The purpose of the Texas Real Estate Commission is to protect the public through regulation of licensed real estate brokerage practitioners, real estate inspectors, residential service companies, and entities offering timeshare interests. The Real Estate Commission licenses or registers competent and honest individuals and businesses, withdraws licenses or registration when warranted, implements mandatory continuing education, cooperates with other state licensing jurisdictions, sets standards for schools which offer real estate and inspector courses for credit, ensures licensing processes are practical and expedient, and disseminates information and advice as a deterrent to violations of statutes and rules.

Real estate agents in Texas were first licensed through the Securities Division of the Secretary of State's office, beginning in 1939 with passage of the Real Estate Dealers License Act (House Bill 17, 46th Legislature, Regular Session). In 1949 the Texas Real Estate Commission (TREC) was created to administer the act (Senate Bill 28, 51st Legislature, Regular Session). The act's name was changed to the Texas Real Estate License Act in 1955 when requirements were added for brokers to pass examinations for licensure (Senate Bill 209, 54th Legislature, Regular Session). Through the years, responsibility for regulating other real estate related professions has been added to the agency. The commission regulates real estate brokers and salespersons, proprietary real estate education providers, real estate inspectors (since 1981), residential service companies (since 1979), timeshare developers (since 1985), and easement or right-of-way agents (since 1997).

The policy-making body of the Texas Real Estate Commission is a nine-member commission appointed by the governor with the advice and consent of the senate for overlapping six-year terms. Six members must be active in real estate as full-time brokers for five years immediately preceding appointment. Three members must not be licensed by the commission and have no financial interest in real estate, except as consumers. The three public members were added after sunset review in 1979. Commission members are non-salaried and the governor designates the chair, who must be a licensed real estate broker. The commission appoints an administrator to oversee the agency.

Two advisory committees exist under the statutes of the Real Estate Commission. The Texas Real Estate Broker-Lawyer Committee was created in 1983 (Senate Bill 636, 68th Legislature, Regular Session); it drafts and revises contract forms for use by real estate licensees. The purpose is to expedite real estate transactions and reduce controversies while protecting the interests of the parties involved. The committee is composed of six Real Estate Commission appointees (who are licensed real estate brokers) and six lawyers, appointed by the president of the State Bar of Texas, serving staggered six-year terms. The Texas Real Estate Inspector Committee was created in 1991 to develop rules for licensing, certifying, and regulating real estate inspectors (Senate Bill 432, 72nd Legislature, Regular Session). The Inspector Committee can also conduct hearings and recommend entry of final orders in contested disciplinary cases involving inspectors. Nine members make up the committee, which is appointed by the Real Estate Commission for overlapping six-year terms. Members must have at least five years experience as a professional inspector and no more than three may be real estate brokers. The agency's general counsel serves as liaison to both committees.

The commission administers two recovery funds that provide funds to individuals who have had difficulties with real estate transactions caused by unethical and illegal dealings of licensees. The Real Estate Recovery Fund handles claims against salespersons, brokers, and easement agents. The fund was created in 1975 to replace surety bond requirements of real estate licensees. The Real Estate Inspector Recovery Fund, which was created in 1985, handles claims against inspectors. A five-person Investment Committee composed of TREC commission members and staff recommends investment strategy for the recovery funds to the full commission.

The Real Estate Commission provides funds for the Real Estate Center at Texas A&M University, which was created in 1971 (Senate Bill 338, 62nd Legislature, Regular Session). The Center conducts real estate related research based on needs of the Texas citizenry and disseminates the results and findings. The budget, staffing, and activities of the Center are approved by the Board of Regents of the Texas A&M University System. Real estate advice comes from a ten-member advisory committee appointed by the governor. Six members represent various segments of the real estate industry, three represent the general public, and one is ex officio representing the Texas Real Estate Commission.

The Real Estate Commission provides administrative support (staff services, information services, and utilities) for the Texas Appraiser Licensing and Certification Board (TALCB), which replaced the Real Estate Commission's Texas Real Estate Appraiser Certification Committee in July 1991. After the retirement of the TALCB's commissioner and deputy commissioner and upon the recommendation of the Governor’s office, the Texas Real Estate Commission Administrator began serving also as the Commissioner of the TALCB in December 2003. A memorandum of understanding between TALCB and TREC set forth the services to be provided.

In 1998 the Real Estate Commission was composed of approximately 86 FTE employees in five divisions: Administration, Enforcement, Licensing & Education, Staff Services, and Information Services. Offices are in Austin, with investigators located across the state.

In addition to leadership and day-to-day management, the Administration Division performs functions to assist and protect the consumers of real estate services. The functions include direction of the hearings process, oversight of the recovery funds, coordination of advisory committees, drafting of proposed rules and legislation, publication of the newsletter, fiscal oversight of residential service companies and implementation of staff development programs. Administration works with consumer groups, industry trade associations, other Texas agencies, educators and regulatory agencies of other jurisdictions. A staff member serves as the agency hearings officer for contested cases brought by the Enforcement Division. The staff reviews and responds to claims by consumers for payment of judgments against licensees from the two recovery funds maintained by the agency. The staff acts as the liaison to the agency's two advisory committees: the Texas Real Estate Broker-Lawyer Committee and the Texas Real Estate Inspector Committee. A staff member is the agency's chief legal advisor. By 2007 the Communication function had been transferred to the Administration Division from the Licensing and Education Division.

In 1999 the Staff Services Division provided accounting, budget, human resources, purchasing, cashier, quick copy, and other support to the agency. By 2007 the cashier function had been transferred to the Education, Licensing and Cashier Division. The Investment Officer, a member of the Staff Services Division, is appointed by and reports directly to the Commission concerning the investments in the Real Estate Recovery Fund and the Real Estate Inspection Recovery Fund.

The Information Services Division provides agency-wide support in three main areas: internal systems, cooperative systems and public access systems. Internal systems covers application software systems developed by TREC staff to increase productivity and decrease delays in answering public inquiries, including fee receipts, education evaluation, examination result posting, license and renewal processing, enforcement case tracking, open records access and education provider approval systems. The Division maintains the agency data center, a local area network (LAN) and personal computers. The Commission cooperates with the Texas Guaranteed Student Loan Corporation (TGSLC), the Office of Attorney General, the Department of Public Safety, and the Real Estate Center at Texas A&M University. In addition, the Division provides computer services for the Texas Appraiser Licensing and Certification Board. The Commission offers comprehensive public access by Electronic Mail Services, Mail List Server, and the agency website.

The Licensing and Education Division processes license applications covering real estate salespersons and brokers; apprentice, real estate, and professional inspectors; and easement or right-of-way agents. The Division ensures that education, experience, and examination requirements are satisfied. The Division is also responsible for the approval and regulation of continuing education providers and proprietary real estate schools. The commission privatized the development and administration of the licensing examinations in order to improve the accessibility, efficiency and psychometric validity of the examination process. The Communication section, staffed by employees trained in all aspects of the agency, is the primary telephone contact for the public and licensees. This section also analyzes and responds to the customer satisfaction survey forms. By 2007 the Communication section had been moved to the Administration Division and the cashier function had been moved from the Staff Services Division to the renamed Licensing, Education, and Cashier Division.

The Enforcement Division provides enforcement of the Real Estate License Act and other statutes administered by TREC. In the 1998 fiscal year, 2,612 complaints were processed. Most of these complaints relate to the purchase or lease of a home. The division also reviews applications to determine the honesty, trustworthiness, and integrity of applicants. The division makes use of the full range of disciplinary remedies authorized by the Real Estate License Act. The division answers consumer and licensee questions concerning the Commission's procedures, the License Act and Rules, and other statutes administered by TREC. The staff provides speakers to various organizations as resources permit. The division also is responsible for the enforcement of the Residential Service Company Act and the Texas Timeshare Act.

(Sources include: the appraisal report prepared by State Archives staff ( http://www.tsl.state.tx.us/arc/appraisal/realestate.html), accessed May 21, 2007; the Guide to Texas State Agencies, 11th ed. (2001); and the agency's website, http://www.trec.state.tx.us/, accessed May 21, 2007.)