The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §535.53, Business Entity; Designated Broker, in Chapter 535, General Provisions, without changes, as published in the March 3, 2017, issue of the Texas Register (42 TexReg 960).

The amendments to §535.53 eliminate the word "directly" when referring to designated broker ownership requirements for a business entity. The amendment is adopted to avoid confusion regarding the requirement since a designated broker may own at least 10% of the business entity through a verified ownership chain in other business entities.

The reasoned justification for the amendments is greater clarity in the rules for those applying for business entity licenses.

No comments were received on the amendments as published.

The amendments are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The statutes affected by this amendment are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.