The Texas Real Estate Commission (TREC) proposes amendments to §535.223, concerning Standard Inspection Report Form. The amendments were previously proposed and published in the November 23, 2012, issue of the Texas Register (37 TexReg 9278) but were withdrawn on February 12, 2013, and are now being re-proposed. The amendments are proposed to track revisions to the inspector standards of practice as re-proposed under separate rule. The amendments also clarify how the form is to be used by an inspector and in what ways an inspector is authorized to modify the form. The amendments provide an additional exemption for inspectors conducting inspections on single component systems, which are defined by the rule. The amendments adopt by reference a new Property Inspection Form (REI 7-3) and removes the requirements for the two current forms, REI 7A1 and REI 7-2.

The proposed rule has been recommended by the Texas Real Estate Inspector Committee, an advisory committee of six professional inspectors and three public members appointed by TREC, to correspond to proposed revisions to the inspector standards of practice that are also proposed and explained in this issue of the Texas Register.

Kerri T. Galvin, Deputy General Counsel, has determined that for the first five-year period the section is in effect there will be no significant fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the section. There may be a small cost to some licensees who may have to purchase upgrades to inspection report software, but this minimal cost is outweighed by the benefit to the public.

Ms. Galvin also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the amended rule will be increased clarity for inspectors and consumers alike regarding the use of the standard inspection report form.

Comments on the proposal may be submitted to Kerri T. Galvin, Deputy General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 or via email to general.counsel@trec.texas.gov.

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 ensure compliance with the provisions of the Act.

The statutes affected by this proposal are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the proposed rule.