(a)Business Entity.
(1)A business entity must be qualified to transact
business in Texas to receive 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 application constitutes evidence of being qualified
to transact business in Texas.
(3)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)[(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 in good standing with the Commission [a
broker] to act for it.
(2)An individual licensed broker
is not in good standing with the Commission if:
(A)the broker's license was revoked or suspended,
including probated revocation or suspension, in the past two years;
(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;
(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 [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.
(6)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 November 24, 2014
TRD-201405681 Kerri Lewis
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: January 11, 2015
For further information, please call: (512) 936-3092
|
