CHAPTER 1102. REAL ESTATE INSPECTORS
OCCUPATIONS CODE
TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND
HOUSING
SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE
CHAPTER 1102. REAL ESTATE INSPECTORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1102.001. DEFINITIONS. In this chapter:
(1) "Apprentice inspector" means a person who is in training
under the direct supervision of a professional inspector or a
real estate inspector to become qualified to perform real estate
inspections.
(2) "Broker" has the meaning assigned by Section 1101.002.
(3) "Commission" means the Texas Real Estate Commission.
(4) "Committee" means the Texas Real Estate Inspector Committee.
(5) "Core real estate inspection course" means an educational
course approved by the commission that relates to real estate
inspection, including a course on structural items, electrical
items, mechanical systems, plumbing systems, roofing, business,
law, standards of practice, report writing, appliances, or
ethics.
(6) "Inspector" means a person who holds a license under this
chapter.
(7) "License" means an apprentice inspector license, real estate
inspector license, or professional inspector license.
(8) "Professional inspector" means a person who represents to
the public that the person is trained and qualified to perform a
real estate inspection and who accepts employment to perform a
real estate inspection for a buyer or seller of real property.
(9) "Real estate inspection" means a written or oral opinion as
to the condition of the improvements to real property, including
structural items, electrical items, mechanical systems, plumbing
systems, or equipment.
(10) "Real estate inspector" means a person who represents to
the public that the person is trained and qualified to perform a
real estate inspection under the indirect supervision of a
professional inspector and who accepts employment to perform a
real estate inspection for a buyer or seller of real property.
(11) "Salesperson" has the meaning assigned by Section 1101.002.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.002. APPLICABILITY OF CHAPTER. (a) This chapter does
not apply to a person who repairs, maintains, or inspects
improvements to real property, including an electrician, plumber,
carpenter, or person in the business of structural pest control
in compliance with Chapter 1951, if the person does not represent
to the public through personal solicitation or public advertising
that the person is in the business of inspecting those
improvements.
(b) This chapter does not prevent a person from performing an
act the person is authorized to perform under a license or
registration issued by this state or a governmental subdivision
of this state under a law other than this chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.003. RULES; INSPECTION FORMS. The commission by rule
shall prescribe standard forms and require inspectors to use the
forms to reduce discrepancies and create consistency in preparing
reports of real estate inspections.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
SUBCHAPTER B. TEXAS REAL ESTATE INSPECTOR COMMITTEE
Sec. 1102.051. COMMITTEE MEMBERSHIP. (a) The Texas Real Estate
Inspector Committee is an advisory committee appointed by the
commission.
(b) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1411, Sec.
59(5), eff. September 1, 2007.
(c) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1411, Sec.
59(5), eff. September 1, 2007.
(d) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1411, Sec.
59(5), eff. September 1, 2007.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 37, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 59(5), eff. September 1, 2007.
Sec. 1102.058. GENERAL POWERS AND DUTIES OF COMMITTEE;
RECOMMENDATIONS. (a) Repealed by Acts 2007, 80th Leg., R.S.,
Ch. 1411, Sec. 59(12), eff. September 1, 2007.
(b) The committee shall recommend:
(1) rules for licensing inspectors in this state, including
rules relating to:
(A) education and experience requirements;
(B) any qualifying examination;
(C) continuing education requirements; and
(D) granting or denying a license application;
(2) the form of any required application or other document;
(3) reasonable fees to implement this chapter, including
application fees, examination fees, fees for renewal of a
license, and any other fee required by law;
(4) rules relating to standards of practice for real estate
inspection;
(5) rules establishing a code of professional conduct and ethics
for an inspector; and
(6) any other commission action to provide a high degree of
service to and protection of the public in dealing with an
inspector.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 59(12), eff. September 1, 2007.
Sec. 1102.060. CONSIDERATION OF COMMITTEE RECOMMENDATIONS. The
commission shall consider the committee's recommendations
relating to qualifications and licensing of inspectors to assure
the public of a quality professional inspection system in real
estate transactions in this state.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
SUBCHAPTER C. LICENSE REQUIREMENTS
Sec. 1102.101. APPRENTICE INSPECTOR LICENSE REQUIRED. A person
may not act or attempt to act as an apprentice inspector in this
state for a buyer or seller of real property unless the person:
(1) holds an apprentice inspector license under this chapter;
and
(2) is under the direct supervision of a real estate inspector
or professional inspector.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.102. REAL ESTATE INSPECTOR LICENSE REQUIRED. A person
may not act or attempt to act as a real estate inspector in this
state for a buyer or seller of real property unless the person:
(1) holds a real estate inspector license under this chapter;
and
(2) is under the indirect supervision of a professional
inspector.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.103. PROFESSIONAL INSPECTOR LICENSE REQUIRED. A
person may not act as a professional inspector in this state for
a buyer or seller of real property unless the person holds a
professional inspector license under this chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.104. SUPERVISION. For the purposes of this chapter, a
person performing a real estate inspection or preparing a report
of a real estate inspection is under:
(1) direct supervision if the person is instructed and
controlled by a professional inspector or real estate inspector
who is:
(A) responsible for the actions of the person;
(B) available if needed to consult with or assist the person;
and
(C) physically present at the time and place of the inspection;
and
(2) indirect supervision if the person is instructed and
controlled by a professional inspector who is:
(A) responsible for the actions of the person; and
(B) available if needed to consult with or assist the person.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.105. APPLICATION. An applicant for a license under
this chapter must file with the commission an application on a
form prescribed by the commission.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.106. MORAL CHARACTER DETERMINATION. As prescribed by
Section 1101.353, the commission shall determine, on request,
whether a person's moral character complies with the commission's
moral character requirements for licensing under this chapter and
may conduct a supplemental moral character determination of the
person.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.107. ELIGIBILITY FOR APPRENTICE INSPECTOR LICENSE. To
be eligible for an apprentice inspector license, an applicant
must:
(1) at the time of application be:
(A) at least 18 years of age;
(B) a citizen of the United States or a lawfully admitted alien;
and
(C) a resident of this state;
(2) be sponsored by a professional inspector; and
(3) satisfy the commission as to the applicant's honesty,
trustworthiness, and integrity.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.108. ELIGIBILITY FOR REAL ESTATE INSPECTOR LICENSE.
(a) To be eligible for a real estate inspector license, an
applicant must:
(1) at the time of application have:
(A) held an apprentice inspector license for at least three
months; and
(B) performed at least 25 real estate inspections under direct
supervision;
(2) submit evidence satisfactory to the commission of successful
completion of at least 90 classroom hours of core real estate
inspection courses;
(3) demonstrate competence based on the examination under
Subchapter D;
(4) be sponsored by a professional inspector; and
(5) satisfy the commission as to the applicant's honesty,
trustworthiness, integrity, and competence.
(b) The commission by rule may specify the length and content of
the courses required by Subsection (a)(2).
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.109. ELIGIBILITY FOR PROFESSIONAL INSPECTOR LICENSE.
To be eligible for a professional inspector license, an applicant
must:
(1) at the time of application have:
(A) held a real estate inspector license for at least 12 months;
and
(B) performed at least 175 real estate inspections under
indirect supervision;
(2) submit evidence satisfactory to the commission of successful
completion of at least 30 classroom hours of core real estate
inspection courses, in addition to the hours required by Section
1102.108, and at least eight classroom hours related to the study
of standards of practice, legal issues, or ethics related to the
practice of real estate inspecting;
(3) demonstrate competence based on the examination under
Subchapter D; and
(4) satisfy the commission as to the applicant's honesty,
trustworthiness, integrity, and competence.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 15, Sec. 10, eff.
Sept. 1, 2003.
Sec. 1102.110. ELIGIBILITY OF PREVIOUS LICENSE HOLDERS. (a)
Notwithstanding Section 1102.108, an applicant is eligible for
and has satisfied all requirements for a real estate inspector
license if the applicant:
(1) held a real estate inspector license during the 24-month
period preceding the date the application is filed;
(2) is sponsored by a professional inspector; and
(3) satisfies the commission as to the applicant's honesty,
trustworthiness, and integrity.
(b) Notwithstanding Section 1102.109, an applicant is eligible
for and has satisfied all requirements for a professional
inspector license if the applicant:
(1) held a professional inspector license during the 24-month
period preceding the date the application is filed; and
(2) satisfies the commission as to the applicant's honesty,
trustworthiness, and integrity.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.111. SUBSTITUTE REQUIREMENTS. (a) The commission by
rule shall provide for substitution of relevant experience and
additional education in place of:
(1) the number of real estate inspections required for
licensing; and
(2) the requirement that an applicant be:
(A) licensed as an apprentice inspector before being licensed as
a real estate inspector; or
(B) licensed as a real estate inspector before being licensed as
a professional inspector.
(b) Rules adopted under Subsection (a) may not require an
applicant to:
(1) complete more than 320 additional classroom hours of core
real estate inspection courses; or
(2) have more than seven years of relevant experience.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 15, Sec. 11, eff.
Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
297, Sec. 11, eff. September 1, 2007.
Sec. 1102.112. WAIVER FOR APPLICANT LICENSED IN ANOTHER STATE.
The commission may waive any license requirement for an applicant
who holds a license from another state having license
requirements substantially equivalent to those of this state.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.113. ELIGIBILITY AS SPONSOR. A professional inspector
may sponsor an apprentice inspector or a real estate inspector
only if the professional inspector provides sufficient proof to
the commission that the professional inspector has completed at
least 200 real estate inspections as a professional inspector.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.114. ISSUANCE OF LICENSE. The commission shall issue
the appropriate license to an applicant who:
(1) meets the required qualifications;
(2) pays the fee required by Section 1102.352(a); and
(3) offers proof that the applicant carries liability insurance
with a minimum limit of $100,000 per occurrence to protect the
public against a violation of Subchapter G.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 38, eff. September 1, 2007.
Sec. 1102.115. DENIAL OF LICENSE. The provisions of Section
1101.364 governing the commission's denial of a license under
that chapter apply to the commission's denial of a license under
this chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.116. PROBATIONARY LICENSE. The commission may issue a
probationary license under this chapter as prescribed by Section
1101.365.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.117. INACTIVE LICENSE. The commission by rule may
adopt terms by which:
(1) an inspector may apply for, renew, or place a license on
inactive status; and
(2) an inactive inspector may return to active status.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.118. CHANGE OF ADDRESS. Not later than the 30th day
after the date an inspector changes the inspector's place of
business, the inspector shall notify the commission and pay the
required fee.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
SUBCHAPTER D. LICENSE EXAMINATION
Sec. 1102.151. CONTENT OF EXAMINATION. (a) A license
examination must evaluate competence in the subject matter of
each required core real estate inspection course.
(b) The commission shall:
(1) prescribe each license examination; and
(2) prepare or contract for the examination.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.152. OFFERING OF EXAMINATION. The commission shall
offer each license examination at least once every two months in
Austin.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.153. DEADLINE FOR COMPLETION. A license applicant who
does not satisfy the examination requirement within six months
after the date the application is filed must submit a new
application and pay another examination fee to be eligible for
examination.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.154. EXAMINATION RESULTS. (a) Not later than the
30th day after the date an examination is administered, the
commission shall notify each examinee of the results of the
examination. If an examination is graded or reviewed by a
national testing service, the commission shall notify each
examinee of the results of the examination not later than the
14th day after the date the commission receives the results from
the testing service.
(b) If the notice of the results of an examination graded or
reviewed by a national testing service will not be given before
the 91st day after the examination date, the commission shall
notify each examinee of the reason for the delay before the 90th
day.
(c) If requested in writing by a person who fails an
examination, the commission shall provide to the person an
analysis of the person's performance on the examination.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.155. REEXAMINATION. (a) An applicant who fails the
examination may apply for reexamination by filing a request with
the commission and paying another examination fee.
(b) An applicant who fails the examination three consecutive
times in connection with the same application may not apply for
reexamination or submit a new license application before six
months after the date of the third failed examination.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
SUBCHAPTER E. LICENSE RENEWAL
Sec. 1102.201. LICENSE TERM AND EXPIRATION. (a) The commission
may issue or renew a license for a period not to exceed 24
months.
(b) A renewal fee for a license under this chapter may not
exceed, calculated on an annual basis, the amount of the fee
established under Section 1102.251.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 15, Sec. 12, eff.
Sept. 1, 2003.
Sec. 1102.202. NOTICE OF LICENSE EXPIRATION. Not later than the
31st day before the expiration date of a person's license, the
commission shall send to the person at the person's last known
address according to the commission's records written notice of
the license expiration.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.203. RENEWAL OF LICENSE. (a) A person may renew an
unexpired license by paying the required renewal fee to the
commission before the expiration date of the license and
providing proof of liability insurance as required by Section
1102.114(3).
(b) If the person's license expires, the person may not renew
the license. The person may obtain a new license by submitting to
reexamination, if required, and complying with the requirements
and procedures for obtaining an original license.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.163(a),
eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 39, eff. September 1, 2007.
Sec. 1102.205. CONTINUING EDUCATION REQUIREMENTS. (a) The
commission shall approve, recognize, prepare, or administer a
continuing education program for inspectors.
(b) As a prerequisite for renewal of a real estate inspector
license, professional inspector license, or apprentice inspector
license, the inspector must participate in the continuing
education program and submit evidence satisfactory to the
commission of successful completion of at least 16 classroom
hours of core real estate inspection courses or continuing
education courses for each year of the license period preceding
the renewal.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.164(a),
eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
825, Sec. 12, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 40, eff. September 1, 2007.
SUBCHAPTER F. LICENSE FEES
Sec. 1102.251. FEES. The commission shall charge and collect
reasonable and necessary fees to cover the cost of administering
this chapter for:
(1) filing an original application for an apprentice inspector
license;
(2) filing an original application for a real estate inspector
license;
(3) filing an original application for a professional inspector
license;
(4) renewal of an apprentice inspector license;
(5) renewal of a real estate inspector license;
(6) renewal of a professional inspector license;
(7) a license examination;
(8) a request to change a place of business or to replace a lost
or destroyed license; and
(9) filing a request for issuance of a license because of a
change of name, return to active status, or change in sponsoring
professional inspector.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.165(a),
eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 41, eff. September 1, 2007.
Sec. 1102.252. PAYMENT. A person may pay a fee by cash, check,
including a cashier's check, or money order.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.253. REVIEW OF FEE AMOUNTS. The commission annually
shall review the fees under Section 1102.251 and reduce the fees
to the extent that the cost of administering this chapter is
covered by money appropriated to the commission that is
attributable to amounts transferred to the general revenue fund
under Section 1102.353(d).
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
SUBCHAPTER G. PROHIBITED ACTS
Sec. 1102.301. NEGLIGENCE OR INCOMPETENCE. An inspector may not
perform a real estate inspection in a negligent or incompetent
manner.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.302. AGREEMENT FOR SPECIFIC REPORT; DISHONESTY. An
inspector may not:
(1) accept an assignment for real estate inspection if the
employment or a fee is contingent on the reporting of:
(A) a specific, predetermined condition of the improvements to
real property; or
(B) specific findings other than those that the inspector knows
to be true when the assignment is accepted; or
(2) act in a manner or engage in a practice that:
(A) is dishonest or fraudulent; or
(B) involves deceit or misrepresentation.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.303. ACTING IN CONFLICTING CAPACITIES. An inspector
may not act in a transaction in the dual capacity of inspector
and:
(1) undisclosed principal; or
(2) broker or salesperson.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.304. REPAIRS AND MAINTENANCE. An inspector may not
perform or agree to perform repairs or maintenance in connection
with a real estate inspection under an earnest money contract,
lease, or exchange of real property.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.305. VIOLATION OF LAW. An inspector may not violate
this chapter or a rule adopted by the commission.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
SUBCHAPTER H. REAL ESTATE INSPECTION RECOVERY FUND
Sec. 1102.351. REAL ESTATE INSPECTION RECOVERY FUND. The
commission shall maintain a real estate inspection recovery fund
to reimburse aggrieved persons who suffer actual damages from an
inspector's act in violation of Subchapter G. The inspector must
have held a license at the time the act was committed.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.352. PAYMENTS INTO FUND. (a) In addition to any
other fees required by this chapter, a person who passes a
license examination must pay a fee not to exceed $200. The
commission shall deposit the fee to the credit of the fund before
issuing the license.
(b) If the balance in the fund at any time is less than
$300,000, each inspector at the next license renewal must pay, in
addition to the renewal fee, a fee that is equal to the lesser of
$75 or a pro rata share of the amount necessary to obtain a
balance in the fund of $450,000. The commission shall deposit the
additional fee to the credit of the fund.
(c) To ensure the availability of a sufficient amount to pay
anticipated claims on the fund, the commission by rule may
provide for the collection of assessments at different times and
under conditions other than those specified by this chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.166(a),
eff. Sept. 1, 2003.
Sec. 1102.353. MANAGEMENT OF FUND. (a) The commission shall
hold money credited to the fund in trust to carry out the purpose
of the fund.
(b) Money credited to the fund may be invested in the same
manner as money of the Employees Retirement System of Texas,
except that an investment may not be made that would impair the
liquidity necessary to make payments from the fund as required by
this subchapter.
(c) Interest from the investments shall be deposited to the
credit of the fund.
(d) If the balance in the fund on December 31 of a year is more
than $600,000, the commission shall transfer the amount in excess
of $600,000 to the credit of the general revenue fund.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.354. DEADLINE FOR ACTION; NOTICE TO COMMISSION. (a)
An action for a judgment that may result in an order for payment
from the fund may not be brought after the second anniversary of
the date the cause of action accrues.
(b) When an aggrieved person brings an action for a judgment
that may result in an order for payment from the fund, the
inspector against whom the action is brought shall notify the
commission in writing of the action.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.355. CLAIM FOR PAYMENT FROM FUND. (a) An aggrieved
person who obtains a court judgment against an inspector for a
violation of Subchapter G may, after final judgment is entered,
execution returned nulla bona, and a judgment lien perfected,
file a verified claim in the court that entered the judgment.
(b) After the 20th day after the date the aggrieved person gives
written notice to the commission and judgment debtor, the person
may apply to the court that entered the judgment for an order for
payment from the fund of the amount unpaid on the judgment. The
court shall proceed promptly on the application.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.356. ISSUES AT HEARING. At the hearing on the
application for payment from the fund, the aggrieved person must
show:
(1) that the judgment is based on facts allowing recovery under
this subchapter;
(2) that the person is not:
(A) the spouse of the judgment debtor or the personal
representative of the spouse; or
(B) an inspector;
(3) that, according to the best information available, the
judgment debtor does not have sufficient attachable assets in
this or another state to satisfy the judgment;
(4) the amount that may be realized from the sale of assets
liable to be sold or applied to satisfy the judgment; and
(5) the balance remaining due on the judgment after application
of the amount under Subdivision (4).
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.166(b),
eff. Sept. 1, 2003.
Sec. 1102.357. COMMISSION RESPONSE. (a) On receipt of notice
under Section 1102.355, the commission may notify the attorney
general of the commission's desire to enter an appearance, file a
response, appear at the hearing, defend the action, or take any
other action the commission considers appropriate.
(b) The commission and the attorney general may act under
Subsection (a) only to:
(1) protect the fund from spurious or unjust claims; or
(2) ensure compliance with the requirements for recovery under
this subchapter.
(c) The commission may relitigate in the hearing any material
and relevant issue that was determined in the action that
resulted in the judgment in favor of the aggrieved person.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.358. COURT ORDER FOR PAYMENT. The court shall order
the commission to pay from the fund the amount the court finds
payable on the claim under this subchapter if at the hearing the
court is satisfied:
(1) of the truth of each matter the aggrieved person is required
by Section 1102.356 to show; and
(2) that the aggrieved person has satisfied each requirement of
Sections 1102.355 and 1102.356.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.359. PAYMENT LIMITS; ATTORNEY'S FEES. (a) Payments
from the fund for claims, including attorney's fees, interest,
and court costs, arising out of a single transaction may not
exceed a total of $12,500, regardless of the number of claimants.
(b) Payments from the fund for claims based on judgments against
a single inspector may not exceed a total of $30,000 until the
inspector has reimbursed the fund for all amounts paid.
(c) If the court finds that the total amount of claims against
an inspector exceeds the limitations contained in this section,
the court shall proportionally reduce the amount payable on each
claim.
(d) A person receiving payment from the fund is entitled to
reasonable attorney's fees in the amount determined by the court,
subject to the limitation prescribed by this section.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.166(c),
eff. Sept. 1, 2003.
Sec. 1102.360. APPLICATION OF JUDGMENT RECOVERY. An aggrieved
person who receives a recovery on a judgment against a single
defendant before receiving a payment from the fund must apply the
recovery first to actual damages.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.361. SUBROGATION. (a) The commission is subrogated
to all rights of a judgment creditor to the extent of an amount
paid from the fund, and the judgment creditor shall assign to the
commission all right, title, and interest in the judgment up to
that amount.
(b) The commission has priority for repayment from any
subsequent recovery on the judgment.
(c) The commission shall deposit any amount recovered on the
judgment to the credit of the fund.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.362. EFFECT ON DISCIPLINARY PROCEEDINGS. (a) This
subchapter does not limit the commission's authority to take
disciplinary action against an inspector for a violation of this
chapter or a commission rule.
(b) An inspector's repayment of all amounts owed to the fund
does not affect another disciplinary proceeding brought under
this chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.363. WAIVER OF RIGHTS. An aggrieved person who does
not comply with this subchapter waives the person's rights under
this subchapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.364. NOTICE TO CONSUMERS AND SERVICE RECIPIENTS. (a)
Each inspector shall provide notice to consumers and service
recipients of the availability of payment from the fund for
aggrieved persons:
(1) on a written contract for the inspector's services;
(2) on a brochure that the inspector distributes;
(3) on a sign prominently displayed in the inspector's place of
business;
(4) in a bill or receipt for the inspector's services; or
(5) in a prominent display on the Internet website of a person
regulated under this chapter.
(b) The notice must include:
(1) the commission's name, mailing address, and telephone
number; and
(2) any other information required by commission rule.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 15, Sec. 13, eff.
Sept. 1, 2003.
SUBCHAPTER I. DISCIPLINARY PROCEEDINGS, PENALTIES, AND
ENFORCEMENT PROVISIONS
Sec. 1102.401. DISCIPLINARY POWERS OF COMMISSION. (a) The
commission may investigate an action of an inspector and, after
notice and hearing as provided by Section 1101.657, reprimand the
inspector, place the inspector's license on probation, or suspend
or revoke the inspector's license for a violation of this chapter
or a commission rule.
(b) An inspector whose license is revoked under this section may
not apply to the commission for a new license until after the
first anniversary of the date of the revocation.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.402. LICENSE REVOCATION FOR CLAIM ON FUND. (a) The
commission may revoke a license issued under this chapter or a
license, approval, or registration issued under Chapter 1101 if
the commission makes a payment from the real estate inspection
recovery fund to satisfy all or part of a judgment against the
person issued the license, approval, or registration.
(b) The commission may probate an order revoking a license.
(c) A person is not eligible for a license until the person has
repaid in full the amount paid from the fund on the person's
account, plus interest at the legal rate.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
297, Sec. 12, eff. September 1, 2007.
Sec. 1102.403. ADMINISTRATIVE PENALTY. (a) The commission may
impose an administrative penalty as provided by Subchapter O,
Chapter 1101, on a person who violates this chapter or a rule
adopted or order issued by the commission under this chapter or
Chapter 1101.
(b) An administrative penalty collected under this section for a
violation by an inspector shall be deposited to the credit of the
real estate inspection recovery fund. A penalty collected under
this section for a violation by a person who is not licensed
under this chapter or Chapter 1101 shall be deposited to the
credit of the real estate recovery trust account or the real
estate inspection recovery fund, as determined by the commission.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.160(g),
eff. Sept. 1, 2003.
Sec. 1102.404. INJUNCTIVE RELIEF. The commission, the attorney
general, a county attorney, or a district attorney, as
applicable, may bring an action to enforce this chapter or to
abate or enjoin a violation of this chapter or a rule adopted
under this chapter as prescribed by Sections 1101.751 and
1101.752.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.405. APPEAL BOND EXEMPTION. The commission is not
required to give an appeal bond in an action to enforce this
chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.406. GENERAL CRIMINAL PENALTY. (a) A person commits
an offense if the person wilfully violates or fails to comply
with this chapter or a commission order.
(b) An offense under this section is a Class A misdemeanor.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003.
Sec. 1102.407. CRIMINAL PENALTY FOR PRACTICING WITHOUT LICENSE.
(a) A person commits an offense if the person does not hold a
license under this chapter and knowingly engages in the business
of real estate inspecting, including performing an inspection
while the person's license is revoked or suspended.
(b) An offense under this section is a Class A misdemeanor.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.167(a),
eff. Sept. 1, 2003.
Sec. 1102.408. TEMPORARY SUSPENSION. (a) The presiding officer
of the commission shall appoint a disciplinary panel consisting
of three commission members to determine whether a person's
license to practice under this chapter should be temporarily
suspended.
(b) If the disciplinary panel determines from the information
presented to the panel that a person licensed to practice under
this chapter would, by the person's continued practice,
constitute a continuing threat to the public welfare, the panel
shall temporarily suspend the license of that person.
(c) A license may be suspended under this section without notice
or hearing on the complaint if:
(1) institution of proceedings for a hearing before the
commission is initiated simultaneously with the temporary
suspension; and
(2) a hearing is held under Chapter 2001, Government Code, and
this chapter as soon as possible.
(d) Notwithstanding Chapter 551, Government Code, the
disciplinary panel may hold a meeting by telephone conference
call if immediate action is required and convening the panel at
one location is inconvenient for any member of the panel.
Added by Acts 2007, 80th Leg., R.S., Ch.
1411, Sec. 43, eff. September 1, 2007.