State Ch1: Commission Duties and Powers

Texas Real Estate Commission (TREC)

Protects the public, and enforces TRELA

1939

License act established

1949

TREC established

TREC Membership

9 members - 6 brokers and 3 public members

Subpoena

Request for you to testify or request to see your books/records

Broker Lawyer Committee

Writes the promulgated contract forms

Broker Lawyer Committee Membership

6 brokers (TREC appointed), 6 lawyers (State Bar President appointed), 1 public member (Governor appointed)

Who can investigate any license holder at their own motion?

TREC

Consumer Complaint Timeframe

4 years from date of contract or incident

At least 2 years

Waiting period to reapply for a license after revocation

Who can take your license?

Only TREC

Hearings are held at…

SOAH - State office of Administrative hearings

Timeframe for TREC to make a decision on a complaint

30 days

Fully Probated Suspension

The license holder can engage in the business at the BEGINNING of the probation period as long as there are no further violations.

Criminal Penalties

up to $4,000 and/or 1 year in jail

Civil Penalties

Triple Damages

Administrative Penalties

Up to $5,000 per day

Penalty memory trick

CIV/CRIM/ADMIN 3(triple damages)/4 ($4000)/5 ($5000)

RE recovery trust account funds

An aggrieved party may collect treble damages up to $125,000 per lawsuit and up to $250,000 per license number

RE Recovery Trust Account balance

If the fund ever falls below $1 million, TREC can assess all licensees $10 or a pro rata share to bring the balance up to $1.7 million. If the balance is above $3.5 million on January 1st, TREC reduces the value to $3.5 million by flushing the excess into the General Fund of Texas where the Texas Legislature spends it.

Who sets the limits for the Recovery Trust Account?

The Legislature

Recovery Trust Account

Not a bailout - High interest loan to you so the consumer can be paid

Consumer Protection Notice

notifies the public about the existence of the Recovery Trust Account

CN-5-Poster Placement

Must post in a prominent or public place

Maximum payout amounts from Recovery Trust Account

$125,000 per transaction-$250,000 per license number