Texas Real Estate Commission and Texas Real Estate Recovery Fund Flashcards
What is the Texas Real Estate Commission (TREC)?
Created to enforce license law and enact rules and regulations to support the law
How many members are in TREC and who are they? Who appoints them?
How long is their term?
9 in total: 6 members from real estate industry and 3 members from the general public
The governor appoints them
1 term is 6 calendar years
What makes someone ineligible to join TREC?
If a person or spouse is registered, certified, or licensed by an occupational regulatory agency in the industry
What must the commission do?
> Administer Chapter 1101 and 1102
Adopt rules and establish standards relating to permissible forms of advertising by a license holder acting as a residential rental locator
Maintain a registry of certificate holders
Design and adopt a seal
What can the commission do in the course of conducting hearings and investigations?
It is empowered to issue subpoenas
How is the Texas Real Estate License Act (TRELA) related to the Real Estate Recovery Fund?
TRELA established a Real Estate Recovery Fund for the protection of the public against harmful actions by licensees. TREC maintains and administers the fund
What is a license fee?
It’s charged in order to obtain a balance in the trust fund of $1.7 million
Describe a claim for payment from trust account
Upon order of the court, an aggrieved party may proceed to collect from the licensee. If the licensee cannot pay the full amount, the party may apply to the court for an order. The order directs the court to pay the balance due from the real estate recovery fund
How much can the trust account pay for claims arising out of a single transaction?
It cannot exceed a total of $50,000, regardless of the number of claimants
How much can the trust account pay based on judgements against a single licensee?
It may not exceed a total of $100,000
