AUSTIN (Texas Real Estate Commission) – New state laws intended to strengthen real estate licensees’ accountability
to consumers have taken effect or will take effect in 2012.

As of Sept. 1, 2011:

  • Property managers for single-family residential units must be licensed. Persons
    involved in leasing such properties have always been required to hold a
    real estate broker or sales license, but managers not engaged in leasing
    did not.
  • Other than sole proprietorships, all business entities that engage in
    practices defined under the law as “brokerage activity” must also be
    licensed. Formerly, certain partnerships were exempt.
  • The updated law acknowledges the practice of producing “broker price
    opinions” as a common broker activity. It more clearly distinguishes
    these from “appraisals,” which require a separate and distinct appraiser
    license from the Appraiser Licensing and Certification Board, and require
    extensive education in valuation techniques.

Effective next year:

  • Beginning in January 2012, applicants for a broker license will need to have four
    years of experience as a licensed salesperson, up from the current
    two-year requirement, plus demonstrate practical competency by providing a
    detailed list of brokerage activities engaged in by the applicant during
    this same period.
  • Brokers and other direct supervisors of licensed salespersons who seek to renew a
    license after Sept. 1, 2012, will need to have completed a new six-hour
    course in “Broker Responsibilities” in addition to the combined six-hour
    courses on legal and ethics updates.