Around the country, state commissions help organize and oversee the real estate industry. Here in Texas, TREC holds that honor.
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Around the country, state commissions help organize and oversee the real estate industry. Here in Texas, TREC holds that honor.
The Texas Real Estate Commission [TREC] was founded in 1949 to help protect consumers in real estate transactions. As properties traded hands and regulations changed, there was real concern about making sure everything was done legally.
Basically, if it involves selling, buying, or the valuation of property in the Lone Star State, TREC is overseeing the process. TREC regulates:
- Real estate brokerage [buying and selling]
- Appraisals
- Property Inspections
- Timeshares
- Right-of-Way Services
- Real Estate Licensing
- Real Estate Education
TREC also has an Enforcement Division which oversees complaint investigation and disciplinary enforcement. According to the TREC website, the TREC Enforcement Division is responsible for ensuring the Commission "fulfills its mission to protect consumers by enforcing The Real Estate License Act, Rules of the Commission, Chapter 1102 of the Texas Occupations Code regarding Real Estate Inspectors, the Texas Timeshare Act, and the Residential Service Company Act." Members of the TREC Enforcement Division are also in charge of assessing licensure applications and conducting fitness determinations to evaluate the honesty, integrity, and trustworthiness of applicants.
Special Notice for Brokers: If you’re a broker that needs to renew a license, the requirements and renewal process are very similar. However, there’s one distinct difference. You’ll still need to complete 18 hours of continuing education, but the 6-hour Broker Responsibility Course must be taken if you sponsor a sales agent, are a supervisor of other license holders, or are a designated broker for a business entity broker that sponsors sales agents.
As you can imagine, it takes a lot of work to keep everything operating smoothly in a real estate market the size of Texas. Over time, the commission has been organized into several divisions that focus on specific tasks.
Education Resource for Real Estate Professionals
Every person that decides to become a Texas real estate agent will become familiar with TREC.
You have to meet the minimum TREC qualifications. You have to take TREC-approved real estate courses. You have to submit your license application through TREC and then pass TREC’s licensing exam.
TREC is a vital resource for learning what steps must be taken to work in the real estate industry. So go ahead and bookmark the website.
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Enforcer of State Laws
The Texas Real Estate Commission is also an enforcement authority. The TREC Standards and Enforcement Services [SES] division makes sure all real estate professionals comply with the rules and laws.
They’ll determine when laws are broken and if licenses should be revoked. The TREC SES division also administers disciplinary enforcement programs. Basically, they’re the Chuck Norris of Texas real estate.
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Texas Real Estate Commission Consumer Services
TREC doesn’t just help hopeful realtors and licensed agents. The commission also provides services for everyday consumers.
One helpful service is their license holder search tool. Buyers and sellers can enter a name or license number to know if someone is legally able to act as a real estate agent.
The Texas Real Estate Commission also handles consumer complaints against agents, brokers, inspectors, and appraisers.
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Quick Links to Useful TREC Resources
Real Estate Forms TREC provides approved forms online for easy access.
Becoming an Agent Want to become a Texas real estate agent? TREC lays out the qualifications and requirements.
Real Estate Rules Make sure you follow the rules and laws of Texas real estate.
Renew Your License Keep that license active! Learn how to renew your Texas real estate license.
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The Texas Real Estate Act [TRELA] is crucial to your practice as a Texas real estate agent, as it ensures that high standards of ethics and practice are maintained in the real estate industry. You’ll need to know TRELA in and out, first for the licensing exam and then for your work in the industry afterward!
The Purpose of TRELA
The state legislature of Texas passed the Texas Real Estate License Act to protect the public from brokers and sales agents who are dishonest. TRELA also:
Establishes rules that license holders must follow that pertain to obtaining, and later maintaining, a real estate license
Lists the penalties for violations of the License Act
Protects brokers from unfair activities by their competition
The more a license holder, whether a sales agent or broker, understands about TRELA, the less they have to worry about when it comes to keeping their license active.
The History of TRELA
In 1939, the Texas Legislature passed the Real Estate Dealers License Act to govern the licensing and practice of real estate in Texas. It eventually took on the name Texas Real Estate License Act.
Today, the Texas Real Estate License Act is part of Chapters 1101 of the Texas Occupations Code, and regulates real estate brokers and salespersons. In case you’re curious, Chapter 1102 pertains to real estate inspectors.
TRELA and TREC
The Texas Real Estate License Act is the legislation that governs the licensing of Texas real estate license holders. The Texas Real Estate Commission [TREC], on the other hand, enforces the provisions of TRELA. The Texas legislature created TREC in 1949 [10 years after the creation of TRELA] for that purpose.
Think of it this way: TRELA is the law, and TREC is the enforcer of that law. TRELA and TREC go hand in hand!
The Basic Provisions of TRELA
There’s a lot in TRELA, but here are some of the general things it covers:
What real estate acts require a Texas real estate license
The difference between a salesperson and broker license
Age, education, and other requirements for obtaining a Texas real estate license
Exemptions from Texas real estate license requirements
Active licenses versus inactive licenses
License expiration and renewal
Code of ethics and standards of conduct
License violations and penalties
The process by which complaints against license holders are filed
The process by which a license holder can request a hearing
Liability
Compensation requirements and regulations
Membership of TREC
Approval and regulation of real estate courses and continuing education
As you can see, TRELA regulates pretty much every aspect of your real estate practice!
Want to Know More?
That’s a wrap on TRELA. Want to know exactly what TRELA says about educational requirements to get your license? Check out this blog post!