PART 14. TEXAS OPTOMETRY BOARD
CHAPTER 275. CONTINUING EDUCATION
The Texas Optometry Board (Board) adopts amendments to 22 TAC Title 14 Chapter 275 Continuing Education without changes to the proposed text as published in the September 20, 2024 issue of the Texas Register (49 TexReg 7573). The rules will not be republished.
The Board adopts amendments to §§275.1 - 275.3.
The updated rule clarifies continuing education requirements for a biennial renewal period; for licensees who activating an expired license; and for new licensees when first licensed. The rule eliminates the continuing education requirement for the one-time controlled prescribing course as the course has been added as prerequisite for receiving a therapeutic license. No changes were made to the total number of continuing education courses required for renewal of a license.
No comments were received.
The Board adopts the amendments pursuant to the authority found in §351.151 of the Occupations Code which vests the Board with the authority to adopt rules necessary to perform its duties and implement Chapter 351 of the Occupations Code and under §351.308 of the Occupations Code which requires continuing education as a condition for renewal of a license.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on November 5, 2024.
TRD-202405321
Janice McCoy
Executive Director
Texas Optometry Board
Effective date: November 25, 2024
Proposal publication date: September 20, 2024
For further information, please call: (512) 305-8500
CHAPTER 537. PROFESSIONAL AGREEMENTS AND STANDARD CONTRACTS
22 TAC §§537.20, 537.22, 537.28, 537.30 - 537.32, 537.37, 537.46, 537.47, 537.67
The Texas Real Estate Commission (Commission) adopts amendments to 22 TAC §537.20, Standard Contract Form TREC No. 9-16, Unimproved Property Contract; §537.22, Standard Contract Form TREC No. 11-7, Addendum for "Back-Up" Contract; §537.28, Standard Contract Form TREC No. 20-17, One to Four Family Residential Contract (Resale); §537.30, Standard Contract Form TREC No. 23-18, New Home Contract (Incomplete Construction); §537.31, Standard Contract Form TREC No. 24-18, New Home Contract (Completed Construction); §537.32, Standard Contract Form TREC No. 25-15, Farm and Ranch Contract; §537.37, Standard Contract Form TREC No. 30-16, Residential Condominium Contract (Resale); §537.46, Standard Contract Form TREC No. 39-9, Amendment to Contract; §537.47, Standard Contract Form TREC No. 40-10, Third Party Financing Addendum; and new rule §537.67, Standard Contract Form TREC No. 60-0, Addendum for Section 1031 Exchange in Chapter 537, Professional Agreements and Standard Contracts, without changes to the rule text, as published in the September 6, 2024, issue of the Texas Register (49 TexReg 6965), but with non-substantive changes to the forms adopted by reference in Chapter 537, Professional Agreements and Standard Contracts. The rule text will not be republished, but the non-substantive changes to the forms adopted by reference are available through the Commission's website at www.trec.texas.gov.
Each of the rules correspond to contract forms adopted by reference. Texas real estate license holders are generally required to use forms promulgated by the Commission when negotiating contracts for the sale of real property. These forms are drafted and recommended for proposal by the Texas Real Estate Broker-Lawyer Committee (the "committee"), an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by the Commission, and one public member appointed by the governor. The committee recommended revisions to the contract forms adopted by reference under the proposed amendments and new rule. The changes listed below apply to all contract forms unless specified otherwise. Paragraph numbers referenced are from the One to Four Family Residential Contract (Resale).
Paragraph 4 is amended to add the term "geothermal" to the definition of Natural Resource Leases as a result of a 2023 law change that stipulates property owners own the geothermal energy below the surface of their land and can drill or produce that energy and associated resources.
To be consistent with a recently updated Texas Department of Insurance procedural rule, Paragraph 6C(1) is amended to include the option of providing the T-47.1 Declaration (which does not need to be notarized)-in lieu of the T-47 Affidavit-when the Seller furnishes the Buyer an existing survey. In lieu of providing a "no survey required" option, Paragraph 6C(2) is amended to read "Buyer may obtain a new survey" instead of "Buyer shall obtain a new survey", and adds that if the Buyer ultimately fails to obtain the survey, the Buyer does not have the right to terminate the contract under Paragraph 2B of the Third Party Financing Addendum because the survey was not obtained.
Because Texas law requires a seller to provide a buyer a copy of any mold remediation certificate issued during the five years preceding the sale of the property, new Paragraph 6E(11) is added to provide information regarding this requirement (except in the Unimproved Property Contract).
Paragraph 6E(12) is modified to add specific examples of the types of notices that should be listed in the paragraph and to add a caution that Seller's failure to provide required notices may provide Buyer with certain remedies, like the ability to terminate the contract.
In light of recent discussions surrounding broker compensation, Paragraph 12A(1)(a) and 12A(2) adds that each party pays the brokerage fees that they each have agreed to pay. Paragraph 12A(1)(b) is amended to allow for a specific seller contribution to the buyer's brokerage fees. A new Paragraph 12A(1)(c) has been added to separately address other seller contributions (that was previously in Paragraph 12A(1)(b)) and the prior language that specified the order in which any contribution was to be paid, as well as a limitation on the type of fee that could be paid, is removed. Conforming changes are also made in the Amendment to Contract.
The title of Paragraph 20 is changed to "Federal Requirements" from "Federal Tax Requirements." In new Paragraph 20B of the Farm and Ranch contract, information regarding the obligations related to the federal Agriculture Foreign Investment Disclosure Act has been added.
The compensation disclosure in the Broker Information section of the contracts (except for the Farm and Ranch Contract) has been modified to remove the parenthetical referencing the MLS and to add checkboxes to allow for the fee to be reflected either as a percentage or a dollar amount.
In the Third Party Financing Addendum, to ensure the buyer is terminating appropriately, Paragraph 2A, Buyer Approval, has been changed to require both a notice of termination and a copy of a written statement of the lender's determination like in Paragraph 2B, Property Approval. The language in Paragraph 2B is modified because the language related to notice of termination timing was different than in other contract provisions and was causing confusing. "Requirements" in Paragraph 4 is made singular and a conforming change is made to a paragraph citation.
In the Unimproved Property contract, Paragraph 3D is amended to include the same sales price adjustment language as in the Farm and Ranch contract. A dollar sign is also added to Paragraph 3D in the Farm and Ranch contract.
Out of concern about confusion and improper use of Paragraph 11, Special Provisions, by license holders, the Addendum for "Back-Up" Contract is modified to provide more clarity on the timing and payment of the earnest money and option fee by incorporating similar language from Paragraph 5 of the contract and by addressing timing and payment of additional fees.
The committee drafted a new Addendum for Section 1031 Exchange that allows the seller or buyer to disclose an intent to use the subject property as a 1031 exchange and includes a statement that the parties will reasonably cooperate with one another. Providing this as an addendum, rather than in the contract, allows the parties to use it when applicable without causing unnecessary confusion. A reference to the new Addendum for Section 1031 Exchange is also added to Paragraph 22 of the contract.
The committee met on October 11, 2024 and reviewed and discussed the 341 comments received on the proposed changes in total, including a comment from Texas Realtors. Eight of those comments expressed support for all of the proposed changes, while two comments were opposed to all proposed changes.
Regarding the changes to Paragraph 3D of the Unimproved Property contract, two comments were in support of the changes while one comment was opposed to the changes. The committee discussed the comments and declined to make changes at this time to ensure consistency with the Farm and Ranch contract.
Regarding the proposed changes to Paragraph 6C of the contract, 20 comments were received. Three comments were in support of the proposed changes (one noting concern about copyright issues) and one comment supported generally the idea of the T-47.1 declaration. Eight comments asked clarifying questions about the difference between the T-47 affidavit and the T-47.1 declaration. One comment asked clarifying questions regarding a specific fact scenario. Seven comments requested clarifying language changes, including what constitutes a "survey", adding a receipt line for the title company, changing termination timelines, formatting changes, and removing a reference to the Third Party Financing Addendum. The committee reviewed the comments and declined to make changes at this time, noting in particular that further education on the new T-47.1 will help alleviate confusion.
Four comments were received regarding the proposed changes to Paragraph 6E(11), with most noting concerns with the requirements of the statute. The committee declined to make changes at this time, noting that the language mirrored the statutory requirements.
Regarding the proposed changes to Paragraphs 6E(4), (7), and (9) which removed references to a separate related addendum, one commenter requested the deleted sentences be added back. The committee agreed and decided to retain the previously struck last sentences to better inform the parties. One comment had concerns regarding the statutory requirement. Regarding the proposed changes to Paragraph 6E(12), one comment was in support of the changes. One comment requested checkboxes be added to indicate whether the notice was received. Two comments found the caution statement insufficient, ambiguous, or wanted more details to be included. The committee discussed, but ultimately declined to make changes at this time.
Regarding the proposed change to Paragraph 8B to add the phrase "Broker fees are not set by law and are negotiable", one comment was in support of the proposed change. Three comments requested a clarifying change to the proposed language. Three comments wanted the language to be removed because of concerns of confusion and redundancy. One commenter made a general statement. After consideration of the comments and discussion, the committee decided to remove the proposed language.
The majority of the comments - 258 in total-were regarding the proposed changes to Paragraph 12. 12 comments were in support of the proposed Paragraph 12 changes generally, while four comments were generally opposed. One commenter was generally opposed to the concept of seller contributions. 170 comments (most with an identical comment) believed that compensation should be addressed in a manner similar to that of the Farm and Ranch contract or the Texas Realtors' commercial contracts. Five commenters requested that the language be swapped for the language found in the Texas Realtors' Agreement Between Brokers form, including one comment which stated the changes should wait until after the settlement is finalized. 26 comments found the changes to be confusing, many specifically noting that it was unclear whether the amount in Paragraph 12A(1)(c) was exclusive of the amount in Paragraph 12A(1)(b) and one comment questioning what "brokerage fees" consists of in Paragraph 12A(1)(b). One commenter believed that the clauses within Paragraph 12 should be moved to separate paragraphs for clarity. Four comments believed the proposed change to Paragraph 12A(1)(b) to be unnecessary, while one comment stated that title companies would benefit from this information. Five comments stated that because of familiarity with the current order of the paragraph, the order of subparagraphs (b) and (c) should be reversed. Three comments took the position that broker compensation should not be addressed in the contract forms at all or should only be addressed in a separate addendum, while four comments were in favor of having compensation addressed only in the contract (not in an addendum). Six comments wanted the language in Paragraph 12 to be expanded to address or disclose other compensation scenarios, including what a seller may pay the listing broker, what a buyer may pay the buyer's broker, and if a buyer were to contribute to the seller's brokerage fees. One comment took the position that brokers should only be paid by their respective principal. Eight comments asked questions about how the proposed changes would apply to a particular scenario. Two comments were concerned that parties may think contributions are required or wanted language to indicate this was optional. Two comments were concerned about unintended consequences, like obligations to pay beyond what is already agreed upon. One comment believed that the language in Paragraph 12 should be moved to the Third Party Financing Addendum. One comment requested information be shared regarding federal tax requirements. The committee reviewed the comments and had extensive discussion on these changes. The committee declined to make changes at this time, but noted that discussions will continue, particularly as the industry evolves in this area. The committee did make non-substantive formatting changes to Paragraph 12B(1)(a)-(c).
Two comments were received on the proposed changes to Paragraph 20. One commenter requesting deadlines be added to the language, while the other commenter requested that the Commission promulgate a notice regarding the federal requirements and providing timeframes. The committee declined to make changes at this time, noting concerns regarding the complexity of the federal law.
Eight comments were received on the proposed changes to Paragraph 22, with the majority seeking the addition of a Texas Realtors form to the list. The committee believed it is not appropriate to include non-Commission forms, but noted there is a blank checkbox that could be used to address this.
Twenty-nine comments were received on the proposed changes to the compensation disclosure on the Broker Information page of the contracts. 17 comments wanted the disclosure to be removed altogether, while six comments wanted the disclosure to be replaced with the compensation language found in the Farm and Ranch contract. Several commenters wanted clarifying changes, ranging from the addition of the word "written" or to use "compensation" in lieu of "commission" to wanting to broaden the disclosure to include what the seller is paying the listing broker. Texas Realtors requested a change that would reflect the possibility of a seller paying the other broker directly. One commenter asked a question of how bonuses would be notated under the proposed changes. The committee elected to not make changes at this time, but will consider changes, including the possible removal of the disclosure, at a subsequent meeting.
Regarding the proposed new form-the Addendum for Section 1031 Exchange-five comments were in support of the new form, one was against, and one commenter asked a clarifying question regarding liability. The committee declined to make any changes at this time.
One comment was in support of the proposed changes to the Amendment to Contract.
Regarding the Addendum for "Back-Up" Contract, four comments supported the proposed changes. One commenter did not like repeating of language found within the contract itself. Four commenters raised concerns about how the option fee or additional option fee is handled. One commenter wanted a definition of "Escrow Agent" in this form and all others that use the term. The committee discussed the comments and declined to make changes at this time, but did decide to capitalize "effective date" in Paragraph J.
Eleven comments were received on the Third Party Financing Addendum. Five comments were generally in support of the proposed changes and one comment was against the changes. The remaining comments sought changes to the proposed language, like increasing the time periods and combining the buyer approval and property approval paragraphs. The committee discussed, but ultimately declined to make changes as a result of the comments.
The committee recommended the Commission adopt the forms as modified.
The amendments and new rule are adopted under Texas Occupations Code, §1101.151, which authorizes the 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 and rules are also adopted under Texas Occupations Code, §1101.155, which authorizes the Commission to adopt rules in the public's best interest that require license holders to use contract forms prepared by the committee and adopted by the Commission.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on November 5, 2024.
TRD-202405323
Abby Lee
Deputy General Counsel
Texas Real Estate Commission
Effective date: January 3, 2025
Proposal publication date: September 6, 2024
For further information, please call: (512) 936-3057
The Texas Real Estate Commission (Commission) adopts amendments to 22 TAC §537.39, Standard Contract Form TREC No. 32-4, Condominium Resale Certificate in Chapter 537, Professional Agreements and Standard Contracts, without changes to the rule text or form adopted by reference, as published in the September 6, 2024, issue of the Texas Register (49 TexReg 6965), and will not be republished. The form adopted by reference is available through the Commission's website at www.trec.texas.gov.
Texas real estate license holders are generally required to use forms promulgated by the Commission when negotiating contracts for the sale of real property. These forms are drafted and recommended for proposal by the Texas Real Estate Broker-Lawyer Committee (the "committee"), an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by the Commission, and one public member appointed by the governor. The committee recommended revisions to the contract form adopted by reference under the proposed amendment.
The Condominium Resale Certificate is amended to conform the language in Paragraphs K and L with section 82.157, Texas Property Code.
One commenter requested a clarifying change in Paragraph K of the Condominium Resale Certificate. The committee declined to make changes at this time for form consistency
The committee recommended the Commission adopt the form as proposed.
The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the 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 and rules are also adopted under Texas Occupations Code, §1101.155, which authorizes the Commission to adopt rules in the public's best interest that require license holders to use contract forms prepared by the committee and adopted by the Commission.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on November 5, 2024.
TRD-202405324
Abby Lee
Deputy General Counsel
Texas Real Estate Commission
Effective date: November 25, 2024
Proposal publication date: September 6, 2024
For further information, please call: (512) 936-3057