| (a) A broker is required to notify a sponsored salesperson
in writing of the scope of the salesperson's authorized activities
under the Act. Unless such scope is limited or revoked in writing,
a broker is responsible for the authorized acts of the broker's salespersons,
but the broker is not required to supervise the salespersons directly.
If a broker permits a sponsored salesperson to conduct activities
beyond the scope explicitly authorized by the broker, those are acts
for which the broker is responsible.
(b) A broker owes the highest fiduciary obligation
to the principal and is obliged to convey to the principal all information
known to the agent which may affect the principal's decision unless
prohibited by other law.
(c) A broker is responsible for the proper handling
of trust funds placed with the broker and must comply with §535.146
of this title.
(d) A broker is responsible for any property management
activity by the broker's sponsored salesperson that requires a real
estate license.
(e) A broker may delegate to another license holder
the responsibility to assist in administering compliance with the
Act and Rules, but the broker may not relinquish overall responsibility
for the supervision of license holders sponsored by the broker. Any
such delegation must be in writing. A broker shall provide the name
of each delegated supervisor to the Commission on a form or through
the online process approved by the Commission within 30 days of any
such delegation that has lasted or is anticipated to last more than
six months.
(f) Listings and other agreements for real estate brokerage
services must be solicited and accepted in a broker's name.
(g) A broker is responsible to ensure that a sponsored
salesperson's advertising complies with §535.154 of this title.
(h) Except for records destroyed by an "Act of God"
such as a natural disaster or fire not intentionally caused by the
broker, the broker must, at a minimum, maintain the following records
in a format that is readily available to the Commission for at least
four years from the date of closing, termination of the contract,
or end of a real estate transaction:
(1) disclosures;
(2) commission agreements such as listing agreements,
buyer representation agreements, or other written agreements relied
upon to claim compensation;
(3) work files;
(4) contracts and related addenda;
(5) receipts and disbursements of compensation for
services subject to the Act;
(6) property management contracts;
(7) appraisals, broker price opinions, and comparative
market analyses; and
(8) sponsorship agreements between the broker and sponsored
salespersons.
(i) A broker who sponsors salespersons or is a designated
broker for a business entity shall maintain, on a current basis, written
policies and procedures to ensure that:
(1) Each sponsored salesperson is advised of the scope
of the salesperson's authorized activities subject to the Act and
is competent to conduct such activities.
(2) Each sponsored salesperson maintains their license
in active status at all times while they are engaging in activities
subject to the Act.
(3) Any and all compensation paid to a sponsored salesperson
for acts or services subject to the Act is paid by, through, or with
the written consent of the sponsoring broker.
(4) Each sponsored salesperson is provided on a timely
basis, before the effective date of the change, notice of any change
to the Act, Rules, or Commission promulgated contract forms.
(5) In addition to completing statutory minimum continuing
education requirements, each sponsored salesperson receives such additional
educational instruction the broker may deem necessary to obtain and
maintain, on a current basis, competency in the scope of the sponsored
salesperson's practice subject to the Act.
(6) Each sponsored salesperson complies with the Commission's
advertising rules.
(7) All trust accounts, including but not limited to
property management trust accounts, and other funds received from
consumers are maintained by the broker with appropriate controls in
compliance with §535.146.
(8) Records are properly maintained pursuant to subsection
(h) of this section.
(j) A broker or supervisor delegated under subsection
(e) of this section must respond to sponsored salespersons, clients,
and license holders representing other parties in real estate transactions
within three calendar days.
(k) A sponsoring broker or supervisor delegated under
subsection (e) of this section shall deliver mail and other correspondence
from the Commission to their sponsored salespersons within 10 calendar
days after receipt.
(l) When the broker is a business entity, the designated
broker is the person responsible for the broker responsibilities under
this section.
(m) This section is not meant to create or require
an employer/employee relationship between a broker and a sponsored
salesperson.
|
| Source Note: The provisions of this §535.2 adopted to be effective January 1, 1976; amended to be effective April 14, 1998, 23 TexReg 3681; amended to be effective July 1, 1999, 24 TexReg 4822; amended to be effective November 26, 2002, 27 TexReg 10920; amended to be effective May 18, 2003, 28 TexReg 3951; amended to be effective January 1, 2011, 35 TexReg 11674; amended to be effective November 29, 2012, 37 TexReg 9364; amended to be effective January 1, 2015, 39 TexReg 9669; amended to be effective May 26, 2015, 40 TexReg 2756 |
