A consumer in Houston paid $50,000 as earnest money for a home purchase. The sponsoring broker of the listing agent misappropriated the funds. After exhausting other remedies, the consumer applies to the Texas Real Estate Recovery Trust Account. What is the maximum amount the consumer can recover from the Trust Account for this single transaction?
Correct Answer
D) $50,000 per transaction, subject to a $100,000 lifetime cap per license holder
Under Texas Occupations Code §1101.606, the Real Estate Recovery Trust Account provides up to $50,000 per transaction and $100,000 per license holder in aggregate. Since the consumer's loss is $50,000, the full amount could potentially be recovered, subject to the lifetime cap against that particular license holder.
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More Trela Trec Rules Questions
Under TREC rules, a trust account used by a Texas real estate broker to hold client funds must be maintained at which type of institution?
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