Memorial Day was the last day of the Regular 87th Legislative session. While there were several bills filed this session relating to the agency and its license holders, not all of those bills made it through the process. The following is a summary of bills that passed both houses of the Legislature and have a direct effect on license holders. The agency is currently working on implementing the provisions of these bills.
APPRAISER EVALUATIONS
HB 2533 (Darby)
This bill specifies that unless lending guidelines otherwise require a full appraisal for a financial transaction, a licensed or certified appraiser is not required to comply with Uniform Standards of Professional Appraisal Practice (USPAP) when performing an evaluation.
When an appraiser performs an evaluation that is not in compliance with USPAP, the bill requires the first page of the evaluation to include a notice stating that the evaluation is not an appraisal performed in compliance with USPAP.
This bill has an effective date of June 14, 2021.
STATUTE OF LIMITATIONS (APPRAISERS)
HB 1939 (Reggie Smith)
This bill provides a statute of limitations regarding a lawsuit filed based on an appraisal or appraisal review conducted by an appraiser or appraisal firm (except for a suit based on fraud or breach of contract) to the earlier of two years after the day the person knew or should have known the facts on which the action is based or five years after the day the appraisal or appraisal review was completed.
This bill has an effective date of September 1, 2021.
Residential Service Companies (Home Warranties)
HB 1560 (Goldman)
This bill is the Sunset Review bill for the Texas Department of Licensing and Regulation (TDLR).
This bill moves the regulation of Residential Service Companies (RSCs) from TREC to TDLR. TREC has until the effective date of the bill (9/1/2021) to transfer all necessary documentation necessary for TDLR to continue the regulation of RSCs.
The bill specifies that until TDLR implements its own rules (which it must do by June 2022), all TREC rules related to RSCs remain in effect as TDLR rules. This also applies to any TREC fees, policies, procedures, decisions, and forms related to the regulation of RSCs.
This bill has an effective date of September 1, 2021.
Easement and Right of Way (ERW) Agents
HB 2730 (Deshotel)
This bill requires an applicant seeking to become an ERW agent to complete 16 hours of qualifying education in the law of eminent domain, property owner rights, the standard of professionalism, and ethics. In addition, the bill requires currently licensed ERW agents to complete 16 hours of continuing education in those same subjects prior to renewing their certification. The bill grants TREC rule-making authority to establish and approve those qualifying and continuing education courses.
The bill authorizes TREC to issue a probationary certification to an applicant for an ERW registration, which TREC is currently authorized to do for all other license types.
Finally, the bill requires the Landowner's Bill of Rights promulgated by the Office of Attorney General to contain language notifying a landowner that they can file a complaint with TREC regarding an ERW agent who represents an entity with eminent domain authority.
This bill was signed by the Governor. TREC has until September 1, 2022, to implement the educational provision required by the rule. Additionally, an applicant for an initial or renewal ERW certification before January 1, 2023, is not subject to the education requirements until the first renewal after March 1, 2023.
HOMEOWNERS ASSOCIATIONS (HOAs)
SB 1588 (Hughes)
The bill requires TREC to establish a database to accept management certificates from HOAs by December 1, 2021, and requires that information be made available to the public.
This bill requires HOAs currently formed and operating as of December 1, 2021, to electronically file their management certificate (or an amended management certificate) with TREC no later than June 1, 2022.
This bill has an effective date of September 1, 2021.
SELLERS NOTICE (PUBLIC IMPROVEMENT DISTRICTS)
HB 1543 (Parker)
This bill revises the language of the statutorily mandatory notice used in a real estate transaction related to properties located in public improvement districts (PID). It requires the notice to be given to a prospective purchaser before executing the contract, either separately as an addendum, or as a paragraph of the purchase contract. If the transaction is entered into without the notice being provided, the bill authorizes the purchaser to terminate the contract, unless the seller provides the notice at or before closing and the purchaser elects to close.
The bill requires the purchaser to sign the notice and the notice must be recorded once signed.
This bill has an effective date of September 1, 2021.
The Broker-Lawyer Committee met in June to discuss the best way to implement these new requirements and decided to recommend the use of a promulgated addendum to the contract that mirrors the statutory notice. This draft addendum and corresponding contract form changes will be presented before the Commission at the August 2021 meeting for emergency rulemaking in order to allow for use within the statutory deadline. The Commission will also conduct concurrent rulemaking related to the draft addendum and contract form changes that will follow the traditional rulemaking timelines and public comment periods.
RULE REQUIREMENTS
HB 1322 (Shaheen)
In addition to the current publication requirements for proposed rules with the Texas Register, the bill adds that a state agency must file notice of the proposed rule on the agency’s website including a “plain language” summary.
This bill has an effective date of September 1, 2021.
AGENCY SUNSET DATE
SB 173 (Buckingham)
This is the Sunset scheduling bill that the Sunset Commission utilizes to schedule the review of state agencies and includes the review dates for several different agencies. As part of the review schedule, the bill moved the TREC and TALCB sunset review date from 2025 to 2031, putting the agency back on a 12-year review cycle.
This bill has an effective date of June 16, 2021.