Texas · state portion

Texas real estate law vocabulary

14 terms, defined plainly. Where a term is commonly confused with another, the definition says so — that confusion is usually the wrong answer.

TREC

Texas Real Estate Commission — nine members appointed by the governor (six brokers, three public); exists to protect the public; administers TRELA.

TRELA

The Texas Real Estate License Act — the statute governing licensing and conduct, enforced by TREC.

Intermediary status

The Texas statutory replacement for common-law dual agency: one brokerage facilitating between both parties with WRITTEN consent of each; appointed licensees may advise each side.

IABS notice

Information About Brokerage Services — must be provided at the first substantive communication about a specific property with a party the licensee doesn't represent.

Promulgated forms

TREC-issued contract forms that license holders MUST use when one fits the transaction (narrow exceptions, e.g. a party's attorney-drafted form). Licensees fill in blanks; they may not draft language.

Option period (termination option)

In the TREC 1-4 Family contract: the buyer pays an option fee for the unrestricted right to terminate within the negotiated period.

Community property

Texas marital property system: property acquired during marriage is presumed community. NO automatic survivorship — absent a written survivorship agreement it passes by will or intestacy.

Texas homestead

Protected from forced sale by MOST creditors — but NOT against purchase-money liens, property taxes, home-improvement/mechanic's liens, home equity, or owelty.

Over-65 exemption

Additional homestead exemption plus a SCHOOL-TAX CEILING (freezes the tax amount, not the appraised value); taxes may also be deferred — but not erased.

Veterans Land Board (VLB)

Texas program offering eligible veterans below-market land, home, and home-improvement loans.

Sponsoring broker

A Texas sales agent may act only through — and be paid only by — their sponsoring broker.

Real Estate Recovery Trust Account

TREC-administered fund that can reimburse consumers damaged by a license holder's misconduct when a judgment is uncollectible.

Texas license eligibility

18+, Texas resident (with exceptions), meet TREC's honesty/integrity standards, complete qualifying education, pass the exam, be sponsored.

Tenancy by the entirety (TX)

NOT recognized in Texas. Survivorship forms available: joint tenancy or community property — each only WITH a written survivorship agreement.