(a)A broker is required to notify [advise ] 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 [too will be deemed to be authorized] acts for which the broker is responsible. (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 known to [of which] the agent has knowledge and 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[, although the broker may authorize other persons to sign checks on behalf of the broker]. (d)A broker is responsible for any property management activity [which requires a real estate license that is conducted] by the broker's sponsored salesperson that requires a real estate license [salespersons]. (e)A broker may delegate to another license holder [ licensee] the responsibility to assist in administering compliance with the Act and Rules, but the broker may not relinquish overall responsibility for the supervision of salespersons [licensees ] sponsored by the broker. Any such delegation must be in writing. (f)Listings and other agreements for real estate brokerage services must [may only] 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 [(relating to Advertising)]. (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[ , at a minimum, shall be maintained] for at least four [(4)] years from the date of closing, [or] termination of the contract, or end of a real estate transaction:[.] (1)disclosures [Disclosures]; (2)commission agreements [Commission Agreements] such as listing agreements, buyer representation agreements, or other written agreements [agreement] relied upon to claim compensation; (3)work [Work] files; (4)contracts [Contracts] and related addenda; (5)receipts [Receipts] and disbursements of compensation for services subject to the Act; (6)property [Property] management contracts; (7)appraisals, broker price opinions, and comparative market analyses [Documents required by USPAP for appraisals]; and (8)sponsorship [Sponsorship] agreements between the broker and sponsored salespersons. (i)A broker shall maintain, on a current basis, written policies and procedures to ensure that: (1) - (3)(No change.) (4)Each sponsored salesperson is provided on a timely basis, before [prior to] the effective date of the change, notice of any change to the Act, Rules, or Commission [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 [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 [handled] 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 [promptly] respond to sponsored salespersons, clients, and license holders [licensees] 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 [to or otherwise provide within a reasonable time after receipt,] mail and other correspondence from the Commission [commission ] to their sponsored salespersons within 10 calendar days after receipt. [A broker may deliver such correspondence by facsimile or email.] (l) - (m)(No change.)
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 August 25, 2014
TRD-201404021 Kerri Lewis
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: October 5, 2014
For further information, please call: (512) 936-3092
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