I. COMMISSION DUTIES AND POWERS (2 ITEMS)

Question 1

TREC POWERS

Answer 1

• Created In 1949 to administer the provisions of:
• TRELA which was passed in 1939.
• Purpose of both is to protect the public.
• 9 Members
• 3 General Public
• 6 Brokers
• Appointed by Governor
• Approved by Senate
• 6 Year staggered terms

Question 2

BROKER LAWYER COMMITTEE

Answer 2

• Write Promulgated Forms
• 13 Members
• 6 Brokers
• 6 Lawyers approved by State Bar
• 1 Public Member
• Texas A&M helps

Question 3

TREC COMPLAINTS

Answer 3

• Investigate on its own motion
• Up to 4 years to file complaint
• After 4 years no investigation
• Consumer can research complaint history through TREC
• Only TREC has the power to issue or revoke license
• Failure to respond, hearing will still be held at SOAH
• You may appeal at District Court
• If revoked must wait at 2 YEARS before you try to apply for license
• TREC doesn’t resolve conflicts between license holders
• TREC protects Consumers ONLY

Question 4

TREC PENALTIES (CRIMINAL)

Answer 4

• Practice without license guilty of Class A Misdemeanor
• Up to $4000 Fine
• County jail for up to 1 year
• Or Both

**Assessed by Courts

Question 5

TREC PENALTIES (CIVIL)

Answer 5

• Civil penalties up to 3X money that was profited

**Assessed by Courts

Question 6

TREC PENALTIES (ADMIN)

Answer 6

• Up to $5000 per day for all offenders
• Have 30 days to pay penalty

**Assessed by TREC

Question 7

REAL ESTATE RECOVERY TRUST ACCOUNT

Answer 7

• Parties may collect Treble 3X damages up $50,00 per Lawsuit
• May collect up to $100,000 per licensee
• TREC takes $10 from application fees
• If account falls below 1 million, TREC charges $10 more until at 1.7 million
• If account 3.5 million on Jan 31 m, TREC will give to General Fund of TEXAS