Texas License Law
TREC's Real Estate Recovery Trust Account provides funds to compensate consumers who have been harmed by a licensed Texas real estate agent when:
AThe agent fails to close on time
BA court judgment against the agent is uncollectable due to insolvency✓ Correct
CThe agent earns too high a commission
DA buyer is outbid on a property
Explanation
The TREC Real Estate Recovery Trust Account allows consumers who have obtained a court judgment against a license holder and cannot collect due to insolvency to apply for payment from the fund. There are limits on the amount recoverable. The license holder's license is revoked upon payment from the fund.
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