What action does TREC take if the Recovery Trust Account balance falls below $1 million?

The Texas Real Estate Commission (TREC) is responsible for maintaining the Recovery Trust Account, which provides financial relief to consumers who have been financially harmed by real estate license holders. When the balance of this account falls below $1 million, TREC has established procedures to ensure that the account is replenished.

To restore the balance, TREC will require licensed real estate agents to pay an additional renewal fee. This fee is specifically aimed at bolstering the financial resources of the Recovery Trust Account, ensuring that it is adequately funded to handle future claims made by aggrieved consumers. This process ensures that consumers can still access the funds they may need for claims without leaving the account in a vulnerable state.

Other options, like stopping new claims or closing the account, would undermine the purpose of the Recovery Trust Account, which is to protect consumers and maintain the integrity of the real estate industry. Increasing fees for all real estate transactions does not directly address the funding mechanism for the Recovery Trust Account and would likely create unnecessary burden on consumers and agents alike.