What TREC Does With Administrative-Penalty Funds
When a real estate license holder is found in violation of The Real Estate License Act, the Texas Real Estate Commission can impose an administrative penalty. The law requires that these administrative-penalty funds be deposited into the Real Estate Recovery Trust Account, which disperses money to consumers owed damages due to a license holder’s conduct and subsequent inability to pay. Consumers can apply for reimbursement from this trust account after filing a suit and obtaining a court judgment for damages against a licensed real estate broker, sales agent, or easement/right-of-way agent. Learn more about the trust account on trec.texas.gov.
Then what happens to the $$$, does the State take all but $50,000 to keep in the fund then the rest goes into the General Fund?
Not funny. The TREC staff does a great job and your stupid comments are not appreciated.
You can read everything about the recovery fund in sec 1101.601-1101.615. In particular 1101.604 which deals with “MANAGEMENT OF TRUST ACCOUNT” Sec. 1101.604. MANAGEMENT OF TRUST ACCOUNT. (a) The commission shall hold money credited to the trust account in trust to carry out the purpose of the trust account. (b) Money credited to the trust account may be invested in the same manner as money of the Employees Retirement System of Texas, except that an investment may not be made that would impair the liquidity necessary to make payments from the trust account as required by this subchapter. (c) Interest… Read more »
You can read everything about the recovery fund in sec 1101.601-1101.615. In particular 1101.604 which deals with “MANAGEMENT OF TRUST ACCOUNT” Sec. 1101.604. MANAGEMENT OF TRUST ACCOUNT. (a) The commission shall hold money credited to the trust account in trust to carry out the purpose of the trust account. (b) Money credited to the trust account may be invested in the same manner as money of the Employees Retirement System of Texas, except that an investment may not be made that would impair the liquidity necessary to make payments from the trust account as required by this subchapter. (c) Interest… Read more »
Yes. All funds exceeding the greater of $3.5 million or all claims paid is required to be transferred to the general fund. Read the cases construing the statute. To recover, a victim has to have the means to sue, get relief from the automatic stay if the defendant files for bankruptcy, take the matter to trial and judgment, perhaps get a determination that the debt is excepted from discharge in any bankruptcy, then seek recovery from the trust fund, fund any appeal, and have done everything exactly right, or the claim will be denied.
This is not the place for you to promote you business