When can TREC initiate an investigation against a licensee?

The correct answer is based on TREC's authority to investigate complaints against licensees within a specified timeframe. TREC can initiate an investigation when a signed complaint is received, and this complaint must be dated within the last four years. This timeframe is significant as it aligns with the statute of limitations pertaining to real estate violations, ensuring that complaints are relevant and actionable.

Option A reflects the requirement for a formal complaint process, which is essential for TREC to maintain accountability and address potential misconduct. TREC relies on these complaints as a foundational method to ensure that licensees adhere to regulatory standards and ethical practices.

Investigations are not initiated arbitrarily; therefore, the other options don't align with TREC's established processes. The commission does not have the authority to initiate investigations without a formal complaint or specific circumstance that warrants a closer examination, such as the options suggesting random reviews or the necessity of a consumer's lawsuit.