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Historical Rule for the Texas Administrative Code
TITLE 22EXAMINING BOARDS
PART 23TEXAS REAL ESTATE COMMISSION
CHAPTER 535PROVISIONS OF THE REAL ESTATE LICENSE ACT
SUBCHAPTER AGENERAL PROVISIONS RELATING TO THE REQUIREMENT OF LICENSURE
RULE §535.2Broker's Responsibility
(a) A broker is responsible for the authorized acts of the broker's salespersons, but the broker is not required to supervise the salespersons directly.

(b) A real estate broker acting as an agent owes the very highest fiduciary obligation to the agent's principal and is obliged to convey to the principal all information of which the agent has knowledge and which may affect the principal's decision. A broker is obligated under a listing contract to negotiate the best possible transaction for the principal, the person the broker has agreed to represent.

(c) A broker is responsible for the proper handling of escrow monies placed with the broker, although the broker may authorize other persons to sign checks for the broker.

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

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