The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §531.18, Consumer Information, in Chapter 531, Canons of Professional Ethics and Conduct, without changes to the proposed text and the form adopted by reference, as published in the August 28, 2020, issue of the Texas Register (45 TexReg 6017). The rule will not be republished.

The amendment to the Consumer Protection Notice was recommended by Texas Real Estate Inspector Committee (Inspector Committee) and adds a statement to alert consumers that inspectors licensed by TREC are required to maintain errors and omissions insurance to cover losses arising from the performance of a real estate inspection in a negligent or incompetent manner. Real estate license holders are required to post this notice at their place of business and on their website.

Seven comments were received. Five comments were in favor of the change and felt it served the purpose of informing and protecting the consumer. One comment generally indicated a dislike for rules that protected the interests of some but not all. One comment indicated a belief the proposed change did not advance consumer protection interests and instead encouraged citizens to file complaints tied to insurance without sufficient information as to the impact such complaints might have on the inspector industry. The Inspector Committee considered these comments at its October 12, 2020, meeting and voted to move forward with a recommendation to the Commission to adopt the rule as proposed. The Inspector Committee did not agree with the two comments opposed to the proposed language and noted the new language provided an additional layer of consumer protection. The Commission ultimately decided to move forward with the changes to the notice as recommended by the Inspector Committee.

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.