The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.2, Broker Responsibility, in Chapter 535, General Provisions, with a non-substantive change to the text as published in the August 31, 2018, issue of the Texas Register (43 TexReg 5643).

The amendments to §535.2 were recommended by the Commission appointed Broker Responsibility Working Group. The amendments require a broker to designate anyone who leads, supervises or directs a team in the brokerage to be a delegated supervisor. This will require that person to take a six hour broker responsibility course as part of their required continuing education for each renewal. The timeframe when a license holder must be delegated as a supervisor was shortened from six months to three consecutive months. A reference to a recently adopted advertising rule was added. The words "work files" were deleted and replaced with more specific items. A phrase was added to clarify the broker must ensure that a sponsored sales agent has geographic competence in the market area being served. A minimum criteria for training sales agents engaging in a brokerage activity for the first time was added. And, in recognition of digital communications, the timeframes for responding to clients, agents, other brokers, and the Commission were reduced to two and three days, respectively.

One written comment was received against the amendments as published stating the concepts were okay, but the language was too vague. The Commission respectfully disagrees with the commenter as the amendment language adds more specificity than currently exits. Several individuals gave oral comments stating that the addition of "communications with parties to the transaction" was too broad. The Commission agrees and added the word "substantive" before communications.

The revision to the rule as adopted does not change the nature or scope so much that it could be deemed a different rule. The rule as adopted does not affect individuals other than those contemplated by the rule as proposed. The rule as adopted does not impose more onerous requirements than the proposed rule.

The reasoned justification for the amendments is greater guidance for brokers as to their responsibilities to their sponsored agents and the public.

The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The statutes affected by these amendments are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.