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Trela Trec RulesDisciplinary_actionsMEDIUM

A license holder drafts custom contract language outside of TREC-promulgated forms, which constitutes unauthorized practice of law. Under TRELA and Texas law, which of the following correctly identifies the potential consequences?

Correct Answer

B) Disciplinary action by TREC including potential license suspension, and possible prosecution for unauthorized practice of law by the State Bar of Texas or a county/district attorney

Under Texas Occupations Code §1101.654, engaging in the unauthorized practice of law is an enumerated ground for TREC disciplinary action, which may include license suspension or revocation. Separately, unauthorized practice of law in Texas may be prosecuted by the State Bar of Texas under Texas Government Code §81.101 or by a county or district attorney. Both enforcement tracks can proceed simultaneously and neither requires proof of financial harm.

Answer Options
A
Disciplinary action by TREC only, provided the custom language resulted in documented financial harm to a party
B
Disciplinary action by TREC including potential license suspension, and possible prosecution for unauthorized practice of law by the State Bar of Texas or a county/district attorney
C
Referral to the Texas Association of Realtors for a code of ethics hearing, with TREC taking no independent action
D
A civil fine assessed by the State Bar of Texas only, with no involvement from TREC unless a formal consumer complaint is filed

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Related Topics & Key Terms

Key Terms:

unauthorized_practice_lawdisciplinary_actionstate_barchapter_1101
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