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(a) For the purposes of this section, §1101.355 of the Act applies only to business entities created under the laws of this state. A business entity formed under the laws of a state other than Texas is considered to be a Texas resident for purposes of this section if: (1)it is qualified to do business in Texas; or (2)its officers, managers, or general partners are Texas residents and its principal place of business and all of its assets are located in Texas (b)Designated Broker. (1)[(a)] 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 [a broker] to act for it. (2)Depending on the type of business entity, the designated broker must be an officer of a corporation, a manager of a limited liability company, or a general partner of a partnership. (3)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. (4)To obtain or renew a license, or upon any change in the business entity's designated broker, the entity must provide [proof] to the Commission [commission of]: (A)proof of the designated broker's current status as an officer, manager or general partner for that entity; and (B) proof that the business entity maintains appropriate errors and omissions insurance if the designated broker does not own directly at least 10 percent of the entity. (5)A broker may not act as a designated broker 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 which are created under the laws of this state , provided, however, that a business entity 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, managers, or general partners are Texas residents and its principal place of business and all of its assets are located in Texas.] (c)If a licensed corporation or limited liability company is dissolved with the secretary of state [Office of the Secretary of State], then any [the] license held by that corporation or company immediately becomes null and void.
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-201404024 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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