What is the maximum payment TREC will make from the Recovery Trust Account per license holder?

The maximum payment TREC will make from the Recovery Trust Account per license holder is $100,000. This cap is set to protect consumers who have suffered monetary losses due to the actions of a real estate license holder. The Recovery Trust Account is a fund created by TREC to offer a financial remedy for individuals who have been wronged by a licensee's actions that culminate in a final judgment against the license holder. This mechanism ensures that there are funds available to compensate consumers, thereby enhancing trust in the real estate profession.

Understanding the limit of $100,000 is essential for both license holders and consumers because it delineates the extent of financial recourse available when claims are validated. This figure helps consumers gauge the potential risk of engaging with real estate licensees, while also prompting licensees to conduct their business ethically and responsibly to avoid reaching this threshold, which can significantly impact their professional standing and licensure.