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Trela Trec RulesDisciplinary_actionsMEDIUM

A broker discovers that one of his sponsored sales agents has been advertising real estate services under an assumed name that has not been registered with TREC. Which action is required of the broker?

Correct Answer

D) Require the agent to immediately stop using the unregistered name and address the advertising violation with TREC

Under TREC rules (22 TAC §535.154), all assumed names used by a license holder in advertising must be registered with TREC before use. Using an unregistered assumed name constitutes an advertising violation. The sponsoring broker is responsible for supervising the agent's compliance and must require the agent to cease the violation immediately. The broker must also address the violation with TREC, as continued use of an unregistered name exposes both the agent and broker to disciplinary action.

Answer Options
A
Allow the agent to continue using the name temporarily while the broker files a retroactive registration with TREC
B
Register the assumed name with the Texas Secretary of State, which satisfies the TREC disclosure requirement
C
Report the violation to the local Association of Realtors and defer to their disciplinary process
D
Require the agent to immediately stop using the unregistered name and address the advertising violation with TREC

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Related Topics & Key Terms

Key Terms:

fictitious_nameadvertising_violationbroker_correctionname_registration
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