Commission Duties and Powers

Broker-Lawyer Committee

a) Functions (1) Drafts, revises, and recommends contract forms intended for use by license holders (2) Does not publish, promulgate, or approve the forms; only TREC may promulgate or approve real estate contract forms b) Makeup (1) Consists of 13 members (a) Six brokers appointed by the Commission (b) Six lawyers appointed by the president of the State Bar of Texas c) One public member appointed by the governor (1) Members serve staggered six-year terms. (a) Terms for two brokers and two lawyers expire every two years. (b) The public member's term expires every six years.

Commission composition

a) Nine members— six brokers and three members of the general public b) Appointed by the governor, with the advice and consent of the state senate, to staggered six year terms c) One broker designated by the governor as chairperson

Texas Real Estate License Act (TRELA) and the Texas Real Estate Commission (TREC)

a) The primary purpose of TRELA and TREC is to protect the public of the State of Texas. b) TRELA is the law that governs all real estate license holders and sets the powers for the TREC.

Education Standards Advisory Committee

a) Function (1) This committee reviews and revises education curriculum standards, course content requirements, and instructor certification requirements for all Texas real estate core, Sales Agent Apprentice Education (SAE), and Mandatory Continuing Education (MCE) courses. b) Makeup (1) Consists of 12 members (a) Seven active license holders (sales agents or brokers) (b) Must have at least five years' active real estate experience (c) Four education members who are TREC-approved real estate instructors or owners of approved real estate schools (d) One public member

Penalties for violation

1. After the hearing, the commissioners may a) revoke a license, b) cancel a license, or c) suspend a license. 2. A principal broker whose license is suspended must a) notify all the firm's sales agents and parties to existing contracts, and b) remit the escrow or trust money (if held by the broker) in accordance with instructions of the contract principals. 3. A sales agent whose license is suspended must notify the principal broker. 4. TREC can issue administrative penalties for violations. a) The penalty may not exceed $5,000 per day for each violation. b) However, each day a violation continues, it may be considered a separate violation for purposes of imposing a penalty.

Real estate advisory committees

1. Broker-Lawyer Committee 2. Education Standards Advisory Committee

Hearings and appeals

1. If, after investigation, the Commission determines it is appropriate to deny, suspend, or revoke a person's license or certificate, the license holder is entitled to a hearing conducted by the State Office of Administrative Hearings. 2. TREC has the power to subpoena witnesses and documents for the hearing and may file suit through the attorney general. 3. Failure to obey a court order may be punished by the court as contempt. 4. Appeals of the TREC decision may be made to a district court.

Unlicensed activity

1. In Texas, a person who acts as a real estate license holder without an active real estate license is guilty of a Class A misdemeanor. a) Punishable by a maximum $4,000 fine, up to one year in jail, or both 2. Practicing without a license a) Punishable by a court, which may charge a penalty of one to three times the total money received

Authority for disciplinary actions

1. In addition to TREC's authority to revoke a license, cancel a license, or suspend a license, TREC may require a license holder whose license suspension or revocation is probated to a) report regularly to the commission on matters that are the basis of the probation; b) limit practice to an area prescribed by the commission; or c) continue to renew professional education until the license holder attains a degree of skill satisfactory to the commission in the area that is the basis of the probation.

Duties and powers

1. Make and enforce rules and regulations 2. Establish standards of conduct and ethics for license holders 3. Administer and enforce license law and levy civil fines 4. Select an administrator and employees to administer the law 5. Issue active and probationary licenses and collect money for licenses and renewals 6. Conduct investigations (within four years after the incident), hold hearings, and issue injunctions 7. Suspend or revoke a license, and place on probation or reprimand a license holder 8. Initiate a cease and desist action 9. Inspect and accredit real estate education programs 10. Promulgate contracts and addenda 11. Enforce the Texas Timeshare Act Note: TREC will not: ■ Mediate or settle commission or other disputes between license holders or brokerage firms ■ Recommend individual license holders to the public ■ Send license holders to jail

Composition

1. Texas Real Estate License Act (TRELA) and the Texas Real Estate Commission (TREC) 2. Commission composition

Investigations

1. The Commission may initiate investigations on its own or in response to a signed written complaint. 2. The Commission will give priority to the investigation of a complaint filed by a consumer or from an enforcement case resulting from the consumer complaint. 3. The Commission uses a risk-based approach to assign priorities and investigate complaints. 4. It pursues those with the highest impact to the public first.

Recovery trust account

1. This account is maintained by TREC. a) Funds in the account must total $1 million at minimum. 2. The purpose of the account is to reimburse consumers who suffer damages caused by real estate license holders, certificate holders, or their employees. 3. Brokerage firms must display the Consumer Protection Notice in a prominent location in each location, notifying the public of the availability of the recovery fund. 4. The account is funded from license fees. a) At time of application, the applicant pays $10 into the trust account. b) If the amount in the trust account drops below $1 million, each license holder is assessed $10 or a pro rata share at the time of renewal to bring the trust account back up to $1.7 million.

GENERAL POWERS: COMPOSITION, DUTIES, AND POWERS, REAL ESTATE ADVISORY COMMITTEES

A. Composition B. Duties and powers C. Real estate advisory committees

HANDLING OF COMPLAINTS: INVESTIGATIONS, HEARINGS, AND APPEALS

A. Investigations B. Hearings and appeals

PENALTIES FOR VIOLATION: UNLICENSED ACTIVITY, AUTHORITY FOR DISCIPLINARY ACTIONS, AND RECOVERY TRUST ACCOUNT

A. Penalties for violation B. Unlicensed activity C. Authority for disciplinary actions D. Recovery trust account