Confessions of a Recovering Landlord

"Once I have mine, I want to make it more difficult for others to get theirs." That seems to be the mantra of most professional licensees and holders of professional designations. It makes sense. Those who have put in the effort and education to earn a license or designation want to increase the prestige of that by making it more difficult for others to achieve. This has the added benefit of making it more exclusive. 

The Texas Real Estate Commission  (TREC) has passed new regulations which do just this. In a press release dated September 9, 2011, TREC will require two additional mandatory 30-hour classes for new sales license applicants. Those classes are currently optional - TREC Promulgated Contracts and Real Estate Finance. This becomes effective September 1, 2012.

In addition, beginning January 1, 2012 applicants for a broker license will be required to have 4 years experience as a licensed salesperson up from the current 2-year requirement. They will also have to demonstrate "practical competency" by providing a list of brokerage activities that the person has been engaged in.

Also on September 1, 2012, brokers will be required to take a course called Broker Responsibilities in addition to other required continuing education classes to renew their licenses. This course will be required every two years as are courses in Legal and Ethics.

Effective September 1, 2011, all property managers must be licensed whether they are managing a high-rise office building or a bunch of houses. Leasing agents have always had to be licensed, of course. But it's good to see the commission finally require property managers to be licensed. They often lease properties in addition to managing them. Besides, any time a fee is collected for a real estate service, the person providing the service should be licensed to help ensure that the client is professionally represented. The only exception to that is that anyone who owns property should be and is able to continue managing and leasing his/her own property without the requirement of a license. But when they are acting as the agent or fiduciary of someone else, a license is a must.

There are other new regulations, but these are the most important ones. I support these changes for two main reasons:

1. This will weed out the weekend real estate agents who aren't willing to spend the time and money necessary to get and maintain a license. When they aren't working full time, agents aren't as likely to take a long-term view of the profession.

2. I think real estate agents suffer a poor professional image in the minds of the general public at times. These regulations should help increase professionalism and weed out some agents who don't have their client's best interest in mind. That can improve the image of the profession overall.

So get your license quickly if you haven't already done so because it's about to become a little more difficult.