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TREC Complaint and Enforcement Process Flashcards

6 cards from real TREC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 TREC Complaint and Enforcement Process flashcards as text
  1. If TREC finds a violation after investigation, which of the following is NOT a possible disciplinary action?

    Answer: Criminal imprisonment directly imposed by TREC

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

  2. The Texas Real Estate Recovery Trust Account is funded by:

    Answer: A portion of license fees paid by real estate licensees

    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.

  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:

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

    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.

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

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

    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.

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

    Answer: Conviction of a felony or a crime involving moral turpitude

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

  6. A licensee who disagrees with a TREC disciplinary order may:

    Answer: Appeal the order through the State Office of Administrative Hearings (SOAH)

    Licensees have the right to contest TREC disciplinary actions through the State Office of Administrative Hearings, where an Administrative Law Judge reviews the case.