TAR Field Representative Newsletter

An Investment in Your Business

You may have heard that the 82nd Texas Legislature saw numerous victories for private-property owners, real estate consumers, and Texas REALTORS®. And it's true, changes made this year will have a positive effect on the real estate industry for years to come. But none of these changes would have been possible without the Texas Association of REALTORS® Political Action Committee (TREPAC).

So how did TREPAC help your business this year? Take a look...

You're out!
A new revision to the Deceptive Trade Practices Act specifically exempts real estate brokerage from liability under the act--as long as the broker or agent hasn't committed an unscrupulous or illegal act.

Under the old law, the professional-services exemption of the DTPA did not specifically cover real estate brokerage. As a result, brokers and agents became targets for frivolous lawsuits where individuals would use the act as a tool of intimidation--and then settle for the exact amount of the brokers' E&O deductible.

Since DTPA claims carry the thread of triple damages, many brokers simply chose to settle--damages and attorney fees can add up quickly. In fact, one Texas REALTOR® racked up over $100,000 in attorney fees successfully defending his reputation. Imagine if it were your name on the top of that page!

Fewer sneaky fees
A new state law prohibits most future private transfer fees on real property and provides clarity and disclosure requirements to properties with existing private transfer fees.

Under the old law, developers were allowed to encumber property with a transfer fee of as much as 1%, generally payable for 99 years, to be paid every time the property is sold--and in some cases, leased.

Not only do these types of fees decrease housing affordability, but a lack of disclosure about the fees has also made for some pretty nasty surprises at closings. The fees can also stall or kill transactions because title companies will not give clear title on the property if they cannot identify or locate the fee recipient. Banks certainly do not issue mortgages if a property has a title problem, and if the deal doesn't close, you don't get paid.

The time was right
As of Sept. 1, 2011, the Texas Real Estate Commission will be a self-directed, semi-independent state agency. Among other things, this means that the commission no longer has to send your licensing fees to the state's general fund and then ask legislators to return a portion of that money to run the agency. Instead, the agency can operate like a business--using the licensing fees it generates. And that means better service for you and consumers.

Help yourself
Maintaining this level of success in the political arena requires getting and keeping real estate friendly candidates in public office, and that takes real grassroots involvement. The Texas Association of REALTORS® offers a myriad tools and programs to get you involved and up-to-date.

But it's about more than that, it's absolutely critical that you invest in the Texas Association of REALTORS® Political Action Committee (TREPAC). Your investment enables the association to support local, state, and federal candidates who have demonstrated support for the preservation of private-property rights and the vitality of the real estate industry.

So, invest a few dollars now and you'll save thousands down the road. Heck, you've probably already saved thousands.

Investments start at just $35. Visit TREPAC.com.