What action may the Texas Real Estate Commission take if the Real Estate Recovery Trust Account drops below $1 million?

The Texas Real Estate Commission (TREC) is responsible for maintaining the Real Estate Recovery Trust Account, which provides a source of financial protection for consumers who are wronged in real estate transactions. If the balance of this account falls below $1 million, TREC has the authority to ensure that the account is adequately funded to continue providing this protection.

To do this, one of the actions they can take is to assess an additional fee to each license holder. This method effectively raises the required funds to replenish the account without drastically altering the operational structure of the commission or imposing burdensome requirements on all license holders. This approach emphasizes the importance of maintaining consumer protection while distributing the responsibility among all licensees.

The other options, such as disbanding the commission or requiring additional training, do not directly address the financial viability of the Recovery Trust Account, nor do they offer a practical solution to the issue at hand. By assessing an additional fee, TREC can ensure that the Recovery Trust Account remains above the necessary threshold, thereby safeguarding consumer interests in Texas real estate transactions.