Key Takeaways
- The Texas Real Estate Commission (TREC) regulates real estate licensees under the Texas Real Estate License Act (TRELA)
- TREC has nine appointed members: six broker members and three public members, serving staggered 6-year terms
- TREC can suspend, revoke, or deny licenses and impose administrative penalties up to $5,000 per violation
- The Texas Real Estate Inspector Committee advises TREC on inspector licensing matters
- TREC operates the Real Estate Recovery Fund to compensate victims of licensee misconduct
Texas Real Estate Commission (TREC)
The Texas Real Estate Commission (TREC) is the state agency responsible for protecting Texas consumers by licensing and regulating real estate brokers, sales agents, inspectors, and other real estate service providers.
Important: This section covers Texas-specific content only. For national real estate concepts like property ownership, contracts, and financing, see our Real Estate Salesperson exam prep.
TREC Structure
Commission Members
TREC consists of nine members appointed by the Governor with Senate confirmation:
| Member Type | Number | Requirements |
|---|---|---|
| Broker members | 6 | Licensed Texas broker for 5+ years |
| Public members | 3 | Not licensed in real estate |
Members serve staggered 6-year terms with three terms expiring every two years.
Key TREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, administer exams, issue licenses |
| Education | Approve schools and courses, set education requirements |
| Enforcement | Investigate complaints, conduct audits |
| Discipline | Suspend, revoke, or restrict licenses |
| Recovery Fund | Compensate consumers harmed by licensee conduct |
The Texas Real Estate License Act (TRELA)
TRELA (Texas Occupations Code, Chapter 1101) is the primary law governing real estate licensing in Texas. Key provisions include:
- Who must be licensed - Definitions of broker and sales agent activities
- Exemptions from licensing - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Administrative penalties - Up to $5,000 per violation per day
- Criminal penalties - Practicing without a license is a Class A misdemeanor
The Commissioner's Rules
TREC adopts rules (Texas Administrative Code, Title 22, Part 23) that implement TRELA. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Disciplinary procedures
Exam Tip: TREC can impose administrative penalties (fines) up to $5,000 per violation. This is different from California, where the Commissioner cannot impose fines without court action.
Texas Real Estate Recovery Fund
The Real Estate Recovery Fund compensates consumers who suffer actual damages due to the misconduct of a licensed real estate professional.
Fund Requirements
| Requirement | Details |
|---|---|
| Maximum per transaction | $50,000 |
| Maximum per licensee | $100,000 total |
| Filing deadline | 2 years after judgment |
| Court judgment required | Yes, must first obtain judgment against licensee |
How the Fund Works
- Consumer is harmed by licensee misconduct
- Consumer sues licensee and obtains court judgment
- Consumer is unable to collect judgment from licensee
- Consumer applies to TREC for payment from Recovery Fund
- TREC pays from fund (if eligible)
- Licensee's license is automatically revoked
Key Point: The Recovery Fund only covers actual damages—not punitive damages, attorney fees, or court costs.
Real Estate Inspector Committee
The Texas Real Estate Inspector Committee advises TREC on matters related to inspector licensing. The committee has nine members:
- 6 licensed inspectors
- 3 public members
The committee recommends rules and standards for inspector education, licensing, and conduct.
TREC Contact and Resources
| Resource | Information |
|---|---|
| Website | www.trec.texas.gov |
| Phone | (512) 936-3000 |
| REALM Portal | Online licensing system |
| Main Office | Austin, Texas |
How many members serve on the Texas Real Estate Commission?
What is the maximum administrative penalty TREC can impose per violation?