What TREC Does With Administrative-Penalty Funds
When a real estate license holder is found in violation of The Real Estate License Act, the Texas Real Estate Commission can impose an administrative penalty. The law requires that these administrative-penalty funds be deposited into the Real Estate Recovery Trust Account, which disperses money to consumers owed damages due to a license holder’s conduct and subsequent inability to pay. Consumers can apply for reimbursement from this trust account after filing a suit and obtaining a court judgment for damages against a licensed real estate broker, sales agent, or easement/right-of-way agent. Learn more about the trust account on trec.texas.gov.