Which organization administers penalties for real estate license violations?

Which organization administers penalties for real estate license violations?

• A. HUD
• B. TREC
• C. NAR
• D. FTC

Answer: (B)

Discipline for real estate license violations is handled by the state agency that licenses and regulates real estate professionals. In Texas, that authority rests with the Texas Real Estate Commission, which not only licenses and educates licensees but also enforces rules and can discipline licensees through fines, probation, suspension, or revocation. Federal agencies like HUD deal with housing programs and fair housing enforcement, not state license penalties. The FTC handles consumer protection and competition issues, not licensure discipline. The NAR is a private professional association that can sanction its members under its ethics rules, but it does not administer official licensing penalties.

Discipline for real estate license violations is handled by the state agency that licenses and regulates real estate professionals. In Texas, that authority rests with the Texas Real Estate Commission, which not only licenses and educates licensees but also enforces rules and can discipline licensees through fines, probation, suspension, or revocation. Federal agencies like HUD deal with housing programs and fair housing enforcement, not state license penalties. The FTC handles consumer protection and competition issues, not licensure discipline. The NAR is a private professional association that can sanction its members under its ethics rules, but it does not administer official licensing penalties.