The Texas Real Estate Commission met August 11 and proposed several changes to rules, forms, and licensing systems. TREC will post the changes in the Texas Register for public comment. The commission will vote to adopt the proposed rule changes and forms at its Nov 3 meeting.
New Online License System
TREC Executive Director Chelsea Buchholtz provided a broad overview of the commission’s new online licensing system, the REALM Portal, and stated that the hope is for the new system to be ready to go live before the end of the year. Once it is live, all TREC real estate applications will be available online.
New Definitions
- Legal Holiday: These holidays are described in Sections 662.003(a) and 662.003(b)(6) of the Texas Government Code. They include New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, the Friday after Thanksgiving, and Christmas Day.
- Conservation Easement: This means an easement (permanent or for a period of years) on a property that restricts the use of all or a part of the property to protect natural resources, wildlife habitat, open space, or historical sites.
Proposed New Form
Water Notice: Seller’s Disclosure about Groundwater and Surface Water Rights
This form arises out of a directive from the Sunset Advisory Commission. It’s for mandatory use to provide information regarding disclosure of groundwater and surface water rights associated with the property.
Proposed Forms Changes
The commission proposed several forms changes, many of which are a direct result of the passage of SB 1968, which goes into effect Jan 1, 2026.
Information About Brokerage Services (IABS Notice)
- Adds a paragraph describing the circumstances and timing for when a license holder must enter into a written agreement with a buyer. Adds a paragraph explaining when and how a license holder can show property to a buyer or tenant without representing them. Removes all reference to subagency.
- Updates the description of the parties in the contact information.
Unimproved Property Contract, One to Four Family Residential Contract, New Home Contract (Incomplete), New Home Contract (Completed Construction), Residential Condominium Contract (Resale)
- Adds the new definition for Legal Holiday mentioned above.
- Adds a paragraph where the seller must indicate whether the buyer has received the new water notice mentioned above.
- Clarifies the language in Paragraph 12A(1)(b) to state, “an amount not to exceed $___ or ___% of the Sales Price (check one box only), to be applied toward the brokerage fees owed by Buyer to Buyer’s broker.”
- Clarifies the language in Paragraph 12A(1)(c) to state, “an amount not to exceed $___ to be applied to Buyer’s Expenses other than brokerage fees.”
- Provides Broker Information and Intermediary Information in a new format, separating Intermediary information from Broker Information.
- Changes listing broker to seller’s broker.
- Changes other broker to buyer’s broker.
- Removes reference to subagency in the Broker Information.
- Removes the disclosure of broker to broker compensation at the bottom of the Broker Information page.
Seller’s Temporary Residential Lease and Buyer’s Temporary Residential Lease
- Removes the paragraph for the landlord’s floodplain and flood notice, since the notice will no longer be required with a short term lease of less than 30 days or a temporary residential lease of 90 days or lease. This is a result of the passage of SB 2349, which goes into effect on Sept 1, 2025.
Farm and Ranch Contract
- Adds the new definition for Legal Holiday.
- Adds a paragraph where the seller must indicate whether the buyer has received the new water notice mentioned above.
- Clarifies the language in Paragraph 12A(1)(b) to state, “an amount not to exceed $___ or ___% of the Sales Price (check one box only), to be applied toward the brokerage fees owed by Buyer to Buyer’s broker.”
- Clarifies the language in Paragraph 12A(1)(c) to state, “an amount not to exceed $___ to be applied to Buyer’s Expenses other than brokerage fees.”
- Provides Broker Information and Intermediary Information in a new format, separating Intermediary information from Broker Information.
- Changes listing broker to seller’s broker.
- Changes other broker to buyer’s broker.
- Removes reference to subagency in the Broker Information.
Landlord’s Floodplain and Flood Notice
- Adds the language, “Not Required with a TREC Temporary Residential Lease.”
- This is a result of the recent passage of SB 2349.
Lead-Based Paint Addendum
- Changes listing broker to seller’s broker.
- Changes other broker to buyer’s broker.
Seller’s Disclosure Notice
There are additional disclosures that the seller must make including the existence of:
- A conservation easement
- Whether the property is currently covered by insurance
- Whether the property is presently covered by windstorm insurance
- If the seller has been unable to insure the property for any reason
- The existence of a private road that the seller is financially responsible for maintaining
- Any aboveground or underground storage tanks on the property
- Any aboveground storage tanks on the property that hold 500 gallons or more of stored petroleum or other chemicals.
These new disclosure requirements arise out of a directive from the Sunset Advisory Committee.
Proposed Changes Affecting Brokers
- All brokers and broker applicants must attend the six-hour Broker Responsibility Course. Delegated supervisors are still required to take the Broker Responsibility Course.
- Applicants for a broker’s license who have obtained a bachelor’s degree or higher may obtain up to 300 hours of real estate related education credit (formerly a degree could count up to the required 630 classroom hours). Rental property management in residential transaction may be credited 2.5 points per property per year and rental property management in farm and ranch and unimproved land transactions may be credited 5 points per property per year. Delegated supervisors may receive 3 points per transaction.
- Applicants for a broker’s license must also now obtain 720 points of qualifying practical experience (which is double the former requirement). Additional experience points above 720 may now be credited towards education, up to a maximum of 300 classroom hours.
- An associated broker must provide to the commission the name of the broker with whom they are associated and report any changes within 10 days.
Proposed Changes Affecting All License Holders
- License holders must provide their business address and business phone number to the commission.
- Applicants for a real estate license who are military service members, spouses, and veterans may receive a Texas license if they have a current license in good standing issued in another state. The license must also be processed and issued within 10 business days. This is in response to the recently enacted HB 5629.
These are all great changes.
clarify if independent brokers with no agents/salespersons need the responsibility course
Yes, please. Me too.
Yes – ALL Brokers paying their renewal starting 01-01-2026 will be required to take the Broker Responsibility Course.
Yes – ALL Brokers paying their renewal starting 01-01-2026 will be required to take the Broker Responsibility Course.
The article says ALL brokers.
Why would the “listing” broker be changed to “seller’s” broker? Not necessary. We all know they are one and the same. Attorneys doing what they do best…rocking the boat.
I think it helps the clients. Just because agents know the lingo doesn’t mean our clients or customers know.
I want to make sure the public takes notice of the Mandatory Holidays. in my 55 year experience I think I have shown on everyone of those dates multiple times. I like all the changs. Thank you’ll for all you do.
Ronny Willis
PS I take that back about Holidays cause we have all made lots of commissions working those days.
Re: “Changes Affecting All License Holders”,……military service members….processed and issued within 10 business days”. Within 10 days of what?
To be clear, the changes affecting brokers now double the practical experience points required to become a broker and add more mandatory education, yet there’s still no increase in the education required for sales agents, who make up the vast majority of license holders and handle most transactions.
I’m all for raising the bar on education; it benefits both consumers and our profession, but if we truly want to elevate the industry, we need to strengthen education requirements for all licensees, not just brokers.
I agree!
Here’s the problem with that….I have personally seen, from my agents needing additional hours to renew their licenses, that the “education source” simply starts repeating information that has already been delivered, just in a different way. You will all agree that most of what we do is OJT, you can only learn so much and only so much can be printed material in a classroom setting. I don’t think that adding additional classroom hours is going to accomplish anything. I think it should be actual work (closed transactions) that needs to be documented and submitted.
Totally agree!
Great changes one quick question so are you saying that for a renewal of my license I get 2.5 hours per property that I manage and what do you need in order to prove that?
With all the updated forms. Can you please remove all outdated forms!!!!
water rights I have no idea on my residential property what if any I have. water comes from the city, if it rains it goes into the yard. this is not a form I think should be mandatory unless you know something new not mentioned.