The Texas Real Estate Commission proposes amendments to §535.223, concerning Standard Inspection Report Form. The proposed amendments are recommended by the Texas Real Estate Inspector Committee (TREIC) to notify consumers that an inspector may include contractual terms or attach a service agreement or inspection contract to the standard form, to clarify that an inspector may change the standard form as necessary to allocate additional space for comments in the "Additional Information Provided by Inspector" section and in the sections for each inspected item, to clarify that an inspector may also attach additional pages for comments and to adopt by reference changes to the standard inspection form, Property Inspection Report Form REI 7-4, approved by the Commission for use in reporting inspection results.

These amendments recognize that inspectors may have contractual terms, including service agreements and inspection contracts, as well as additional comments they would like to convey to consumers and include as part of the standard inspection form. Kristen Worman, Deputy General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no significant anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the section. There is no significant anticipated economic cost to persons who are required to comply with the proposed amendments.

Ms. Worman 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 section will be to provide consumers with additional notice of contractual terms included by inspectors in service agreements or inspection contracts and to ensure that inspectors have an opportunity to provide additional information to consumers as part of the standard inspection form, thereby resulting in greater consumer protection.

Comments on the proposal may be submitted to Kristen Worman, 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 deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed 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 licensees to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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 amendments.