law
Real Estate Recovery Trust Account (Texas)
The Texas Real Estate Recovery Trust Account reimburses aggrieved persons who suffer actual damages from a license holder's fraud, misrepresentation, deceit, or similar TRELA violations and cannot collect a final judgment. The suit must be filed within two years after the cause of action accrues, with notice to TREC. Payments are capped at $125,000 per transaction and $250,000 per license holder, including attorney fees, interest, and costs, reduced proportionately when exceeded. If the license holder does not repay before the 31st day after notice, TREC must revoke the license.
- Exam tip
- 'One-twenty-five per deal, two-fifty per agent, two years to file.' Older materials show lower figures that are no longer current.
- Example
- Three defrauded buyers in one condo sale hold $150,000 in judgments; each is reduced proportionately so total payments equal $125,000.
Related terms & state variants
Sources
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Last verified: 2026-10-23