Texas Real Estate Commission (TREC) Explained
The Texas Real Estate Commission (TREC) is the state agency responsible for regulating real estate brokers and sales agents in Texas. Understanding what TREC does — and what it does not do — helps clarify how real estate transactions, licensing, and MLS participation work across Texas markets.
What Is the Texas Real Estate Commission (TREC)?
TREC is the official regulatory body that oversees real estate licensing and brokerage activity in the state of Texas. The agency establishes rules for brokers and sales agents, enforces professional standards, and ensures compliance with Texas real estate law.
TREC does not operate MLS systems or set commission rates. Instead, it regulates the licensed professionals who participate in those systems.
What TREC Regulates
TREC oversees several key aspects of real estate practice in Texas:
- Broker and sales agent licensing requirements
- Continuing education standards
- Advertising and marketing rules
- Approved contract forms used in transactions
- Disciplinary actions and complaint investigations
Any individual or company offering brokerage services in Texas must operate under a TREC-issued license.
How TREC Impacts Texas Home Sellers
For home sellers, TREC’s regulations primarily affect how brokerage services are structured. Sellers who choose to work with a broker — including flat fee MLS providers — must do so through a TREC-licensed brokerage.
However, TREC does not require sellers to hire a full-service agent. Texas homeowners may choose different brokerage service models, provided the broker involved is properly licensed.
How TREC Rules Apply to Flat Fee MLS in Texas
Flat fee MLS services are legal in Texas when operated by a licensed broker in compliance with TREC regulations. The law does not require a full-service listing model — it requires proper licensing and adherence to state rules.
- Brokers must hold an active Texas license.
- Required disclosures and contract forms must be used.
- Commission rates are negotiable — TREC does not set them.
- MLS access must occur through a licensed brokerage.
Sellers exploring alternatives to traditional listing models often review their options through a Texas Flat Fee MLS service that complies with state licensing rules.
TREC and Texas MLS Systems
Multiple Listing Services (MLS) in Texas are operated by regional REALTOR® associations, including systems serving Houston (HAR), Dallas–Fort Worth (NTREIS), Austin (ABOR), and San Antonio (SABOR).
While TREC regulates licensed brokers, MLS systems are governed separately by their respective associations. Participation in an MLS requires working through a licensed broker, but TREC does not directly manage MLS platforms.
How TREC Affects Sellers in Major Texas Cities
TREC regulations apply statewide, but MLS participation varies by region depending on the local system serving each metro area.
- Houston: Listings are typically entered into the HAR MLS system.
- Dallas–Fort Worth: Brokers operate within the NTREIS system.
- Austin: Listings are commonly managed through Unlock MLS.
- San Antonio: Properties are entered into the SABOR MLS.
Understanding how state regulation and regional MLS systems intersect is especially important when listing in major metro areas like Houston or Dallas.
Common Misunderstandings About TREC
- TREC does not set commission rates.
- TREC does not require sellers to use full-service agents.
- Flat fee MLS services are legal when operated by licensed brokers.
- TREC regulates brokers and agents — not private FSBO sellers directly.