Real Estate Professionals
The Texas Real Estate Commission (TREC) is responsible for the enforcement of the Real Estate License Act which establishes the standard of conduct for all licensees, Texas Occupations Code § 1101 et. al. The most commonly pursued grounds for discipline under § 1101.652 of the Real Estate License Act include:
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Fraudulent or Dishonest Dealings
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Negligent or Incompetent Performance
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Commingling Money belonging to Another
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Conviction of a Felony involving Fraud
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Sharing or Paying a Commission Illegally
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Brokering or Selling Real Estate without a License
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Negligent Supervision of a Sponsored Salesperson.
 If the Commission determines that a broker has engaged in any of the prohibited practices, under Real Estate License § 1101.656 the Commission may propose a public or private reprimand; administrative fine (Up to $1000 per violation); license probation, suspension or revocation; and civil or criminal penalties. Complaint investigations may proceed with the Real Estate Commission contacting the broker by a letter of complaint and inquiry, or the Real Estate Commission may conduct the investigation covertly if it has reason to believe contacting the broker will inhibit the investigation, Texas Occupations Code § 1101.204.
Pursuant to § 1101.657 of the Real Estate License Act, a broker is entitled to a Hearing before TREC or a hearing officer. Regardless of the TREC decision, a licensee is always entitled to appeal the decision to a district court in the county where the TREC administrative hearing was held, Real Estate License Act § 1101.658. |
