licensing provisions of Section 1, The Real
8-22 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes).
8-23 SECTION 16. The importance of this legislation and the
8-24 crowded condition of the calendars in both houses create an
8-25 emergency and an imperative public necessity that the
8-26 constitutional rule requiring bills to be read on three several
8-27 days in each house be suspended, and this rule is hereby suspended.
8-28 * * * * *