Disclosure

TREC CN-1-5Consumer Protection Notice

TREC's Consumer Protection Notice (CN 1-5). It states that TREC regulates real estate brokers and sales agents, real estate inspectors, easement and right-of-way agents and timeshare interest providers; that consumers can find more information and check a license holder's status at www.trec.texas.gov; that a complaint against a license holder can be sent to TREC using the form on its website; that TREC administers the Real Estate Recovery Trust Account, which may be used to satisfy a civil court judgment against a broker, sales agent, or easement or right-of-way agent if certain requirements are met; and that inspectors must carry errors and omissions insurance but may limit liability in their inspection agreements, so consumers should read those agreements carefully and consult an attorney about any term they do not understand. No blanks and no signature line.

Source: TREC
Form Number: CN-1-5
Category: Disclosure
Revised: September 1, 2023

Used For

Residential Sales, RESIDENTIAL_LEASING, Commercial Sales, Farm & Ranch, Vacant Land

Form Outline

The TREC CN-1-5 form is organized into the following sections:

  1. TREC Regulatory Authority
    Identifies TREC as the regulatory body responsible for licensing and overseeing real estate brokers, sales agents, inspectors, easement/right-of-way agents, and timeshare interest providers in Texas.
  2. License Verification
    Informs consumers that they can verify the license status of any real estate professional at the TREC website (www.trec.texas.gov).
  3. Complaint Process
    Advises consumers of their right to file complaints against license holders with TREC and that complaint forms are available online at www.trec.texas.gov.
  4. Real Estate Recovery Trust Account
    Informs consumers about the Real Estate Recovery Trust Account, a fund administered by TREC that can compensate consumers who have obtained civil court judgments against licensed brokers, sales agents, or easement/right-of-way agents, subject to certain conditions.
  5. Real Estate Inspector Requirements
    Informs consumers that real estate inspectors must carry E&O insurance for negligent inspections, and warns that inspectors may limit their liability through contractual provisions. Advises consumers to read inspection contracts carefully and consult an attorney if needed.
  6. TREC Contact Information
    Provides TREC's mailing address and phone number for consumers who have questions about license holder activities, the complaint process, or the Recovery Trust Account.

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