The Texas Real Estate Commission held its May meeting in Irving, attracting over 300 audience members. No new rules were adopted, but important items were discussed. Below are relevant highlights. The agenda and materials for the full meeting are available on TREC’s website.

Broker Succession

Current rules state that a sales agent’s, broker’s, or business entity broker’s license becomes immediately inactive upon the death of the designated broker. The commission proposed a rule to allow for a 14-day grace period for individuals or entities to name a new sponsoring broker upon the death of a designated broker.

This and other proposed rules will be published for public comment on the Texas Register, and the full text of the changes can be found in the meeting materials.

Possible Forms Changes

Texas REALTORS® General Counsel and Vice President of Legal Affairs Lori Levy gave an update on the NAR settlement and how it will affect members. She reiterated that Texas REALTORS® is excited to collaborate with the Texas Broker Lawyer Committee’s newly formed compensation subcommittee to look at potential changes to TREC’s promulgated forms.

The compensation subcommittee is currently seeking feedback on the following:

• Remove all references to the multiple listing services in the contract forms.
• Include a simple statement that any and all fees to the brokers in the transaction will be paid pursuant to separate agreements between the parties and their brokers or between the brokers.
• Identify the fees to be paid to each broker in a manner similar to the model found in TREC’s Farm and Ranch Contract (TREC 25-15) or the Texas REALTORS® commercial contract form.
• Remove all references to brokerage fees in the contract forms, and publish an addendum for the payment of brokerage fees using either model found in the Farm and Ranch Contract or in the Texas REALTORS® commercial contract form.
• Insert a new subparagraph in Paragraph 12A in which the seller may agree to pay a specific concession for fees payable to the buyer’s broker.
• In Paragraph 12A, include in the definition of Buyer’s Expenses a statement similar to “broker fees Buyer has agreed to pay” and in the definition of Seller’s Expenses a statement similar to “broker fees Seller has agreed to pay.”

All feedback will be reviewed and considered by the subcommittee and can be sent to TREC.