The Texas real estate industry operates under the guidance and oversight of the Texas Real Estate Commission (TREC). The TREC regulates and licenses real estate brokers, agents, real estate inspectors and other professionals, ensuring compliance with state laws and ethical standards.
By understanding laws and rules enforced by the TREC and implementing those requirements in your practice, real estate professionals will reduce the likelihood of receiving a complaint.
If you are facing accusations of wrongdoing or require legal representation in a licensing dispute, our real estate license defense lawyers can help.
The Role of the Texas Real Estate Commission
The Texas Real Estate Commission (TREC) plays a vital role in protecting consumers by regulating and overseeing matters related to real property transactions. As the state’s primary real estate regulatory authority, the TREC is responsible for ensuring that professionals in the industry adhere to real estate laws, rules, and ethical standards that govern their real estate practice.
One of the key responsibilities of the TREC is the licensing of real estate agents, brokers, inspectors, and other professionals in the industry. It establishes the requirements and qualifications for obtaining a license and administers the licensing examinations. Appraisers are licensed by the Texas Appraiser Licensing and Certification Board (TALCB), an independent subdivision of TREC, which has its own rulemaking body, but shares administrative staff with TREC.
In addition to processing applications for licensure, the TREC is also responsible for investigating complaints and enforcing disciplinary action taken against those who violate state law. This includes allegations of misconduct, ethics violations, fraudulent practices, failure to disclose information, financial mismanagement of client funds, and other violations that could harm consumers.
The TREC also provides information about the licensing process and how to file complaints. In fact, TREC regulates what must be posted in a Texas real estate brokerage office, and its website allows consumers to research an agent’s or broker’s disciplinary history.
The Purpose of the Texas Real Estate Act
The Texas Real Estate License Act (TRELA) is the foundation for any TREC issued rules that govern the real estate brokerage process and representing people in a real estate transaction. The Texas Legislature passed TRELA, which lays out the rules and specifications for how agents and brokers should conduct themselves so that the interests of the consuming public are protected.
One of the primary purposes of TRELA is to ensure that individuals engaged in real estate transactions are minimally qualified and licensed. Accordingly, the act establishes the criteria for obtaining and maintaining the necessary license, including educational requirements, examination procedures, criminal history background evaluations, and ongoing professional development.
TRELA also sets forth rules and regulations that promote ethical practices within the industry. For example, it establishes guidelines for advertising, information disclosure, handling of client funds, and other various aspects of real estate transactions. In addition, TRELA grants authority to the TREC to administer and enforce the provisions outlined in the act.
The TREC employs investigators who investigate complaints and staff attorneys who assist with pursuing disciplinary action against those violating state laws TREC is responsible for enforcing. One of our TREC license defense lawyers can help if you receive a complaint accusing you of misconduct.
The Process of Obtaining a Texas License
If you are not yet a licensed professional but aspire to become one, it’s important to understand the process of obtaining your license in Texas.
Whether you aim to be a real estate agent or broker, there are specific steps and requirements to fulfill before you can legally practice in the industry:
- Meet education requirements: The first step towards obtaining a Texas license is to fulfill the pre-licensing education requirement. Aspiring agents must complete a 180-hour education requirement approved by the TREC.
- Submit license application: Once you have completed the pre-licensing courses, you can submit your license application to the TREC. The application process typically involves providing personal information, educational background, and any relevant work experience on TREC-provided application forms. Some license types are able to apply online through the TREC portal and others will have to download the application from their website and submit a hard copy.
- Submit your fingerprints: You must pass a background check based on a nationwide, fingerprint based criminal background check. TREC will evaluate any criminal history under applicable law to ascertain whether that history disqualifies you from obtaining a license. TREC provides potential applicants the opportunity to have their criminal history preliminarily evaluated before filing the full application if there is concern that a criminal history matter may prevent you from becoming licensed.
- Schedule and pass the licensing exam: After the TREC reviews and approves your application, you will be eligible to schedule the licensing exam. The real estate licensing test is administered by a third-party testing provider on behalf of the TREC. Passing this exam is crucial for obtaining your Texas license.
- Obtain a sponsoring broker: As a newly licensed agent, you are required to work under the supervision of a licensed real estate broker. Finding an experienced sponsoring broker is highly beneficial, as they will provide guidance, mentorship, and support as you start your career.
- Complete post-licensing education: After obtaining your license, you must complete your post-licensing education within a specified timeframe. The TREC mandates this education to ensure newly licensed professionals continue enhancing their knowledge and skills.
You can obtain your Texas license by meeting all requirements set forth by the TREC. It is important to stay updated on any changes in licensing requirements and laws by regularly visiting the TREC website or consulting with real estate schools or other professionals in the field.
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Reasons the Commission Might Revoke Your License
As a licensed agent or broker in Texas, it is important to understand the potential reasons that could lead to the revocation of your license by the TREC if you have a complaint filed against you.
Here are some reasons the TREC might revoke your license:
- Misrepresentation and fraud
- Mishandling of client funds
- Violation of licensing laws and regulations
- Criminal convictions
- Failure to meet continuing education requirements
Whether you are facing the possibility of a license suspension or revocation, or it has already happened, we are here to help.
Complete a Case Evaluation form now
Help With Defending Your License
As a leading professional and occupational license defense law firm in Texas, the team at Bertolino LLP recognizes the significance of maintaining a valid and untarnished license. Our law firm has roughly 20 years of experience representing people facing issues that could jeopardize their license, reputation, and livelihood.
When your career is on the line, you need an experienced attorney on your side. We can evaluate the complaint against you and gather evidence to defend your license. We will also advise you on the dos and don’ts of appearing before the commission o that you put your best foot forward and make a positive impression with your regulator.
Contact us now for a free, no-obligation consultation.
Call or text (512) 476-5757 or complete a Case Evaluation form
