Overview of the Texas Real Estate Commission

Real Estate Purchase

The Texas Real Estate Commission works to protect consumers when making real estate purchases, both residential and commercial, throughout the state.

The residential and commercial real estate industries are huge business in most parts of the United States and especially in the state of Texas where industrial growth is likely to increase at a rapid pace. Whenever there are multi-million dollar deals, there is also bound to be unscrupulous companies and individuals looking to make money through dubious real estate practices. As such, there needs to be a watchdog and regulator which explains the existence of the Texas Real Estate Commission (TREC).

About TREC

The main goal of TREC is to ensure that the economic welfare of customers is protected by making sure licensees carry out all fiduciary responsibilities to clients while also forcing real estate companies to meet certain professional standards and qualifications. The real estate industry in Texas was first regulated in 1939 with the first licensing act while TREC was set up in 1949. Here are a few facts about the organization:

  • The headquarters of TREC can be found in Austin where almost 70 staff operates. There are almost a number of investigators that work from their homes in other state regions.
  • The agency licenses around 150,000 individuals in Texas, a figure that includes over 35,000 real estate brokers and almost 100,000 salespersons. Other entities that are licensed include home inspectors, broker corporations and home warranty companies.
  • In any given year, TREC can expect to open approximately 5,000 enforcement cases and are known for having a closure rate of above 95%. Almost half of complaints are initiated by licensees or consumers.

Role of TREC

The list of TREC’s responsibilities includes the following:

  • Licensing real estate brokers, home inspectors, residential service companies and salespersons.
  • Certification of right-of-way agents and registration of timeshare projects.
  • Approval of private real estate instructors, courses and schools.
  • Investigation and resolution of complaints and well as taking appropriate action to discipline entities that disobey the rules and statues of the organization.

In terms of organizational structure, the state Governor appoints nine members with the aid of the state Senate with members appointed for six year terms. However, the term of three members expires every two years. Three of the nine members must be members of the public who have no affiliation with any organization that receives funds from TREC.

The rest of the group is made up of licensed real estate brokers who have been part of the industry for at least five years prior to their appointment.

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