TREC investigates a license holder and finds credible evidence that the license holder refused to show a property to a prospective buyer based on the buyer's race. Which of the following best describes TREC's authority to act on this finding?
Correct Answer
A) TREC may take disciplinary action because the conduct violates TRELA's prohibition on dishonest dealing and the Canons of Professional Ethics, independent of any federal fair housing proceeding
TREC does not enforce the federal Fair Housing Act directly, but it has independent authority under TRELA §1101.652(b) to discipline a license holder for dishonest dealing, misrepresentation, and violations of the Canons of Professional Ethics. Racial discrimination in a real estate transaction constitutes dishonest dealing and a breach of the ethical standards codified in 22 TAC §531.1. TREC may pursue disciplinary action on these grounds regardless of whether a parallel federal or state fair housing proceeding is initiated or concluded.
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