(a)For the purposes of qualifying for, maintaining, or renewing a license, a business entity [corporation or limited liability company] must designate a broker [ one individual holding an active Texas real estate broker license] to act for it. [The designated broker must be an officer of the corporation or a manager of a limited liability company.] The business entity [corporation or limited liability company] may not act as a broker during any period in which it does [ has] not have a designated broker [a person] to act for it who meets the requirements of the Act. Upon any change in the business entity's [corporation or limited liability company's] designated broker [ individual], the entity [corporation or limited liability company] must provide proof to the commission of the designated broker's [individual's] current status as an officer, [or] manager or general partner for that entity and proof that the business entity maintains appropriate errors and omissions insurance if the designated broker owns less than 10 percent of the entity. A broker may not act as a designated broker [person] at any time while the broker's license is inactive, expired, suspended or revoked. (b)Section 1101.355 of the Act applies only to business entities [corporations or limited liability companies] which are created under the laws of this state, provided, however, that a business entity [corporation or limited liability company] formed under the laws of a state other than Texas will be considered to be a Texas resident for purposes of this section if it is qualified to do business in Texas; its officers, [ or] managers, or general partner, its principal place of business and all of its assets are located in Texas; and all of its officers, [and] directors, or managers, [and] members and partners are Texas residents. (c)(No change.)
This
agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office
of the Secretary of State on August 4, 2011
TRD-201102967 Loretta R. DeHay
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: September 18, 2011
For further information, please call: (512) 936-3092
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