(a)(No change.)
(b)Designated Broker.
(1)For the purposes of qualifying for, maintaining,
or renewing a license, a business entity must designate an individual
holding an active Texas real estate broker license in good standing
with the Commission to act for it.
(2)An individual licensed broker is not in good standing
with the Commission if:
(A)the broker's license is revoked or suspended, including
probated revocation or suspension;
(B)a business entity licensed by the Commission while
the broker was the designated broker for that business entity had
its license revoked or suspended, including probated revocation or
suspension, in the past two years;
(C)the broker has any unpaid or past due monetary
obligations to the Commission, including administrative penalties
and recovery fund payments; or
(D)a business entity licensed by the Commission has
any unpaid or past due monetary obligations to the Commission, including
administrative penalties and recovery fund payments, that were incurred
while the broker was the designated broker for the entity;
(3)Regardless of the type of business entity, the
designated broker must be a managing officer of the business entity.
(4)The business entity may not act as a broker during
any period in which it does not have a designated broker to act for
it who meets the requirements of the Act.
(5)To obtain or renew a license, or upon any change
in the business entity's designated broker, the entity must provide
to the Commission:
(A)proof of the designated broker's current status
as an officer, manager or general partner for that entity; and
(B)if the designated broker does not own [directly]
at least 10 percent of the business entity, proof that the business
entity maintains errors and omissions insurance:
(i)in at least the minimum coverage limits required
by the Act; and
(ii)that provides coverage for losses due to a violation
of the Act or this Chapter.
(6)A broker may not act as a designated broker at
any time while the broker's license is inactive, expired, suspended,
or revoked.
The agency certifies that legal
counsel has
reviewed the proposal and found it to be within the state agency's
legal authority to adopt.
Filed with the Office
of the Secretary of State on February 15, 2017
TRD-201700647 Kerri Lewis
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 2, 2017
For further information, please call: (512) 936-3092
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