Rules Regarding the Real Estate Recovery Trust Account, Prohibited Practices, and Disciplinary Proceedings

Question 1

Subchapter M establishes a _

Answer 1

Real Estate Recovery Fund for the protection of the public against harmful actions by licensees

Question 2

Sec. 1101.601. Real Estate Recovery Trust Account says that the commission will _

Answer 2

Maintain a real estate recovery trust account to reimburse aggrieved persons who suffer actual damages caused by a license holder

Question 3

Sec. 1101.604. Management of Trust Account describes _

Answer 3

How the funds must be handled

Question 4

Where does excess money in the trust account go?

Answer 4

To the credit of the general revenue fund

Question 5

Subchapter N lists a number of actions a _

Answer 5

A licensee could perform that would result in the revocation or suspension of his/her license

Question 6

Sec. 1101.651. Certain Practices Prohibited lists _

Answer 6

Actions which TRELA prohibits

Question 7

List the 2 actions TRELA prohibits

Answer 7

• 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 of 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 pay a commission to a person except through the broker with whom the salesperson is associated at that time