(a) - (d)(No change.)
(e)A broker may delegate to another license holder
the responsibility to assist in administering compliance with the
Act and Rules, but the broker may not relinquish overall responsibility
for the supervision of license holders sponsored by the broker. Any
license holder who leads, supervises, directs, or manages a team must
be delegated as a supervisor. Any such delegation must be in
writing. A broker shall provide the name of each delegated supervisor
to the Commission on a form or through the online process approved
by the Commission within 30 days of any such delegation that has lasted
or is anticipated to last more than three consecutive [six
] months. The broker shall notify the Commission in the same
manner within 30 days after the delegation of a supervisor has ended.
It is the responsibility of the broker associate or newly licensed
broker to notify the Commission in writing when they are no longer
associated with the broker or no longer act as a delegated supervisor.
(f)(No change.)
(g)A broker is responsible to ensure that a sponsored
sales agent's advertising complies with §535.154and §535.155
of this title.
(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 for at least
four years from the date of closing, termination of the contract,
or end of a real estate transaction:
(1)disclosures;
(2)commission agreements such as listing agreements,
buyer representation agreements, or other written agreements relied
upon to claim compensation;
(3)communications with parties to the transaction[
work files];
(4)offers, contracts and related addenda;
(5)receipts and disbursements of compensation for
services subject to the Act;
(6)property management contracts;
(7)appraisals, broker price opinions, and comparative
market analyses; and
(8)sponsorship agreements between the broker and sponsored
sales agents.
(i)A broker who sponsors sales agents or is a designated
broker for a business entity shall maintain, on a current basis, written
policies and procedures to ensure that:
(1)Each sponsored sales agent is advised of the scope
of the sales agent's authorized activities subject to the Act and
is competent to conduct such activities, including competence
in the geographic market area where the sales agent represents clients.
(2)Each sponsored sales agent maintains their license
in active status at all times while they are engaging in activities
subject to the Act.
(3)Any and all compensation paid to a sponsored sales
agent for acts or services subject to the Act is paid by, through,
or with the written consent of the sponsoring broker.
(4)Each sponsored sales agent is provided on a timely
basis, before the effective date of the change, notice of any change
to the Act, Rules, or Commission promulgated contract forms.
(5)In addition to completing statutory minimum continuing
education requirements, each sponsored sales agent 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
sales agent's practice subject to the Act. At a minimum, when
a sales agent performs a real estate brokerage activity for the first
time, the broker must require that the sales agent receive coaching
and assistance from an experienced license holder competent for that
activity.
(6)Each sponsored sales agent complies with the 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 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 respond to sponsored sales agents, clients,
and license holders representing other parties in real estate transactions
within two[three] calendar days.
(k)A sponsoring broker or supervisor delegated under
subsection (e) of this section shall deliver mail and other correspondence
from the Commission to their sponsored sales agents within three [
10] calendar days after receipt.
(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 17, 2018
TRD-201803570 Kerri Lewis
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: September 30, 2018
For further information, please call: (512) 936-3092
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