Texas Real Estate Commission Duties and Powers
Year TRELA was passed:
1939
Year TREC was created:
1949
If a license holder does receive notice of violation from TREC, they have
20 days to either accept the decision or ask for a hearing.
How many brokers are on the Broker-Lawyer Committee?
6
Broker-Lawyer Committee term length
6 years
broker associates
A broker can be sponsored by another broker.
TREC has two main functions:
To enforce all real estate-related statutes (TRELA) and to adopt and enforce new rules.
What is the function of ESAC?
ESAC reviews and revises curriculum standards, course content, and instructor certification.
Sales Agent Apprentice Education
Each newly-licensed person must take three 30-hour courses before renewing their license at the end of the first two years of being a license holder.
TREC is made up of five divisions:
Education, Licensing, & Communication Enforcement Information Services Staff Services Administration
License holders can always create their own forms to use in real estate transactions.
FALSE
The Broker-Lawyer Committee is NOT
involved in the creation of documents that create agency, like listing agreements and buyer representation agreements
What is the primary purpose of the Broker-Lawyer Committee?
to create, edit, and recommend contract forms to TREC
Education Standards Advisory Committee (ESAC)
to review and revise curriculum standards, course content, and instructor certification requirements for both Qualifying and Continuing Education (CE) courses
ESAC term length
two years
Nolo contendere
"no contest" - a person was accused of something and was a defendant in a trial, but will accept the decision of the court without pleading guilty to the charge.
Payments made from the Trust Account must be court-ordered and are limited to:
$50,000 arising out of a single incident or $100,000 per license holder (unless the debt has been repaid with the accrued interest)
Who is on the Education Standards Advisory Committee?
12 members including license holders, education members, and public representative.
Exemptions to License Requirement
A licensed attorney in Texas. A public official while engaged in official duties. An on-site manager of an apartment complex. Owner selling their own home. A friend helping a friend for free.
License Renewal
All license holders must take 8 hours of Legal Update I and II. Newly licensed agents must take an additional 90 hours of qualifying real estate education (98 total). Experienced sales agents must take an additional 10 elective continuing education hours (18 total).
Two advisory committees that assist TREC
Broker-Lawyer Committee and the Education Standards Advisory Committee
Promulgated Contracts
Contracts promoted by the Texas Real Estate Commission and required for use by all real estate sales agents when completing the transaction for which the contract was created
Approved Contracts
Contracts that are allowed by the Texas Real Estate Commission but not required
Shane learned that a seller has already signed a listing agreement with another agent in town. Wanting to represent the seller, Shane attempted to convince the seller to terminate their current agency agreement and sign a representation agreement with him instead. Is this legal? Why or why not?
No, it is against the TREC rules to try and convince someone to terminate an agreement with another license holder.
What is the term for when a defendant in a criminal court does not admit they are guilty but still accepts punishment for a crime?
Nolo contendere
Texas Occupations Code, Section 1102
Real Estate Inspectors
Texas Occupations Code, Section 1101
Real Estate License Act
violations related to: TREC
Send a bad check to TREC and fail to pay Fail to give requested documents to TREC Fail to provide documentation requested by TREC about a complaint Fail to notify TREC within 30 days of being found guilty of a felony
12 members of ESAC
Seven members who are license holders with at least five years of active real estate experience. Four education members who are real estate instructors or owners of real estate schools, accredited by TREC, that provide qualifying or continuing education. One member who represents the public.
Broker-Lawyer Committee
Six attorneys appointed by the State Bar, Six brokers appointed by the Commission, One public member
What contains Fair Housing laws, community property laws, and homestead laws?
State constitutions and US constitution
The Texas Real Estate Commission does not write or change TRELA.
TRUE
Licensed Real Estate Appraisers are regulated by
Texas Appraiser Licensing and Certification Board
Chapter 1102 of the ______ governs the practice of Texas Real Estate inspectors.
Texas Occupations Code
Sunset Act
Texas law that requires a commission, called the Sunset Commission, to evaluate every state agency every 12 years. They're looking to see whether or not the agency remains necessary and effective. If the committee finds that an agency is no longer serving its purpose, it can advise that the committee be abolished, or "sunsetted."
Texas Occupations Code, Section 1303
The Residential Service Company Act
Which of the following statements about the Sunset Act is TRUE?
The Sunset Act requires the review of all state agencies.
Texas Property Code, Chapter 221
The Texas Timeshare Act
Rules of the Commission
This document outlines how TREC intends to enforce the laws that the Legislature passes.
there are two types of real estate licenses:
a broker's license and a sales agent's license
Which person would TREC regulate?
a timeshare developer
Commingling
illegal act of mixing personal funds with a client's funds
Seller's Disclosure Notice
an approved form to use, not a requirement
Nolo contendere means that a person was accused of something and was a defendant in a trial:
and will accept the decision of the court without pleading guilty to the charge
What must you have if you wish to sell, buy, lease, or transfer an easement or right-of-way?
certificate
Texas is one of four states whose legislatures...
meet every other year rather than annually.
As a license holder...
never create, change, or modify a form in any way. Your job is to fill in the blanks with whatever info your client gives you.
What are nolo contendere pleas sometimes referred to as?
no contest pleas
promulgate
promote or make widely known
A form that TREC requires agents to use is called a(n):
promulgated contract
A license holder can use ____________ in place of the TREC promulgated contract form.
property owner specific for or a form an attorney made
Texas Real Estate License Act (TRELA)
protect the public from brokers and sales agents who were dishonest.
Who requires sponsorship to practice real estate?
sales agents
Agent Sam owes Agent Layla a referral fee. How must he get it to her?
send it to Layla's sponsoring broker
A sales agent can't accept compensation for a real estate transaction from anyone but their...
sponsoring broker (or former sponsoring broker, if they were associated at the time of earning the commission).
if a license holder fails to use a contract form required by the Commission under Section 1101.155
the Commission may (and can) suspend or revoke their real estate license.
