Warning Texas Brokers and Agents - Realtors

[Patrick Connell]

All:

So, I was at a CMA class today at my local Board and I was directed to a piece of the TREC Rules that would apply to ALL licensed Brokers and Salespersons who do any kind of investing.

Per TREC, whenever you make a purchase from a seller, you are required to provide them with a CMA on the property you are trying to purchase. This includes an entity that's purchasing a property, if you're the decision maker for that entity. You are not required to explain it to them or discuss it.

TREC 535.16(c):

(c) A real estate licensee is obligated to provide a broker price opinion or comparative market analysis on a property when negotiating a listing or o?ering to purchase the property for the licensee's own account as a result of contact made while acting as a real estate agent.

Now, the instructor is experienced, well-rounded, and I trust her information. They said, as usual, if nothing ever goes wrong then it's no big deal, but if a seller then comes back and sues you or reports a complaint to TREC, your CMA better be legitimate and factual. Also, if you're actively licensed and practicing in any way, shape, or form, you're acting as a real estate agent.

I had no idea of this rule and makes me want to go back and re-read the TREC Rules line by line again. I provide this simply as an FYI and hopefully to protect you in the future. I don't necessarily agree with the rule, but I wouldn't want to be the one fighting it in court one day.