What action is TREC not permitted to take regarding license holders and contracts?

The correct action that TREC is not permitted to take is prohibiting a license holder from using a contract that has been drafted by the property owner's attorney. This is because TREC cannot interfere with private agreements or impose restrictions on the legal contracts created between parties, as these contracts are a matter of private law. License holders may utilize contracts that are specifically drafted to address the needs and terms agreed upon by the parties involved, which can include contracts drafted by attorneys representing property owners.

On the other hand, regulating the terms of contracts, enforcing contract terms, and mandating the use of standard contracts fall within the authority of TREC. The commission is responsible for ensuring that real estate practices are conducted fairly and legally, which includes overseeing the types of contracts that can be used in real estate transactions and providing standardized forms to promote consistency and compliance in the industry. Thus, the ability to establish regulations and enforce contract compliance reflects the role TREC plays in maintaining order and legal integrity within the real estate market.