Overview of Texas Real Estate Regulatory Bodies and Legislation

Notes

Texas Real Estate Commission (TREC) Made of 6 broker members and 3 public members, this governing body was created in 1949 to administer the provisions of the license act which protects the public; they promulgate contract forms for licensees Texas Real Estate License Act (TRELA) Legislation passed in 1939 to protect the public when it comes to brokerage and real estate activities The Broker Lawyer Committee 6 attorneys appointed by the president of the State Bar, 6 brokers appointed by the TREC and 1 public member appointed by the Governor that write the Texas contract forms Criminal Penalties People engaging in brokerage activities without a real estate license are guilty of a Class A Misdemeanor and subject to a fine of no more than $4,000, imprisonment in county jail for no more than 1 year, or both (assessed by the Courts) Civil Penalties Treble damages (triple, 3x the damages) of the amount of money received from a License Act violation (assessed by the Courts) Administrative Penalties A penalty of up to $5,000 per day for a violation of the License Act, where violators have up to 30 days to pay the penalty (assessed by TREC) Recovery Trust Account A fund created to pay aggri...