Re: Home Warranty Companies

The following is a letter received from the
Texas Real Estate Commission
Texas Appraiser Licensing and Certification Board
P O Box 12188
1101 Camino La Costa
Austin, TX 78711-2188

Dated: March 1, 2006

               As you are no doubt aware, a company which issues and sells residential service contracts (also commonly
known as home warranties) in Texas is required to be licensed through this agency (TREC). A residential service company is one that sells a residential service contract - an agreement by the company to maintain, replace or repair certain systems and appliances in a home. Failure to obtain a license from TREC before selling a home warranty to a Texas consumer is a violation of Chapter 1303, Texas Occupations Code (The Residential Service Company Act).

              It has come to my attention that at least one unlicensed company has been soliciting business in Texas in various cities and areas of the state. They are attempting to involve licensed real estate salespersons and brokers in their efforts to sell residential service contracts. It would be helpful to all involved if you reminded your members that they should only work with companies licensed to do business in Texas. Consumers who purchase residential serve contracts from unlicensed companies will be denied the opportunity to have any disputes resolved through the efforts of the Texas Real Estate Commission.

               Please remind your members that all currently licensed residential service companies are listed on our web site at: www.trec.state.tx.us/licenses/RSC_licensed.asp


Sincerely,

Wayne Thorburn
TREC Administrator
TALCB Commissioner

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