Texas Real Estate License Act, TRELA FlashCards Flashcards

Texas Real Estate License Act, TRELA (FlashCards) Flashcards Subpoena 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 the district court TREC (Texas Real Estate Commission)Created in 1949 consisting of 9 commissioners:6 brokers with 5+ years experience, 3 general public appointed by the Governor for 6 years approved 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 inspectorsPurpose to protect the public from the unscrupulous broker and sales agents.What is subchapter J of TRELA?License Renewal, details of how/what is required to renew licensing What is the sunset act?Agencies reviewed every 12 years- funded or abolished

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

each day is separate violation Authorization 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

What is subchapter E of TRELA?Public Interest/Complaint Procedures, is what it says.

IABSInformation About Brokerage Services:explains agency,

agency options, and the duties of the agents for each option. Must be given at the time of the first substantive dialogue.Advisory LetterA formal letter that offers legal opinions or demands.Similar to a warning that TREC attorneys sends out to each respondent of the incident.Recovery Trust AccountProtects consumers who suffer a loss due to illegal acts of licensees, Has two maximum payment amounts = $50,000- and $100,000, Must Transfer any amount over $3.5 million to the State's General Fund TREC duties/ powersMake rules and regulations, full force and effect of law, protect public, inspect/accredited 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

What is Subchapter O?Administrative Penalty, addresses the fines that can be levied by a person who violates the administrative penalites. Penalty may not exceed 5k, is

Hearings & AppealsHearings: Subchapters O and P of TRELA Appeals for

Refusing License: within 10 days Appeals to Courts: within 30 days to district court What is Subchapter M?Real Estate Recovery Trust Account, a trust maintained to reimburse aggrieved persons who suffer damage form unlawful acts of license holders, cert. holders or anyone employed by them. Outlines how fees are paid, the maximum that can be paid (50k).TARTexas Association of Realtors How many basic provisions are included in TRELA? They are listed as subchapters A-Q, so a total of 17.Contesting a Complaint/CaseNeed 1 public member of TREC, 2 staff members of TREC Real Estate Broker Lawyer CommitteeDraft/revises to TREC promulgated contracts -consists of

13 members: 6 by commission, 6 state bar appointed by

Pres., 1 public member appointed by Governor - Staggered

6 year terms: 2 commission appointees, 2 state bar

appointees (expires every 2 years) TREC ComplaintsA person may file a written complaint with TREC against a real estate licensee if the person believes the licensee violated TRELA. If TREC has jurisdiction, it will investigate the allegations by interviewing the persons, witnesses and relevant info.TREC's Standards and Enforcement Services will notify the licensee if it intends to initiate disciplinary proceedings 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 What is Subchapter D of TRELA?Commission Powers and Duties, identifies what TREC can and may do, establishes the ability to adopt/change rules and establish/collect fees. Also allows the Comm to subpoena authority.What is Subchapter F or TRELA?Broker Lawyer Committee TREC Investigations-Can investigate written complaints received within 4 years of the incident. Can be paid for with the recovery fun if received within 2 years of the incident.-Can authorize a commission employee to file a complaint of a licensee and conduct investigation if1-a judgment against licensee paid for from recovery fund2-licensee convicted of a criminal offense3-licensee fails to make good a check issued to the commission4-licensee fails to complete the required continued education5-licensee failed to provide requested information

TRELAThe Texas Real Estate License Act- passed in 1939 by legislation to protect the public, making illegal to practice any act of real estate brokerage without a license.NARThe National Association of Realtors -Only licensees who are members of local real estate boards are entitled to use the trademark name "REALTOR" - Protect and promote private ownership of real property Informal ProceedingDeputy Director of Standard and Enforcement Services (SES) offer complainant and respondent alternative dispute resolution What is Subchapter A in TRELA and what does it involveSubchapter A - General Provisions, includes articles and standard practices for agents and licensees. Also includes educational requirements as well at what an agent can and cannot do. Also established the Sunset Act.What is Subchapter C of TRELA?Admin and Other TREC Personnel, addresses the admin functions in respect to human resource management, EEO practices, COE, etc.What is Subchapter N?Prohibited Practices/Disciplinary Proceedings, details practices that are prohibited and how licenses can be revoked/suspended and the process in doing so.What is Subchapter B?Subchapter B - TREC, describes the commission membership and eligibility for appointments.What is Subchapter G of TRELA?Accredation and Approval of RE Education, determines approval for real estate education programs, evaluate performance, etc.What is Subchaper I of TRELA?Examinations, details of how examinations are performed, when/where/time, guidelines provded, etc.Who compromises the TREC?Nine members, 6 being licensed brokers engaged in brokeraging for 5 years, and 3 non-broker members, usually from the state business community.Advisory CommitteeA group of concerned citizens and members of government who give advice to the council - may not receive compensation for but may be reimbursed for actual and necessary expenses What comprises of the Broker Lawywer Committee? Commission that consists of 13 members, 6 member are brokers appointed by TREC, 6 are lawyers appointed by the State Bar Assoc, and the 13th is a member of the public appointed by the governor. Primary duties are to draft and revise contract forms for the approval and adoption for use.What is Subchapter H of TRELA?License Requirements, outlines what is required to become a broker and who can and cannot be one. Process of application, eligiability requirements for individual as well as business entities.

1949TRELA (Texas Real Estate Licensing Act) was passed creating TREC (Texas Real Estate Commission) TREC Complaint Risk Based Approacha. Degree of potential harmb. Potential for immediate harmc. Severity of Allegationsd. # of licensees involvede. # of violations What is Subchapter L or TRELA?Practice by a License Holder, identifies primarily to requirements of a broker in what they must provide to TREC to operate as a business as well as what a broker may provide.Temporary Suspension/ CitationPresiding officer must appoint disciplinary panel: 3 TREC members decide if they are a threat to public/public welfare What does TREC do?regulates activities of real estate professionals, inspector and education providers. Also regulates residential service companies, timeshare developers and easement or right-of-way developers.What are the service terms of TREC?Commission members serve staggered six-year terms, with the terms of three members expiring January 31 of each odd-numbered year. If a vacancy occurs during a member's term, the governor shall appoint a person to fill the unexpired term.1939Texas Real Estate (Dealers) License Act makes it illegal to sell real estate without a license What is Subchapter K of TRELA?Certificate Requirements, identifies the registration and eligibility requirements for certificate holders.What is the TRELA and when was it passed? Texas Real Estate Licensing Act, passed in 1949, established the Texas Real Estate Commision (TREC) to oversee licensing, education requirements, and ethical standards for licensees within the State of Texas.