47 topics · Updated 2026-09-17
An inspector may not perform a real estate inspection in a negligent or incompetent manner.
An inspector may not accept an assignment where employment or a fee is contingent on reporting a specific, predetermined condition or specific findings other than those the inspector knows to be true. Inspectors may not act dishonestly, fraudulently, or engage in deceit or misrepresentation.
An inspector may not act in a transaction in the dual capacity of inspector and undisclosed principal, or inspector and broker/salesperson. An inspector may not perform or agree to perform repairs or maintenance in connection with a real estate inspection under an earnest money contract, lease, or exchange of real property. An inspector may not violate this chapter or a commission rule.
A person may not act as an easement or right-of-way agent unless they hold a license under this chapter or a certificate of registration issued under this subchapter.
To receive or renew a certificate, a person must be at least 18, a U.S. citizen or lawfully admitted alien, and complete required coursework. A business entity must designate a managing officer registered under the subchapter as its agent.
An original certificate applicant must complete at least 16 classroom hours covering the law of eminent domain, professionalism in negotiations with property owners, and ethics in right-of-way acquisition. A renewal applicant must complete at least 16 classroom hours of current information on those subjects during the renewal period.
Applicants for an original or renewal certificate must comply with criminal history record check requirements of Section 1101.3521. Denial of issuance or renewal follows the same provisions as license denial under 1101.364, and renewal may be denied for violation of a commission order.
A certificate holder must notify the commission and obtain a new certificate reflecting the new address within 10 days of moving. The holder must prominently display the certificate at all times in the place of business.
If the commission proposes to deny, suspend, or revoke a license or certificate, the person is entitled to a hearing conducted by the State Office of Administrative Hearings (SOAH), governed by contested case procedures under Chapter 2001, Government Code. An aggrieved person may appeal to a district court in the county where the hearing was held.
An 'intermediary' is a broker employed to negotiate a transaction between the parties and may act as agent of the parties. A 'party' means a prospective buyer, seller, landlord, or tenant (or authorized representative), and does not include a license holder representing a party.
When an offer to purchase real estate in Texas is signed, a license holder must advise each buyer in writing to either have the abstract examined by an attorney chosen by the buyer, or be provided with or obtain a title insurance policy.
A license holder is not required to inquire about, disclose, or release information about whether an occupant had or may have had AIDS/HIV, or whether a death occurred on the property by natural causes, suicide, or accident unrelated to the property's condition.
A broker who represents a party or lists under an exclusive agreement is that party's agent. Such a broker may not instruct another broker to violate Section 1101.652(b)(22), must inform the party of material information (including offers), and must at minimum answer questions and present offers to or from the party.
A license holder representing a party must disclose that representation, orally or in writing, at first contact with another party or another party's license holder. At first substantive communication about specific property, the license holder must give written notice (at least 10-point font) describing how a broker can represent parties, the broker's duties to represented and unrepresented parties, and providing contact and license information.
A broker may act as intermediary only if the broker obtains written consent from each party and the consent states the source of expected compensation. A written listing/representation agreement authorizing intermediary status suffices if it specifies in conspicuous bold or underlined print the conduct prohibited under 1101.651(d). An intermediary must act fairly and impartially.
A complying broker may appoint associated license holders to communicate with and carry out instructions of each party, but only if the written consent authorizes the appointment and the broker gives written notice of the appointment to all parties. Appointed license holders may provide opinions and advice during negotiations to the party to whom they are appointed.
The intermediary duties supersede all other duties, including common law. A broker must agree to act as an intermediary if the broker agrees to represent both a buyer/tenant and a seller/landlord in a transaction.
A license holder performing any act of real estate brokerage for a prospective buyer of residential real property must enter a written agreement before showing any residential property or, if none is shown, before presenting an offer. The agreement must state services, termination date, whether exclusive, agency status, and compensation, and disclose that broker compensation is not set by law and is fully negotiable. A showing-only agreement cannot be exclusive nor exceed 14 days.
A resident broker must maintain a fixed office in Texas designated on the license. Within 10 days of moving, the broker must apply with fee for a license showing the new location. Nonresident brokers need not maintain a Texas office. License holders must keep the commission updated with current mailing/business addresses, phone, email, and (if an associated broker) the name of the associated broker.
A broker may show property without representing a party if the broker has no agreement to represent, is not otherwise acting as the party's agent, provides no opinions/advice, and performs no other brokerage acts. Before showing, the broker must disclose per 1101.558(b) if representing the owner, or give the 1101.558(b-1) notice if not. The broker may still confirm size, price, and terms.
A residential rental locator must prominently display, accessible to clients, the locator's license, a statement that the locator is licensed by the commission, and the notice required by Section 1101.202(a).
After notice and hearing under Section 1101.657, the commission may reprimand, place on probation, suspend, or revoke an inspector's license for violating the chapter or a commission rule. An inspector whose license is revoked may not apply for a new license until after the first anniversary of the revocation date.
A person commits a Class A misdemeanor by wilfully violating or failing to comply with the chapter or a commission order. A person also commits a Class A misdemeanor by knowingly engaging in the business of real estate inspecting without a license, including inspecting while their license is revoked or suspended.
A person is not eligible for a license until they reimburse the commission in full, plus legal interest, for any amount paid on their behalf from the former real estate inspection recovery fund or the real estate recovery trust account under Subchapter M, Chapter 1101.
The commission may impose an administrative penalty under Subchapter O, Chapter 1101, for violations of this chapter or a commission rule/order. Penalties collected from inspectors go to general revenue; penalties from unlicensed persons go to the recovery trust account or general revenue as the commission determines.
The presiding officer appoints a three-member disciplinary panel to determine whether a license should be temporarily suspended. If continued practice constitutes a continuing threat to public welfare, the panel must temporarily suspend the license. Suspension may occur without notice or hearing if hearing proceedings are initiated simultaneously and held as soon as possible. The panel may meet by telephone conference call if immediate action is required.
The commission, attorney general, county attorney, or district attorney may bring an action to enforce the chapter or abate/enjoin violations under Sections 1101.751 and 1101.752. The commission is not required to give an appeal bond in an enforcement action.
The committee drafts and revises contract forms capable of standardization to expedite real estate transactions and minimize controversy. The forms must contain safeguards adequate to protect the principals in the transaction.
The Texas Real Estate Broker-Lawyer Committee consists of 13 members: six appointed by the commission, six State Bar of Texas members appointed by the state bar president, and one public member appointed by the governor. Members serve staggered six-year terms; the public member's term expires every six years. Appointments are made without regard to race, creed, sex, religion, or national origin.
The presiding officer appoints a three-member disciplinary panel to determine whether a license should be temporarily suspended. If continued practice would constitute a continuing threat to public welfare, the panel shall temporarily suspend. Suspension may occur without notice/hearing if contested case proceedings are initiated simultaneously and a hearing is held as soon as possible.
A person whose license/registration was revoked, who surrendered it, or whose application was denied after a hearing may not reapply before the second anniversary of the revocation, surrender, or denial.
If a respondent receives proper notice but does not appear, the administrative law judge may proceed and enter an order, and the respondent is bound as if they appeared. The ALJ may award the commission reasonable costs, including SOAH costs, hearing preparation, discovery, depositions, subpoenas, service of process, witness/travel/investigation expenses.
The commission maintains a real estate recovery trust account to reimburse aggrieved persons who suffer actual damages caused by acts described in 1101.602 committed by a license holder, certificate holder, or an unlicensed employee/agent of one. The license or certificate holder must have held it when the act was committed. A claim against a business entity is also a claim against its designated broker.
Payments arising out of a single transaction may not exceed $125,000 total regardless of number of claimants. Payments based on judgments against a single license/certificate holder may not exceed $250,000 total until the holder reimburses the account. Claims exceeding limits are proportionately reduced. A recipient may receive reasonable attorney's fees. A business entity and its designated broker count as a single license holder.
An aggrieved person is entitled to reimbursement if a covered person engaged in conduct requiring a license/certificate and described by Section 1101.652(a-1)(1) or (b) (for license holders) or Section 1101.653(1)-(4) (for certificate holders).
An action that may result in payment from the trust account must be brought within two years after the cause of action accrues. For an agreed judgment, both parties must notify the commission in writing before entry and deliver copies of pleadings and the proposed judgment; the commission notifies parties within 30 days if it intends to relitigate issues.
After a court judgment, final judgment entered, execution returned nulla bona, and a judgment lien perfected, an aggrieved person may file a verified claim in the court that entered the judgment. After 20 days' written notice to the commission and judgment debtor, the person may apply for a payment order. A hearing must be scheduled within one year of application or recovery is waived. Bankruptcy-precluded persons must verify a good-faith effort.
At the hearing, the aggrieved person must show the judgment is based on facts allowing recovery, that the person is not the debtor's spouse (or their representative), not a license/certificate holder seeking commission in the transaction, and not related to the debtor within the first degree by consanguinity; that the debtor lacks sufficient attachable assets; the amount realizable from asset sales; and the remaining balance due.
The commission is subrogated to all of the judgment creditor's rights to the extent paid, and the creditor must assign the judgment interest. The commission has priority for repayment from any subsequent recovery. Repayment of trust account amounts does not affect disciplinary proceedings, and the subchapter does not limit the commission's disciplinary authority. A person who does not comply with the subchapter waives their rights.
The commission may impose an administrative penalty for chapter, rule, or order violations. The penalty may not exceed $5,000 for each violation, and each day a violation continues may be a separate violation. The executive director considers seriousness, history of violations, deterrence amount, correction efforts, and justice factors.
After investigation, the executive director may issue a notice of violation summarizing the alleged violation, recommending penalty/sanction, and stating the right to a hearing. Not later than the 20th day after receiving notice, the person may accept the determination or request a hearing in writing. Failure to respond timely results in the commission ordering the recommended penalty.
Not later than the 30th day after the order becomes final, the person must pay the penalty or file a petition for judicial review. Enforcement may be stayed by paying into escrow, giving a supersedeas bond for the penalty amount, or filing an affidavit of financial inability along with a copy to the executive director.
If unpaid and not stayed, the executive director may refer the matter to the attorney general for collection. A court may uphold or reduce the penalty. If the penalty is reduced or not upheld after judicial review, the court remits the appropriate amount plus interest (at the NY Federal Reserve Bank rate on loans to depository institutions).
The commission may establish standards for approving qualifying educational programs (excluding public high schools and accredited colleges/universities) and develop minimum instructor education/experience requirements. Programs must meet an exam passage rate benchmark (based on average first-attempt pass percentage) for each license category before renewal. The commission may renew on a probationary basis and may deny approval if the applicant previously had approval revoked or is in violation of a commission order.
An educational institution (a school other than accredited colleges/universities authorized to offer real estate or inspection programs) must maintain a $20,000 corporate surety bond or acceptable security, payable to the commission, for the benefit of parties damaged by the institution's failure to fulfill obligations related to commission approval.
If an applicant satisfies requirements, the commission may authorize a continuing education provider or course of study to offer for a two-year period. The commission may develop minimum instructor education/experience requirements and may deny renewal if the applicant is in violation of a commission order.
The commission adopts rules on collecting and publishing exam passage rate data for graduates of approved programs, including methods to calculate passage rates, collect data, and post it on the commission's website aggregated by program and license group. A review committee may evaluate underperforming programs but cannot revoke approval; the commission may temporarily suspend a program like a license.
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