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AN ACT
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relating to practices and professions regulated by the Texas Real |
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Estate Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 1101.152, Occupations |
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Code, as amended by Section 3, Chapter 297 (H.B. 1530), and Section |
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9, Chapter 1411 (S.B. 914), Acts of the 80th Legislature, Regular |
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Session, 2007, is reenacted and amended to read as follows: |
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(a) The commission shall adopt rules to charge and collect |
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[reasonable] fees in amounts reasonable and necessary to cover the |
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costs of administering this chapter, including a fee for: |
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(1) filing an original application for a broker |
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license; |
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(2) annual renewal of a broker license; |
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(3) filing an original application for a salesperson |
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license; |
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(4) annual renewal of a salesperson license; |
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(5) annual registration; |
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(6) filing an application for a license examination; |
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(7) filing a request for a branch office license; |
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(8) filing a request for a change of place of business, |
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change of name, return to active status, or change of sponsoring |
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broker; |
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(9) filing a request to replace a lost or destroyed |
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license or certificate of registration; |
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(10) filing an application for approval of an |
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education program under Subchapter G; |
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(11) annual operation of an education program under |
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Subchapter G; |
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(12) filing an application for approval of an |
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instructor of core real estate courses; |
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(13) transcript evaluation; |
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(14) preparing a license or registration history; |
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(15) filing an application for a moral character |
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determination; and |
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(16) conducting a criminal history check for issuing |
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or renewing a license. |
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SECTION 2. Subsection (b), Section 1101.152, Occupations |
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Code, is amended to read as follows: |
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(b) The commission shall adopt rules to set and collect |
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[reasonable] fees in amounts reasonable and necessary to cover the |
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costs of implementing [to implement] the continuing education |
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requirements for license holders, including a fee for: |
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(1) an application for approval of a continuing |
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education provider; |
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(2) an application for approval of a continuing |
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education course of study; |
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(3) an application for approval of an instructor of |
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continuing education courses; and |
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(4) attendance at a program to train instructors of a |
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continuing education course prescribed under Section 1101.455. |
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SECTION 3. Subsection (b), Section 1101.153, Occupations |
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Code, is amended to read as follows: |
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(b) Of each fee increase collected under Subsection (a): |
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(1) $50 shall be transmitted to Texas A&M University |
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for deposit in a separate banking account that may be appropriated |
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only to support, maintain, and carry out the purposes, objectives, |
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and duties of the Texas Real Estate Research Center; |
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(2) [,] $50 shall be deposited to the credit of the |
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foundation school fund; and |
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(3) $100 [$150] shall be deposited to the credit of the |
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general revenue fund. |
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SECTION 4. Subsection (a), Section 1101.154, Occupations |
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Code, is amended to read as follows: |
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(a) The fee for the issuance or renewal of a: |
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(1) broker license is the amount of the fee set under |
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Sections 1101.152 and 1101.153 and an additional $20 fee; |
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(2) salesperson license is the amount of the fee set |
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under Section 1101.152 and an additional $20 [$17.50] fee; and |
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(3) certificate of registration is the amount of the |
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fee set under Section 1101.152 and an additional $20 fee. |
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SECTION 5. Section 1101.606, Occupations Code, is amended |
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by amending Subsection (a) and adding Subsections (c) and (d) to |
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read as follows: |
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(a) Except as provided by Subsection (c), an [An] aggrieved |
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person who obtains a court judgment against a license or |
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certificate holder for an act described by Section 1101.602 may, |
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after final judgment is entered, execution returned nulla bona, and |
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a judgment lien perfected, file a verified claim in the court that |
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entered the judgment. |
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(c) If an aggrieved person is precluded by action of a |
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bankruptcy court from executing a judgment or perfecting a judgment |
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lien as required by Subsection (a), the person shall verify to the |
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commission that the person has made a good faith effort to protect |
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the judgment from being discharged in bankruptcy. |
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(d) The commission by rule may prescribe the actions |
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necessary for an aggrieved person to demonstrate that the person |
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has made a good faith effort under Subsection (c) to protect a |
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judgment from being discharged in bankruptcy. |
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SECTION 6. Section 1101.652, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.652. GROUNDS FOR SUSPENSION OR REVOCATION OF |
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LICENSE. (a) The commission may suspend or revoke a license |
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issued under this chapter or take other disciplinary action |
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authorized by this chapter if the license holder: |
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(1) enters a plea of guilty or nolo contendere to or is |
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convicted of a felony or a criminal offense involving fraud [in
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which fraud is an essential element], and the time for appeal has |
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elapsed or the judgment or conviction has been affirmed on appeal, |
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without regard to an order granting community supervision that |
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suspends the imposition of the sentence; |
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(2) procures or attempts to procure a license under |
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this chapter for the license holder or a salesperson by fraud, |
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misrepresentation, or deceit or by making a material misstatement |
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of fact in an application for a license; |
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(3) engages in misrepresentation, dishonesty, or |
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fraud when selling, buying, trading, or leasing real property in |
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the name of: |
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(A) the license holder; |
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(B) the license holder's spouse; or |
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(C) a person related to the license holder within |
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the first degree by consanguinity; |
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(4) fails to honor, within a reasonable time, a check |
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issued to the commission after the commission has sent by certified |
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mail a request for payment to the license holder's last known |
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business address according to commission records; |
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(5) fails or refuses to produce on request, for |
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inspection by the commission or a commission representative, a |
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document, book, or record that is in the license holder's |
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possession and relates to a real estate transaction conducted by |
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the license holder; |
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(6) fails to provide, within a reasonable time, |
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information requested by the commission that relates to a formal or |
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informal complaint to the commission that would indicate a |
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violation of this chapter; |
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(7) fails to surrender to the owner, without just |
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cause, a document or instrument that is requested by the owner and |
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that is in the license holder's possession; |
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(8) fails to use a contract form required by the |
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commission under Section 1101.155; |
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(9) fails to notify the commission, not later than the |
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30th day after the date of a final conviction or the entry of a plea |
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of guilty or nolo contendere, that the person has been convicted of |
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or entered a plea of guilty or nolo contendere to a felony or a |
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criminal offense involving fraud; or |
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(10) disregards or violates this chapter. |
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(b) The commission may suspend or revoke a license issued |
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under this chapter or take other disciplinary action authorized by |
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this chapter if the license holder, while acting as a broker or |
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salesperson: |
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(1) acts negligently or incompetently; |
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(2) engages in conduct that is dishonest or in bad |
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faith or that demonstrates untrustworthiness; |
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(3) makes a material misrepresentation to a potential |
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buyer concerning a significant defect, including a latent |
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structural defect, known to the license holder that would be a |
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significant factor to a reasonable and prudent buyer in making a |
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decision to purchase real property; |
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(4) fails to disclose to a potential buyer a defect |
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described by Subdivision (3) that is known to the license holder; |
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(5) makes a false promise that is likely to influence a |
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person to enter into an agreement when the license holder is unable |
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or does not intend to keep the promise; |
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(6) pursues a continued and flagrant course of |
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misrepresentation or makes false promises through an agent or |
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salesperson, through advertising, or otherwise; |
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(7) fails to make clear to all parties to a real estate |
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transaction the party for whom the license holder is acting; |
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(8) receives compensation from more than one party to |
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a real estate transaction without the full knowledge and consent of |
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all parties to the transaction; |
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(9) fails within a reasonable time to properly account |
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for or remit money that is received by the license holder and that |
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belongs to another person; |
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(10) commingles money that belongs to another person |
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with the license holder's own money; |
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(11) pays a commission or a fee to or divides a |
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commission or a fee with a person other than a license holder or a |
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real estate broker or salesperson licensed in another state for |
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compensation for services as a real estate agent; |
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(12) fails to specify a definite termination date that |
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is not subject to prior notice in a contract, other than a contract |
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to perform property management services, in which the license |
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holder agrees to perform services for which a license is required |
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under this chapter; |
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(13) accepts, receives, or charges an undisclosed |
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commission, rebate, or direct profit on an expenditure made for a |
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principal; |
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(14) solicits, sells, or offers for sale real property |
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by means of a lottery; |
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(15) solicits, sells, or offers for sale real property |
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by means of a deceptive practice; |
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(16) acts in a dual capacity as broker and undisclosed |
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principal in a real estate transaction; |
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(17) guarantees or authorizes or permits a person to |
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guarantee that future profits will result from a resale of real |
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property; |
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(18) places a sign on real property offering the real |
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property for sale or lease without obtaining the written consent of |
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the owner of the real property or the owner's authorized agent; |
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(19) offers to sell or lease real property without the |
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knowledge and consent of the owner of the real property or the |
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owner's authorized agent; |
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(20) offers to sell or lease real property on terms |
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other than those authorized by the owner of the real property or the |
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owner's authorized agent; |
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(21) induces or attempts to induce a party to a |
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contract of sale or lease to break the contract for the purpose of |
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substituting a new contract; |
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(22) negotiates or attempts to negotiate the sale, |
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exchange, or lease of real property with an owner, landlord, buyer, |
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or tenant with knowledge that that person is a party to an |
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outstanding written contract that grants exclusive agency to |
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another broker in connection with the transaction; |
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(23) publishes or causes to be published an |
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advertisement, including an advertisement by newspaper, radio, |
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television, the Internet, or display, that misleads or is likely to |
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deceive the public, tends to create a misleading impression, or |
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fails to identify the person causing the advertisement to be |
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published as a licensed broker or agent; |
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(24) withholds from or inserts into a statement of |
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account or invoice a statement that the license holder knows makes |
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the statement of account or invoice inaccurate in a material way; |
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(25) publishes or circulates an unjustified or |
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unwarranted threat of a legal proceeding or other action; |
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(26) establishes an association by employment or |
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otherwise with a person other than a license holder if the person is |
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expected or required to act as a license holder; |
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(27) aids, abets, or conspires with another person to |
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circumvent this chapter; |
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(28) fails or refuses to provide, on request, a copy of |
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a document relating to a real estate transaction to a person who |
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signed the document; |
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(29) fails to advise a buyer in writing before the |
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closing of a real estate transaction that the buyer should: |
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(A) have the abstract covering the real estate |
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that is the subject of the contract examined by an attorney chosen |
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by the buyer; or |
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(B) be provided with or obtain a title insurance |
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policy; |
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(30) fails to deposit, within a reasonable time, money |
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the license holder receives as escrow agent in a real estate |
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transaction: |
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(A) in trust with a title company authorized to |
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do business in this state; or |
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(B) in a custodial, trust, or escrow account |
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maintained for that purpose in a banking institution authorized to |
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do business in this state; |
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(31) disburses money deposited in a custodial, trust, |
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or escrow account, as provided in Subdivision (30), before the |
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completion or termination of the real estate transaction; |
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(32) discriminates against an owner, potential buyer, |
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landlord, or potential tenant on the basis of race, color, |
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religion, sex, disability, familial status, national origin, or |
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ancestry, including directing a prospective buyer or tenant |
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interested in equivalent properties to a different area based on |
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the race, color, religion, sex, disability, familial status, |
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national origin, or ancestry of the potential owner or tenant; or |
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(33) disregards or violates this chapter. |
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SECTION 7. Section 1303.3525, Occupations Code, is amended |
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to read as follows: |
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Sec. 1303.3525. HEARING [EXAMINER]. (a) The commission |
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may authorize the State Office of Administrative Hearings [a
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hearing examiner] to conduct a hearing and enter a final decision in |
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a proceeding under Section 1303.351. |
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(b) All hearings conducted under Subsection (a) are |
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governed by Chapter 2001, Government Code [A final decision of a
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hearing examiner under this section is appealable to the commission
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as provided by commission rule]. |
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SECTION 8. Subsections (b) and (c), Section 221.024, |
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Property Code, are amended to read as follows: |
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(b) The commission [may]: |
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(1) shall authorize the State Office of Administrative |
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Hearings [specific employees] to conduct hearings [and issue final
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decisions] in contested cases; and |
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(2) may establish reasonable fees for forms and |
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documents it provides to the public and for the filing or |
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registration of documents required by this chapter. |
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(c) If the commission initiates a disciplinary proceeding |
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under this chapter, the person is entitled to a hearing before the |
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State Office of Administrative Hearings [commission or a hearing
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officer appointed by the commission]. The commission by rule shall |
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adopt procedures to permit an appeal to the commission from a |
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determination made by the State Office of Administrative Hearings |
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[a hearing officer] in a disciplinary action. |
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SECTION 9. Subsection (c), Section 221.027, Property Code, |
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is amended to read as follows: |
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(c) A registration may be suspended under this section |
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without notice or hearing on the complaint if: |
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(1) institution of proceedings for a hearing before |
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the State Office of Administrative Hearings [commission] is |
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initiated simultaneously with the temporary suspension; and |
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(2) a hearing is held under Chapter 2001, Government |
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Code, and this chapter as soon as possible. |
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SECTION 10. (a) The change in law made by this Act to |
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Section 1101.606, Occupations Code, applies only to a judgment |
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entered by a court on or after the effective date of this Act. A |
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judgment entered before the effective date of this Act is governed |
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by the law in effect when the judgment was entered, and the former |
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law is continued in effect for that purpose. |
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(b) The change in law made by this Act to Subsection (b), |
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Section 1101.652, Occupations Code, applies only to conduct |
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occurring on or after the effective date of this Act. Conduct |
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occurring before the effective date of this Act is governed by the |
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law in effect when the conduct occurred, and the former law is |
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continued in effect for that purpose. |
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(c) The changes in law made by this Act to Section |
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1303.3525, Occupations Code, and Section 221.024, Property Code, |
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apply only to a contested case filed on or after the effective date |
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of this Act. A contested case filed before the effective date of |
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this Act is governed by the law in effect on the date the contested |
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case was filed, and the former law is continued in effect for that |
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purpose. |
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SECTION 11. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect immediately if it receives a |
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vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |
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(b) Subsection (b), Section 1101.153, Occupations Code, as |
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amended by this Act, takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 862 passed the Senate on |
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April 9, 2009, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 862 passed the House on |
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April 30, 2009, by the following vote: Yeas 143, Nays 1, one |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |