The Texas Real Estate Commission (TREC) is the state agency that licenses and regulates real estate professionals. One of TREC’s primary purposes is to ensure that these professionals comply with all applicable laws and rules. Violations of these laws or rules can lead to disciplinary proceedings and severe sanctions. As a result, all real estate professionals must be fully aware of and follow the laws and rules that govern their profession.
If you face disciplinary proceedings before TREC, consulting a real estate license defense lawyer to defend your license can be crucial. By enlisting a strong legal advocate from the outset of your case, you may be better positioned to reach a more favorable resolution.
Potential Disposition of Disciplinary Complaints
When TREC receives a disciplinary complaint and the results of an investigation, an attorney reviews the case to determine whether a rule or law violation has occurred. If the attorney concludes that a violation has occurred, they will recommend the appropriate remedy for the violation, which the division director must approve. There are three potential dispositions for the disciplinary complaint, as follows:
- No Disciplinary Action – If the attorney reviews the investigation and finds that the matter is outside TREC’s jurisdiction, that no violation occurred, or there is insufficient evidence to prove a violation occurred, the attorney will not recommend any disciplinary action. The complainant and the licensee both will receive a copy of the disposition.
- Informal Disciplinary Action – If the investigation indicates areas of concern, the attorney may issue an advisory or warning letter to the licensee. This letter will remain in the licensee’s file for ten years and can be used as evidence in future disciplinary proceedings. The complainant also receives a copy of the letter.
- Formal Disciplinary Action – If the attorney finds that the investigation shows evidence of a violation, the attorney may take formal disciplinary action against a licensee, which may consist of:
- Reprimand;
- License/Certificate suspension (may be probated or not); or
- License/Certificate revocation (may be probated or not)
Administrative penalties also may be a part of formal disciplinary action in addition to a reprimand, suspension, or revocation. The amount of an administrative penalty depends on the following factors:
- The seriousness of the violation, including the nature, circumstances, extent, and gravity of the prohibited acts;
- The history of previous violations;
- The amount necessary to deter a future violation;
- Efforts to correct the violation; and
- Any other matter that justice may require.
TREC has also adopted an administrative penalty matrix under Tex. Occ. Code §1101.702(c), which contains three penalty ranges: $100 – $1,500, $500 – $3,000, and $1,000 – $5,000. Various violations are assigned to each range of the matrix to help ensure that the penalty imposed is appropriate.
Grounds for License Suspension or Revocation
Tex. Occ. Code §1101.652 provides a long list of grounds for which TREC may suspend or revoke a license, including any violation of that chapter. Among these grounds are:
- Conviction of a felony or a criminal offense involving fraud;
- Failure to provide TREC with information requested within a reasonable time relating to a complaint;
- Taking various actions as a real estate broker, such as:
- Acting negligently or incompetently;
- Engaging in conduct that displays bad faith, dishonesty, untrustworthiness;
- Soliciting, selling, or offering for sale real estate by means of deception; or
- Publishing or causing to be publishing a misleading advertisement.
Grounds for Certificate Suspension or Revocation
Tex. Occ. Code §1101.653 identifies certain violations that justify the suspension or revocation of a certificate by TREC. These violations include:
- Engages in dishonest dealing, fraud, unlawful discrimination, or a deceptive act;
- Makes a misrepresentation;
- Acts in bad faith;
- Demonstrates untrustworthiness;
- Fails to honor, within a reasonable time, a check issued to the commission after the commission has mailed a request for payment to the certificate holder’s last known address according to the commission’s records;
- Fails to provide to a party to a transaction a written notice prescribed by the commission that:
- Must be given before the party is obligated to sell, buy, lease, or transfer a right-of-way or easement; and
- Contains:
- The name of the certificate holder;
- The certificate number;
- The name of the person the certificate holder represents;
- A statement advising the party that the party may seek representation from a lawyer or broker in the transaction; and
- A statement generally advising the party that the right-of-way or easement may affect the value of the property;
- Directly or indirectly accepts a financial incentive to make an initial offer that the certificate holder knows or should know is lower than the adequate compensation required under the Texas Constitution; or
- Disregards or violates this chapter or a commission rule relating to certificate holders.
Another ground for suspension or revocation of a license or certificate by TREC includes the unauthorized practice of law under Tex. Occ. Code §1101.654. TREC can also revoke a license or certificate for failure to repay the real estate recovery trust account within 30 days under Tex. Occ. Code §1101.655.
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We Will Represent Your Interests in Your Disciplinary Proceedings Before TREC
We know how important it is for you to maintain your real estate inspection license and work in your chosen field. All too often, a simple misstep or oversight can lead to disciplinary proceedings and unwanted sanctions, which can threaten your license and career. The experienced real estate license defense attorneys at Bertolino LLP, will advocate to help you protect your rights throughout any disciplinary proceedings. Together, we will work to develop the defense strategy that is best calculated to maintain your license and professional future. Call us at (512) 515-9518 or contact us online.
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