What consequence may a licensee face if TREC pays an amount from the Recovery Trust Account?

When TREC pays an amount from the Recovery Trust Account, it is usually in response to a claim against a licensee, indicating that the licensee has caused monetary damages to a party. In such cases, the licensee is held responsible for the actions that necessitated the use of the Recovery Trust Account. As a consequence, TREC may suspend or revoke the license of that individual to ensure accountability and protect the public from potential future harm. This serves as a disciplinary measure meant to uphold the integrity of the real estate profession and maintains the standards set by TREC.

The other options do not apply in this context. Automatic renewal or upgrades of a license would not be relevant in a situation where a licensee has caused harm that requires a payout from the trust account. Additionally, extending a license for free does not align with the regulatory framework's intent to penalize misconduct. Thus, the only appropriate consequence for a licensee involved in such a scenario is suspension or revocation of their license.