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AN ACT
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relating to the professions regulated by the Texas Real Estate |
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Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1101.002, Occupations Code, is amended |
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by amending Subdivision (1) and adding Subdivision (1-a) to read as |
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follows: |
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(1) "Broker": |
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(A) means a person who, in exchange for a |
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commission or other valuable consideration or with the expectation |
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of receiving a commission or other valuable consideration, performs |
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for another person one of the following acts: |
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(i) sells, exchanges, purchases, or leases |
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real estate; |
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(ii) offers to sell, exchange, purchase, or |
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lease real estate; |
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(iii) negotiates or attempts to negotiate |
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the listing, sale, exchange, purchase, or lease of real estate; |
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(iv) lists or offers, attempts, or agrees |
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to list real estate for sale, lease, or exchange; |
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(v) [appraises or offers, attempts, or
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agrees to appraise real estate;
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[(vi)] auctions or offers, attempts, or |
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agrees to auction real estate; |
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(vi) [(vii)] deals in options on real |
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estate, including buying, selling, or offering to buy or sell |
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options on real estate; |
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(vii) [(viii)] aids or offers or attempts |
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to aid in locating or obtaining real estate for purchase or lease; |
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(viii) [(ix)] procures or assists in |
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procuring a prospect to effect the sale, exchange, or lease of real |
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estate; [or] |
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(ix) [(x)] procures or assists in procuring |
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property to effect the sale, exchange, or lease of real estate; |
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(x) controls the acceptance or deposit of |
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rent from a resident of a single-family residential real property |
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unit; or |
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(xi) provides a written analysis, opinion, |
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or conclusion relating to the estimated price of real property if |
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the analysis, opinion, or conclusion: |
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(a) is not referred to as an |
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appraisal; |
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(b) is provided in the ordinary course |
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of the person's business; and |
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(c) is related to the actual or |
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potential management, acquisition, disposition, or encumbrance of |
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an interest in real property; and |
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(B) includes a person who: |
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(i) is employed by or for an owner of real |
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estate to sell any portion of the real estate; or |
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(ii) engages in the business of charging an |
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advance fee or contracting to collect a fee under a contract that |
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requires the person primarily to promote the sale of real estate by: |
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(a) listing the real estate in a |
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publication primarily used for listing real estate; or |
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(b) referring information about the |
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real estate to brokers. |
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(1-a) "Business entity" means a "domestic entity" or |
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"foreign entity" as those terms are defined by Section 1.002, |
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Business Organizations Code. |
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SECTION 2. Section 1101.005, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.005. APPLICABILITY OF CHAPTER. This chapter does |
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not apply to: |
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(1) an attorney licensed in this [any] state; |
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(2) an attorney-in-fact authorized under a power of |
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attorney to conduct a real estate transaction; |
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(3) a public official while engaged in official |
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duties; |
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(4) an auctioneer licensed under Chapter 1802 while |
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conducting the sale of real estate by auction if the auctioneer does |
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not perform another act of a broker or salesperson; |
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(5) a person conducting a real estate transaction |
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under a court order or the authority of a will or written trust |
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instrument; |
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(6) a person employed by an owner in the sale of |
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structures and land on which structures are located if the |
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structures are erected by the owner in the course of the owner's |
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business; |
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(7) an on-site manager of an apartment complex; |
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(8) an owner or the owner's employee who leases the |
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owner's improved or unimproved real estate; or |
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(9) [a partnership or limited liability partnership
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acting as a broker or salesperson through a partner who is a
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licensed broker; or
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[(10)] a transaction involving: |
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(A) the sale, lease, or transfer of a mineral or |
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mining interest in real property; |
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(B) the sale, lease, or transfer of a cemetery |
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lot; |
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(C) the lease or management of a hotel or motel; |
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or |
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(D) the sale of real property under a power of |
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sale conferred by a deed of trust or other contract lien. |
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SECTION 3. Subchapter D, Chapter 1101, Occupations Code, is |
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amended by adding Section 1101.161 to read as follows: |
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Sec. 1101.161. GIFTS, GRANTS, AND DONATIONS. The |
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commission may solicit and accept a gift, grant, donation, or other |
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item of value from any source to pay for any activity under this |
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chapter or Chapter 1102 or 1103. |
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SECTION 4. Section 1101.301, Occupations Code, is amended |
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by amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) In establishing accreditation standards for an |
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educational program under Subsection (a), the commission shall |
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adopt rules setting an examination passage rate benchmark for each |
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category of license issued by the commission under this chapter or |
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Chapter 1102. The benchmark must be based on the average percentage |
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of examinees that pass the licensing exam on the first attempt. A |
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program must meet or exceed the benchmark for each license category |
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[that require a program to establish that at least 55 percent of the
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program's graduates have passed a licensing exam the first time the
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exam has been taken by the graduates] before the commission may |
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renew the program's accreditation for the license category. |
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(d) The commission may deny an application for |
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accreditation if the applicant owns or controls, or has previously |
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owned or controlled, an educational program or course of study for |
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which accreditation was revoked. |
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SECTION 5. Section 1101.351, Occupations Code, is amended |
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by adding Subsection (a-1) to read as follows: |
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(a-1) Unless a business entity holds a license issued under |
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this chapter, the business entity may not act as a broker. |
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SECTION 6. Section 1101.352, Occupations Code, is amended |
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by adding Subsection (d) to read as follows: |
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(d) At the time an application is submitted under Subsection |
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(a), each applicant shall provide the commission with the |
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applicant's current mailing address and telephone number, and |
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e-mail address if available. The applicant shall notify the |
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commission of any change in the applicant's mailing or e-mail |
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address or telephone number during the time the application is |
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pending. |
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SECTION 7. Section 1101.355, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.355. ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS |
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FOR [CERTAIN] BUSINESS ENTITIES. (a) To be eligible for a license |
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under this chapter, a business entity must: |
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(1) [a corporation must] designate one of its managing |
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officers as its agent for purposes of this chapter; and |
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(2) provide proof that the entity maintains errors and |
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omissions insurance with a minimum annual limit of $1 million for |
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each occurrence if the designated agent owns less than 10 percent of |
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the business entity [a limited liability company must designate one
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of its managers as its agent for purposes of this chapter]. |
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(b) A business entity [corporation or limited liability
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company] may not act as a broker unless the entity's designated |
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agent is a licensed broker in active status and good standing |
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according to the commission's records. |
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(c) A business entity that receives compensation on behalf |
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of a license holder must be licensed as a broker under this chapter. |
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SECTION 8. Section 1101.356, Occupations Code, is amended |
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by amending Subsection (a) and adding Subsection (b-1) to read as |
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follows: |
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(a) An applicant for a broker license must provide to the |
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commission satisfactory evidence that the applicant: |
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(1) has had at least four [two] years of active |
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experience in this state as a license holder during the 60 [36] |
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months preceding the date the application is filed; and |
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(2) has successfully completed at least 60 semester |
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hours, or equivalent classroom hours, of postsecondary education, |
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including: |
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(A) at least 18 semester hours or equivalent |
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classroom hours of core real estate courses, two semester hours of |
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which must be real estate brokerage; and |
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(B) at least 42 hours of core real estate courses |
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or related courses accepted by the commission. |
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(b-1) The commission by rule shall establish what |
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constitutes active experience for purposes of this section and |
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Section 1101.357. |
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SECTION 9. Section 1101.357, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.357. BROKER LICENSE: ALTERNATE EXPERIENCE |
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REQUIREMENTS FOR CERTAIN APPLICANTS. An applicant for a broker |
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license who does not satisfy the experience requirements of Section |
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1101.356 must provide to the commission satisfactory evidence that: |
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(1) the applicant: |
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(A) is a licensed real estate broker in another |
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state; |
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(B) has had at least four [two] years of active |
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experience in that state as a licensed real estate broker or |
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salesperson during the 60 [36] months preceding the date the |
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application is filed; and |
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(C) has satisfied the educational requirements |
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prescribed by Section 1101.356; or |
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(2) the applicant was licensed in this state as a |
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broker in the year preceding the date the application is filed. |
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SECTION 10. Section 1101.358, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.358. SALESPERSON LICENSE: EDUCATION |
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REQUIREMENTS. (a) An applicant for a salesperson license must |
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provide to the commission satisfactory evidence that the applicant |
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has completed at least 12 [14] semester hours, or equivalent |
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classroom hours, of postsecondary education consisting of[,
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including]: |
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(1) at least four semester hours of core real estate |
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courses on principles of real estate; and |
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(2) at least two semester hours of each of the |
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following core real estate courses: |
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(A) agency law; |
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(B) contract law; [and] |
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(C) contract forms and addendums; and |
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(D) real estate finance [one additional core real
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estate course; and
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[(3)
at least four semester hours of core real estate
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courses or related courses]. |
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(b) The commission shall waive the education requirements |
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of Subsection (a) if the applicant has been licensed in this state |
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as a broker or salesperson within the six months [year] preceding |
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the date the application is filed. |
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(c) If an applicant for a salesperson license was licensed |
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as a salesperson within the six months [year] preceding the date the |
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application is filed and the license was issued under the |
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conditions prescribed by Section 1101.454, the commission shall |
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require the applicant to provide the evidence of successful |
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completion of education requirements that would have been required |
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if the license had been maintained without interruption during the |
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preceding six months [year]. |
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SECTION 11. Subsection (c), Section 1101.367, Occupations |
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Code, is amended to read as follows: |
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(c) As a condition of returning to active status, an |
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inactive salesperson whose license is not subject to the [annual] |
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education requirements of Section 1101.454 must provide to the |
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commission proof of attending at least 15 hours of continuing |
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education as specified by Section 1101.455 during the two years |
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preceding the date the application to return to active status is |
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filed. |
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SECTION 12. Subsection (f), Section 1101.401, Occupations |
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Code, is amended to read as follows: |
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(f) An applicant must satisfy the examination requirement |
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not later than one year [six months] after the date the license |
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application is filed. |
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SECTION 13. Subsections (e) and (f), Section 1101.451, |
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Occupations Code, are amended to read as follows: |
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(e) A person whose license has been expired for 90 days or |
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less may renew the license by paying to the commission a fee equal |
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to 1-1/2 times the required renewal fee. If a license has been |
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expired for more than 90 days but less than six months [one year], |
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the person may renew the license by paying to the commission a fee |
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equal to two times the required renewal fee. |
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(f) If a person's license has been expired for six months |
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[one year] or longer, the person may not renew the license. The |
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person may obtain a new license by submitting to reexamination and |
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complying with the requirements and procedures for obtaining an |
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original license. |
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SECTION 14. Subsection (a), Section 1101.452, Occupations |
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Code, is amended to read as follows: |
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(a) To renew an active license that is not subject to the |
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[annual] education requirements of Section 1101.454, the license |
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holder must provide to the commission proof of compliance with the |
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continuing education requirements of Section 1101.455. |
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SECTION 15. Section 1101.453, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.453. ADDITIONAL RENEWAL REQUIREMENTS FOR |
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[CERTAIN] BUSINESS ENTITIES. (a) To renew a license under this |
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chapter, a business entity must: |
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(1) [a corporation must] designate one of its managing |
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officers as its agent for purposes of this chapter; and |
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(2) provide proof that the entity maintains errors and |
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omissions insurance with a minimum annual limit of $1 million for |
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each occurrence if the designated agent owns less than 10 percent of |
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the business entity [a limited liability company must designate one
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of its managers as its agent for purposes of this chapter]. |
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(b) A business entity [corporation or limited liability
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company] may not act as a broker unless the entity's designated |
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agent is a licensed broker in active status and good standing |
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according to the commission's records. |
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SECTION 16. Subsection (a), Section 1101.454, Occupations |
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Code, is amended to read as follows: |
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(a) An applicant applying for the first renewal of a |
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salesperson license must provide to the commission satisfactory |
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evidence of completion of at least 18 semester hours, or equivalent |
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classroom hours, [of postsecondary education, including 14 hours] |
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of core real estate courses. |
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SECTION 17. Subsection (b), Section 1101.455, Occupations |
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Code, is amended to read as follows: |
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(b) A license holder who is not subject to the [annual] |
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education requirements of Section 1101.454 must attend during the |
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term of the current license at least 15 classroom hours of |
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continuing education courses approved by the commission. |
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SECTION 18. Subchapter J, Chapter 1101, Occupations Code, |
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is amended by adding Section 1101.458 to read as follows: |
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Sec. 1101.458. ADDITIONAL EDUCATION REQUIREMENTS FOR |
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CERTAIN LICENSE HOLDERS. (a) A broker who sponsors a salesperson, |
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or a license holder who supervises another license holder, must |
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attend during the term of the current license at least six classroom |
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hours of broker responsibility education courses approved by the |
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commission. |
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(b) The commission by rule shall prescribe the title, |
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content, and duration of broker responsibility education courses |
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required under this section. |
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(c) Broker responsibility education course hours may be |
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used to satisfy the hours described by Section 1101.455(f). |
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(d) This section does not apply to a broker who is exempt |
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from continuing education requirements under Section 1101.456. |
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SECTION 19. Subsection (b), Section 1101.502, Occupations |
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Code, is amended to read as follows: |
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(b) To be eligible to receive a certificate of registration |
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or a renewal certificate under this subchapter, a business |
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[corporation, limited liability company, partnership, limited
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liability partnership, or other] entity must designate as its agent |
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one of its managing officers[, partners, or managers] who is |
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registered under this subchapter. |
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SECTION 20. Subchapter K, Chapter 1101, Occupations Code, |
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is amended by adding Section 1101.5041 to read as follows: |
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Sec. 1101.5041. CRIMINAL HISTORY RECORD INFORMATION |
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REQUIREMENT FOR CERTIFICATE. An applicant for an original |
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certificate of registration or renewal of a certificate of |
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registration must comply with the criminal history record check |
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requirements of Section 1101.3521. |
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SECTION 21. Section 1101.552, Occupations Code, is amended |
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by adding Subsection (e) to read as follows: |
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(e) A license holder shall provide the commission with the |
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license holder's current mailing address and telephone number, and |
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e-mail address if available. A license holder shall notify the |
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commission of a change in the license holder's mailing or e-mail |
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address or telephone number. |
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SECTION 22. Section 1101.554, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.554. COPY [CUSTODY] OF SALESPERSON LICENSE. |
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[(a)] The commission shall deliver or mail a copy of each |
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salesperson license to the broker with whom the salesperson is |
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associated. |
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[(b)
The broker shall keep the license under the broker's
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custody and control.] |
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SECTION 23. Subchapter N, Chapter 1101, Occupations Code, |
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is amended by adding Section 1101.6561 to read as follows: |
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Sec. 1101.6561. SUSPENSION OR REVOCATION OF EDUCATIONAL |
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PROGRAM ACCREDITATION. The commission may suspend or revoke an |
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accreditation issued under Subchapter G or take any other |
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disciplinary action authorized by this chapter if the provider of |
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an educational program or course of study violates this chapter or a |
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rule adopted under this chapter. |
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SECTION 24. Subsection (c), Section 1101.356, Occupations |
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Code, is repealed. |
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SECTION 25. (a) Not later than December 1, 2011, the Texas |
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Real Estate Commission shall adopt rules necessary to implement |
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Section 1101.301, Occupations Code, as amended by this Act, and |
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Subsection (b-1), Section 1101.356, and Section 1101.458, |
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Occupations Code, as added by this Act. |
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(b) Subsection (e), Section 1101.552, Occupations Code, as |
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added by this Act, applies only to a broker or salesperson license |
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issued or renewed on or after December 1, 2011. A license issued or |
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renewed before that date is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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(c) Subsection (b), Section 1101.502, Occupations Code, as |
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amended by this Act, and Section 1101.5041, Occupations Code, as |
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added by this Act, apply only to an application for a certificate of |
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registration or renewal of a certificate of registration filed with |
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the Texas Real Estate Commission on or after December 1, 2011. An |
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application filed before that date is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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(d) Section 1101.458, Occupations Code, as added by this |
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Act, applies only to a license issued or renewed on or after |
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September 1, 2012. A license issued or renewed before that date is |
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governed by the law in effect immediately before the effective date |
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of this Act, and the former law is continued in effect for that |
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purpose. |
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(e) Sections 1101.352, 1101.355, and 1101.401, Occupations |
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Code, as amended by this Act, apply only to an application for a |
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real estate broker or salesperson license submitted to the Texas |
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Real Estate Commission on or after the effective date of this Act. |
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An application for a license submitted before that date is governed |
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by the law in effect on the date the application was submitted, and |
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the former law is continued in effect for that purpose. |
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(f) Sections 1101.356 and 1101.357, Occupations Code, as |
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amended by this Act, apply only to an application for a real estate |
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broker license submitted to the Texas Real Estate Commission on or |
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after January 1, 2012. An application for a license submitted |
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before that date is governed by the law in effect immediately before |
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the effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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(g) Section 1101.358, Occupations Code, as amended by this |
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Act, applies only to an application for a real estate salesperson |
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license submitted to the Texas Real Estate Commission on or after |
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September 1, 2012. An application for a license submitted before |
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that date is governed by the law in effect immediately before the |
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effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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(h) Section 1101.454, Occupations Code, as amended by this |
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Act, applies only to the renewal of a real estate salesperson |
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license that expires on or after September 1, 2012. A license that |
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expires before that date is governed by the law in effect |
|
immediately before the effective date of this Act, and the former |
|
law is continued in effect for that purpose. |
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(i) Sections 1101.451 and 1101.453, Occupations Code, as |
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amended by this Act, apply only to the renewal of a real estate |
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broker or salesperson license that expires on or after the |
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effective date of this Act. A license that expires before that date |
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is governed by the law in effect on the date the license expires, |
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and the former law is continued in effect for that purpose. |
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(j) A person who holds a license as a real estate broker |
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issued before the effective date of this Act may continue to renew |
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that license without complying with the changes in law made by this |
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Act to Sections 1101.356 and 1101.357, Occupations Code. |
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(k) Sections 1101.002 and 1101.005, Occupations Code, as |
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amended by this Act, apply, with respect to conduct that |
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constitutes acting as a broker or salesperson under Chapter 1101, |
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Occupations Code, only to conduct engaged in on or after the |
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effective date of this Act. Conduct engaged in before the effective |
|
date of this Act is governed by the law in effect when the conduct |
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was engaged in, and the former law is continued in effect for that |
|
purpose. |
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SECTION 26. This Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 747 passed the Senate on |
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March 17, 2011, by the following vote: Yeas 31, Nays 0; |
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May 25, 2011, Senate refused to concur in House amendments and |
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requested appointment of Conference Committee; May 26, 2011, House |
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granted request of the Senate; May 28, 2011, Senate adopted |
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Conference Committee Report by the following vote: Yeas 31, |
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Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 747 passed the House, with |
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amendments, on May 20, 2011, by the following vote: Yeas 149, |
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Nays 0, one present not voting; May 26, 2011, House granted request |
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of the Senate for appointment of Conference Committee; |
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May 28, 2011, House adopted Conference Committee Report by the |
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following vote: Yeas 148, Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |