What Does TREC Stand For?

In 1949, the Texas Legislature created the Texas Real Estate Commission (TREC) to protect consumers in real property transactions and valuation services. TREC, which stands for Texas Real Estate Commission, has several key responsibilities, including:

• Setting education and licensing standards for real estate professionals in Texas
• Ensuring consumer protection in real property transactions and valuation services
• Regulating real estate brokerage, appraisals, inspections, right-of-way services, and timeshares
• Comprising nine members appointed by the Governor for six-year terms

The Texas Real Estate Commission (TREC) is responsible for licensing and regulating real estate professionals in Texas. This includes real estate salespersons, brokers, residential service companies, real estate inspectors, and easement and right-of-way agents. A major part of TREC’s purview involves investigating complaints against real estate professionals and, if warranted, taking disciplinary action against their license.

We urge any real estate licensee to approach a Texas Real Estate Commission complaint with the caution it deserves. It is crucial to note TREC’s mission is to protect the public, not real estate licensees. In most cases TREC will approach a complaint with the assumption it is accurate until proven otherwise. As a rule this means they are more likely to take the side of the complainant, not the licensee, in any situations that are ambiguous. It is up to the licensee to persuade TREC that the complaint lacks merit and should be dismissed.

Do not assume a quick and simple response will make the complaint go away. It is highly recommended that you contact a real estate license defense attorney for a consultation prior to replying to a complaint. 

Common Types of TREC Complaints:

Anyone can send a complaint to TREC, but most are filed by real estate buyers, sellers, tenants, other agents or brokers, or ex-employers. As long as the complaint alleges conduct that could violate the Texas Real Estate License Act, TREC is legally obligated to investigate it. 

Some of the most common types of complaints include allegations of:

• Misrepresentation, dishonesty, or fraud;
• Making a material misrepresentation to a buyer concerning a significant defect;
• Failure to make clear who the licensee is representing during a real estate transaction;
• Commingling money that belongs to another person with the licensee’s own money;
• Paying a commission to an improper party;
• Failing to make required disclosures to a client or third party;
• Discrimination against a buyer or tenant on the basis of their race, color, religion, sex, disability, national origin, or ancestry;
• Criminal conviction or conduct.

 

“Your legal challenges deserve precise attention and dedicated advocacy. We’re committed to navigating the complexities of law, ensuring your rights are safeguarded and your objectives achieved. Trust our experienced team to stand by you every step of the way.”

Dan Lype

Founding Attorney

How TREC Investigates Complaints:

A real estate licensee will typically learn about a complaint through a letter sent by TREC. The letter is usually accompanied by the complaint plus any supporting documents submitted by the complainant. It will also contain a list of the statutes and rules that may have been violated by the real estate professional. TREC’s letter will close with a demand that the real estate licensee respond by a certain deadline and provide various documents related to the transaction at issue.

In addition to obtaining a written response, TREC investigator’s will also often seek to interview the licensee. This should be approached with extreme caution as such interviews can be far-reaching and be conducted with a presumption the licensee is guilty of the allegations.

The investigation stage of a TREC complaint can take many months. Eventually all of the information gathered by the investigator will be reviewed by other TREC personnel including an attorney. They will make a determination whether the evidence supports finding one or more violations. If they conclude a violation has occurred, the licensee will be sent an Agreed Order. This is a disciplinary action that, if accepted by the licensee, will resolve the complaint.

TREC has the discretion to impose various forms of discipline on a real estate professional’s license. The disciplinary options at its disposal include assessing fines, placing the license on probation, and even suspending or revoking the license.

If the real estate licensee declines to sign an Agreed Order, their case will eventually be set for a trial at the State Office of Administrative Hearings (SOAH). This is a separate state agency made up of administrative law judges who hear cases involving various Texas state agencies such as TREC. The trial occurs before the judge without a jury. TREC will be represented by one of their attorneys and will be responsible for calling witnesses and presenting evidence proving the alleged violations. 

At the end of the trial, the judge will issue a Proposal for Decision containing their factual findings and their determination on whether the licensee violated any of TREC’s rules. This decision will then go to the Commissioner for final disposition.

Consult with a Texas Real Estate Commission Defense Lawyer:

The attorneys at Lype, Dest and Smith have decades of combined experience successfully defending real estate professionals before TREC. We urge any real estate licensee to contact us for a consultation prior to responding to a complaint or speaking with the TREC investigator. In addition to helping you understand TREC’s process, our attorney’s can assist with gathering helpful documents, witness statements, and other evidence rebutting the complaint.

Our lawyers have seen all too many licensees inadvertently harm themselves by replying to TREC without the benefit of counsel. Waiting until you have received a proposed disciplinary order to contact a lawyer could cause irreparable damage to your defense. Your license, reputation, and livelihood deserve protection.

Contact the TREC real estate license defense attorneys at Lype, Dest & Smith today. 

Betty Smith

Ms. Smith’s practice focuses on administrative and health care law with a primary emphasis on professional license defense. She has represented numerous clients before various state agencies including the Texas Board of Nursing, Texas Medical Board, Texas Department of Licensing and Regulation, and the Texas Real Estate Commission.

Years of experience: 7 years
Bar number: 24102510 (TX) & 36027 (LA)
Location: Austin, TX
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