The TREC and the Sunset Commission

The TREC is currently being reviewed by the Texas Sunset Advisory Commission. I strongly urge any inspector in Texas to send them a note reviewing the performance of the TREC along with any suggestions you may have for improvement. So if you are tired of being treated like step children, or like me would rather see inspectors with their own board under the TDLR, let them know. It is a shame to allow them to skate on 32 years of blatant conflict of interest without at least speaking up. Use this link:
For the timid or just plain PC among you, know that these comments are not made public. Giving the TREC both barrels to their faces never bothered me, but if you are meek, now’s your chance to speak.

Is there a calendar regarding the hearings etc?

Trec staff is trying to change E&O to exclude defense from the policy limit. Estimates are rates will increase 25%.

The insurance requirement law needs to be rewritten.


Their site simply says that the schedule will be posted in the future.:roll:

I have been unable to get a clear, or any, answer from the TRECIAC regarding their decision on the insurance rule change in Monday’s meeting. Again, the information in the form of meeting minutes is not on the TREC site.:roll:

Let us know if you hear anything on this.



This is the meeting link that introduced the motion to the inspector committee.

This is the meeting that happened 3 days ago. It was a live stream. The lady at lower right is Chairman of the Real Estate Commission. The lady advocating the change is Deputy Council Worman.

A week or so I submitted an Open Records request to find out how all of this started (reference an inspection has gone wrong in the first meeting). I wanted the details of what caused this ball to roll. The official reply was that no information was available. When the 2nd meeting was posted I noticed emails in the committee handout package that predated my request for Open Records. I asked why I did not get that information. When the 2nd meeting happened Deputy Council Worman explains what initiated her actions on the topic.

It appears a motion to recall the first recommendation and to table for discussion was made in the 2nd meeting. I noticed the motion seemed to be interrupted and was not pronounced as passed. I have notified the inspector committee to make sure their intent is carried forward to the Commissioners meeting or to call another meeting and redo the motion.

I constructed public comment on the matter. I began by recalling my knowledge of TREC solely for my own use with the intention of parsing it to applicable data. I inadvertently sent a rambling interpretation of history that either bored the reader or entertained them. I am reconstructing my comments at this time and will post them later. My main thoughts are:

1 - The statute passed
2 - No one knew how to interpret it.
3 - A request for opinion was sent to the Attorney General
4 - TREC created interim policy to say intent was E&O
5 - The AG replied after TRECs interim policy and said they could not determine what to call it but could say what was required. Read the opinion. I have some off thread comments to ask you.
6- It seems TREC staff is redefining E&O standard practices. I thought most E&O in other professions was defense within the limit.

Here’s hoping all the Texas Inspectors wake up and understand what is going on here and how we have been screwed for so many years by TREC.

We inspectors are and have been just “pawns” in their over-riding control of our business and profession.

TREC put the question to Sunset in September. Not sure why they are trying to pass the rule before Sunset replies. I wonder if TREC is cutting a deal with insurance to raise the limit from $100,000 to $250,000? The main question to ask is “Can an inspector limit liability with a contract”? TREC’s comment to Sunset was.

  1. Clarify E&O coverage minimums for Inspectors and Real Estate brokers. A. TREC has received questions about whether certain clauses in an insurance policy, such as a defense within limits or wasting clause, which reduce the limits of liability insurance coverage available under the policy, comply with the statutory requirements in §1102.1141.
    B. These and other similar clauses reduce the amount of liability insurance coverage available to protect the public against a violation of Subchapter G, Chapter 1102, Texas Occupations Code, §1102.1141 and similar provisions in Chapter 1101. C. Chapters 1101 and 1102, Occupations Code should be amended to clarify that any insurance policy should provide the statutory minimum amount of coverage without reduction for defense costs, attorney fees or other offsets.

I would like to think that “many” of the Texas Licensed Inspectors have looked into this and provided their input to the Sunset Commission.

However, it seems to be that the lack of conversation amongst the active inspectors is a sign of not being that involved with what TREC is doing to the inspectors.


Most are too busy massaging realtor derrieres to bother.

Thank you for the heads-up. I just gave the Sunset Commission an earful.

I raised two issues which I feel constitute an inherent conflict of interest which do not serve the best interest of the public or the regulated licensees:

  1. The regulation of the Home Inspection Industry by the Real Estate Commission rather than the TDLR;
  2. The fact that TREC is a self-funding entity which profits by levying fees and fines against licensees creating an incentive for TREC to fine licensees and denying the accused of fair and objective due process.

I hope others will take the opportunity to voice any concerns that they may have.

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What a crock! No wonder they impose outrageous fines.