Prohibited Practices

Prohibited Practices and Disciplinary Actions ## Fair Housing Violations Texas law and federal law prohibit a range of discriminatory and deceptive practices in real estate. The three most-tested prohibited practices are: Steering: Directing buyers toward or away from particular neighborhoods based on the protected characteristics of either the buyer or the existing residents of the neighborhood. Even well-intentioned steering — an agent showing a Latino buyer only homes in predominantly Latino neighborhoods because "they'll feel more comfortable" — is illegal. Steering perpetuates segregation regardless of motive. Blockbusting (panic peddling): Inducing homeowners to sell by suggesting that members of a protected class are moving into the neighborhood and that property values will decline. Classic example: an investor drives through a neighborhood telling homeowners "people are moving in who will tank your property values — sell now before it's too late." The investor then buys low and resells at a profit as demographics change. Both the manipulation and the profit-taking through manufactured panic are illegal. Redlining: Systematically denying real estate services, financing, or insurance to residents of certain neighborhoods based on those neighborhoods' racial or ethnic composition. Originated with the literal practice of drawing red lines around minority neighborhoods on maps to exclude them from lending consideration. ## TREC Disciplinary Sanctions TREC's disciplinary tools range from least to most severe: written reprimand, probation, license suspension, and license revocation. TREC may also impose administrative fines up to $5,000 per violation per day for ongoing violations. Revocation bars the licensee from re-applying for a set period and may impose conditions on future reinstatement. Criminal history does not automatically bar licensure. Applicants with disqualifying criminal records may seek a Fitness Determination from TREC before…