Dallas real estate professionals must comply with TREC licensing, fair housing laws, disclosure requirements, and operational standards. This guide covers essential compliance for agents, brokers, and property managers.
TREC Licensing
Sales Agent License
Requirements:
- 180 hours pre-licensing education
- Pass state exam
- Sponsoring broker required
Costs:
- Education: $300-$600
- Exam fee: $54
- License fee: $205
- Fingerprints: $38
- Total: $597-$897
Renewal:
- Every 2 years
- Fee: $205
- CE: 18 hours (8 legal, 3 ethics, 7 elective)
Broker License
Requirements:
- 4 years as sales agent OR bachelor's degree + 1 year
- 270 hours broker education
- Pass broker exam
Costs:
- Education: $500-$1,000
- Exam fee: $68
- License fee: $205
- Total: $773-$1,273
Renewal:
- Every 2 years
- Fee: $205
- CE: 18 hours
Property Manager License
Requirements:
- Same as broker license
- Manage property for others for fee
Alternative:
- Sales agent under broker supervision
- No separate license if managing own property
Fair Housing Compliance
Protected Classes
Federal (Fair Housing Act):
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability
Texas additions:
- None at state level
- Local ordinances may add protections
Prohibited Practices
Discrimination in:
- Advertising
- Showing properties
- Terms and conditions
- Steering
- Blockbusting
- Redlining
Penalties:
- HUD complaint: $16,000-$65,000
- DOJ lawsuit: Unlimited damages
- Private lawsuit: Actual + punitive damages
Fair Housing Training
Requirements:
- Not mandatory but recommended
- Annual training best practice
Costs:
- Online course: $50-$150
- In-person: $100-$300
Disclosure Requirements
Seller's Disclosure Notice
Required for:
- Residential property (1-4 units)
- Seller-occupied
- Not required: New construction, foreclosures
Timing:
- Before contract execution
- Buyer has right to terminate within 7 days
Penalties:
- Failure to disclose: Lawsuit
- Damages: Actual + attorney fees
Lead-Based Paint Disclosure
Required for:
- Pre-1978 residential property
- Federal requirement
Requirements:
- Disclosure form
- EPA pamphlet
- 10-day inspection period
Penalties:
- Civil: $16,000+ per violation
- Criminal: Fines + imprisonment
Homeowners Association
Disclosure required:
- HOA existence
- Fees and assessments
- Restrictions
- Financial condition
Timing:
- Before contract execution
- Buyer review period
Transaction Compliance
Earnest Money
Requirements:
- Deposit within reasonable time
- Separate trust account
- Accounting records
- Disbursement authorization
Violations:
- Commingling funds
- Unauthorized use
- Failure to deposit
Penalties:
- License suspension/revocation
- Criminal charges
- Civil liability
Contract Requirements
Essential elements:
- Written and signed
- Legal description
- Purchase price
- Earnest money amount
- Closing date
- Contingencies
TREC-promulgated forms:
- Required for most transactions
- Exceptions: Commercial, new construction
Closing Compliance
RESPA requirements:
- Closing Disclosure (3 days before)
- No kickbacks
- Affiliated business disclosure
Title insurance:
- Required in Texas
- Regulated rates
- Owner's and lender's policies
Property Management Compliance
Trust Account Requirements
Separate accounts:
- Security deposits
- Rent collections
- Owner funds
Record keeping:
- Monthly statements
- Annual reconciliation
- 4-year retention
Violations:
- Commingling: License revocation
- Misappropriation: Criminal charges
Security Deposit Rules
Texas requirements:
- Return within 30 days
- Itemized deductions
- Normal wear and tear excluded
Penalties:
- Failure to return: 3x deposit + $100
- Bad faith: Attorney fees
Maintenance and Repairs
Landlord obligations:
- Habitability standards
- Timely repairs
- Safety compliance
Tenant rights:
- Repair and deduct
- Lease termination
- Rent withholding (limited)
Insurance Requirements
Errors & Omissions (E&O)
Coverage:
- Professional negligence
- Errors in service
- Omissions in disclosure
Costs:
- Sales agent: $300-$800/year
- Broker: $800-$2,000/year
Not required but strongly recommended
General Liability
Coverage:
- Bodily injury
- Property damage
- Personal injury
Cost: $500-$1,500/year
Commercial Property (brokers)
Coverage:
- Office contents
- Business interruption
- Liability
Cost: $1,000-$3,000/year
Total insurance: $1,800-$7,300/year
Advertising Compliance
TREC Advertising Rules
Required disclosures:
- Broker name
- License number (if required)
- Truthful representation
Prohibited:
- False/misleading statements
- Bait and switch
- Unlicensed activity
Penalties:
- Warning
- Fine: $1,000-$5,000
- License suspension
Fair Housing in Advertising
Prohibited:
- Discriminatory language
- Preference statements
- Exclusionary terms
Examples of violations:
- "Perfect for families" (familial status)
- "Walking distance to church" (religion)
- "Adults only" (familial status)
Digital Marketing
Compliance:
- CAN-SPAM Act
- TCPA (texting/calling)
- Do Not Call registry
Penalties:
- CAN-SPAM: $43,792 per violation
- TCPA: $500-$1,500 per call/text
First-Year Costs
New Sales Agent
Startup:
- License: $597-$897
- E&O insurance: $400
- MLS fees: $500-$1,000
- Marketing: $1,000-$3,000
- Technology: $500-$1,500
- Total: $2,997-$6,797
Annual ongoing:
- Brokerage fees: $0-$500/month
- MLS: $500-$1,000
- Insurance: $400
- CE: $200
- Marketing: $2,000-$5,000
- Total: $3,100-$12,100/year
Broker/Owner
Startup:
- Broker license: $773-$1,273
- Office setup: $5,000-$15,000
- Insurance: $3,000
- Technology: $2,000-$5,000
- Marketing: $5,000-$10,000
- Legal: $2,000-$5,000
- Total: $17,773-$39,273
Annual ongoing:
- Office rent: $12,000-$36,000
- Insurance: $3,000
- Technology: $3,000-$6,000
- Marketing: $10,000-$25,000
- Staff: $30,000-$100,000
- Total: $58,000-$170,000/year
Common Violations
TREC Violations
Most common:
- Advertising violations
- Trust account issues
- Disclosure failures
- Unlicensed activity
Penalties:
- Warning
- Fine: $1,000-$5,000
- Suspension: 30 days-2 years
- Revocation
Fair Housing Violations
Common issues:
- Discriminatory advertising
- Steering
- Unequal treatment
- Failure to accommodate
Prevention:
- Regular training
- Policy documentation
- Consistent practices
- Legal review
Best Practices
1. Document Everything
Records to maintain:
- All communications
- Disclosures
- Contracts
- Trust account records
Retention: 4 years minimum
2. Stay Current
Continuing education:
- Complete CE early
- Attend additional training
- Join professional associations
3. Use Technology
Essential tools:
- Transaction management
- CRM system
- E-signature
- Compliance tracking
4. Get Legal Review
When needed:
- Unusual transactions
- Disputes
- Contract modifications
- Compliance questions
Dallas Resources
Professional Associations
Dallas Association of Realtors:
- MLS access
- Forms and contracts
- Legal hotline
- Education
Texas Association of Realtors:
- Legislative advocacy
- Legal resources
- Education
- Networking
Compliance Support
HAIEC Real Estate Compliance:
- License tracking: $99/month
- CE management
- Disclosure checklists
- Fair housing training
Legal services:
- Real estate attorneys: $250-$500/hour
- Compliance consultants: $150-$300/hour
Conclusion
Dallas real estate compliance requires attention to licensing, fair housing, disclosures, and operational standards. Budget $3,000-$39,000 for startup and $3,100-$170,000 annually depending on role.
Key investments:
- TREC licensing: $597-$1,273
- Insurance: $400-$3,000/year
- Education: $200-$1,000/year
- Ongoing compliance: $3,100-$170,000/year
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