Final answer:
TREC bases monetary penalties on the violation severity, intent, past violations, harm to public, financial benefit, ability to pay, and mitigating actions by the respondent. The goal is to ensure penalties are fair and proportional.
Step-by-step explanation:
The Texas Real Estate Commission (TREC) may impose a monetary penalty against a respondent in a hearing based on several factors. The severity of the violation, any previous violations by the respondent, and the potential harm to the public are crucial considerations. TREC also takes into account whether the violation was committed intentionally or due to negligence, and the respondent's history of compliance or noncompliance with TREC regulations.
Additional factors include the financial benefit the respondent gained from committing the violation and their ability to pay the penalty. Mitigating factors, such as the respondent's effort to correct the violation, can also influence the monetary penalty. TREC's goal is to ensure that the penalties are fair and proportional to the wrongdoing, aiming to protect the public interest and promote adherence to real estate laws and regulations.