Standards & Enforcement Services is frequently asked – “What are your most common violations?” And, “How do I stay out of trouble?”
The agency regularly disciplines license holders for the following issues.
- SUPERVISE your sales agents. It is not a defense to broker supervision (Rule 535.2) to say you don’t supervise your sales agents. In other words, saying “I didn’t know about it” is sometimes more of an admission than a defense.
- Register your assumed name within 30 days of using it (or when you stop using it). When it’s a sales agent’s name, this must be done by the sponsoring broker. We have a form for that (the DBA-2 form). (Rule 535.154(e).)
- If it’s a legal entity like an LLC or a corporation that conducts real estate brokerage (ex. is on the contract as the broker), be sure you have a separate license for that entity. It isn’t enough that you have an individual license and “registering” a separate legal entity with us doesn’t work (that only works for assumed names).
- Cooperate with an investigation. Not responding to a TREC investigator’s request for an interview or documents is usually a straightforward violation. (TRELA §§1101.652(a)(4) and (a-1)(2).). (“TRELA” is The Texas Real Estate License Act, which is at Chapter 1101, Texas Occupations Code. It’s on our website.)
- Tell us in writing within 30 days of final entry of your felony or fraud conviction, guilty plea, or nolo contendere plea. (TRELA §§1101.652(a)(4) and (a-1)(2).) Failure to comply with this carries a minimum penalty of $1,000.
- Be careful about conducting property management. Make sure you are well-trained and supervised in this area. About 15-25 percent of the agency’s real estate brokerage complaints relate to property management.
- Be nice – customer service works wonders. Once we have a complaint, we may notice something the customer or client didn’t even complain about. The best defense is that the agency never hears about the issue because you already took care of it.