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Texas Register Preamble


The Texas Real Estate Commission (TREC) proposes amendments to §535.227, Standards of Practice: General Provisions; §535.228, Standards of Practice: Minimum Inspection Requirements for Structural Systems; §535.229, Standards of Practice: Minimum Inspection Requirements for Electrical Systems; §535.330, Standards of Practice: Minimum Inspection Requirements for Heating, Ventilation, and Air Conditioning Systems; §535.331, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems; §535.332, Standards of Practice: Minimum Inspection Requirements for Appliances; §535.333, Standards of Practice: Minimum Inspection Requirements for Optional Systems; and §535.223, Standard Inspection Report Form, and the form adopted by reference, in Subchapter R of Chapter 535, General Provisions.

The proposed amendments to §535.227 require an inspector to use all reasonable and appropriate tools necessary to comply with the requirements of Standards of Practice and specifies that if an inspector provides services beyond the scope of the Standards of Practice as part of a real estate inspection must be competent to provide those services. Additionally, the proposed amendments to §535.227 clarify that an inspector cannot perform an inspection for a client until they have notified the client of any systems or components the inspector does not routinely inspect that are otherwise required by the Standards of Practice. Finally, the proposed amendments to §535.227 include a new definition for "gas distribution system" to conform to changes made by proposed amendments to §535.331, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

The proposed amendments to §535.228 update requirements for garage doors to better reflect current building code requirements and clarify reporting requirements for gas fixtures and appliance listed under this section to conform to changes made by proposed amendments to §535.331, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

The proposed amendments to §535.229 update the requirements for electrical systems to better reflect current building code requirements.

The proposed amendments to §535.330 clarify what an inspector is required to do and report when determining if a HVAC system is functioning properly. The proposed amendments to §535.330 also clarify reporting requirements for gas fixtures and appliance listed under this section to conform to changes made by proposed amendments to §535.331, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

The proposed amendments to §535.331 require an inspector to report the material used for water supply lines, water drain lines, and the gas distribution system, specify that certain items are required to be reported when only when visible, and require an inspector to report water pressure exceeding 80 PSI. The proposed amendments to §535.331 move the requirements related the inspection of a gas distribution system that are currently contained in various other sections of the Standards of Practice to a new subsection (d) of this section and clarify reporting requirements for gas fixtures and appliance listed under this section to conform to the new subsection (d).

The proposed amendments to §535.332 move the general exception to the requirements of this section to the end of the rule to mirror other sections of the Standards of Practice. The proposed amendments to §535.332 also update the requirements for bathroom ventilation to better reflect current building code requirements, specify that certain items are required to be reported when only when visible, and clarify the reporting requirements for gas fixtures and appliance listed under this section to conform to changes made by proposed amendments to §535.331, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems.

The proposed amendments to §535.333 add an optional reporting requirement for built-in appliances, specify that an inspector is not required to report on the performance of an underground zone of a sprinkler system, and clarify that private sewage system is not limited to a septic system.

The proposed amendments to §535.223 and the form adopted by reference clarify the requirement when an inspector uses computer software or other means to produce an inspection report to ensure that in complies with established reporting requirements.

The Texas Real Estate Inspector Committee recommends the proposed amendments.

Vanessa E. Burgess, General Counsel, has determined that for the first five-year period the proposed amendment is 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 adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendment. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendment. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Burgess also has determined that for each year of the first five years the sections as proposed is in effect, the public benefit anticipated as a result of the change is improved clarity for license holders and greater consumer protection.

For each year of the first five years the proposed amendments are in effect, the amendment will technically expand an existing regulation by requiring the consent to be in writing, but will not:

--create or eliminate a government program;

--require the creation of new employee positions or the elimination of existing employee positions;

--require an increase or decrease in future legislative appropriations to the agency;

--require an increase or decrease in fees paid to the agency;

--create a new regulation;

--limit or repeal an existing regulation;

--increase or decrease the number of individuals subject to the rule's applicability; or

--positively or adversely affect the state's economy.

Comments on the proposal may be submitted to Vanessa E. Burgess, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, via email to general.counsel@trec.texas.gov, or through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules. 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 license holders to fulfill the purposes of Chapters 1101 and 1102.

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



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