47 topics · Updated 2026-09-17
When a sales agent's relationship with their sponsoring broker terminates, the terminating party must immediately notify both the other party and the commission in writing. The commission then places the license on inactive status.
The commission may place a broker's license on inactive status if the broker is not acting as a broker, not sponsoring a sales agent, and submits written application before expiration. An expired license may go inactive if applied for within six months. A broker applying for inactive status must terminate sponsorship of each sales agent by written notice before the 30th day preceding the application.
The commission shall remove a broker's license from inactive status if the broker submits an application, pays the required fee, and provides proof of continuing education under Section 1101.455 during the two years preceding the application.
A sales agent license may return to active status if, before expiration, a licensed broker files a request assuming sponsorship with the appropriate fee. An inactive sales agent not subject to Section 1101.454 education must provide proof of CE under Section 1101.455 for the two preceding years.
The commission shall revoke a license/registration if it makes a payment from the real estate recovery trust account on behalf of a holder and the holder does not repay the full amount before the 31st day after notice is provided. The commission may probate the revocation order.
A person is not eligible for a license or certificate until the person has repaid in full the amount paid from the account on their behalf, plus interest at the legal rate. If payment is made for a business entity or its designated broker, the commission proceeds against both.
A license exam must evaluate competence in the subject matter of each required core inspection course. The commission prescribes and prepares or contracts for the exam. The commission must offer each license examination at least once every two months in Austin.
A license applicant who does not satisfy the examination requirement before the first anniversary of the application filing date must submit a new application and pay another examination fee to remain eligible.
An applicant who fails may reapply by filing a request and paying another exam fee. An applicant who fails three consecutive times may not reapply or submit a new application unless they complete additional educational requirements prescribed by the commission after the third failure.
TREC must notify each examinee of results within 30 days of the exam. If graded by a national testing service, notice is due within 14 days of receiving results. If results will not be given before the 91st day, the commission must notify the examinee of the reason for delay before the 90th day. A person who fails may request a written performance analysis.
The competency requirement is established by an examination prepared or contracted by the commission. The exam must be of sufficient scope to protect the public, and the sales agent exam must be less exacting than the broker exam. Applicants must satisfy the exam requirement within one year of filing the application.
An applicant who fails may reapply by filing a request with the proper fee. An applicant who fails three consecutive times may not reapply or submit a new application unless they submit satisfactory evidence of completing additional education prescribed by the commission since the last exam.
The commission shall waive the exam requirement if the applicant was previously licensed in Texas as a broker or sales agent and the application is filed before the second anniversary of the expiration date of the equivalent license.
The commission or testing service must notify each examinee of results within 10 days of administration; if delayed beyond 10 days, notice of the reason must be given before the 10th day. A person who fails may request a written performance analysis. Exam results are confidential.
The commission administers exams unless it contracts with a testing service. It may accept a testing-service exam if it retains authority over scope and type, and may require the service to correspond with applicants, collect fees, and administer at specific locations and frequencies.
An unexpired license is renewed by paying the required fee before expiration and providing proof of financial responsibility. Expired 90 days or less: pay 1-1/2 times the renewal fee. Expired more than 90 days but less than six months: pay 2 times the renewal fee. Expired six months or longer: cannot renew and must obtain a new license (reexamination if required).
As a prerequisite for renewal of any inspector license, the inspector must participate in the continuing education program and complete at least 16 classroom hours of core inspection or continuing education courses for each year of the license period preceding renewal.
The commission may issue or renew a license for a period not to exceed 24 months. A renewal fee, calculated annually, may not exceed the fee established under Section 1102.251.
Each renewal applicant must disclose whether they entered a plea of guilty or nolo contendere to a felony, or were convicted of a felony where appeal time has elapsed or was affirmed. This disclosure is required even if community supervision suspended the sentence.
The commission must provide notice of expiration to the license holder not later than the 31st day before the license expiration date.
The commission may deny renewal if the applicant is in violation of a commission order. Denial procedures under Section 1101.459 apply.
TREC consists of nine members appointed by the governor with senate advice and consent: six who have been licensed brokers engaged in brokerage as their major occupation for the five years preceding appointment, and three who represent the public. Each member must be a qualified voter. Appointments are made without regard to race, color, disability, sex, religion, age, or national origin.
Members serve staggered six-year terms with three terms expiring January 31 of each odd-numbered year. The governor designates a licensed broker member as presiding officer. Grounds for removal include lacking or not maintaining required qualifications, ineligibility, inability to discharge duties, or absence from more than half of eligible meetings. Commission action validity is not affected by an existing removal ground.
A person may not be a member/executive-capacity employee if the person or spouse is an officer/employee/paid consultant of a Texas trade association in real estate, or if required to register as a lobbyist. Members receive $75 per day of official duties plus reimbursement for actual/necessary expenses. Appointees must complete training before voting and take the constitutional oath within 15 days of appointment.
The commission may suspend or revoke a license, place a suspended person on probation, or reprimand a license holder for chapter/rule violations. Probated suspensions/revocations may require the holder to report regularly, limit practice to a prescribed area, or continue professional education until attaining satisfactory skill.
The commission may require license holders to use contract forms prepared by the Texas Real Estate Broker-Lawyer Committee and adopted by the commission. It may NOT prohibit use of a form prepared by the property owner, or prepared by an attorney and required by the owner. Adopted listing forms must state that real estate commissions are negotiable and explain availability of coastal natural hazards information where appropriate.
The commission shall administer Chapters 1101 and 1102, adopt rules/standards for advertising by residential rental locators, maintain a certificate holder registry, and design a seal. The commission may adopt and enforce rules and establish standards of conduct and ethics for license holders to fulfill the chapters' purposes and ensure compliance.
The commission may not adopt rules restricting advertising or competitive bidding except to prohibit false, misleading, or deceptive practices. Even those rules may not restrict advertising media, personal appearance/voice, size/duration of ads, or use of a registered assumed/trade name, and may not require the terms 'broker,' 'agent,' a TREC reference, or license number in ads.
The commission adopts rules to charge fees reasonable and necessary to cover administration and the real estate recovery trust account, including fees for original applications, renewals, examinations, changes (place of business, name, sponsoring broker, return to active), replacing lost licenses, education program approval/operation, transcript evaluation, license history, fitness determinations, criminal history checks, and business entity registration. Continuing education provider/course approval fees are also set by rule.
Additional fees apply for license issuance/renewal: broker license adds $70 per year of term; sales agent license adds $20 per year; certificate of registration adds $20 per year. These fees are transmitted at least quarterly to Texas A&M University for the Texas Real Estate Research Center.
The commission may request and, if necessary, compel by subpoena the attendance of witnesses under oath and production of records relevant to investigating alleged violations. Subpoenas issue statewide. If a person fails to comply, the commission (through the attorney general) may sue to enforce in a Travis County district court or the hearing county; the court orders compliance if good cause exists.
The commission may issue or renew a license for up to 24 months and may adopt staggered expiration dates, prorating renewal fees. A renewal fee may not exceed, on an annual basis, the sum of fees under Sections 1101.152 and 1101.154.
A license expired 90 days or less may be renewed by paying 1-1/2 times the renewal fee. Expired more than 90 days but less than six months requires two times the fee. If expired six months or longer, the license cannot be renewed and a new license must be obtained.
An applicant for the first renewal of a sales agent license must show completion of at least 18 semester hours (or equivalent classroom hours) of qualifying real estate courses, including hours required by 1101.455(e). The commission may not waive these requirements.
A license holder not subject to 1101.454 must complete CE (at least 15 classroom hours) during the current license term; the commission cannot increase required hours by more than three over the license term. At least eight hours must cover current information on specified legal topics (commission rules, fair housing, Property Code/landlord-tenant, agency, antitrust, DTPA, disclosures, promulgated forms, unauthorized practice of law, tax laws, ethics, etc.).
To renew an active license not subject to 1101.454, the holder must show CE compliance under 1101.455. Each renewal applicant must disclose whether they entered a plea of guilty/nolo contendere to a felony or were convicted of a felony, even if community supervision suspended the sentence.
To renew, a business entity must designate a managing officer as its broker and, if the designated broker owns less than 10% of the entity, provide proof of errors and omissions insurance with a minimum annual limit of $1 million per occurrence. A business entity may not act as broker unless the designated broker is a licensed individual broker in active status and good standing.
The commission automatically approves qualifying real estate courses and State Bar-approved real estate-related CLE courses. Exams are not required for CE courses unless they are alternative delivery/correspondence or courses under Subsection (e) or Section 1101.458. Correspondence courses cannot be reported until elapsed time equals or exceeds the credit hours claimed.
During the current license term, a broker responsibility course approved by the commission must be attended by a broker and by a sales agent who supervises another license holder. The course may not exceed six classroom hours and its hours count toward CE under 1101.455(f). It does not apply to brokers exempt under 1101.456.
The commission may deny renewal of a license if the applicant is in violation of a commission order. The denial is subject to the same provisions as a license denial under Section 1101.364.
An applicant for renewal of an unexpired license must comply with the criminal history record check requirements of Section 1101.3521.
Brokers who qualified before October 31, 1991 under former law for a CE exemption need not comply with mandatory CE. The commission may allow deferral of CE, requiring an additional fee (not exceeding $200) and completion within 60 days after the license is issued, renewed, or returned to active status.
The commission may suspend or revoke the approval to offer a program or course of study issued under Subchapter G, or take other disciplinary action, if the provider violates the chapter or a rule adopted under it.
The commission must charge reasonable and necessary fees to cover administration costs, including fees for original applications and renewals of apprentice, real estate, and professional inspector licenses; the license examination; changing a place of business or replacing a lost/destroyed license; and requesting issuance due to a change of name, return to active status, or change in sponsoring professional inspector.
The commission must investigate when a signed written complaint plus evidence shows reasonable cause. Investigations may not be based on anonymous complaints. No investigation may occur for a complaint submitted later than the fourth anniversary of the incident. The commission gives priority to consumer complaints using a risk-based approach considering potential/immediate harm, severity, number of license holders, complaint history, and number of violations. Meritless complaints must be dismissed.
The commission by rule prescribes a complaint notice (name, mailing address, phone) and establishes methods to provide it to consumers by regulated persons. The commission must provide complainants and the license holder an explanation of available remedies and information about appropriate agencies. It maintains a complaint file with parties, subject matter, review summary, and disposition.
Investigation files and related materials compiled in connection with a complaint, investigation, or audit are confidential and not subject to disclosure, discovery, or subpoena. Exceptions allow disclosure to the respondent, audit subject, service providers/experts/witnesses, licensing entities in other jurisdictions, law enforcement, SOAH, and the commission for proceedings. The complainant's identity must be protected. Upon dismissal or final resolution, materials become subject to disclosure.
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