A Texas licensee convicted of a felony:
Audio Lesson
Duration: 2:38
Question & Answer
Review the question and all answer choices
Automatically loses their license
A is incorrect because Texas law doesn't mandate automatic license revocation for felony convictions. While serious, the outcome requires a hearing where TREC considers various factors before deciding on disciplinary action.
May have their license suspended or revoked
Can continue practicing
C is incorrect because practicing with a felony conviction without TREC approval would violate licensing requirements. Licensees must maintain compliance with all state regulations to continue practicing legally.
Must pay a fine only
D is incorrect because fines alone aren't the only consequence. TREC has broader authority including suspension or revocation, not just monetary penalties, for felony convictions.
Why is this correct?
B is correct because TREC rules allow for discretionary disciplinary action following a felony conviction. The Commission may suspend or revoke a license based on factors like the crime's relevance to real estate practice, rather than applying an automatic penalty.
Deep Analysis
AI-powered in-depth explanation of this concept
Understanding the consequences of felony convictions for real estate licensees is crucial because it directly impacts an agent's livelihood and career. This question tests knowledge of Texas Real Estate Commission (TREC) disciplinary actions. The core concept is that felony convictions don't automatically result in license revocation but trigger a review process. TREC evaluates factors like the nature of the crime, its relation to real estate, and time elapsed since conviction. The correct answer 'B' reflects this balanced approach, allowing for proportionate disciplinary action. This question is challenging because it requires knowing that automatic revocation (option A) isn't standard in Texas, and many assume criminal charges directly equal license termination. This connects to broader knowledge of administrative law principles where agencies have discretion in disciplinary matters rather than applying mandatory penalties.
Knowledge Background
Essential context and foundational knowledge
The Texas Real Estate Commission (TREC) has authority to regulate licensees through disciplinary actions outlined in the Texas Occupations Code. Felony convictions trigger a review process because they demonstrate moral turpitude or untrustworthiness, which are grounds for disciplinary action. This regulatory approach balances protecting the public with recognizing that not all felonies are equally relevant to real estate practice. The Commission evaluates factors including the crime's relationship to real estate, time elapsed since conviction, and the licensee's conduct since the conviction.
Think of TREC's disciplinary process like a judge considering sentencing - not all crimes lead to the harshest penalty, and the judge weighs many factors before deciding.
When you see a question about disciplinary actions, imagine a judge weighing evidence rather than applying automatic penalties.
For disciplinary action questions, remember that real estate commissions typically have discretion rather than applying automatic penalties. Look for keywords like 'may suspend or revoke' rather than 'automatically' to identify correct answers.
Real World Application
How this concept applies in actual real estate practice
A Texas real estate agent is arrested for felony embezzlement at their previous job in a completely unrelated field. Despite the charges, they continue working while the case proceeds. After conviction, TREC initiates disciplinary proceedings. The agent presents evidence showing remorse, restitution to victims, and five years of clean real estate practice. TREC suspends the license for six months rather than revoking it, recognizing the crime wasn't directly related to real estate and the agent had demonstrated rehabilitation.
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