TRELA

TRELA forms the legal core of Texas real estate regulations. Passed in 1949, this statute is codifed under Chapter 1101 of the Texas Occupations Code and establishes all license requirements, operational restrictions, and professional standards of conduct.

Texas-Specific Nuance & Citation

The entire authority of the Texas Real Estate Commission flows from TRELA (Texas Occupations Code Chapter 1101). Any agent who violates TRELA regulations is subject to administrative penalties, license revocation, and civil lawsuits.

The Trap

Many candidates confuse TRELA (the law passed by the Texas Legislature) with TREC Rules (the regulations adopted by the Commission). TRELA is state statute and can only be amended by the Texas state legislature, whereas TREC Rules can be updated directly by the 9 commissioners.

Worked Example

An unlicensed individual in Plano is caught negotiating home sales on behalf of friends for a 3% commission. Under TRELA §1101.756, this unlicensed brokerage activity is a Class A misdemeanor, and TRELA authorizes civil penalties of up to $5,000 per violation per day.