Our client, M.R., a real estate broker and corporate officer for a corporate brokerage, faced prosecution by the Texas Real Estate Commission due to their failure to secure a license for the brokerage. M.R. had conducted real estate transactions through the corporate brokerage for more than four years – a total of nearly 200 transactions. As TREC rules authorize TREC to impose a $5,000 penalty for each transaction, M.R. could have been required to pay nearly $1,000,000 in penalties. However, because they were fully cooperative with TREC, and we relayed evidence that the violation was a good faith mistake, TREC imposed only a $2,500 penalty and permitted M.R. to obtain a license for the corporate brokerage. M.R. was not even made to appear for a hearing before their matter was resolved.
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