Texas Register
TITLE 22 EXAMINING BOARDS
PART 23TEXAS REAL ESTATE COMMISSION
CHAPTER 535PROVISIONS OF THE REAL ESTATE LICENSE ACT
SUBCHAPTER AGENERAL PROVISIONS RELATING TO THE REQUIREMENT OF LICENSURE
RULE §535.2Broker's Responsibility
ISSUE 05/16/2003
ACTION Final/Adopted
Preamble Texas Admin Code Rule
(a)A broker is responsible for the authorized acts of the broker's salespersons, but the broker is not required to supervise the salespersons directly.

(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 of which the agent has knowledge and which may affect the principal's decision. A broker is obligated under a listing contract to negotiate the best possible transaction for the principal, the person the broker has agreed to represent.

(c)A broker is responsible for the proper handling of escrow monies placed with the broker, although the broker may authorize other persons to sign checks for the broker.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2003

TRD-200302679

Loretta DeHay

General Counsel

Texas Real Estate Commission

Effective date: May 18, 2003

Proposal publication date: March 14, 2003

For further information, please call: (512) 465-3900

 

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