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Historical Rule for the Texas Administrative Code

TITLE 22EXAMINING BOARDS
PART 23TEXAS REAL ESTATE COMMISSION
CHAPTER 535PROVISIONS OF THE REAL ESTATE LICENSE ACT
SUBCHAPTER AGENERAL PROVISIONS RELATING TO THE REQUIREMENT OF LICENSURE
RULE §535.1License Required

(a) The Real Estate License Act requires licensure of persons negotiating within this state for the sale of real estate for another person and for compensation. The situs of the real estate or residence of its owner does not control.

(b) The Real Estate License Act does not govern activities in other states. Real estate licensure is not required if negotiations for the sale of Texas property are not carried on or conducted within the State of Texas.

(c) The Real Estate License Act is an agency law and requires licensure of those who would act as real estate agents in Texas, but the Texas Real Estate Commission does not approve or disapprove of land to be sold in Texas. There are no special requirements for a broker to offer foreign real property for sale in Texas.

(d) Negotiating from another state with someone within the State of Texas or offering property by mail from another state to residents of Texas does not require Texas real estate licensure.

(e) The Real Estate License Act permits Texas-licensed brokers to cooperate with and share earned commission with persons licensed as brokers by other states, but all negotiations within Texas must be handled by Texas licensees. For purposes of this section, "states" includes the states, territories, and possessions of the United States and any foreign country or governmental subdivision thereof.

(f) Unless otherwise exempted by this Act, a person must be licensed as either a real estate broker or salesperson in order to show a broker's listings or solicit listings of real property.

(g) Real estate licensure is required of a real estate broker's employees, agents, or associates who direct or supervise other employees, agents, or associates while the other employees, agents, or associates are performing acts for which licensure is required. Provided, however, that licensure is not required for the performance of administrative tasks. "Administrative tasks" include, but are not limited to, the following:

  (1) training or motivating personnel; and

  (2) performing duties generally associated with office administration and personnel matters.

(h) Real estate licensure is not required of a partnership acting as a real estate broker in Texas. A partner or non-partner employee who acts as a real estate agent in the partnership's name must be licensed as a real estate broker or salesperson.


Source Note: The provisions of this §535.1 adopted to be effective January 1, 1976; amended to be effective August 29, 1979, 4 TexReg 2900; amended to be effective December 25, 1980, 5 TexReg 4909; amended to be effective March 11, 1981, 6 TexReg 725; amended to be effective June 9, 1981, 6 TexReg 1922; amended to be effective March 19, 1990, 15 TexReg 1234; amended to be effective April 14, 1998, 23 TexReg 3681.

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