| (a) As used in this section, the term "licensee" includes a person licensed or registered under Texas Occupations Code Chapters 1101 and 1102 and the term "license" includes a registration issued by the commission. (b) Except as authorized under Texas Government Code §402.031(b), the commission may not conduct an undercover or covert investigation of a person licensed under Texas Occupations Code Chapters 1101 or 1102. Notwithstanding §1101.204(d), the commission shall not disclose to any person who is the subject of an investigation of fraudulent activity that the activity has been reported pursuant to §402.031. (c) A real estate broker is responsible for all acts and conduct performed by a real estate salesperson associated with or acting for the broker. A complaint which names a licensed real estate salesperson as the subject of the complaint but does not specifically name the salesperson's sponsoring broker, is a complaint against the broker sponsoring the salesperson at the time of any alleged violation for the limited purposes of determining the broker's involvement in any alleged violation and whether the broker fulfilled his or her professional responsibilities to the commission, members of the public, and his or her clients, provided the complaint concerns the conduct of the salesperson as an agent for the broker. (d) The person designated by a licensed corporation, limited liability company or partnership to act as its officer, manager or partner is responsible for all acts and conduct as a real estate broker performed by or through the business entity. A complaint which names a corporation, limited liability company or partnership licensed as a broker as the subject of the complaint but which does not specifically name the designated officer, manager or partner of the business entity, is a complaint against the broker acting as the designated officer, manager or partner at the time of any alleged violation for the limited purposes of determining the designated person's involvement in any alleged violation and whether the designated person fulfilled his or her professional responsibilities to the commission, members of the public, and his or her clients. A complaint which names a salesperson sponsored by a licensed corporation, limited liability company or partnership but which does not specifically name the designated person of the business entity is a complaint against the broker who was acting as designated person at the time of any alleged violation by the salesperson for the limited purposes of determining the designated person's involvement in any alleged violation and whether the designated person fulfilled his or her professional responsibilities to the commission, members of the public, and his or her clients, provided the complaint concerns the conduct of the salesperson as an agent of the business entity. (e) Once a complaint has been filed with the commission, the commission has jurisdiction to consider, investigate and take action based on the complaint. Complaints may be withdrawn only with the consent of the commission. (f) If information obtained by the commission in the course of the investigation of a complaint or as a result of an investigation authorized by the members of the commission constitutes reasonable cause to believe the respondents to the complaint may have committed other violations of the Act or a rule of the commission, no additional authorization shall be required for the commission to investigate and take appropriate action based on the information. (g) If the commission suspends or revokes a license or probates an order of suspension or revocation against a licensee, the commission may monitor compliance with its order and initiate action based on the authority of the original complaint or original authorization by the members of the commission. (h) A person whose license has been suspended may not during the period of any suspension: (1) perform or attempt to perform any act for which a license is required by law or commission rule; or (2) unless instructed otherwise by the principals to the transaction, continue to hold any funds received in a real estate transaction in which the person acted as a real estate broker or salesperson. (i) A person whose license is subject to an order suspending the license must prior to the suspension taking effect: (1) if the person is a real estate salesperson, notify his or her sponsoring broker in writing that his or her license will be suspended; (2) if the person is a real estate broker, notify in writing any salespersons he or she sponsors, or any corporation, limited liability company or partnership for which the person is designated as an officer, manager or partner that: (A) his or her real estate broker license will be suspended; and, (B) once the suspension is effective any salesperson he or she sponsors or who are sponsored by the corporation, limited liability company or partnership will not be authorized to engage in real estate brokerage unless the salespersons associate with another broker and file a change of sponsorship with the commission or the business entity designates a new person and files a change of designated officer, manager or partner with the commission; (3) if the person has a contractual obligation to perform services for which a license is required by law or commission rule, notify in writing all other parties to the contract that the services cannot be performed due to the suspension; (4) if the person is a real estate salesperson and is directly involved in any real estate transaction in which the salesperson acts as an agent, notify in writing all other parties, including principals and other real estate brokers, that the person cannot continue performing real estate brokerage services due to the suspension; and (5) if the person holds money in trust in any transaction in which the person is acting as a real estate broker, remit such money in accordance with the instructions of the principals. (j) A person may not assign to another licensee a personal service contract to which the person is a party and which obligates the person to perform acts for which a license is required without first obtaining the written consent of the other parties to the contract. |
| Source Note: The provisions of this §535.141 adopted to be effective January 1, 1976; amended to be effective October 20, 1983, 8 TexReg 3998; amended to be effective February 8, 1991, 16 TexReg 461; amended to be effective May 7, 1992, 17 TexReg 2997; amended to be effective November 23, 1993, 18 TexReg 8198; amended to be effective May 27, 1998, 23 TexReg 5437; amended to be effective October 1, 2000, 25 TexReg 8646; amended to be effective August 31, 2004, 29 TexReg 8297; amended to be effective March 23, 2008, 33 TexReg 2536 |
