Real Estate Salesperson · Texas: Commission duties and powers · 9 min read
TREC powers, complaints, penalties and the Recovery Trust Account
- Identify the structure, membership qualifications, and committee appointments governing the Texas Real Estate Commission.
- Explain the complaint, investigation, hearing, and disciplinary enforcement processes administered by TREC.
- Outline the civil, criminal, and administrative penalties for unlawful practice and the legal requirements for Recovery Trust Account claims.
Commission Structure, Membership, and Advisory Bodies
The Texas Real Estate Commission consists of nine members appointed by the governor with the advice and consent of the senate (Tex. Occ. Code §1101.051(a)). Six commission members must have been engaged in the brokerage business as licensed brokers as their major occupation for the five years preceding appointment (Tex. Occ. Code §1101.051(a)(1)). Three commission members must represent the public (Tex. Occ. Code §1101.051(a)(2)). Each member must be a qualified voter (Tex. Occ. Code §1101.051(b)). All appointments must be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointee (Tex. Occ. Code §1101.051(c)).
Strict eligibility restrictions apply to public members and industry professionals. A person is ineligible for appointment as a public member if the person or the person's spouse is registered, certified, or licensed by an occupational regulatory agency in the real estate industry (Tex. Occ. Code §1101.052(1)). A public member is also ineligible if the person or the person's spouse owns or controls, directly or indirectly, more than a 10 percent interest in an organization regulated by or receiving funds from the commission (Tex. Occ. Code §1101.052(3)). In addition, an officer, employee, or paid consultant of a Texas trade association in the real estate industry may not serve as a commission member (Tex. Occ. Code §1101.053(b)(1)), nor may a person whose spouse is an officer, manager, or paid consultant of such an association (Tex. Occ. Code §1101.053(b)(2)). Anyone required to register as a lobbyist under Chapter 305, Government Code, because of compensated activities on behalf of a profession related to the commission's operations cannot serve as a commission member or act as its general counsel (Tex. Occ. Code §1101.053(c)).
Each appointee must take the constitutional oath of office not later than the 15th calendar day after the date of appointment (Tex. Occ. Code §1101.054). Commission members serve staggered six-year terms, with the terms of three members expiring January 31 of each odd-numbered year (Tex. Occ. Code §1101.055(a)). If a vacancy occurs during a member's term, the governor appoints a person to fill the unexpired term (Tex. Occ. Code §1101.055(b)). The governor designates a broker member as presiding officer, who serves at the pleasure of the governor (Tex. Occ. Code §1101.056(a)). The commission elects an assistant presiding officer and secretary from its membership at a regular meeting in February of each year (Tex. Occ. Code §1101.056(b)). A member's absence from more than half of the regularly scheduled meetings eligible to attend in a calendar year is grounds for removal, unless excused by a majority vote of the commission (Tex. Occ. Code §1101.057(a)(5)). Commission members receive $75 for each day they perform official duties (Tex. Occ. Code §1101.058(a)(1)), but a member cannot vote, deliberate, or be counted in attendance until completing the required training program (Tex. Occ. Code §1101.059(a)). Members of advisory committees appointed by the commission who are not commission members receive no compensation for their service (Tex. Occ. Code §1101.158(b)).
Texas law creates specific committees to assist the commission. The Texas Real Estate Broker-Lawyer Committee consists of 13 members: six appointed by the commission, six members of the State Bar of Texas appointed by the president of the state bar, and one public member appointed by the governor (Tex. Occ. Code §1101.252(a)). Broker-Lawyer Committee members serve staggered six-year terms, where terms of two commission appointees and two state bar appointees expire every two years, and the public member's term expires every six years (Tex. Occ. Code §1101.253(a)). This committee drafts and revises contract forms capable of being standardized to expedite transactions and minimize controversy (Tex. Occ. Code §1101.254(a)). Another key group is the Education Standards Advisory Committee, which consists of 12 members appointed by the commission: seven active license holders with at least five years of practice, four education members, and one public member (22 TAC §535.43(b)). These members serve staggered two-year terms, may serve up to three consecutive terms, and can be reappointed after a break in service of at least two years (22 TAC §535.43(e)-(f)). Seven members constitute a quorum (22 TAC §535.43(l)), and the committee is automatically abolished on September 1, 2031, unless the commission establishes a different date (22 TAC §535.43(p)).
| Entity | Total Members | Composition | Term Length |
|---|---|---|---|
| Texas Real Estate Commission (TREC) | 9 | 6 licensed brokers whose major occupation was brokerage for the five years preceding appointment, and 3 public members. | Staggered 6-year terms |
| Broker-Lawyer Committee | 13 | 6 TREC appointees, 6 State Bar appointees, 1 governor-appointed public member | Staggered 6-year terms |
| Education Standards Advisory Committee | 12 | 7 active license holders (5 years practice), 4 education members, 1 public member | Staggered 2-year terms (max 3 consecutive) |
Common mistakes
- TREC may file its own complaint and investigate as necessary, but it must investigate a license holder's actions and records when a person submits a signed, written complaint that, with any accompanying evidence, provides reasonable cause; it may not initiate action against a license holder on the basis of an anonymous complaint.
- Do not confuse the rules: TREC may not investigate a license holder in connection with a complaint submitted more than four years after the incident, while an action for a judgment that may result in trust-account payment must be brought no later than the second anniversary of accrual.
- Confusing the composition of TREC with the Broker-Lawyer Committee; TREC has 9 members appointed entirely by the governor, whereas the Broker-Lawyer Committee has 13 members appointed by three distinct authorities.
- Assuming TREC can award punitive damages or compensate for emotional distress in consumer refund orders; a refund ordered through an informal settlement agreement or enforcement order cannot exceed the amount the consumer paid the regulated person for a service or accommodation regulated by the commission.
Key points
- The Texas Real Estate Commission consists of nine governor-appointed members serving six-year terms: six brokers with at least five years of major brokerage experience and three public members (Tex. Occ. Code §1101.051(a)).
- Advisory bodies include the 13-member Broker-Lawyer Committee that drafts standard contracts and the 12-member Education Standards Advisory Committee that advises on real estate education requirements (Tex. Occ. Code §1101.252(a), 22 TAC §535.43(b)).
- A signed, written complaint providing reasonable cause requires TREC to investigate a license holder's actions and records; TREC may not investigate a license holder in connection with a complaint submitted after the fourth anniversary of the incident or initiate action against a license holder on the basis of an anonymous complaint.
- Disciplinary actions may involve State Office of Administrative Hearings proceedings, district court appeals, or temporary license suspensions ordered by a three-member panel for ongoing threats to public welfare (Tex. Occ. Code §1101.657(a), §1101.658(a), §1101.662(a)-(b)).
- Acting as a broker or sales agent, or engaging in business as a residential rental locator, without the required license is a Class A misdemeanor; a person who receives compensation for acting as an unlicensed broker or sales agent may separately owe the state and an aggrieved person a civil penalty of one to three times the amount received.
- The Recovery Trust Account is funded in part by administrative penalties and may pay qualifying claims involving license holders, certificate holders, or their unlicensed employees or agents; an action for a judgment that may result in payment must be brought by the second anniversary of accrual, and a claimant related to the judgment debtor within the first degree by consanguinity is ineligible.
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Original lesson written for Real Estate Salesperson practice · updated October 30, 2026. Exam names are trademarks of their owners; tests.global is not affiliated with them.