TREC proposes rule changes to support new online licensing system; committees report on broker, exams and inspector updates

The Texas Real Estate Commission on May 5 voted to publish multiple proposed rule amendments intended to support a new online licensing system and to update form references; commissioners also heard reports from advisory committees on broker licensing, education, inspector standards and a Texas A&M research center economic briefing.

Commissioners authorized staff to publish proposed amendments to several rule sections of 22 TAC chapter 535 and related chapters (including sections addressing provider requirements, delivery methods, forms and fees) that reflect the agency's transition from paper forms and mailed checks to an online submission and payment model. The changes clarify that the commission may accept applications and payments through a process acceptable to the commission and add notice that online payments may include a convenience or subscription fee charged by the Texas Department of Information Resources.

The rule proposal votes were taken across several agenda items. Motions to publish the proposed amendments for public comment passed in open session as follows: Chapter 535 amendments (motion by Commissioner Renee Harvey Lowe; second by Commissioner Brown), rules affecting proctoring and course delivery recommended by ESAC and the Inspector Committee (motion by Commissioner Pena; second by Commissioner Woodruff), chapter 537 form updates (motion by Commissioner Arner; second by Commissioner Woodruff), criminal-history evaluation letters (5.41.2) (motion by Commissioner Lerner; second by Commissioner Renee Harvey Lowe), and business-entity registration and related rules (chapter 543) (motion by Commissioner Brown; second by Commissioner Woodruff). Each motion carried on voice vote.

Why it matters: the changes are intended to match TREC's processes to a new licensing platform (referred to by staff as Acela during committee briefings) that will let applicants, education providers and licensees submit forms and fees online, reduce paper processing, and automate routine workflows.

New licensing system and timeline Executive Director Chelsea Buckholz told the commission staff are in the final testing phases for the new licensing system and that the agency expects a late‑August to early‑September go‑live window. Division leads said the first rounds of data conversion include about 85–90% of the agency's data and that further tests will run before the transition. Jennifer Wheeler, director of Education and Exams, said the system — called Acela in staff briefings — will enable online submission of provider and course applications and eliminate mailed checks. "This is a very intense season as we race to the finish line," Buckholz said, adding the agency plans demos for stakeholders near go‑live and is encouraging license holders who must renew this summer to renew early because of the transition period.

Committee reports and education changes Pamela Cannon of the Texas Real Estate Research Center at Texas A&M introduced George Barrow, the center's macroeconomist, who gave a data-driven briefing on Texas's recent population and economic growth drivers. Barrow said Texas has seen population growth driven earlier by domestic migration and more recently by international migration, that the state's favorable fiscal environment and housing supply have contributed to growth, and that tariffs or higher interest rates are risks to housing affordability and construction cost.

Jennifer Wheeler presented the Education Standards Advisory Committee (ESAC) report. ESAC met April 7 and discussed the licensing system launch and rule changes related to exam proctoring and student-identification requirements. ESAC and the Inspector Committee recommended removing language that requires final qualifying or non‑elective course exams to be closed‑book and recommended changes to in‑person proctoring rules for some distance‑delivered courses. Those proctoring and closed‑book changes were included in the staff rule proposals the commission voted to publish for public comment.

Broker Responsibility Advisory Committee (BRAC) report Denise Sample presented BRAC's April 8 report on broker licensing requirements. As described to commissioners, current broker applicants must complete 900 hours of education (270 qualifying real estate hours + 630 real estate‑related hours) and have four years of active experience in the five years before application to earn 360 experience points. BRAC's recommendation (staff is preparing draft rule language for an August board agenda) would: keep the total 900 hours, allow up to 300 hours of the 630 real‑estate related hours to substitute for experience points earned above the minimum, limit bachelor's‑degree credit to a maximum of 300 hours (instead of counting the full 630), double the experience points requirement from 360 to 720, change property‑management experience calculations to a "per property per year" metric, and shift delegated‑supervisor/broker‑management credit to a points‑per‑transaction model. The committee also recommended notification requirements when registered team names are discontinued and encouraged brokers to manage team records on TREC's online tools.

Inspector committee, public comments and course approval Inspector Committee Chair Lee Warren told commissioners the Standards of Practice subcommittee has worked on a multiyear review and may propose form changes depending on preamble edits; the subcommittee seeks to submit proposals to the inspector committee before year-end for the statutory public-comment period. The committee also discussed advertising and affiliated‑company referral concerns, reminding inspectors that post‑inspection referrals and certain affiliated referrals may create rule concerns. During public comment, inspector Jeff Adams raised concerns about perceived kickbacks in insurance policy language and indemnity clauses between home builders, inspectors and brokerages; Jan Higginbotham urged attention to the competency standard and cross‑jurisdiction practice by remote licensees. Commissioners and staff said they would route inspector‑related public comments to the Inspector Committee for review.

The commission approved the updated Inspector Legal and Ethics and Standards of Practice non‑elective course (effective 2025–2027 delivery cycle) presented by curriculum staff and the inspector committee writing group. Commissioner Russell moved approval; the motion was seconded by Commissioner Lerner and carried.

Recovery fund settlements The commission authorized two recovery fund settlements in open session. Staff recommended and commissioners approved a $12,500 maximum payment (statutory maximum for a single claim) for a homeowner claim involving inspection deficiencies (RF25001, Rebecca Richter v. Joe Richardson). Commissioners also approved a $250,000 settlement (the statutory maximum for multiple transactions) in RF24004 (Michael Laster v. Russ Davis, Joanna Wheeler and Paragon Gold Realty, LLC). Motions were made and seconded on both items and carried by voice vote.

Rules and next steps Staff will publish the proposed rule changes in the Texas Register for public comment; rules affecting the August–September timeline may require emergency rulemaking to meet statutory effective dates. Communications and licensing staff said they will provide stakeholder demos and outreach before go‑live and that rule proposals will return to the commission after the public‑comment period for final action.

What to watch: committee work on broker experience/education changes (BRAC) and the inspector SOP review; the licensing system go‑live timeline; and any emergency rules the commission adopts to implement statutory changes that take effect September 1.