New Texas Laws Weaken Real Estate Opportunity

Texas is arguably the most stingy, anti-real estate professional state in the U.S. The educational requirements to become a real estate agent are the highest in the country, and most of the other laws around real estate professionals follow the same line of thinking.

Let me give you a couple of quotes on a recent release by the Texas Real Estate Commission.

Here’s the first:

Among the more notable changes, as of September 1st, property managers for single-family residential units must now be licensed. Persons involved in leasing such properties have always been required to hold a real estate broker or sales license, but managers not engaged in leasing did not. Texas families now have increased protections from unethical managers who prey on home owners.

Isn’t it interesting how they spin it? It’s much more likely that instead of tenants being protected from unethical managers, that these unethical managers will have to spend the time and money required to get licensed, and continue their unethical practices. The bigger problem is, that because these managers will incur additional expenses, they will pass those expenses on to the consumer.

So what does the consumer get out of the deal? Higher rental rates and very little, if any, additional protection.

Let’s examine the second:

Applicants for a sales license after September 1, 2012 will need to have completed two additional mandatory 30-hour courses in TREC Promulgated Contracts and in Real Estate Finance, courses that are currently optional. This additional education will directly benefit consumers.

How does it benefit consumers? All it does it raise the amount of time and money spent by a new, eager person trying to get their real estate license. Again, the obvious conclusion is with an additional barrier to entering the field, business will be hindered, and prices paid by the consumer will increase.

So my message to the law makers is the same as it’s always been. Protect our borders, provide emergency services, and provide us a court system to help us settle disputes that we cannot settle ourselves, but other than that, stay out of our lives!

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