Chapter 7 - Subchapter N Flashcards
Sec. 1101.651.
Certain Practices Prohibited lists actions which TRELA prohibits.
A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is a license holder or a real estate broker licensed in another state who does not conduct in this state any of the negotiations for which the commission or other compensation is paid.
A salesperson may not accept compensation for a real estate transaction from a person other than the broker with whom the salesperson is associated or was associated when the salesperson earned the compensation.
A broker and any broker or salesperson appointed under Section 1101.560 who acts as an intermediary under Subchapter L may not do any of the following:
⦁ Disclose to the buyer or tenant that the seller or landlord will accept a price less than the asking price, unless otherwise instructed in a separate writing by the seller or landlord
⦁ Disclose to the seller or landlord that the buyer or tenant will pay a price greater than the price submitted in a written offer to the seller or landlord, unless otherwise instructed in a separate writing by the buyer or tenant
Sec. 1101.652.
Grounds for Suspension or Revocation of License gives a list of actions that could result in a licensee having his or her license suspended or revoked.
The commission may suspend or revoke a license issued under this chapter or take other disciplinary action authorized by this chapter if the license holder does any of the following:
⦁ Enters a plea of guilty or nolo contendere to or is convicted of a felony or a criminal offense involving fraud, and the time for appeal has elapsed or the judgment or conviction has been affirmed on appeal, without regard to an order granting community supervision that suspends the imposition of the sentence
Sec. 1101.653.
Grounds for Suspension or Revocation of Certificate lists the conditions under which the commission may choose to suspend or revoke a certificate of registration.
The commission may suspend or revoke a certificate of registration issued under this chapter if the certificate holder:
engages in dishonest dealing, fraud, unlawful discrimination, or a deceptive act.
makes a misrepresentation.
acts in bad faith.
demonstrates untrustworthiness.
fails to honor, within a reasonable time, a check issued to the commission after the commission has mailed a request for payment to the certificate holder’s last known address according to the commission’s records.
Sec. 1101.654.
Suspension or Revocation of License or Certificate for Unauthorized Practice of Law states that the commission will suspend or revoke the license or certificate of registration of a license or certificate holder who isn’t a licensed attorney in this state and who, for consideration, a reward, or a pecuniary benefit, present or anticipated, direct or indirect, or in connection with the person’s employment, agency, or fiduciary relationship as a license or certificate holder:
⦁ drafts an instrument, other than a form described by Section 1101.155, that transfers or otherwise affects an interest in real property.
⦁ advises a person regarding the validity or legal sufficiency of an instrument or the validity of title to real property.
Notwithstanding any other law, a license or certificate holder who completes a contract form for the sale, exchange, option, or lease of an interest in real property incidental to acting as a broker isn’t engaged in the unauthorized or illegal practice of law in this state if the form was:
⦁ adopted by the commission for the type of transaction for which the form is used.
⦁ prepared by an attorney licensed in this state and approved by the attorney for the type of transaction for which the form is used.
⦁ prepared by the property owner or by an attorney and required by the property owner.
Sec. 1101.655.
Revocation of License or Certificate for Claim on Account says that the commission may revoke a license, approval, or registration issued under this chapter or Chapter 1102 if the commission makes a payment from the real estate recovery trust account to satisfy all or part of a judgment against the license or registration holder.
The commission may probate an order revoking a license under this section.
A person isn’t eligible for a license or certificate until the person has repaid in full the amount paid from the account for the person, plus interest at the legal rate.
Sec. 1101.656.
Additional Disciplinary Authority of Commission reads as follows:
In addition to any other authority under this chapter, the commission may suspend or revoke a license, place on probation a person whose license has been suspended, or reprimand a license holder if the license holder violates this chapter or a commission rule.
The commission may probate a suspension, revocation, or cancellation of a license under reasonable terms determined by the commission.
The commission may require a license holder whose license suspension or revocation is probated to:
⦁ report regularly to the commission on matters that are the basis of the probation.
⦁ limit practice to an area prescribed by the commission.
⦁ 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.
Sec. 1101.6561.
Suspension or Revocation of Educational Program Accreditation states that the commission may suspend or revoke an accreditation issued under Subchapter G or take any other disciplinary action authorized by this chapter if the provider of an educational program or course of study violates this chapter or a rule adopted under this chapter.
Sec. 1101.657.
Hearing says that if the commission proposes to deny, suspend, or revoke a person’s license or certificate of registration, the person is entitled to a hearing conducted by the State Office of Administrative Hearings. A hearing under this section is governed by the contested case procedures under Chapter 2001, Government Code.
Sec. 1101.658.
Appeal says that a person aggrieved by a ruling, order, or decision under this subchapter is entitled to appeal to a district court in the county in which the administrative hearing was held. An appeal is governed by the procedures under Chapter 2001, Government Code.
Sec. 1101.659.
Refund says that the commission may order a person regulated by the commission to pay a refund to a consumer as provided in an agreement resulting from an informal settlement conference or an enforcement order instead of or in addition to imposing an administrative penalty or other sanctions.
The amount of a refund ordered as provided in an agreement resulting from an informal settlement conference or an enforcement order may not exceed the amount the consumer paid to the person for a service or accommodation regulated by this commission. The commission may not require payment of other damages or estimate harm in a refund order.
Sec. 1101.660.
Informal Proceedings states that the commission by rule will adopt procedures governing informal disposition of a contested case.
Sec. 1101.661.
Final Order says that the commission may issue a final order in a proceeding under this subchapter or Subchapter O regarding a person whose license has expired during the course of an investigation or administrative proceeding.
Sec. 1101.662.
Temporary Suspension states that the presiding officer of the commission will appoint a disciplinary panel consisting of three commission members to determine whether a person’s license to practice under this chapter should be temporarily suspended.
If the disciplinary panel determines from the information presented to the panel that a person licensed to practice under this chapter would, by the person’s continued practice, constitute a continuing threat to the public welfare, the panel will temporarily suspend the license of that person.
A license may be suspended under this section without notice or hearing on the complaint if institution of proceedings for a hearing before the commission is initiated simultaneously with the temporary suspension and a hearing is held under Chapter 2001, Government Code, and this chapter as soon as possible.
Notwithstanding Chapter 551, Government Code, the disciplinary panel may hold a meeting by telephone conference call if immediate action is required and convening the panel at one location is inconvenient for any member of the panel.
