The Texas Real Estate Commission (TREC) is the state agency in Texas that licenses and regulates real estate professionals, including sales agents, brokers, inspectors, and easement and right-of-way agents. Complaints against these professionals can result in disciplinary proceedings, which, in turn, can lead to significant sanctions and the loss of their licenses. If you are facing a complaint that someone has filed with TREC alleging that you have violated a law or rule related to your profession, you likely need the advice and counsel of an experienced real estate license defense attorney.
Complaints Before TREC
Anyone can file a complaint against a real estate professional with TREC for violating the Real Estate License Act or TREC rules. Complaints may not be anonymous and must be filed within four years of the alleged incident that led to the complaint.
When receiving a complaint, TREC first will determine whether it has jurisdiction over the complaint. If so, TREC will notify the licensee, offer them a chance to respond to the allegations, and investigate the complaint. An investigation can be lengthy, often lasting up to six months. TREC investigations may involve interviewing witnesses and gathering documentary evidence.
Once the investigation is complete, TREC will assign the case to an attorney to determine whether a violation of the laws or rules governing real estate professionals has occurred. If the attorney finds no violation, the licensee receives a letter from TREC closing the complaint. In some cases, the attorney may issue an informal advisory or warning letter to the licensee about their actions, which becomes a part of their official record for ten years and can be considered in future disciplinary proceedings.
However, if the attorney finds that a violation has occurred, they can initiate formal disciplinary action by TREC. Formal disciplinary action can result in one or more of any of the following sanctions:
- Reprimand;
- License or Certificate Suspension (probated or not);
- License or Certificate Revocation (probated or not); and/or
- Administrative Penalties, the amount of which is based on:
- 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.
The amount of any administrative penalty that TREC assesses in a disciplinary case also is based TREC’s schedule of administrative penalties under §531.191. Penalties can range in amounts from $100 to $5,000.
Informal Resolution of Complaints
TREC initiates formal disciplinary action against a real estate professional by issuing them a Notice of Alleged Violation (NOAV). The licensee will receive the NOAV along with a petition that details the alleged violations and sanctions being requested.
Upon receiving a NOAV, the licensee will have a certain number of days to respond to the petition. The content of a licensee’s response can be critical to a positive outcome in your disciplinary case. As a result, having a real estate license defense attorney can help you craft a response that will be most beneficial to you in your case.
The most common way to resolve complaints before TREC is through an Agreed Order. In an Agreed Order, the licensee admits to violations and accepts sanctions offered by TREC. In most cases, TREC will extend an Agreed Order to a licensee only when they acknowledge some wrongdoing or other mitigating efforts.
Opting for an Agreed Order prevents your case from going to an administrative hearing at the State Office of Administrative Hearings (SOAH). In some cases, this can be beneficial to you, as you will know exactly what sanctions you receive, rather than facing an unsure outcome following a hearing. However, in some cases, proceeding to a contested administrative hearing can be more advantageous, as the administrative law judge (ALJ) is likely to be a more neutral party than a TREC attorney.
Resolving a complaint early in the process can benefit you by avoiding some of the more severe sanctions that you can face. Your attorney can negotiate an Agreed Order with TREC if you don’t agree with all the terms offered. Having legal counsel on your side to advocate on your behalf came make a significant difference in the outcome of your case.
Get the Advice You Need About Your Real Estate License
When disciplinary proceedings cause you to face the potential loss of your career, you cannot risk navigating this complex situation on your own. The real estate license defense lawyers at Bertolino LLP help professionals like you defend themselves against disciplinary proceedings by their licensing boards. We can examine your circumstances and help you devise the most effective strategy to protect your license. Call us today at (512) 980-3751 or get more information about us online.
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