Texas Real Estate TREC: Commission duties & powers

What is TREC's primary purpose?

To protect the general public when dealing with real estate licensees.

How many members make up TREC?

9 members.

How many TREC members must be licensed brokers?

6 licensed brokers.

How many TREC members represent the public?

3 public members.

Who appoints TREC commissioners?

The governor, with the advice and consent of the Senate.

How long are TREC commissioners' terms?

6 years, staggered.

What must TREC commissioners be?

Registered voters.

What restrictions apply to public members of TREC?

They generally cannot be associated with the Commission or the entities it regulates.

What are TREC's main responsibilities?

Administering and enforcing Chapters 1101 and 1102, regulating licensees, setting standards, and disciplining violators.

What can TREC do to discipline a licensee?

Reprimand, censure, suspend, or revoke a license.

Can TREC mediate disputes between licensees?

No.

Can TREC handle compensation disputes between licensees?

No.

Can TREC recommend a specific real estate licensee to the public?

No.

What is ESAC?

Education Standards Advisory Committee.

What does ESAC review and revise?

Real estate education standards, course content, delivery methods, and faculty certification.

Can TREC appoint advisory committees?

Yes.

Can non-Commission members be paid for participating in advisory committees?

No.

What happens when a complaint is filed against a sales agent?

The sponsoring broker is also investigated.

What happens when a complaint names an entity and its sales agent?

The designated broker is also included in the complaint.

Can a complaint be withdrawn without TREC's consent?

No.

Can TREC investigate additional violations discovered during an investigation?

Yes.

What happens when a license is suspended?

The licensee cannot perform or advertise brokerage activities during the suspension.

What must a sales agent do before an impending suspension?

Notify their sponsoring broker in writing no later than the third day before the suspension.

What must a broker do before an impending suspension?

Notify sponsored agents and parties to service contracts or transactions that brokerage activity will stop during the suspension.

What must a broker do with trust funds when brokerage activity stops?

Remit them according to the principal's instructions.

Can a broker assign listings or buyer representation agreements without permission?

No. Prior written consent from the contract principals is required.

Who gets an opportunity to speak during complaint proceedings?

The complainant and the licensee.

How many Commission staff members must attend a hearing?

At least 2.

Who appoints the panel for a temporary suspension?

The presiding officer.

How many Commission members serve on a temporary suspension panel?

3.

What is considered when deciding on a temporary suspension?

Whether the public's welfare would be jeopardized.

Can TREC impose an administrative penalty along with suspension or revocation?

Yes.

What is a Notice of Violation and Penalty?

A notice summarizing the violation, recommending a penalty, and explaining the right to contest.

How long does a licensee have to accept the executive director's decision or request a hearing?

20 days after receiving the Notice of Violation.

What happens if the licensee does not respond within the 20-day period?

The Commission may approve the decision and order the payment or sanction.

What is SOAH?

State Office of Administrative Hearings.

Who conducts a hearing when TREC intends to suspend a license?

The State Office of Administrative Hearings.

What does the SOAH judge provide after a hearing?

Findings of fact, conclusions of law, and a proposed decision to the Commission.

Where may a licensee appeal a suspension decision?

District court in the county where the hearing was held.

What is the maximum refund TREC may order a licensee to pay?

An amount not exceeding what the complainant paid to the licensee. ex( if it was $2,000 same exact amount has to be paid)

What information is included in a complaint file?

The parties, nature of the complaint, review and investigation results, and disposition.

When should a complaint be filed according to the textbook notes?

Before the fourth anniversary of the incident.

Can TREC conduct covert investigations without authorization?

No. Commission authorization is required.

Can TREC take action on an anonymous complaint?

No.

How does TREC prioritize complaints?

By the gravity of the alleged violation.

What is the Real Estate Recovery Trust Account?

An account maintained by TREC to reimburse eligible parties harmed by improper actions of a licensee or their employee or agent.

How is the Real Estate Recovery Trust Account funded?

Required licensee fees and additional assessments when needed.

What disclosure must real estate agents prominently display?

Form 1-1, explaining that the firm is licensed and regulated by TREC and describing the recovery funds.

Where must the recovery fund notice also appear?

In written listing agreements, brochures, signs, invoices, and websites.