Texas Real Estate Commission v. Marla Nunally Kaufman Homes, LLC
The Texas Real Estate Commission (TREC) appealed a trial court's order to pay Marla Nunally Kaufman Homes, LLC (Kaufman Homes) from the Texas Real Estate Recovery Trust Account. Kaufman Homes had obtained judgments against license holders Round Up Realty and Stephani Hardy for damages from mismanaged renovations. TREC argued that managing renovations is not "real estate brokerage" and does not require a real estate license, thus the damages are not eligible for reimbursement from the Fund. The appellate court agreed, finding that Kaufman Homes' damages arose solely from mismanaged renovations, which is expressly excluded from the definition of "real estate brokerage" under the Texas Occupations Code. Therefore, the court reversed the trial court's order and denied Kaufman Homes' application for reimbursement.