Section 16 of the Texas real estate licensing Act
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The Texas Real Estate Act (TRELA) is state legislation that sets standards for how real estate agents conduct themselves in Texas. It resides in Title 7 Chapter 1101 of the Texas Occupations Code. Show
The History and Purpose of TRELATRELA was originally passed in 1939 as the Real Estate Dealers License Act. In 1955, it was renamed the Texas Real Estate License Act. The original law set up a licensing system for people who broker the sale of real estate. By defining who has the legal authority to perform certain actions in the real estate market, Texas was able to protect the public by enforcing a certain level of competence and ethics. Real estate license laws were administered by the Texas secretary of state for the first ten years. In 1949, the Texas Real Estate Commission (TREC) was created to administer and enforce TRELA. Over time, TREC became responsible for regulating real estate professionals beyond salespersons and brokers, including inspectors, education providers, timeshare developers, and more. BEST SELLER Package 98-Hour Texas SAE Package with Legal Update I & II - Pick Your OwnGet 98 hours of SAE and Legal Update courses required for your first renewal. 299.00 254.15 DETAILS Buy Now BEST SELLER Package Texas 18-Hour Broker CE PackageMeet all continuing education requirements as a supervising/designated broker. 79.00 71.10 DETAILS Buy Now BEST SELLER Package Texas 18-Hour CE PackageMeet continuing education requirements as a salesperson/non-supervising broker. 69.00 62.10 DETAILS Buy Now BEST SELLER Package 90-Hour Texas SAE Package - Pick Your OwnChoose from a selection of SAE courses to meet your first renewal requirements. 279.00 237.15 DETAILS Buy Now Individual Course Texas Legal Update I (2022-2023)Learn about recent updates, changes, and addendums to Texas laws and regulations. 25.00 DETAILS Buy Now Individual Course Texas Legal Update II (2022-2023)Consider ethical requirements and concerns you'll face as you practice real estate. 25.00 DETAILS Buy Now Individual Course Texas Exam PrepGet study guides and unlimited practice for the salesperson and broker exams. 79.00 DETAILS Buy Now What Does the Texas Real Estate Act Do?In its current form, TRELA creates two license levels for professionals who assist in the sale of real estate: Salesperson and Broker. It defines what activities require a real estate license in Texas and which activities are reserved for Brokers. TRELA lays out the minimum requirements for obtaining a Texas real estate license. It also sets expiration and renewal terms to make it easier to hold licensees to updating standards. The act establishes a code of ethics and standard of conduct for the behavior of real estate salespersons and brokers, regarding both their treatment of consumers and competition. It establishes disciplinary proceedings, penalties, and civil or criminal liability. It creates processes for filing a complaint against a license holder. TRELA also requires real estate licensees to use standard contract forms that are drafted and revised by the Texas Real Estate Broker-Lawyer Committee, in order to make the terms of real estate transactions more consistent. Finally, the Texas Real Estate Act establishes the rules for the membership and appointment of both TREC and the Real Estate Broker-Lawyer Committee, as well as the rules by which both committees operate. Does TRELA Contain All the Rules for Texas Salespersons and Brokers?No, because TRELA empowers the Texas Real Estate Commission to create administrative rules, as well. Some of TREC's rules add specificity to TRELA's provisions, and some create related policies. Additionally, there are federal regulations that affect the conduct of all U.S. real estate agents, like the U.S. Fair Housing Act. Your county or municipal jurisdiction may have other rules. How Do You Learn More About TRELA's Provisions?Required education about TRELA is actually built into TRELA's criteria. It's easy to forget TRELA is behind much of your real estate education. In many cases, your coursework won't specify whether a particular rule comes from TRELA or TREC or somewhere else – the source matters less than knowing the rules themselves. Still, as you sit down for Texas pre-license courses, SAE courses, or continuing education, you'll be studying the Texas Real Estate License Act, whether you realize it or not. What disqualifies you from getting a real estate license in Texas?felonies involving the manufacture, delivery, or intent to deliver controlled substances. fraud or misrepresentation. forgery, falsification of records, or perjury. offering, paying, or taking bribes, kickbacks, or other illegal compensation.
Can you get a real estate license with a misdemeanor in Texas?So yes, you might be able to get a real estate license even if you have a criminal record. If you present enough evidence that proves your honesty, trustworthiness, and integrity, you can convince TREC that you would be a respectable agent.
Can you lose your real estate license in Texas?In Texas, conviction for a “crime of moral turpitude,” which includes murder, rape, robbery or embezzlement, will get your license immediately revoked. According to Paul Beakley, writing in Realtor Mag, it is impossible for anyone with a prior felony conviction to initially receive a real estate license in any state.
What is needed for a contract to be discharged in Texas real estate?A contract can be discharged by complete performance or material nonperformance of the contractual duty.
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