Real Estate Recovery Fund
A Texas account that reimburses a member of the public who holds an uncollectible court judgment against a license holder for certain violations.
The Texas Real Estate Recovery Trust Account can reimburse a member of the public who wins a court judgment against a license holder for specified violations in a real estate transaction, when that judgment cannot be collected from the license holder. Payments are subject to statutory caps per transaction and per license holder.
After the account pays a claim, the license holder's license is suspended until the license holder repays the account in full, plus interest.
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- TREC (Texas Real Estate Commission)
The state agency that administers and enforces TRELA, adopts the TREC Rules, and licenses and disciplines Texas real estate license holders.
- Disciplinary Action (TREC)
The range of sanctions TREC may impose for a TRELA or rule violation, from a fine or reprimand to suspension or revocation.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.