TREC TREC Complaint and Enforcement Process 1 — Questions and Answers
Question 1: Who may file a complaint against a Texas real estate licensee with TREC?
- Only the client who hired the licensee
- Only other licensed real estate agents
- Any member of the public or another licensee (Correct answer)
- Only the sponsoring broker
Correct answer: Any member of the public or another licensee
TREC accepts complaints from any member of the public, other licensees, or other parties who have knowledge of a potential violation.
Question 2: After a complaint is filed with TREC, what is the first step in the investigation process?
- The licensee's license is immediately suspended
- TREC staff review the complaint to determine if it alleges a violation within TREC's jurisdiction (Correct answer)
- The complainant must attend a mandatory mediation session
- A public hearing is scheduled automatically
Correct answer: TREC staff review the complaint to determine if it alleges a violation within TREC's jurisdiction
TREC staff first determine whether the complaint alleges a violation of the License Act or TREC rules before proceeding to full investigation.
Question 3: What is an 'agreed order' in the TREC disciplinary process?
- A court order requiring a licensee to appear before a judge
- A negotiated resolution between TREC and the licensee that does not require a full hearing (Correct answer)
- An order issued by TREC without the licensee's input
- A requirement for the licensee to take additional CE courses only
Correct answer: A negotiated resolution between TREC and the licensee that does not require a full hearing
An agreed order is a settlement negotiated between TREC's enforcement staff and the licensee, resolving the disciplinary matter without a formal hearing.
Question 4: Which of the following violations could result in TREC revoking a real estate license?
- Filing a CE certificate one day late
- Misrepresentation, fraud, or misappropriation of client funds (Correct answer)
- Using an unapproved but truthful advertising slogan
- Failing to respond to an email inquiry within 24 hours
Correct answer: Misrepresentation, fraud, or misappropriation of client funds
Serious violations such as fraud, misrepresentation, or conversion of client funds are grounds for license revocation under the Texas Real Estate License Act.
Question 5: A licensee who receives a TREC complaint notice must respond:
- Only if they choose to contest the allegations
- Within the time specified in the notice, typically in writing (Correct answer)
- In person at a TREC office within 10 days
- Through their attorney only
Correct answer: Within the time specified in the notice, typically in writing
TREC requires a written response from the licensee within the timeframe specified in the complaint notice, which is generally a set number of days.
Question 6: What is the role of TREC's Enforcement Division?
- To assist licensees in finding new clients
- To investigate complaints and take disciplinary action against licensees who violate the law (Correct answer)
- To process license renewal applications only
- To provide legal representation for clients in disputes
Correct answer: To investigate complaints and take disciplinary action against licensees who violate the law
TREC's Enforcement Division investigates complaints, gathers evidence, and brings disciplinary cases before the TREC Commission when violations are found.
TREC TREC Complaint and Enforcement Process 1
Who may file a complaint against a Texas real estate licensee with TREC?