TREC TREC Complaint and Enforcement Process 2

Question 1

If TREC finds a violation after investigation, which of the following is NOT a possible disciplinary action?

Accepted Answer

Criminal imprisonment directly imposed by TREC

Answer

TREC is an administrative agency and cannot impose criminal imprisonment — criminal prosecution requires referral to appropriate law enforcement authorities.

Question 2

The Texas Real Estate Recovery Trust Account is funded by:

Accepted Answer

A portion of license fees paid by real estate licensees

Answer

The Real Estate Recovery Trust Account is funded by fees collected from licensees and is used to compensate consumers who suffer actual damages due to licensee fraud or misconduct.

Question 3

A consumer who obtains a judgment against a Texas licensee and cannot collect may apply to the Real Estate Recovery Trust Account for reimbursement up to:

Accepted Answer

$50,000 per transaction, up to $100,000 per licensee

Answer

The Recovery Trust Account will pay up to $50,000 per transaction and a maximum of $100,000 against any single licensee for valid unpaid judgments.

Question 4

When a payment is made from the Real Estate Recovery Trust Account on behalf of a licensee, TREC must:

Accepted Answer

Automatically revoke the licensee's license until the amount is repaid

Answer

If TREC pays from the Recovery Trust Account on a licensee's behalf, the licensee's license is automatically revoked and may not be reinstated until the full amount is repaid with interest.

Question 5

Which of the following actions by a licensee could result in immediate license suspension without a prior hearing?

Accepted Answer

Conviction of a felony or a crime involving moral turpitude

Answer

Conviction of a felony or a crime involving moral turpitude can result in immediate emergency license suspension to protect the public.

TREC - Texas Real Estate Commission Practice Test

TREC - Texas Real Estate Commission Practice Test

TREC TREC Complaint and Enforcement Process 2