The document provides frequently asked questions and answers about real estate practices in Texas for eXp Realty agents. It addresses questions about contracts, disclosures, advertising, working with TREC, and what activities require a broker's license versus those an agent can perform. The document emphasizes complying with TREC rules and contacting managing brokers with questions rather than directly contacting TREC.

1. Texas
Frequently Asked Ques ons
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 lis ng agreements, buyer rep
agreements, EM release docs as well receipt op on when you are the lis ng agent)
Who do I call when I have contract questions?
● Call/text/chat/email your Managing Broker with contract ques ons. 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 ques on that is not contract/client related please send an email to
tx.broker@exprealty.com 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 Sheila
Dunagan as the designated broker as of 1/15/19 #617831 and then your managing broker as
your supervisor.
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

2. Texas
Frequently Asked Ques ons
Seller's Disclosures
● If the seller has never lived there do they s ll have to complete a one?
○ Yes
● Why can't we use the TREC Seller's Disclosure?
○ We have found it does not provide enough informa on. The TREC form is designed for
FSBO's. EXP policy states we use TAR and/or associa on 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 founda on. So if a home a
founda on 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 a er the seller's disclosure has been completed AND the
buyers have signed, does it have to be amended?
○ Definitely. The duty to disclosure remains un l the closing has occurred and funded.
There is a SD addendum available for the sellers to provide addi onal informa on
● I heard the Seller’s Disclosures will be updated by TREC as of 9/1/19. If I have an ac ve lis ng
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 lis ng is not under contract prior to 9/1/19. If
the lis ng goes under contract on or a er 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 upda ng the Seller’s Disclosure. So we want
to be compliant with the law.
Why do I have to put my client contact in paragraph 21 of the contract?
● Unless the principal's address, phone number and email are listed here, any no ce sent is
invalid. For example, tle companies cannot send no ce or demands for release of earnest
money to any address not listed in paragraph 21. Time is of the essence in almost all of the
no ce provisions in TREC contracts. This means they require me-sensi ve ac on. Having an
agent as the point of contact to receive no ces for his or her client could create delays that may
result in the party losing a me-sensi ve op on or right provided in the contract, such as the
Paragraph 23 termina on op on or the Third Party Financing Addendum for Credit Approval.
In addi on, the word “no ces” in Paragraph 21 has contractual meaning. Giving no ce to a
party can affect the party’s rights and obliga ons in several parts of the contract, so care should
be taken to provide no ces in ways that don’t cause needless delay. Some agents are reluctant
to put buyers’ and sellers’ contact info in Paragraph 21 because they think direct contact with
the other party is forbidden. However, as long as you’re using the contact informa on to
provide no ce to the other party, you’re not crossing the boundary of solici ng another agent’s
client.
How do I obtain broker signature on a document?
● The managing brokers work diligently to review and return documents requiring a signature in a
mely manner. Any and all documents requiring a broker signature MUST be sent to the
managing broker via electronic signature programs such as Docusign or Digisign. Managing
Broker's cannot print, sign and scan. Any signatures needed must be electronic.

3. Texas
Frequently Asked Ques ons
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 Mee ngs Group
Texas Contract Classes
● Every Thursday at 1:30 CST in Mee ng Room 7. You can appear by Avatar or Phone. The classes
are recorded and stored in Texas Contracts & Produc vity 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 mul ple offers
on your lis ng, a contract checklist that is updated regularly and a TON of other docs and
helpful informa on. If you have sugges ons 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.
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
varia on of that term (realtor, real estate agent, etc) onto any marke ng piece you are
now subject to TREC's oversight and you bear the full responsibility of having filed all
of those marke ng names with TREC, having the IABS prominently displayed with
correct informa on, displaying the Consumer Protec on No ce, etc. We DO NOT allow
for you to wear mul ple hats at the same me. So if you own mul ple businesses do
NOT adver se them as a one stop shop. You are to have a construc on 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 construc on page.
My Legal name is Sheila Kay Dunagan. My license reads Sheila Dunagan. Can I use my middle name
and market/advertise/write contracts as Kay Dunagan?
● If I wrote a contract today using Kay Dunagan then I would be guilty of prac cing real
estate without a license. My license reads Sheila Dunagan. Even though Kay is my legal
middle name, it is not a deriva ve 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 adver sing
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 marke ng 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 communica ons that you receive from TREC is a HUGE deal! You
are to respond to them direct, follow their instruc ons and cooperate with them fully.

4. Texas
Frequently Asked Ques ons
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 wri en correspondence from TREC they will tell you what you
need to do. Some mes they say wait while they inves gate, 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 le er and work fully and quickly with TREC. TREC holds your
license. They expect for you to be responsive to them. Being unresponsive to them
carries VERY high penal es 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 transac ons. In 1991 TREC began sharing staff with Texas Appraiser
Licensing & Cer fica on Board (TALCB) when federal law required more oversight of
appraisers. Together the two agencies provide oversight of brokerages, appraisers,
inspectors, home warran es, right of way services & meshare. TREC oversees
licensing, educa on & complaint inves ga on services as well as regula on &
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 ques ons. 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 ques ons 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?"
● Misrepresenta ons on the applica on 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 rela onship with honesty then I do
not an cipate 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 iden fiable" as well as it MUST be AT LEAST 1/2 the font size
as the largest contact informa on. Your name, phone number, team name are all
considered contact informa on. Remember if EXP Realty feels like a game of "where's
waldo" it is NOT readily iden fiable. This rule is true for ALL adver sing.

5. Texas
Frequently Asked Ques ons
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 applica on 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 lis ng 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 par cipate in these ac vi es and EXP does not allow property
management. If you are a broker and you are doing these ac vi es please let us know
ASAP as we need to do an addendum to your ICA as eXp does not par cipate or allow
property management. Brokers MUST have a separate LLC registered with TREC in
order to offer these services and only a er 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 excep on to the rule. TREC does not view this as property management.
Please understand, that YOU must be on the tle or own at least 10% of the LLC in order for this to
be acceptable.
● Where can I find......
● We receive this question a lot and we are always happy to help. However, if you will look in
this group at the top and click on the FILES tab you will find a ton of helpful information.
One of the docs that we update often is the TX Helpful Information. There you will find our
HUD #, our NAID number, contact information for all of the TX managing brokers, prefilled
IABS forms, etc. Also, you may have noticed a "How To" doc pinned to the top of this page.
Please explore that doc. Check out all of the links. It is pretty amazing. One of my favorite
sites is explore.exprealty.com It is a treasure trove of awesome information.