AUSTIN – The Texas Real Estate Commission (TREC) has adopted a number of amendments to existing rules. They will go into effect 20 days after they are filed with the Texas secretary of state.
Consumer Protection Notice and Information About Brokerage Services form
The adopted rules clarify that sales agents, along with brokers, must provide a link to the Consumer Protection Notice form in at least ten-point font in a noticeable place on the homepage of their business websites.
For both the Consumer Protection Notice and the Information About Brokerage Services Form, TREC added a new option for using only “TREC” as opposed to “Texas Real Estate Commission” in the link, provided the font size is in at least 12 point.
TREC increased administrative penalties from $500 to $3,000 per violation per day for violating rules about providing these documents.
Comparative market analysis, broker price opinion, and sales price estimates
TREC now requires license holders to provide new language in writing when giving a broker price opinion, comparative market analysis, or estimate of worth or sales price—which includes automated valuation models (AVMs)— to consumers. MLSs and RPR should provide the disclaimer when analyses are created through these platforms.
The new required disclosure statement needs to be reproduced verbatim and in at least 12-point type: “This represents an estimated sale price for this property. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice.”