What action could lead to the revocation of a sales agent's license by TREC?

The revocation of a sales agent's license by the Texas Real Estate Commission (TREC) can result from serious violations that compromise the integrity of real estate transactions. One such action is depositing a buyer's earnest money directly into the sales agent's personal account. This practice is considered a violation of ethical standards and legal regulations governing real estate transactions.

Earnest money is meant to demonstrate a buyer's good faith in a transaction and must be held in a dedicated trust account, separate from the agent's personal or business accounts, to ensure that the funds are safeguarded until closing. Any breach of this requirement suggests mismanagement or dishonesty, which is why it can lead to severe disciplinary actions, including license revocation.

In contrast, other actions like failing to market a property properly or refusing to disclose property defects, while detrimental to the transaction and potentially leading to other disciplinary actions, do not have the same immediate legal implications as mishandling earnest money. Misrepresenting property value is also very serious, but the direct legal framework around handling earnest money makes that action particularly severe in the eyes of TREC.