RULES & REGULATIONS - Texas Real Estate

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RULES & REGULATIONSTEXAS REALTORS MULTIPLE LISTING SERVICETexas REALTORS (the “Association”) adopts these Rules and Regulations concerning its MultipleListing Service (MLS). All Participants and subscribers to the MLS must comply with these Rules andRegulations as a condition of accessing and using the MLS. As used in these Rules and Regulations, thefollowing terms have the following meanings.“MLS” means the multiple listing service operated by the Association, which is:******a facility for the orderly correlation and dissemination of listing information so Participantsmay better serve their clients and customers and the public;a means by which authorized Participants make blanket unilateral offers of compensation toother Participants (acting as subagents, buyer agents, or in other agency or nonagencycapacities defined by law);a means by which cooperation among participants is enhanced;a means by which information is accumulated and disseminated to enable authorizedParticipants to prepare appraisals, analyses, and other valuations of real property for bonafide clients and customers;a means by which Participants contribute to common databases; anda cooperative system in which entitlement to compensation is determined by the cooperatingbroker’s performance as procuring cause of the sale or lease.“MLS aggregate data” means the information concerning active listings in the MLS that is publiclyavailable to nonsubscribers on-line from the MLS.“Participant” means an individual who:******is a REALTOR ;is a principal, partner, corporate officer, or branch office manager acting on behalf of aprincipal of a firm participating in the MLS;holds a valid Texas real estate broker’s license issued by the Texas Real Estate Commissionor a valid Texas appraiser license or certification issued by the Texas Appraiser Licensingand Certification Board;offers or accepts cooperation and compensation to and from other Participants if theParticipant is licensed as a real estate broker;voluntarily participates and subscribes to the MLS by paying the required fees and complyingwith these Rules and Regulations; andis responsible to the MLS for compliance with these Rules and Regulations and isresponsible for compliance by all subscribers associated with the Participant.Note: Mere possession of a broker’s license is not sufficient to qualify for MLS participation.Rather, the requirement that an individual or firm ‘offers or accepts cooperation andcompensation’ means that the Participant actively endeavors during the operation of its realestate business to list real property of the type listed on the MLS and/or to accept offers ofcooperation and compensation made by listing brokers or agents in the MLS. “Actively” means ona continual and on-going basis during the operation of the Participant’s real estate business. The“actively” requirement is not intended to preclude MLS participation by a Participant or potentialParticipant that operates a real estate business on a part time, seasonal, or similarlyAs Amended By TEXAS REALTORS Executive Board on 02/14/22Page 1 of 27

time-limited basis or that has its business interrupted by periods of relative inactivity occasionedby market conditions. Similarly, the requirement is not intended to deny MLS participation to aParticipant or potential Participant who has not achieved a minimum number of transactionsdespite good faith efforts. Nor is it intended to permit an MLS to deny participation based on thelevel of service provided by the Participant or potential Participant as long as the level of servicesatisfies state law.The key is that the Participant or potential Participant actively endeavors to make or accept offersof cooperation and compensation with respect to properties of the type that are listed on the MLSin which participation is sought. This requirement does not permit an MLS to deny participation toa Participant or potential Participant that operates a Virtual Office Website (“VOW”) (including aVOW that the Participant uses to refer customers to other Participants) if the Participant orpotential Participant actively endeavors to make or accept offers of cooperation andcompensation. An MLS may evaluate whether a Participant or potential Participant “activelyendeavors during the operation of its real estate business” to “offer or accept cooperation andcompensation” only if the MLS has a reasonable basis to believe that the Participant or potentialParticipant is in fact not doing so. The membership requirement shall be applied on anondiscriminatory manner to all Participants and potential Participants.“Principal” means an owner, partner, corporate officer, or branch office manager acting on behalf of aprincipal.“Subscriber” means non-principal brokers, salespersons, and licensed or certified real estateappraisers affiliated with a Participant and who offices at the location where the Participant willaccess the MLS. A Participant may waive the subscriber status of a person affiliated with theParticipant who qualifies as a subscriber if:(1) the Participant provides a written statement to the Association that:(a) identifies the person whose subscriber’s status will be waived; and(b) represents that the Participant will not permit the named person whose subscriber’sstatus will be waived to access or use the MLS or information in the MLS for anypurpose; and(2) the Participant provides information satisfactory to the Association that establishes theperson whose subscriber’s status will be waived is a subscriber to a different commercialinformation exchange (CIE) or multiple listing service that is owned or operated by anassociation of REALTORS .“To take a listing” means to enter into a binding written exclusive right to sell or exclusive agencylisting agreement with a seller of real property.“To file a listing with the MLS” means to input information about a listed property into the MLSdatabase for dissemination to other Participants. A Participant files a listing by:****inputting the required information about the listed property via the Internet at the MLS website in accordance with the instructions at the MLS web site;completing all required data fields that the MLS may require;inputting the gross listing price of each listing the Participant inputs in the MLS; andinputting the listing in the appropriate category or subcategory.“To file or report information to the MLS” means to amend the information about the listing (whethercategorized as an active listing, withdrawn, pending sale, closed sale, etc.) by inputting theinformation via the Internet at the MLS web site in accordance with the instructions at the MLS website and placing the listing or sale in the appropriate category or subcategory.As Amended By TEXAS REALTORS Executive Board on 02/14/22Page 2 of 27

SECTION 1.LISTING PROCEDURES.A Participant that enters into an exclusive right to sell or exclusive agency listing agreement to sell any ofthe following types of real property in Texas shall file the listing with the MLS within three (3) days after allnecessary signatures of the seller(s) have been obtained:(1)(2)(3)(4)single family homes for sale or exchange;vacant residential lots and residential acreage for sale or exchange;two-family, three-family, and four-family residential buildings for sale or exchange; andvacant and improved farm and ranch properties for sale or exchange.Other types of properties may be, but are not required to be, inputted into the MLS if a category for suchproperties is available in the MLS. If available on the MLS, properties for lease may be, but are notrequired to be, inputted into the MLS.The MLS does not require a Participant to enter into listing agreements on a form other than the form theParticipant chooses to utilize provided the listing is an exclusive right to sell or exclusive agency.The Participant may submit only those listings that:(1) include the seller’s authorization to file the agreement to the MLS;(2) make it possible for the listing broker to offer cooperation and compensation to the otherParticipants of the MLS acting as subagents, buyer agents, or in other agency or non-agencycapacities defined by law; and(3) disclose to the owner that information about the listing may be uploaded on the Internet.The MLS may not accept net listings or open listings. Participants are free to accept net or open listingsto be handled outside the MLS subject to state laws.Exclusive-agency listings and exclusive-right-to-sell listings with named prospects exempted should beclearly distinguished by a simple designation, such as a code or symbol, from exclusive-right-to-selllistings with no named prospects exempted, since they can present special risks of procuring causecontroversies and administrative problems not posed by exclusive-right-to-sell listings, with no namedprospects exempted. Care should be exercised to ensure that different codes or symbols are used todenote exclusive agency and exclusive right to sell listings with prospect reservations.Section. 1.01Clear Cooperation.Within one (1) business day of marketing a property to the public, the listing broker must submit thelisting to the MLS for cooperation with other MLS participants. Public marketing includes, but is notlimited to, flyers displayed in windows, yard signs, digital marketing on public facing websites,brokerage website displays (including IDX and VOW), digital communications marketing (emailblasts), multi-brokerage listing sharing networks, and applications available to the general public.(Adopted 11/19)Note: Exclusive listing information for required property types must be filed and distributed to otherMLS Participants for cooperation under the Clear Cooperation Policy. This applies to listings filedunder Section 1 and listings exempt from distribution under Section 1.3 of the MLS rules if it isbeing publicly marketed, and any other situation where the listing broker is publicly marketing anexclusive listing that is required to be filed with the service and is not currently available to otherMLS Participants.As Amended By TEXAS REALTORS Executive Board on 02/14/22Page 3 of 27

Section 1.1.Listings subject to Rules and Regulations of the MLS.Any listing taken by a Participant that is required by these Rules and Regulations to be filed in theMLS is subject to these Rules and Regulations upon signature of the seller(s).Section 1.2.Detail on Listings Filed with the MLS.A listing agreement, when filed with the MLS by the Participant, shall be complete in every detail. AParticipant must provide a copy of the listing agreement to the MLS upon request.Section 1.2.0.Accuracy of Listing Data.Participants and Subscribers are required to submit accurate listing data and required to correct anyknown errors.Section 1.2.1.Public Remarks.The public remarks field is intended to describe the physical attributes of the listed property only. Thepublic remarks field shall not include contact information such as names, phone numbers, emailaddresses, web site addresses, or service provider information.Section 1.3.Listings Required to filed with the MLS.A Participant must file all listings taken by or on behalf of the Participant except for the listingsdescribed in this subsection.(1) If the seller refuses to permit the listing to be filed with the MLS, the Participant may take thelisting (“office exclusive”) and such listing shall be filed with the MLS but not disseminated tothe Participants. A Participant must maintain a copy of the seller(s) written instruction andprovide a copy to the MLS upon request.Note: MLS Participants must distribute exempt listings within (1) one business day oncethe listing is publicly marketed. See Section 1.01, Clear Cooperation.(2) The listing is filed with another multiple listing service owned or operated by an association ofREALTORS ; provided, however, that if the Participant files such a listing with the MLS,these Rules and Regulations apply.(3) Listings for the sale of the types of properties that are not described in the first paragraph ofSection 1 above; provided, however, that if the Participant files such a listing with the MLS,these Rules and Regulations apply.(4) Listings for the lease of real property; provided, however, that if a Participant files such alisting with the MLS, these Rules and Regulations apply.If a Participant files a listing with the MLS and that listing is filed in another multiple listing service, theParticipant must input, as the listing agent’s or contact person’s name, the same name identified asthe listing agent or contact name in the other multiple listing service.Section 1.4.Change of Status of Listing.Any change in listed price or other change in the original listing agreement shall be made only whenauthorized in writing by the seller and shall be filed with the MLS not later than two (2) business daysAs Amended By TEXAS REALTORS Executive Board on 02/14/22Page 4 of 27

after the authorized change is received by the listing broker.Section 1.5.Withdrawal of Listing Prior to Expiration.Listings may be withdrawn from the MLS by the Participant before the expiration date of the listingagreement provided the Participant maintains a copy of the agreement between the seller and theParticipant which authorizes the withdrawal.Sellers do not have the unilateral right to require the MLS to withdraw a listing without theParticipant’s concurrence. However, when a seller(s) can document that the seller’s exclusiverelationship with the Participant has been terminated, the MLS may remove the listing at the requestof the seller.Section 1.6.Contingencies Applicable to Listings.Any contingency or conditions of any term in a listing shall be specified and noticed to all Participantsin the MLS.Section 1.7.Potential Short Sale Disclosure.Participants may, but are not required to, disclose potential short sales (defined as a transactionwhere title transfers, where the sale price is insufficient to pay the total of all liens and costs of saleand where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies) toother Participants and Subscribers. When disclosed, Participants may, at their discretion,communicate to other Participants whether and how any reduction in the gross commissionestablished in the listing contract, required by the lender as a condition of approving the sale, will beapportioned between listing and cooperating Participants. All confidential disclosures and confidentialinformation related to short sales must be communicated through dedicated fields or confidential“remarks” available only to Participants and Subscribers.Section 1.8.Listing Price Specified.The full gross listing price stated in the listing agreement will be included in the information publishedin the MLS compilation of current listings. The gross listing price is the highest price if the listing priceis specified as a range in the listing agreement.Section 1.9.Listing Multiple Unit Properties.All properties which are to be sold or which may be sold separately must be indicated individually inthe listing. When part of a listed property has been sold, proper notification should be given in theMLS.Section 1.10.No Control of Commissions or Fees Charged by Participants.The MLS shall not fix, control, recommend, suggest, or maintain commission rates or fees forservices to be rendered by Participants. Further, the MLS shall not fix, control, recommend, suggest,or maintain the division of commissions or fees between cooperating Participants or betweenParticipants and non- participants.Section 1.11.Expiration, Extension, and Renewal of Listings.Any listing filed with the MLS automatically expires on the dates specified in the agreement unlessrenewed by the Participant and the Participant amends the listing in the MLS.As Amended By TEXAS REALTORS Executive Board on 02/14/22Page 5 of 27

A Participant may not amend a listing for the purpose of renewing or extending it after the expirationdate of the listing. If a listing is to be extended or renewed after the expiration date, the Participantmust input the listing as a new listing. Any extension or renewal of a listing must be signed by theseller(s) and provided to the MLS upon request.Section 1.12.Termination Dates on Listings.Listings filed with the MLS shall bear a definite and final termination date as negotiated between theParticipant and the seller.Section 1.13.Service Area.Only listings of the types of property designated in Section 1 above and that are located within theState of Texas are required to be filed with the MLS. Listings of property located outside of Texas willnot be accepted.Section 1.14.Listings of Suspended Participants.When a Participant of the MLS is suspended from the MLS for failing to abide by a membership duty(i.e., violation of the Code of Ethics, Board Bylaws, MLS Bylaws, MLS Rules and Regulations, orother membership obligation except failure to pay appropriate dues, fees, or charges), all listingscurrently filed with the MLS by the suspended Participant shall be retained in the Service until sold,withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination dateof the listing agreement in effect when the suspension became effective.If a Participant has been suspended from the Association or the MLS (or both) for failure to payappropriate dues, fees or charges, the MLS is not obligated to provide MLS services, includingcontinued inclusion of the suspended Participant’s listings in the MLS compilation of current listinginformation. Prior to any removal of a suspended Participant’s listings from the MLS, the suspendedParticipant will be advised in writing of the intended removal so that the suspended Participant mayadvise the Participant’s clients.Section 1.15.Listings of Expelled Participants.When a Participant is expelled from the MLS for failing to abide by a membership duty (i.e., violationof the Code of Ethics, Board Bylaws, MLS Bylaws, MLS Rules and Regulations, or other membershipobligation except failure to pay appropriate dues, fees, or charges), all listings currently filed with theMLS by the suspended Participant shall be retained in the MLS until sold, withdrawn or expired, andshall not be renewed or extended by the MLS beyond the termination date of the listing agreement ineffect when the expulsion became effective.If a Participant has been expelled from the Association or MLS (or both) for failure to pay appropriatedues, fees or charges, the MLS is not obligated to provide MLS services, including continuedinclusion of the expelled Participant’s listings in the MLS compilation of current listing information.Prior to any removal of an expelled Participant’s listings from the MLS, the expelled Participant will beadvised in writing of the intended removal so that the expelled Participant may advise theParticipant’s clients.Section 1.16.Listings of Resigned Participants.When a Participant resigns from the MLS, the MLS is not obligated to provide services, includingcontinued inclusion of the resigned Participant’s listings in the MLS compilation of current listingAs Amended By TEXAS REALTORS Executive Board on 02/14/22Page 6 of 27

information. Prior to any removal of a resigned Participant’s listing from the MLS, the resignedParticipant will be advised in writing of the intended removal so that the resigned Participant mayadvise the Participant’s clients.Section 1.17.Property Addresses.At the time of filing a listing, participants and subscribers must include a property address available toother participants and subscribers, and if an address doesn’t exist, a parcel identification number canbe used. Where an address or parcel identification number are unavailable, the information filed withthe MLS must include a legal description of the property sufficient to describe its location.Section 1.18.Digital Images (Photos).Digital images submitted to the MLS shall only contain photos pertinent to the listed property andmust show an accurate representation of the property in its current state. Digital images shall notcontain legible contact information such as names, phone numbers, email addresses or web siteaddresses, including the use of embedded, overlaid, or digitally stamped information.SECTION 2.SHOWINGS.Appointments for showings with the seller or lessor for the purchase or lease of listed property filed withthe MLS shall be conducted through the Participant that listed the Property (listing broker), except underthe following circumstances:(1) the listing broker gives the cooperating broker specific authority to contact the seller or lessordirectly for showings; however, the cooperating broker is precluded from negotiating, directly orindirectly, with the seller or lessor; or(2) after reasonable effort, the cooperating broker cannot contact the listing broker or the listingbroker’s representative; however, the cooperating broker is precluded from negotiating, directly orindirectly, with the seller or lessor.Section 2.1.Presentation of Offers.The listing broker must make arrangements to present any offer to purchase or lease a listed propertyas soon as possible, or give the cooperating broker a satisfactory reason for not doing so.Section 2.2.Submission of Written Offers.The listing broker shall submit to the seller all written offers until closing unless precluded by law,government rule, regulation, or agreed otherwise in writing between the seller and the listing broker.Unless the subsequent offer is contingent upon the termination of an existing contract, the listingbroker shall recommend that the seller obtain the advice of legal counsel before accepting thesubsequent offer.Participants representing buyers or tenants shall submit to the buyer or tenant all offers and counteroffers until acceptance, and shall recommend that buyers and tenants obtain legal advice where thereis a question about whether a pre-existing contract has been terminated.Section 2.3.Right of Cooperating Broker in Presentation of Offer.The cooperating broker (subagent or buyer agent) or the cooperating broker’s representative has theright to participate in the presentation to the seller or lessor of any offer he secures to purchase orAs Amended By TEXAS REALTORS Executive Board on 02/14/22Page 7 of 27

lease. The cooperating broker does not have the right to be present at any discussion or evaluation ofthat offer by the seller or lessor and the listing broker. However, if the seller or lessor gives writteninstructions to the listing broker that the cooperating broker not be present when an offer thecooperating broker secured is presented, the cooperating broker has the right to a copy of the seller’swritten instructions. None of the foregoing diminishes the listing broker’s right to control theestablishment of appointments for such presentations.Where the cooperating broker is not present during the presentation of the offer, the cooperatingbroker can request in writing, and the listing broker must provide, as soon as practical, writtenaffirmation stating that the offer has been submitted to the seller or lessor, or written notification thatthe seller or lessor has waived the obligation to have the offer presented.Section 2.4.Right of Listing Broker in Presentation of Counter-Offers.The listing broker or the listing broker’s representative has the right to participate in the presentationof any counter-offer made by the seller or lessor. The listing broker does not have the right to bepresent at any discussion or evaluation of a counter-offer by the purchaser or lessees (except wherethe cooperating broker is a subagent). However, if the purchaser or lessee gives written instructionsto the cooperating broker that the listing broker not be present when a counter-offer is presented, thelisting broker has the right to a copy of the purchaser’s or lessee’s written instructions.Section 2.5.Reporting Sales to the Service.Status changes, including final closing of sales and sales prices, shall be reported to the MLS by theParticipant within two (2) business days after they have occurred. A Participant reports a pending orclosed sale to the MLS by moving the listing to the appropriate category directly via the Internet at theMLS web site and making all necessary amendments to the data fields.MLS Listing Status Definitions:“Pending”: The Participant must report the sale as pending in the appropriate category at the timethe buyer and seller enter into a binding written contract to sell the property. A binding contract inwhich a party retains the unilateral right to terminate the contract within a specified period of time(option) is a pending sale.“Sold”: The Participant must report the sale as sold in the appropriate category at the time thesale closes and must accurately report the sales price.The listing agreement of a property filed with the MLS by the listing broker must include a provisionexpressly granting the listing broker authority to advertise; to file the listing with the MLS; to providetimely notice of status changes of the listing to the MLS; and to provide sales information includingselling price to the MLS upon sale of the property.Submission of accurate sales information is vital. If a pattern of submission of inaccurate informationis determined, then the MLS shall have the option to expel the offending Participant after following theprocedures under Section 9.1.Failure to report sale prices can result in disciplinary action only if the MLS:1.categorizes sale price information as confidential; and2.limits use of sale price information to participants and subscribers in providing real estateservices, including appraisals and other valuations, to customers and clients; and togovernmental bodies and third-party entities only as provided below.As Amended By TEXAS REALTORS Executive Board on 02/14/22Page 8 of 27

The MLS may provide sale price information to governmental bodies only to be used for statisticalpurposes (including use of aggregated data for purposes of valuing property) and to confirm theaccuracy of information submitted by property owners or their representatives in connection withproperty valuation challenges; and to third-party entities only to be used for academic research,statistical analysis, or for providing services to participants and subscribers. In any instance where agovernmental body or third-party entity makes sale price information provided by the MLS availableother than as provided in this provision, a listing participant may request the sale price information fora specific property be withheld from dissemination for these purposes with written authorization fromthe seller, and withholding of sale price information from those entities shall not be construed as aviolation of the requirement to report sale prices.Section 2.6.Reporting Resolutions of Contingencies.The Participant shall report to the MLS within twenty-four (24) hours that a contingency on file withthe MLS has been fulfilled or renewed, or the agreement cancelled.Section 2.7.Advertising of Listings Filed with the MLS.A listing shall not be advertised by any Participant, other than the listing broker, without the priorconsent of the listing broker.Section 2.8.Reporting Cancellation of Pending Sale.The listing broker shall recategorize a pending sale as an active listing within two (2) business daysafter the cancellation of the pending sale.SECTION 3.RESERVED.SECTION 4.INFORMATION FOR PARTICIPANTS ONLY.Any listing filed with the MLS shall not be made available to any broker or firm that is not a Participant orsubscriber of the MLS without the prior consent of the listing broker.Section 4.1.“For Sale” Signs.Only the “For Sale” sign of the listing broker may be placed on a property listed in the MLS.Section 4.2.“Sold” Signs.Prior to closing, only the “Sold” sign of the listing broker may be placed on a property, unless thelisting broker authorizes the cooperating (selling) broker to post such a sign.Section 4.3.Solicitation of Listing Filed with the MLS.Participants shall not solicit a listing on property filed with the MLS unless such solicitation isconsistent with Article 16 of the National Association REALTORS’ Code of Ethics, its Standards ofPractice and its Case Interpretations. This section does not preclude solicitation of listings under thecircumstances otherwise recognized by the Standards of Practice related to Article 16 of the Code ofEthics.Section 4.4. Use of the Terms MLS and Multiple Listing Service.As Amended By TEXAS REALTORS Executive Board on 02/14/22Page 9 of 27

No MLS Participant, Subscriber, or licensee affiliated with any Participant shall, through the name oftheir firm, their URLs, their e-mail addresses, their website addresses, or in any other way represent,suggest, or imply that the individual or firm is an MLS, or that they operate an MLS. Participants,Subscribers and licensees affiliated with Participants shall not represent, suggest, or imply thatconsumers or others have direct access to MLS databases, or that consumers or others are able tosearch MLS databases available only to Participants and Subscribers. This does not prohibitParticipants and Subscribers from representing that any information they are authorized under theseRules and Regulations to provide to clients or customers is available on their websites or otherwise.Section 4.5. Services Advertised as “Free”.MLS participants and subscribers must not represent that their brokerage services to a client orcustomer are free or available at no cost to their clients, unless the participant or subscriber willreceive no financial compensation from any source for those services.SECTION 5.COOPERATIVE COMPENSATION SPECIFIED ON EACH LISTING.The Participant shall specify, on each listing filed with the MLS, the compensation offered to other MLSParticipants for their services in the sale of such listing. Such offe

Section 1.3. Listings Required to filed with the MLS. A Participant must file all listings taken by or on behalf of the Participant except for the listings described in this subsection. (1) If the seller refuses to permit the listing to be filed with the MLS, the Participant may take the

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