Texas 2025 - 89th Regular

Texas House Bill HB3913

Filed
3/6/25  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the licensing and regulation of certain real estate professionals by the Texas Real Estate Commission.

Impact

The bill will significantly impact state laws governing real estate practice by consolidating and clarifying the educational and professional requirements for brokers and sales agents. Specifically, it mandates that applicants demonstrate adequate educational background in significant real estate topics, which is expected to improve the competence of real estate professionals. Additionally, the bill introduces stricter regulations concerning the conduct of license holders, making it easier for TREC to impose disciplinary actions, including suspension or revocation of licenses for those who engage in misrepresentation or unethical practices.

Summary

House Bill 3913 seeks to enhance the licensing and regulation of certain real estate professionals by the Texas Real Estate Commission (TREC). The proposed legislation outlines qualifying education requirements for obtaining real estate licenses, ensuring that license holders have completed necessary coursework in areas such as agency law, contract law, and the Fair Housing Act. The bill emphasizes the importance of maintaining high professional standards within the real estate industry to protect consumers and uphold the integrity of real estate transactions in Texas.

Sentiment

The sentiment regarding HB 3913 is generally positive among advocates for consumer protection and professional integrity in the real estate market. Proponents argue that increasing educational requirements and reinforcing ethical standards will lead to better customer service and more transparent transactions. However, there are concerns from some industry professionals who fear that the additional requirements could create barriers to entry for new agents and brokers, potentially reducing competition within the market.

Contention

Notable points of contention include the balance between protecting consumers and the accessibility of the real estate profession to new entrants. Opponents of the bill may argue that while higher standards are necessary, they could inadvertently limit opportunities for aspiring real estate professionals, particularly those from diverse backgrounds. This debate touches on broader themes of regulatory overreach versus the necessity to enhance consumer confidence in the real estate market.

Texas Constitutional Statutes Affected

Occupations Code

  • Chapter 1101. Real Estate Brokers And Sales Agents
    • Section: New Section
    • Section: 356
    • Section: 358
    • Section: 458
    • Section: 552
    • Section: 558
    • Section: 652
    • Section: New Section
    • Section: 356
    • Section: 358
    • Section: 458
    • Section: 552
    • Section: 558
    • Section: 652
    • Section: 653
  • Chapter 1. General Provisions
    • Section: New Section

Companion Bills

TX SB1968

Identical Relating to the licensing and regulation of certain real estate professionals by the Texas Real Estate Commission.

Similar Bills

CA AB1375

Real property sales: disclosures.

CA SB1174

Commercial real estate: disclosures.

VA SB1309

Real estate brokers and salespersons; duties, licensees engaged by buyers.

CA AB892

Transfers of real property.

VA HB1684

Real estate brokers and salespersons; duties, licensees engaged by buyers.

OR HB4058

Relating to regulated real estate activities.

CA AB1289

Real property disclosure requirements.

OR HB3092

Relating to residential property wholesaling.