TREC E&O Form?

Where can I find the new form for showing proof
of E&O insurance to TREC?

Right here… :slight_smile:

Interesting! Look at the bottom of the form where it says:
"*provides for professional liability insurance for the above named Inspector for *claims for property damage or bodily injury, regardless of whether the claim arises from a negligence claim or a contract claim;"
There was a school of thought going through the last Inspector’s Committee that questioned whether the legislature has put a law into place that cannot be met. In other words, there may be no E&O policy that provides the above. I don’t know if that’s true or not but it would be interesting to determine. I think I shall pose that question to my E&O provider…i.e. does it insure for the above?

Another example of TREC staff writing rules where the statute is not clear. The statute does not have that language and neither did the Commissioners vote. They simply voted to interpret it as E&O with no defintion of E&O.

TREC violates the law more than inspectors. Nothing that can be done however. Realtors tell the Governor who to appoint; they are all TAR people; TAR people hire the administrator. Staff does what they are told by the Administrator.

John, maybe I am off base here, but surely that form is talking about GL not E&O



Gerry, if you haven’t kept up with it here is essentially what happened. During the waning hours of the last state legislature an amendment was tacked onto a Texas Real Estate Commission ‘housekeeping’ bill. The amendment was to require $100,000 of ‘liability insurance’ for Texas inspectors to protect against violations of our SOP. Well, since the amendment was literally in the 11th hour then there was not time to fight it and it was passed into law. That then required TREC to implement the new law and to try to define exactly what the sleazeball Representative was trying to do when he attached the amendment. Barring any difference of opinion from the state AG that is being waited for, TREC is pretty much forced into requiring the E&O. So, no…that form definitely pertains to E&O.


TREC in it’s misinterpretation of the law, as usual, decided differently and then after their ruling and having it brought to their attention by inspectors that NO Insurance in the world would cover unlawful acts decided to query the AG, that’s where it is now yet TREC is still mandating E&O of all new and renewing inspectors.

Read on:

It says that Texas home inspectors must provide proof of E&O
insurance on the accepted FORM.

Has anyone seen that from, so an inspector can submitt their E&O
proof of insurance?

John…did you read my post #2?

OK… I see it now. Thanks

In the 1 1/2 years the following has occurred:

SoP rejected with an order from Commissioners to address safety and code with specificity and to hold the inspector accountable.

Past Inspector Committee leadership (14 years consecutive) reappointed to serve the Commissioners. They get along with staff very well

Professional insurance sneaked in; TREC interprets it as E&O

Inspector committee dissolved by statute.

“get along with TREC” leadership consulted in writing of reduced educational hours even though the committee no longer exists. Public debate omitted via “emergency rule” procedure.

Statute is changed from 448 hours to “up to 448” hours. TREC decreases hours and makes fast tracking easier. (in process)

“get along” leaders will be formally reappointed this October.

Predicting a Houston boy will become Chairman and teaching for an educational provider

Such is life in Texas. :wink:

Yes, and I’m sure he will be a “Champion” for all Texas HI’s :mrgreen:

John (Cahill),

How does the change that requires education and multi-year experience make fast tracking easier? Looks much harder to me.

See the bright yellow box:

Prior law required 448 hours of education. Period. Not more; not less. Experience could count for some of that.

New law requires experience. Instead of hours OR experience it is hours AND experience.

The trick is the old required 448 hours. The new requires NO TO EXCEED hours AND experience.

Theoretically the commission could require 1 hour of education and 1 hour of experience due to the “NOT TO EXCEED” language (or none for that matter). That gives TREC great leeway in balancing supply and demand to suit TAR and the schools.

Old way
128 core
320 fast track additional hours with option for experience.
= 448

New way
128 core
200 fast track additional hours
120 experience (ride along; suffice for experience)

Total hours still 448 BUT 120 are now ride along.

To get a license you only have to go to school 328 hours in instead of 448.

You can ride along on weekends.

Thus it is easier to get a license.

Is it better? Well its hard to argue that the experience is not worthwhile. On the other hand they carved it out of the educational hours.

It will be easier for a school to promote a 328 hour class than a 448 hour class. Its a 25% reduction in classroom training hours.

What would I like?

The same as a Texas Broker. 900 hours and 2 years experience. You could fill in the 452 additional hours with IRC code certification. You could create a special sponsor license. If the sponsor gets in trouble he looses his sponsor license but not his pro license (right to work). Fees could go up so trainees could be paid a decent wage. Experienced inspectors protect the public. TAR wants CHEAP inspections and complete delegation of liability.

I would settle for the Broker requirements to reduced like the HI however. :wink:

Its about pumping out inspectors with insurance. Keep em inexperienced; set em up to assume liability and keep schools going. Oh ya, justify more TREC staff in order to protect the public.

I agree with what John says and I think the issue goes even beyond that. Here is my interpretation of the chain of events:

  1. The last state legislature changed the fast track method to include the requirement for both education and experience. No one seems to know why they felt that change was needed.
  2. TREC implemented an ‘emergency’ rule mid-summer to support that new law.
  3. Current students and several education providers screamed bloody murder as it was now difficult to impossible to meet the new rules.
  4. TREC staff apparently conferred, off-line and without public input, with one or more of the proposed new Inspectors Advisory Committee members (who also happens to teach) to modify those rules they had just implemented to allow classroom hours to substitute for the experience hours. It seems as if the education hours will be allowed to count for both education and experience. So, the latest proposed rule says that 120 hours of classroom training (or accompanying a licensed HI) equals 5-7 years experience! By the way, those are apparently the same 120 hours that have always been required, not a new additional 120 hours. You can view the latest rule proposal at]( and see Section B.iii for the experience subsitution proposal.
  5. This latest rule change will be presented at the 10/8 TREC Commission meeting and will likely be taken under advisement and will then be posted on the Texas Register for notification and public comment and will then be accepted as the rule.

In effect, TREC and the soon-to-be installed new Inspectors Committee ignored the legislature’s mandate of education + experience and proposes to do business as usual or less than usual.

You can expect more thanks to me. I asked if I could have more than 1 ride along go with me on an actual job. You know, maybe two. But then if the home is vacant and the buyer not present why not 10? :roll:

I asked if a background check was needed before I took ride alongs into occupied homes. :shock:

TREC reply was “We did not consider that.” Expect a THIRD rule to be posted with some type of restrictions.

Sorry to ask those questions but I foresee 25 ride alongs to a vacant home and I charge em all $100 each. $$$$$$$$$$ That’s an idea some might “champion”.

Looks like TREC answered some of your questions today John. See the 10/1 revisions to the proposed rules


Is it an open meeting? Should we all try to attend?


TAREI’s spin

Fellow Colleagues,
This past week, I requested a meeting be established with TAREI & TREC members. J.D. Fuller, TAREI President-Elect and Andrea Barnard, TAREI Executive Director met with new TREC Administrator Tim Irvine, TREC General Council Loretta DeHay & Staff Attorney Devon Bijansky.

Mr. Irvine presented some information regarding historic aspects of the Fast Track Program. Ms. DeHay then suggested the Emergency Rules are needed quickly but TREC is certainly open for suggestions to present to the TREC Commissioners on the 8th.
Once these comment(s) are voted on, they will post for public comment. Once the public has had time to respond, TREC will suggest a rule change according to the respective feedback received.

All present are in agreement that the “intent” of this ruling is to make the Fast Track program more difficult than the previous version. The current proposed version actually makes this process easier for an Inspector to obtain his/her Inspector license.
TAREI’s suggestion for TREC Staff consisted the following for the Fast Track program:
128 core hours
320 additional education hours
120 hands-on and/or simulated training

This suggestion seemed to greatly satisfy all present. That said, our TAREI membership needs to contact the respective Commissioners to share our sentiments on this important issue. I would suggest planning on attending the TREC meeting October 8th to voice/share your sentiments.
Within the next couple of days, TAREI will send out a Position Statement for the general membership to use as a template to draft their own letter for the TREC Commissioners.
As always, TAREI will continue to the “voice” of the Inspection industry in Texas.
Thank you for your loyalty to our industry.
Daniel F. South
TAREI President

The 10/8 TREC Commissioners meeting is most definitely an open meeting. The meeting room will hold around +/- 200 and is usually about 1/3 full. Remember the majority of TREC business has to do with Realtors so that is usually the bulk of the attendees and I have seen the agenda and will try to find it and post it here. I think it would be great for as many HI’s to attend a TREC meeting as possible but, keep in mind that there is little to be accomplished at that meeting. From our perspective it would be more to hear first hand who the new Inspector Committee members are and to show the Commissioners that HI’s are listening and concerned about some of the new rules. And that will only happen if one or two very articulate HI’s voice our concerns in a succinct, professional manner. 6-8 guys bitching and moaning just isn’t going to get the right point across. Don’t expect to change anything at that meeting, go with the idea of gaining knowledge and perspective on how TREC business gets done.

That’s just the problem though…those present don’t have the clout to make anything happen. TAREI -vs- TREC -vs- TAR…guess which way that pendulum swings. I have nothing against TAREI but they are not the ‘voice of the inspection industry’ in Texas or, if they are, then they are whispering. TAREI is simply not big enough nor funded well enough to have much impact.

OK, here’s the agenda: TREC Agenda 100807.pdf (15.7 KB)

It is interesting that the President elect of TAREI lives down the road from
me and charges $190 for an inspection. I went to one TAREI conventions
and attended a marketing class where we were taught how to please the
Realtors. It made me sick.

I really don’t see TAREI as much of voice for anything… IMHO.