Commission Duties and Powers

Broker-Lawyer Committee

13-member committee (the Commission appoints six members) that drafts and edits TREC contract forms; TREC approves and promulgates them; standardized forms protect all parties because most transactions are similar [P1-U6, P2-U6, P4-U1]

Purpose of the Texas Real Estate License Act (TRELA)

Protect the public from dishonest brokers, sales agents, certificate holders, and right-of-way agent registrants; set qualifying and continuing education, licensing, and registration requirements; maintain high professional standards; protect licensed brokers from unfair or improper competition [P2-U6]

Real estate recovery trust account

Allows court-ordered payments to aggrieved parties who obtain a judgment against a license holder or an employee or agent of a license holder; license and certificate holders must inform the public about these payments [P2-U6]

Recovery trust account limit per transaction

$125,000 for claims arising from a single transaction [P2-U6]

Recovery trust account limit per license holder

$250,000 for claims based on judgments against a single license holder [P2-U6]

TREC disciplinary powers vs. courts

TREC may suspend or revoke a license, place on probation a person whose license has been suspended, or reprimand a license holder; only the courts may assess a jail sentence [P2-U6]

Where license holders' duties are found

TRELA mostly sets out conduct license holders may not engage in and provides serious penalties; TREC administers TRELA and makes rules in furtherance of it (Texas Administrative Code); many affirmative duties of license holders acting as agents are in the Rules rather than TRELA [P3-U1]