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.

[Wayne Brooks]

It makes perfect sense, regarding your duty as an agent. It specifically says " ....as a result of contact made while acting as an agent". If you contacted them as an Investor, this would not apply. If you contact them as an agent, it is expected that you have Their best interest in play, which would eliminate wholesaling it for a profit, or buying it below FMV. This is exactly the way I've always viewed it. Of course you would still have to disclose your licensee status as an investor.