As a real estate broker in Texas, you can lose your license for multiple reasons, including fraud, misrepresentation, failure to disclose material facts, or breaches of fiduciary duty.
When faced with an allegation concerning your license, seek the guidance of a Texas broker license defense lawyer from Bertolino LLP. If we take your case, we will provide insights into the process and offer support tailored to your situation.
If you are facing any challenges related to your license, a Texas real estate license defense lawyer can help clarify your options. Addressing any concerns promptly is essential to safeguarding your career and reputation. Contact our client relations coordinator for a free consultation.
How Texas Law Views Real Estate Brokers
A Texas professional license defense lawyer knows that as a broker, you hold significant responsibilities, particularly when supervising real estate agents. If a complaint is filed against an agent, the supervising broker may also be implicated until it is proven that they have met their professional obligations.
Unlike agents, brokers bear a higher level of responsibility not only for their actions but also for those associated with their business operations.
When defending brokers, it’s crucial to understand the unique challenges they face in Texas, ensuring that their specific responsibilities and the risks to their licenses are effectively addressed.
When defending professionals with a comprehensive approach, it’s important to recognize the distinct challenges they face in Texas. This understanding helps in addressing the specific responsibilities and risks that come with managing and maintaining a broker’s license.
Which Government Agency Oversees Texas Broker Licenses and Enforces Disciplinary Actions?
The Texas Real Estate Commission (TREC), established by the Texas State Legislature in 1949, oversees the licensing and education of real estate professionals across the state.
TREC’s primary role is to uphold ethical standards and make sure brokers and other real estate professionals are well-prepared for their roles.
TREC also investigates complaints against brokers to maintain fairness and integrity in property transactions. With a focus on protecting consumers, the commission regulates and enforces Texas laws related to real estate dealings.
If you’re a real estate professional facing any challenges with TREC, consulting with an experienced attorney can help you understand your rights and responsibilities.
The Minimum Qualifications Necessary to Become a Real Estate Broker
To qualify for a real estate brokerage license in Texas, you must:
- Be a U.S. citizen or lawfully admitted alien resident
- Be at least 18 years old
- Meet the Texas Real Estate Commission’s (TREC) standards for honesty, trustworthiness, and integrity
Additional qualifications include:
- Completing 270 hours of qualifying real estate courses, covering topics such as real estate principles, agency and contract law, real estate finance, and brokerage
- Completing 630 additional classroom hours in related subjects like law, accounting, and marketing
- Gaining four years of active experience as a real estate sales agent, totaling 3,600 points on your Qualifying Experience Report for a Broker License
- Submitting an application and providing fingerprints
- Passing a background check, where any criminal history will be reviewed
- Successfully passing the real estate broker license exam
Meeting these requirements helps establish a strong foundation in the real estate industry. Staying informed and prepared is key to navigating the licensing process and starting a successful career as a broker in Texas.
How Failing to Meet Minimum Qualifications Can Lead to Losing Your Texas Real Estate Broker License
Meeting the minimum qualifications to become a real estate broker in Texas is not just a one-time requirement but an ongoing obligation. You must maintain these standards throughout your career to keep your license in good standing.
If you are found to have falsified qualifications during the application process, such as providing inaccurate education or experience records, your license may be revoked.
Additionally, failing to comply with continuing education requirements or engaging in practices that violate the standards of competence set by the TREC can also result in disciplinary actions, including the loss of your broker’s license.
It’s crucial to ensure that you continually meet the required qualifications and adhere to professional standards to avoid jeopardizing your license.
What Actions Constitute Misconduct for a Real Estate Broker?
Texas state law outlines specific actions considered misconduct that may lead to disciplinary actions, criminal charges, or other consequences.
The TREC uses a three-level system to determine the severity of a broker’s misconduct, with Level 1 being the most severe and Level 3 the least. Below is a breakdown of misconduct based on the level of seriousness.
Level 1 Misconduct
Level 1 misconduct includes:
- Fraud or misrepresentation involving significant financial loss: Generally, fraud or misrepresentation causing a loss of more than $10,000 could be considered a serious violation.
- Misconduct involving personal safety: Actions that put others at risk, particularly clients, could lead to severe penalties.
- Unlicensed activity by a broker: Operating as a broker without a proper license is a grave offense.
- Mortgage fraud: Involvement in fraudulent mortgage activities can lead to criminal charges and loss of license.
- Criminal charges related to professional conduct: Any criminal activity directly related to your professional duties can result in severe disciplinary actions, including license revocation.
Level 2 Misconduct
Level 2 misconduct includes:
- Fraud or misrepresentation involving lesser financial loss: Fraud or misrepresentation causing a loss of less than $10,000 might be considered less severe but still significant.
- Negligence: Being accused of failing to meet the standard of care expected of a broker. If it led to financial loss or another person’s harm, it can be grounds for discipline.
- Issues involving educational providers: Allegations concerning the conduct of educational providers, especially those that provide required broker training.
- Violation of the Texas Occupations Code: This could include various offenses, such as:
- Inspector negligence or incompetence: Failure to perform duties with the required level of competence.
- Promising employment based on an inspection report: Making guarantees or promises that violate ethical guidelines.
- Conflict of interest: Acting in multiple roles that could compromise professional integrity, such as being an inspector and a broker.
- Agreeing to perform duties beyond the scope of an inspection: Taking on additional roles that may violate the standards of practice.
- Violations of professional ethical standards: Any breach of the ethical rules established by statute, which could lead to disciplinary actions.
- Violations of the ethical standards of the profession as established by statute
Level 3 Misconduct
Level 3 misconduct includes:
- Technical violations: These are minor infractions that may involve administrative errors, paperwork mistakes, or failure to adhere to procedural requirements that do not result in significant harm or financial loss.
- Complaints unrelated to more serious misconduct: Issues that do not involve fraud, negligence, or ethical violations but still warrant attention, such as minor breaches of protocol or other low-level concerns.
Understanding these levels and the legal process involved in each helps brokers and real estate professionals better navigate their responsibilities and respond proactively to any disciplinary actions or criminal charges.
How the Disciplinary Process Works
When a complaint is filed, the TREC investigates the alleged violation. If they find possible misconduct, a Notice of Alleged Violation is sent to the license holder, who can either accept the findings or request an administrative hearing.
If a hearing is requested, the case is sent to the State Office of Administrative Hearings(SOAH), where an administrative law judge (ALJ) will manage the proceedings. Both parties must provide the necessary documents and evidence.
After reviewing the case, the ALJ issues a Proposal for Decision. TREC will then make a final decision or may request further review. Having a strong defense and an experienced legal team can be essential in protecting your professional licenses during this process.
What Constitutes Discipline?
Discipline can include suspension or revocation of a real estate brokerage license and the imposition of administrative penalties and fees based on the nature of the violation.
In addition, those with a revoked license cannot reapply for a new license until two years after the revocation.
Can I still Operate as a Real Estate Broker if My License has been Suspended?
No, a license suspension means you cannot perform any duties of a licensed real estate broker or advertise your services during the suspension period. Until the suspension is lifted, any activity that falls under the scope of a valid license is prohibited.
If you have existing contracts, you must inform all parties about your license suspension and your inability to provide brokerage services. For any funds held in trust related to a real estate transaction, you are required to notify the involved parties and disburse the funds according to their instructions.
A suspension can impact your professional reputation, and understanding the restrictions is key to managing any issues related to professional misconduct and maintaining trust with your clients.
Take Action Now: Secure a Texas Broker License Defense Lawyer
If you have questions about your Texas broker license being revoked or suspended or are facing allegations that could lead to suspension, consult with a Texas broker license defense attorney. Understanding your rights and the best course of action is important when facing disciplinary actions.
A Texas professional license defense lawyer at Bertolino LLP is ready to help you protect your career and guide you through the legal process. We are experienced in handling these matters and can provide the support you need.
Don’t leave your professional future to chance. Reach out to a Client Relations Coordinator at Bertolino LLP today to discuss your situation and learn how they can assist with your Texas broker license defense.
