TREC Complaint: How to File Against a Texas Real Estate Licensee

TREC's complaint process exists to protect consumers who believe a licensed real estate professional acted in violation of Texas law or Commission rules. The Commission does not handle disputes about commission rates, service quality preferences, or matters that are civil in nature — its jurisdiction is limited to regulatory violations by licensees. Understanding what TREC can and cannot investigate helps you determine whether your situation warrants a complaint.

If a real estate agent misrepresented the condition of a property, failed to disclose a known defect, forged your signature on a document, acted as a dual agent without proper disclosure, or engaged in discriminatory practices, those are the kinds of violations TREC investigates. If you're unhappy that your agent didn't call you back promptly or that negotiations didn't go your way, those aren't regulatory violations — they're service complaints that don't fall under TREC's authority.

Filing a complaint initiates a formal process. TREC assigns a case number, notifies the licensee, conducts an investigation, and renders a determination. Outcomes range from dismissal (if no violation is found) to informal settlement, administrative action, license suspension, or license revocation for serious violations. The process can take several months, and complainants aren't typically entitled to damages through the TREC complaint process — that remedy requires civil litigation.

This guide explains how to file a TREC complaint, what information you need to include, how the investigation works, and what outcomes are possible. Understanding the process helps you submit a complete and effective complaint and manage your expectations about what the Commission can accomplish on your behalf.

It's worth noting that TREC's enforcement process operates separately from any criminal proceedings. If the conduct you experienced also involves potential criminal activity — theft, fraud, wire fraud — those matters should be reported to law enforcement independently of the TREC complaint. TREC can take administrative action against a licensee's license; it cannot prosecute criminal charges. Dual reporting to TREC and to appropriate law enforcement is appropriate when criminal conduct is suspected.

The complaint process is not anonymous. The licensee named in the complaint receives a copy of your complaint and has the right to respond. This is intentional — due process requires that the licensee know what they're accused of and have the opportunity to present their account. If you're concerned about retaliation, particularly in an ongoing business relationship, factor that into your decision to file and consult with an attorney if appropriate.

The professionalism standards applicable to Texas real estate licensees exist because real estate transactions often represent the largest financial decisions people make. The potential for harm from licensee misconduct is significant — lost earnest money, undisclosed defects, fraudulent transactions. TREC's complaint process is the primary mechanism for holding licensees accountable when those standards are violated.

TREC's enforcement authority covers violations of the Texas Real Estate License Act (TRELA) and the Commission's administrative rules. The types of conduct that fall within TREC's investigative scope include misrepresentation, fraud, dishonest dealing, false advertising, negligence, incompetence, and failure to comply with specific disclosure requirements.

Misrepresentation claims are among the most common complaints TREC receives. A licensee who tells you a roof has no known leaks when they knew of prior leak damage, or who describes a property's square footage using inaccurate figures, may have committed a misrepresentation that TREC can investigate. Material misrepresentation — false statements about facts that would affect a buyer's or seller's decision — is a serious violation of TRELA.

Failure to disclose known defects is a related but distinct category. Texas real estate licensees have specific legal obligations regarding property disclosures. When a licensee knows of a defect that affects the property's value or desirability and fails to disclose it to the buyer, that omission may be a violation of their duties under Texas law.

Unauthorized practice, handling funds improperly (including escrow violations), failing to provide required documents, signing documents without authorization, and discriminatory conduct are all within TREC's investigative authority. The Commission can also investigate inspectors licensed by TREC for violations related to inspection reports, scope, or disclosures.

What TREC does not investigate: purely civil disputes (contract breach claims), commission disputes between agents and clients, disputes between agents over commission splits, service quality complaints that don't involve regulatory violations, and conduct by unlicensed parties. If the conduct you experienced involves a party who isn't licensed by TREC, the Commission has no jurisdiction.

Real estate licensees in Texas operate under a fiduciary duty to their clients, a duty of honesty and fair dealing, and specific legal obligations defined by TRELA. When any of these obligations are violated, the conduct falls within TREC's investigative jurisdiction. The Commission also has authority over licensees who employ unlicensed individuals for tasks requiring a license, and over brokers who fail to properly supervise sales agents operating under their license.

One category of complaint that TREC encounters frequently involves advertisements. Texas real estate licensees must comply with specific rules about how they advertise their services and properties. Deceptive advertising, misleading property descriptions in marketing materials, failure to identify themselves as licensees in advertising, and using another brokerage's listings without authorization are all advertising-related violations that TREC can investigate.

Discrimination complaints occupy a special place in TREC's enforcement framework. Texas real estate licensees are prohibited from engaging in discriminatory conduct based on race, color, national origin, sex, religion, disability, familial status, and other protected characteristics under both federal fair housing law and Texas law. If you believe you were treated differently in a real estate transaction due to a protected characteristic, a TREC complaint is one avenue for addressing that — though federal agencies like HUD also receive fair housing complaints and may have additional jurisdiction.

Complaints can be filed online through the TREC website using the online complaint form. You can also file by mail using a printed complaint form available on the TREC website. Online filing is faster and allows you to upload supporting documents directly. There is no filing fee.

When completing the complaint form, provide complete and specific information. Identify the licensee by name and license number (you can look up license information on the TREC website), describe the specific conduct you're complaining about, include dates and locations of relevant events, and attach any supporting documents you have — contracts, communications, inspection reports, photographs, or other records that support your complaint.

Be specific and factual. Complaints that describe vague dissatisfaction without connecting it to specific conduct are harder to investigate and less likely to result in a finding of violation. Focus on what the licensee did or failed to do, when they did it, and how that conduct violated a specific rule or duty. If you don't know exactly which rule was violated, describe the conduct and let TREC's investigators determine the applicable legal framework.

TREC does not require you to have an attorney to file a complaint. The complaint process is designed to be accessible to consumers without legal representation. However, if your situation also involves potential civil claims — such as financial losses from the licensee's conduct — consulting an attorney about your civil remedies separately from the TREC complaint process is advisable. TREC's process and a civil lawsuit are not mutually exclusive and can proceed in parallel.

One practical step before filing: attempt direct resolution first if the circumstances allow. Sometimes a complaint to the broker (who supervises the agent) resolves issues that the individual agent hasn't addressed. This doesn't waive your right to file a TREC complaint, but it may result in faster resolution for lower-level concerns. Document your attempt to resolve the issue directly — TREC's form asks whether you've tried to resolve the complaint before filing, and having documentation of those attempts strengthens your submission.

Timing matters for some complaints. Texas has a statute of limitations for certain civil claims, and TREC may have its own procedural timeframes. Filing promptly after discovering the alleged violation — rather than waiting months or years — preserves your options and ensures that evidence and recollections are fresh. Delays in filing can complicate investigations and potentially limit the outcomes available.

If your complaint involves a property inspection, the evidentiary bar is different than for other complaints. Inspector complaints often turn on whether a defect was visible and observable at the time of the inspection, whether it fell within the scope of a standard inspection under TREC's Standards of Practice, and whether the inspector's report properly described what was and wasn't inspected. Photograph the defect as found, preserve the original inspection report, and document any communications with the inspector after the inspection before filing your complaint.

After you file a complaint, TREC assigns a case number and sends a copy of the complaint to the licensee named. The licensee has the opportunity to respond in writing with their account of the events and any documentation they want to present. TREC's enforcement staff then reviews both the complaint and the response.

TREC investigators may request additional information from you or from the licensee. Respond promptly to any TREC requests — delays in your responses can slow the investigation. If you have additional documents or information you didn't include with the original complaint, you can submit them in response to investigator requests or proactively if you believe they're relevant.

The investigation is not a hearing. You don't typically appear in person at this stage, and neither does the licensee. The investigation is a document and correspondence review. If the investigation identifies potential violations, TREC may proceed to an informal settlement conference or a formal hearing before the State Office of Administrative Hearings (SOAH), depending on the nature and severity of the alleged violation.

TREC keeps complainants informed of the case status. You'll receive a closing letter when the investigation concludes, explaining the outcome. If the Commission found a violation and took action against the licensee, the closing letter will generally describe the action taken. Specific details of any settlement agreements may not be disclosed depending on their terms.

TREC has the authority to subpoena records from licensees during an investigation. If the licensee claims they have no documents supporting your complaint, TREC can independently request those records. The Commission's investigative authority extends to reviewing the licensee's transaction files, communications, and financial records related to the matter at issue. This means that even if the licensee disputes your account, TREC has tools to independently assess what occurred.

Throughout the investigation, maintain your own records. Keep all communications with TREC, including case numbers and correspondence, in a dedicated file. If TREC requests additional information from you, respond to the specific request clearly and completely. Avoid sending large volumes of tangentially related material — focused, organized responses to investigator requests are more effective than overwhelming the file with every document you possess.

One thing complainants sometimes don't realize: TREC's investigation outcomes can include findings that are less than a full violation finding but still result in action. TREC may issue a letter of warning or require additional education for a first offense or a minor violation. A single complaint rarely results in license revocation unless the violation is severe or the licensee has a prior disciplinary history. The severity of the outcome scales with the severity of the conduct and the licensee's history.

Separate from the complaint and disciplinary process, Texas maintains the Real Estate Recovery Trust Account, which provides financial compensation to consumers who suffer actual damages caused by the fraudulent, dishonest, or seriously negligent conduct of a licensed real estate professional. If you lost money due to a licensee's misconduct and cannot recover through other means, the Recovery Trust Account may provide a remedy.

To access the Recovery Trust Account, you must first obtain a final judgment against the licensee in civil court. The Recovery Trust Account does not replace the civil litigation process — it provides a payment source of last resort when a judgment cannot be collected because the licensee lacks assets. The maximum payment from the Recovery Trust Account is $125,000 per transaction, subject to a $250,000 per licensee lifetime cap.

Claims against the Recovery Trust Account must be filed within the applicable limitations period. If you believe your situation may warrant a claim, consult with an attorney promptly to preserve your right to file. The TREC complaint process and the Recovery Trust Account process are legally separate — filing a TREC complaint alone does not create or protect a claim against the Trust Account.

If TREC finds a violation and takes disciplinary action, that action becomes part of the licensee's public record on the TREC website. Future clients can see any formal disciplinary history. This public accountability function is one of the most important outcomes of the complaint process — beyond the specific case, it informs future consumers and creates accountability within the real estate profession. Even if a complaint results in a relatively minor sanction, the public record effect carries long-term professional consequences for the licensee.

Texas also has a separate occupational licensing enforcement process at the agency level. If you are dissatisfied with TREC's investigation outcome, limited appeal mechanisms exist. Understanding those options — including the possibility of requesting reconsideration — is worth discussing with an attorney if the outcome matters significantly to you. TREC's enforcement decisions are not necessarily the final word in every situation.

One frequently overlooked resource: TREC publishes enforcement statistics and recent disciplinary actions on its website. Reviewing recent disciplinary orders against other licensees helps you understand the types of violations TREC takes seriously and the range of sanctions they impose. This context helps you assess how your situation compares to established enforcement patterns and what outcome is realistic given the nature of the conduct you're reporting.