Texas Register

TITLE 22 EXAMINING BOARDS
PART 23TEXAS REAL ESTATE COMMISSION
CHAPTER 535GENERAL PROVISIONS
SUBCHAPTER EREQUIREMENTS FOR LICENSURE
RULE §535.53Business Entity; Designated Broker
ISSUE 08/25/2017
ACTION Final/Adopted
Preamble Texas Admin Code Rule

(a)Business Entity.

  (1)A business entity must be qualified to transact business in Texas to receive, maintain or renew a broker license.

  (2)A Franchise Tax Account Status page from the Texas Comptroller of Public Accounts issued within 21 days prior to the date of its license or renewal application constitutes evidence of being qualified to transact business in Texas.

  (3)A business entity must notify the Commission not later than the 10th day after the date it receives notice that it is not qualified to transact business in Texas.

  (4)A foreign business entity must meet the additional requirements of §535.132 of this chapter to be eligible for a broker's license.

(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 a corporate officer, an LLC manager, an LLC member with managing authority, or a general partner for that entity; and

    (B)if the designated broker does not own 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 adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 8, 2017

TRD-201702995

Kerri Lewis

General Counsel

Texas Real Estate Commission

Effective date: August 28, 2017

Proposal publication date: June 9, 2017

For further information, please call: (512) 936-3092



Next Page Previous Page

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page