SCh1 Real Estate Recovery Trust Account

Question 1

Why was the real estate recovery trust account created?

Answer 1

To pay for aggrieved parties, who win and uncollectible judgment from an agent/broker

Question 2

How much can an aggrieved party collect in damages?

Answer 2

$50,000 per lawsuit
Up to $100,000 per license number

Question 3

How is the real estate recovery trust account funded?

Answer 3

By taking $10 out of every applicant renewing license fees

Question 4

What can TREC do if the real estate recovery trust account fund ever falls below $1 million?

Answer 4

Assess all licenses $10 or a pro Rata share to bring the balance up to $1.7 million

Question 5

What will the TREC do if the balance in the real estate recovery trust account is above $3.5 million on January 1st?

Answer 5

It will reduce the value to 3.5 million by flushing the access into the General Fund of Texas where the Texas legislature spent it.

Question 6

What happens when any amount is paid out against a licensee from the real estate recovery trust account?

Answer 6

The amount must be paid back with interest in a licensee can be suspended or revoked