Texas License Law
When TREC audits a Texas broker's trust account and finds that client funds have been commingled with the broker's personal or operating funds, TREC may:
AIssue a warning letter only
BSuspend or revoke the broker's license and impose civil penalties✓ Correct
COnly require the broker to attend additional CE courses
DNotify the Texas Association of REALTORS
Explanation
Commingling is a serious violation of TREC rules that can result in license suspension or revocation, civil penalties, and referral for criminal prosecution if client funds were converted for personal use (embezzlement). TREC audits brokers' trust accounts to ensure compliance with trust accounting requirements.
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