85R24186 BEE-F     By: Hancock S.B. No. 2212     (Kuempel)     Substitute the following for S.B. No. 2212:  No.       A BILL TO BE ENTITLED   AN ACT   relating to certain real estate sales, brokerage, and advertising   activities, certain functions of the Texas Real Estate Commission,   and the authorization of a ground lease with the Texas Facilities   Commission to construct or maintain a building.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 1101, Occupations Code, is   amended by adding Section 1101.0045 to read as follows:          Sec. 1101.0045.  EQUITABLE INTERESTS IN REAL PROPERTY. (a)   A person may acquire an option or an interest in a contract to   purchase real property and then sell or offer to sell the option or   assign or offer to assign the contract without holding a license   issued under this chapter if the person:                (1)  does not use the option or contract to purchase to   engage in real estate brokerage; and                (2)  discloses the nature of the equitable interest to   any potential buyer.          (b)  A person selling or offering to sell an option or   assigning or offering to assign an interest in a contract to   purchase real property without disclosing the nature of that   interest to a potential buyer is engaging in real estate brokerage.          SECTION 2.  Section 1101.156(b), Occupations Code, is   amended to read as follows:          (b)  The commission may not include in rules to prohibit   false, misleading, or deceptive practices by a person regulated by   the commission a rule that:                (1)  restricts the use of any advertising medium;                (2)  restricts the person's personal appearance or use   of the person's voice in an advertisement;                (3)  relates to the size or duration of an   advertisement used by the person; [or]                (4)  restricts the person's advertisement under an   assumed or [a] trade name that is authorized by a law of this state   and registered with the commission; or                (5)  requires the term "broker," "agent," or a similar   designation or term, a reference to the commission, or the person's   license number to be included in the person's advertisement.          SECTION 3.  Section 1101.652(b), Occupations Code, is   amended to read as follows:          (b)  The commission may suspend or revoke a license issued   under this chapter or take other disciplinary action authorized by   this chapter if the license holder, while engaged in real estate   brokerage:                (1)  acts negligently or incompetently;                (2)  engages in conduct that is dishonest or in bad   faith or that demonstrates untrustworthiness;                (3)  makes a material misrepresentation to a potential   buyer concerning a significant defect, including a latent   structural defect, known to the license holder that would be a   significant factor to a reasonable and prudent buyer in making a   decision to purchase real property;                (4)  fails to disclose to a potential buyer a defect   described by Subdivision (3) that is known to the license holder;                (5)  makes a false promise that is likely to influence a   person to enter into an agreement when the license holder is unable   or does not intend to keep the promise;                (6)  pursues a continued and flagrant course of   misrepresentation or makes false promises through an agent or sales   agent, through advertising, or otherwise;                (7)  fails to make clear to all parties to a real estate   transaction the party for whom the license holder is acting;                (8)  receives compensation from more than one party to   a real estate transaction without the full knowledge and consent of   all parties to the transaction;                (9)  fails within a reasonable time to properly account   for or remit money that is received by the license holder and that   belongs to another person;                (10)  commingles money that belongs to another person   with the license holder's own money;                (11)  pays a commission or a fee to or divides a   commission or a fee with a person other than a license holder or a   real estate broker or sales agent licensed in another state for   compensation for services as a real estate agent;                (12)  fails to specify a definite termination date that   is not subject to prior notice in a contract, other than a contract   to perform property management services, in which the license   holder agrees to perform services for which a license is required   under this chapter;                (13)  accepts, receives, or charges an undisclosed   commission, rebate, or direct profit on an expenditure made for a   principal;                (14)  solicits, sells, or offers for sale real property   by means of a lottery;                (15)  solicits, sells, or offers for sale real property   by means of a deceptive practice;                (16)  acts in a dual capacity as broker and undisclosed   principal in a real estate transaction;                (17)  guarantees or authorizes or permits a person to   guarantee that future profits will result from a resale of real   property;                (18)  places a sign on real property offering the real   property for sale or lease without obtaining the written consent of   the owner of the real property or the owner's authorized agent;                (19)  offers to sell or lease real property without the   knowledge and consent of the owner of the real property or the   owner's authorized agent;                (20)  offers to sell or lease real property on terms   other than those authorized by the owner of the real property or the   owner's authorized agent;                (21)  induces or attempts to induce a party to a   contract of sale or lease to break the contract for the purpose of   substituting a new contract;                (22)  negotiates or attempts to negotiate the sale,   exchange, or lease of real property with an owner, landlord, buyer,   or tenant with knowledge that that person is a party to an   outstanding written contract that grants exclusive agency to   another broker in connection with the transaction;                (23)  publishes or causes to be published an   advertisement [, including an advertisement by newspaper, radio,   television, the Internet, or display,] that:                      (A)  misleads or is likely to deceive the public;                      (B)  [,] tends to create a misleading impression;                      (C)  implies that a sales agent is responsible for   the operation of the broker's real estate brokerage business; [,]   or                      (D)  fails to include [identify] the name of the   broker for whom the license holder acts, which name may be the   licensed name, assumed name, or trade name of the broker as   authorized by a law of this state and registered with the commission   [person causing the advertisement to be published as a licensed   broker or agent];                (24)  withholds from or inserts into a statement of   account or invoice a statement that the license holder knows makes   the statement of account or invoice inaccurate in a material way;                (25)  publishes or circulates an unjustified or   unwarranted threat of a legal proceeding or other action;                (26)  establishes an association by employment or   otherwise with a person other than a license holder if the person is   expected or required to act as a license holder;                (27)  aids, abets, or conspires with another person to   circumvent this chapter;                (28)  fails or refuses to provide, on request, a copy of   a document relating to a real estate transaction to a person who   signed the document;                (29)  fails to advise a buyer in writing before the   closing of a real estate transaction that the buyer should:                      (A)  have the abstract covering the real estate   that is the subject of the contract examined by an attorney chosen   by the buyer; or                      (B)  be provided with or obtain a title insurance   policy;                (30)  fails to deposit, within a reasonable time, money   the license holder receives as escrow or trust funds in a real   estate transaction:                      (A)  in trust with a title company authorized to   do business in this state; or                      (B)  in a custodial, trust, or escrow account   maintained for that purpose in a banking institution authorized to   do business in this state;                (31)  disburses money deposited in a custodial, trust,   or escrow account, as provided in Subdivision (30), before the   completion or termination of the real estate transaction;                (32)  discriminates against an owner, potential buyer,   landlord, or potential tenant on the basis of race, color,   religion, sex, disability, familial status, national origin, or   ancestry, including directing a prospective buyer or tenant   interested in equivalent properties to a different area based on   the race, color, religion, sex, disability, familial status,   national origin, or ancestry of the potential owner or tenant; or                (33)  disregards or violates this chapter.          SECTION 4.  Section 1105.003(f), Occupations Code, is   amended to read as follows:          (f)  Not later than August 31 of each fiscal year, the agency   shall remit [$750,000] to the general revenue fund the sum of   $750,000 minus amounts expended each fiscal year until September 1,   2029, to construct or maintain a building in the Capitol Complex,   including amounts expended for repayment of a construction loan, to   be developed, constructed, maintained, and operated in conjunction   with the Texas Facilities Commission and subject to Chapters 443,   2165, and 2166, Government Code, at 203 West Martin Luther King,   Jr., Boulevard designated as Parking Lot 19.          SECTION 5.  Subchapter D, Chapter 5, Property Code, is   amended by adding Section 5.086 to read as follows:          Sec. 5.086.  EQUITABLE INTEREST DISCLOSURE. Before entering   into a contract, a person selling an option or assigning an interest   in a contract to purchase real property must disclose to any   potential buyer that the person is selling only an option or   assigning an interest in a contract and that the person does not   have legal title to the real property.          SECTION 6.  Notwithstanding Section 2165.259, Government   Code, for purposes of constructing a building in the Capitol   Complex pursuant to Section 1105.003(f), Occupations Code, as   amended by this Act, the Texas Facilities Commission has the   authority to enter into a ground lease with the Texas Real Estate   Commission pursuant to Subchapter D, Chapter 2165, Government Code,   for the location of a building at the following described real   property, also known as 203 West Martin Luther King, Jr., Boulevard   and designated as Parking Lot 19:          The Northeast 1/4, the North 1/2 of the Southeast 1/4, and the   East 5 feet of the Northwest 1/4 and East 5 feet of the North 1/2 of   the Southwest 1/4, all in Out-lot No. 42, Division "E", in the City   of Austin, Travis County Texas.          SECTION 7.  (a) Except as provided by Subsection (b) of this   section, this Act takes effect September 1, 2017.          (b)  Section 1105.003(f), Occupations Code, as amended by   this Act, takes effect September 1, 2019.