Skip to Content

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.

  1. 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.
  2. 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).)
  3. 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).
  4. 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.)
  5. 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.
  6. 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.
  7. 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.