Texas Real Estate Exam State Portion: Commission Duties and

Texas Real Estate Exam (State Portion): Commission Duties and

Powers Flashcards TREC Commissions Complaint against licensee IF paid from recovery fund, criminal offense, bad check issued, fails to complete education requirements, fail to provide requested information Contesting a Complaint/Caseneed 1 public member of TREC, 2 staff members of TREC TREC Investigationswritten complaint with proper evidence, investigate and record actions, complaint submitted within 4 years of event IF judgement paid by recovery fund then complaint within 2 years of eventDTPA requires 2 year statute of limitation Temporary Suspension/ Citationpresiding officer must appoint disciplinary panel:3 TREC members decide if threat to public/public welfare TREC Complaint Risk Based Approacha. Degree of potential harmb. Potential for immediate harmc. Severity of Allegationsd. # of licensees involvede. # of violations Advisory Committeemay not receive compensation for but may be reimbursed for actual and necessary expenses Informal ProceedingDeputy Dir of Standard and Enforcement Services (SES) offer comlaintant and respondent alternative dispute resolution TREC Complaintswritten against licensee, investigate through interviews, witnesses, etc.Standards and Enforcement Services (SES)

notify licenseePriority of complaints: file must be

maintained and risk based approach used TREC duties/ powersmake rules and regulations, full force and effect of law, protect public, inspect/accredit education programs, advise with reference to laws administered, NOT mediate between disputes, NOT recommend licensees, conduct hearings/final decisions in contested cases, suspend/revoke licenses in violation of Act or rule Real Estate Broker Lawyer Committeedraft/revise TREC promulgated contracts13 members: 6 by commission, 6 state bar appointed by Pres., 1 public

member appointed by Governorstaggered 6 year terms: 2

commission appointees, 2 state bar appointees (expires every 2 years) Recovery Trust AccountTREC created to pay aggrieved persons suffering monetary loss due to illegal act of licensee; protects public; brokers MUST display " Consumer Information Form"administered by TRECif at end of year less than $1 mill RE licensee may be assessed fee not to exceed $10 to bring to $1.7 millif at end of year more than $3.5 mill

excess transferred to general fundpayments for claims:

limited to $50k, one licensee limited to $100k with license suspended til payback 1939Texas Real Estate (Dealers) License Act makes it illegal to sell real estate without a license Subpeona Powermay subpoena for witness under oath for inspection, copying of books, accounts, records, papers, correspondence, documents, etc.can file suit through AGif license suspended, can appeal within 30 days to district

court Advisory LetterNOT formal disciplinary actionnotification to licensee that do NOT warrant discipline

Hearings/ AppealsHearings: Subchapters O and P of TRELAAppeals for

Refusing License: within 10 daysAppeals to Courts: within 30 days to district court

Violation PenaltiesUnlicensed Activity: Class A Misdemeanor, up to $4000,

each day is separate violationAuthorization for Disciplinary

Action: violation of TRELA causes action by state (AG,

county atty, district atty)Violation of TRELA: Class A

Misdemeanor, up to $4000, fine or imprisonment less than

• year

TREC (Texas Real Estate Commission)Created in 1949 consisting of 9 commissioners:6 brokers with 5+ years experience, 3 general publicAppointed by the Governor for 6 yearsApproved by 2/3 of the SenateCoded

TRELA as Title 7 of Occupational Code:Chapter 1101-

activities of brokers and sales assoc.Chapter 1102- license and law of RE inspectors 1949TRELA (Texas Real Estate Licensing Act) was passed creating TREC (Texas Real Estate Commission)