TREC Commissioners Tackles A Hot Button Issue At Monday's Meeting.

The E&O Insurance for Inspectors has been addressed. See the TREC web site for more details.

On Monday October 8, 2007 I knew something was up when I arrived 30 minutes early for the TREC meeting and the parking lot was almost full. The hot button issue was the new statutory requirement that Inspectors carry insurance. The hubbub was the Legislature was not clear on the type of insurance. What type of insurance does the law require Inspectors to carry; business liability or E&O? One thing you can say about the Inspector community they know how to Rally Their Troops. There were long lines at the podium for speakers.

Hopefully this insurance question will be resolved when the Attorney General renders his opinion on what the statute means. He could rule that:

• Inspectors are required to carry E&O
• Inspectors are required to carry business liability insurance
• Inspectors are required to carry both
• The statute is unenforceable
• or Something entirely different.

You can enroll yourself on an e-mail list at http://www.oag.state.tx.us/ and receive an e-mail alert when the Attorney General releases his opinions.

TREC has a new Administrator, Mr. Tim Irvine, and this was his first meeting so welcome and yes it is too late to change your mind. Mr. Irvine and Chairperson Walton, kept the meeting moving and respectful.

Other items from the meeting:
The Inspector's Advisory Committee was created.
Two new members of the Broker Lawyer Committee we appointed.
Minor changes in the New Home Contracts along with the Third Party Financing Addendum. Also a new Notice Addendum was presented 43-0 and they changed form 34-3 Addendum for Property Located Seaward of the Gulf Intracoastal Waterway. Watch the TREC web site for the new forms.
Several new rules regarding fees and procedures were also passed. These were related to new changes from the last legislative session.

So much was addressed in this meeting giving you all the details here would be too time consuming and my purpose is to give a summary not a blow by blow retrospect of the meeting. Check the TREC web site and the minutes of the meeting will be posted at a later date. I have been attending these meetings for many years and you should try to attend from time to time, especially if they are discussing a policy that effects your profession.

All information is deemed to be correct but is not guaranteed. Posts are for eduction purposes only and are not intended to replace professional advice.

Are Flat Screen TVs Going To Be The Next Artificial Fireplace Logs?

Over the years as building concepts and technical innovations occur the contract forms needed to keep up. Many years ago people in rural areas only access to cable type channels was using a satellite dish. Not these small dishes we see today but huge 10-12 foot monsters. At one time the satellite dish was added to paragraph 2. The intent was the seller would leave a functional satellite system. In reality the seller left that huge dish cemented into the ground but took all the electronics in the house. So, the form was changed adding "satellite dish systems and equipment".

A similar situation happened with artificial fireplace logs. These needed to be added a short time ago to clarify that these did in fact stay unless the seller reserved them.

Now with very expensive plasma or flat screen televisions mounted to the wall we are seeing the same confusion. If you have a home with these televisions mounted on the wall it would be a good idea to list them in the final contract that the seller will remove them. However, the belief is that any mounting hardware attached to the wall would remain. Stating that the seller is going to remove the televisions in the listing agreement is not enough. This reservation must be listed in the contract and the acceptable place would be paragraph 2. In the past who would have thought that a TV would be considered real property, so it was not addressed. With new technology some televisions are attached to the wall and MIGHT be considered part of the property.

All information is deemed to be correct but is not guaranteed. Posts are for eduction purposes only and are not intended to replace professional advice.