The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.6, Equitable Interests in Real Property, in Chapter 535, General Provisions, without changes, as published in the August 25, 2023, issue of the Texas Register (48 TexReg 4596) and will not be republished.

Currently, a person may engage in "wholesaling"--that is, the practice of acquiring an option or entering into a contract to purchase real property and then selling or assigning the interest in the contract to another--without a real estate license, as long as certain disclosures are made to the buyer of the interest. The amendments implement statutory changes enacted by the 88th Legislature in SB 1577, which requires first, that disclosure also be made to the original seller, and second, that the disclosures be in writing. Subsection (c) is being removed to more closely align with the statutory language. Finally, a non-substantive change is made for consistency throughout the chapter.

No comments were received on the proposed amendments as published.

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; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments are also adopted under §1101.0045, Texas Occupations Code, which establishes the statutory basis for the rule.