FREQUENTLY ASKED AGENT QUESTIONS:
● What license number should I show for eXp on contracts/buyer agreement/listing agreement?
○ 603392 - exp is the broker for these documents so we use the EXP license number. (bonus answer - you have authority to sign on behalf of the broker on listing agreements, buyer rep agreements, EM release docs as well receipt option when you are the listing agent)
● Who do I call when I have contract questions?
○ Call/text/chat/email your Managing Broker with contract questions. We now have SIX (yes 6) managing brokers Marty Chrisman & Rick Tankersley - South, Central & West, Sarah Atchison - Managing Broker, TX & Andrea Grimm- Managing Broker, TX - Coastal, East & RGV, Michael Yarrito & Misty Michael for North regions.
● Where do I find other answers to other general questions?
○ If you have a general question that is not contract/client related please send an email to firstname.lastname@example.org and one of our staff will assist you. You can also reach the brokers via this email as well or by emailing them direct. Remember - your IABS MUST reflect Rick Tankersley as the designated broker as of 1/15/19 #617831 and then your managing broker as your supervisor.
Texas State Meetings
○ Every Tuesday at 9:00 am CST in the Cloud Auditorium. You can appear by Avatar or phone. Recordings are stored in the Texas State Meetings Group Texas Contract Classes Every Thursday at 1:30 CST in Meeting Room 7. You can appear by Avatar or Phone. The classes are recorded and stored in Texas Contracts & Productivity Group on Workplace, Texas State Group
● If you will click on the Files tab you will find prefilled IABS, a map of the Texas regions, a map showing you our MLS/board coverage, a spreadsheet you can use when you have multiple offers on your listing, a contract checklist that is updated regularly and a TON of other docs and helpful information. If you have suggestions on what you would like to see or areas you need assistance, PLEASE let us know. We are here to serve and help you grow your business while being a professional of the highest standard.
● SELLER DISCLOSURE EXCEPTIONS
○ Property Code section 5.008(e) provides that the requirement that a Seller’s Disclosure be provided does not apply to a transfer:
○ 1. pursuant to a court order or foreclosure sale;
○ 2. by a trustee in bankruptcy;
○ 3. to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest (which would include deeds in lieu of foreclosure).
○ 4. by a lienholder who has either purchased at a foreclosure sale or a sale pursuant to a court order or accepted a deed in lieu of foreclosure;
○ 5. by a fiduciary in the course of an administration of a decedent's estate, guardianship, conservatorship, or trust;
○ 6. from one co-owner to one or more other co-owners;
○ 7. made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors;
○ 8. between spouses incident to divorce, legal separation or a property settlement agreement;
○ 9. to or from a governmental entity;
○ 10. a new residence of not more than one dwelling unit that has not been occupied for residential purposes (this would include newly-built homes);
○ 11. of real property where the value of any dwelling does not exceed 5% of the value of the property (pure "tear-downs," in other words).
○ Penalty If the seller does not give the Seller's Disclosure as required, Property Code section 5.008(f) permits the buyer to "terminate the contract for any reason within seven days after receiving the notice." The statute does not address the legal consequences of the seller never giving the Seller's Disclosure at all. However, if the failure to give the notice is coupled with fraud or failure to disclose defects, then other laws and penalties may (and likely will) arise pursuant to the Deceptive Trade Practices Act and/or the Statutory Fraud Act
● If the seller has never lived there do they still have to complete one?
● Why can't we use the TREC Seller's Disclosure?
○ We have found it does not provide enough information. The TREC form is designed for FSBO's. EXP policy states we use TAR and/or association seller disclosure forms.
● Is a Seller's Disclosure required even if the property was taken down to the studs and it's like brand new?
○ Yes. The age of the home is determined by the age of the foundation. So if a home a foundation from 1945 and everything else is brand new, a wise seller would provide a Sellers Disclosure and a Lead Based Paint Disclosure.
○ If the seller becomes aware of an issue after the seller's disclosure has been completed AND the buyers have signed, does it have to be amended?
○ Definitely. The duty to disclosure remains until the closing has occurred and funded. There is a SD addendum available for the sellers to provide additional information
● I heard the Seller’s Disclosures will be updated by TREC as of 9/1/19. If I have an active listing and the seller filled out the current Seller’s Disclosure am I REQUIRED to use the new updated forms?
● Per TREC & TAR the answer is YES if the listing is not under contract prior to 9/1/19. If the listing goes under contract on or after 9/1/19 per Texas Property Code LAW the 9/1/19 version will be required. Please prepare your seller’s for this now. This is not an EXP rule. The Texas Legislature passed a law updating the Seller’s Disclosure. So we want to be compliant with the law.
● We know eXp does not do property management. We know we can list properties for lease. Can I accept the application fee and run a background check for the landlord?
○ While a sales agent can list a property for lease as well as help tenants find a property that is for lease, the agent CANNOT accept an application fee that is made payable to them nor can the agent run the background check for the landlord. This is considered property management per TREC Rule 535.2
● Agents can NEVER arrange for repairs. This is considered property management
○ Agents can only assist tenants as they locate a property or assist landlords in listing the property for lease. Our services STOP once a tenant and a landlord have signed a lease.
● Can I manage the properties for my parents/family/friends and not charge a management fee?
○ No. Only a broker can participate in these activities and EXP does not allow property management. If you are a broker and you are doing these activities please let us know ASAP as we need to do an addendum to your ICA as eXp does not participate or allow property management. Brokers MUST have a separate LLC registered with TREC in order to offer these services and only after a discussion and agreements have been signed with EXP leadership.
● Can I manage my own properties that I own even though I am not a broker?
○ YES. This is THE ONLY exception to the rule. TREC does not view this as property management. Please understand, that YOU must be on the title or own at least 10% of the LLC in order for this to be acceptable.
● I am a realtor, but I am also an insurance agent and own a construction company. There isn't a problem if I advertise "Construction/Insurance/Real Estate on my business page, cards, etc; right?"
● There is a HUGE problem with this. The moment you place "real estate" or any variation of that term (realtor, real estate agent, etc) onto any marketing piece you are now subject to TREC's oversight and you bear the full responsibility of having filed all of those marketing names with TREC, having the IABS prominently displayed with correct information, displaying the Consumer Protection Notice, etc. We DO NOT allow you to wear multiple hats at the same time. So if you own multiple businesses do NOT advertise them as a one stop shop. You are to have a construction page, an insurance page, a real estate page, a mortgage page, etc. Do NOT merge these together unless you want to use TREC oversight rules on your construction page.
● My Legal name is Mary Lou Smith . My license reads Mary Smith. Can I use my middle name and market/advertise/write contracts as Kay Dunagan?
○ If I wrote a contract today using Lou Smith then I would be guilty of practicing real estate without a license. My license reads Mary Smith. Even though Lou is my legal middle name, it is not a derivative of my licensed name. So, how would I fix that? I would file an alternate name with TREC. If you are not familiar with TREC advertising rules
● 535.154. I have linked a great PDF resource for you straight from TREC's website. Remember, at EXP we do not file DBAs under our brokerage license, however, you MUST file Team/Group names prior to using them for marketing purposes. Do not start using the team/group name unless you see it under EXP's license on TREC. Go search NOW and if you do not see yours there send us an email ASAP and we will send you the google form that you must complete (be sure when you complete the form you click submit)
● If I have a first offense with TREC it really isn't that big of a deal, right?
○ FALSE!!! Any and ALL communications that you receive from TREC is a HUGE deal! You are to respond to them directly, follow their instructions and cooperate with them fully.
● How long should I wait before I respond to TREC when I receive a letter from them? I don't have to notify my broker, right?
○ If and when you receive written correspondence from TREC they will tell you what you need to do. Sometimes they say wait while they investigate, but usually they let you know that they will be calling. Always let your broker team know what is going on, send us a copy of the letter and work fully and quickly with TREC. TREC holds your license. They expect you to be responsive to them. Being unresponsive to them carries VERY high penalties and can be grounds for us to terminate sponsorship of your license with exp.
● I know the Texas Brokers are so busy. Is it okay if I call TREC direct and ask my advertising, contract, marketing, legal questions?
○ The Texas Real Estate Commission was established in 1949 to protect the consumers in real estate transactions. In 1991 TREC began sharing staff with Texas Appraiser Licensing & Certification Board (TALCB) when federal law required more oversight of appraisers. Together the two agencies provide oversight of brokerages, appraisers, inspectors, home warranties, right of way services & timeshare.
○ TREC oversees licensing, education & complaint investigation services as well as regulation & enforcement of state & federal laws & requirements that govern each of these areas of service to CONSUMERS in Texas.
○ So no, it is not okay for you to call TREC and ask your questions. That is what the broker staff is here for. Please reach out to us via email, workplace chat, workplace call and we will be happy to answer your questions and help educate you. If we are unsure, we know how to reach TREC. The Commission expects us to train you and they expect us to call them as brokers if we are in doubt.
● If I am attracting someone to EXP and they have an open complaint against them at TREC under their old broker, is it okay for them to answer NO to the question on the application that reads "Have you ever had a complaint filed against you at TREC?"
○ Misrepresentations on the application is one of the quickest ways someone will be invited to find another broker. If we find that sponsors are encouraging this behavior then this will be a quick way for the sponsor to also find a new broker. Honesty is always the best policy. If we cannot start off our relationship with honesty then I do not anticipate it will go well moving forward.
● How big does the EXP Realty Logo have to be on my advertising?
○ TREC does not require that the logo be present. HOWEVER, TREC does require that the broker's name be "readily identifiable" as well as it MUST be AT LEAST 1/2 the font size as the largest contact information. Your name, phone number, team name are all considered contact information. Remember if EXP Realty feels like a game of "where's waldo" it is NOT readily identifiable. This rule is true for ALL advertising.