Chapter 1 Flashcards
(19 cards)
TREC was created in
1949
TREC was created in 1949 to
administer the provisions of the License Act which was passed
in 1939. The primary purpose of both the License Act and TREC is to protect the public
TREC has the authority to
make rules and regulations. TREC can advise with reference to
its rules and the laws that govern license holders.
TREC consists of
9 commission members 3 represent the general public 6 are real estate brokers. -All are appointed by the governor and approved by the Senate. =They serve for 6-year terms.
TREC has the power to
subpoena books, records, and witnesses. If a license holder fails
to respond to a subpoena, TREC can file suit with the Attorney General to enforce the
subpoena.
The Broker Lawyer Committee writes
the promulgated contract forms.
The Broker Lawyer Committee has
13 members
6 are brokers appointed by TREC
6 are lawyers appointed by the President of
the State Bar Association.
1 is a public member appointed by the governor.
The Real Estate Center at Texas A&M University has an
Advisory Committee to help
TREC.
TREC can initiate an
investigation against a license holder at its own motion
An individual has ___ years from the ____ date of _____ or the _____ of the ______ to file a complaint with TREC regarding the license holder involved
4 years from the effective date or contract
or
the date of the incident
After four years
TREC
will no longer investigate a complaint. The complaint must be written and signed.
A consumer can research a complaint history on a license holder through
TREC
Only TREC has the power to
issue or revoke Real Estate Licenses.
A hearing for the revocation
or suspension is held at the
State Office of Administrative Hearings (SOAH) unless a
license holder requests the hearing be held in his county. If a license holder, in violation, fails
to respond to a summons from TREC, TREC will automatically schedule the revocation/
suspension hearing
If your license is revoked by TREC, you may
appeal the decision to the district court.
People engaged in the real estate brokerage business without having secured a license from TREC
are guilty of
a Class A Misdemeanor and subject to a fine of not more than $4,000.00 or imprisonment
in the county jail for not more than one year, or both. Trials for this would be held in the
county court.
persons guilty of a violation of the License Act and whoever profited there from are
liable for
additional civil penalties of up to three times the amount of money received
TREC may assess an administrative penalty of up to
$5,000 per day for violation of the license act
by any person, either licensed or unlicensed. If TREC assesses a penalty, a license holder has 30 days
to pay the penalty.
Real Estate Recovery Trust Account
• This fund was created to pay aggrieved parties who win an uncollectable judgment from an
agent/broker. An aggrieved party may collect treble damages up to $50,000 per lawsuit and
up to $100,000 per license number.
• The account is funded by taking $10 out of every applicant’s or renewing licensee’s fees. In
addition, all fines levied by TREC fund this account which is invested in safe securities like
T-Bills and Notes.
• 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.
• When any amount is paid out against a licensee, the amount must be paid back with interest
and the license can be suspended/revoked.
• TREC plays no part in resolving conflicts between license holders. This is usually handled at
the Local Board of Realtors level.
