The Texas Real Estate Commission (TREC) proposes amendments to §535.217, concerning dishonest conduct as grounds for disciplinary action, and §535.223, concerning standard inspection reports.

The proposed amendments to §535.217 would require that licensed inspectors disclose to all parties to the transaction and obtain the written consent of the client that the inspector intends to receive a fee or other valuable consideration from a person other than the inspector's client. The amendment would also require that the licensee disclose to and obtain the written consent of the client that the inspector is paying a fee to a service provider or a participant in the transaction. The amendments propose to adopt by reference a Fee or Other Valuable Consideration Disclosure Form for required use by licensed inspectors to comply with the disclosure requirements.

The amendments to §535.223 revise the requirements regarding the use of the standard inspection report form and permit an inspector to use additional space on page two of the form for commentary that may not fit on page one.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for the state as a result of enforcing or administering the amended sections. There are no anticipated fiscal implications for units of local government. There is no anticipated impact on small businesses, micro businesses or local or state employment as a result of implementing the amendments.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be a better informed consumer due to the required written disclosure of fees paid to or by licensed inspectors. There is no anticipated economic cost to persons who are required to comply with the proposed amendments, other than the costs of obtaining a copy of the form, which would be available at no charge through the TREC web site at www.trec.state.tx.us, and available from private printers at an estimated cost of $7.50 per set of 50 copies.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

The statute affected by this proposal is Texas Occupations Code, Chapter 1102. No other statute, code or article is affected by the proposed amendments.