Historical Rule for the Texas Administrative Code

RULE §535.4License Required

(a) The Act applies to persons acting as real estate brokers or salespersons while physically within this state, regardless of the location of the real estate involved or the residence of the person's customers or clients. For the purposes of the Act, a person conducting brokerage business from another state by mail, telephone, the Internet, email or other medium is also considered acting within this state if all the prospective buyers, sellers, landlords, or tenants are legal residents of this state, and the real property concerned is located wholly or in part within this state.

(b) This section does not prohibit cooperative arrangements between non-resident brokers and Texas brokers pursuant to §1101.651(a)(2) of the Act and §535.131 of this title (relating to Unlawful Conduct: Splitting Fees).

(c) Unless otherwise exempted by the Act, a person must be licensed as a broker or salesperson to show a broker's listings.

(d) The employees, agents or associates of a licensed broker, including a business entity licensed as a broker, must be licensed as brokers or salespersons if they direct or supervise other persons who perform acts for which a license is required.

(e) A real estate license is required for a person to solicit listings or to negotiate in Texas for listings.

(f) A business entity owned by a broker or salesperson which receives compensation on behalf of the licensee must be licensed as a broker under the Act.

(g) For purposes of §1101.002(1)(A)(x) of the Act:

  (1) A person controls the acceptance or deposit of rent from a resident of a single-family residential real property unit and must be licensed under the Act if:

    (A) the person has the authority to use the rent to pay for services related to management of the property; or

    (B) the person has the authority to deposit the rent into a trust or bank account and sign checks or withdraw money from the account.

  (2) A single-family residential unit includes a single family home or a unit in a condominium, co-operative, row-home or townhome. The term does not include a duplex, triplex or four-plex unless the units are owned as a condominium, cooperative, row-home or townhome.

(h) A person must be licensed as a broker to operate a rental agency.

(i) A real estate license is required of a subsidiary corporation, which, for compensation, negotiates in Texas for the sale of its parent corporation's real property.

(j) Arranging for a person to occupy a residential property is an act requiring a real estate license if the actor:

  (1) does not own the property or lease the property from its owner;

  (2) receives a valuable consideration; and

  (3) is not exempted from the requirement of a license by §1101.005 of the Act.

(k) Except as provided by this section a real estate license is required for a person to receive a fee or other consideration for assisting another person to locate real property for sale, purchase, rent, or lease, such as the operation of a service which finds apartments or homes.

(l) The compilation and distribution of information relating to rental vacancies or property for sale, purchase, rent, or lease is activity for which a real estate license is required if payment of any fee or other consideration received by the person who compiles and distributes the information is contingent upon the sale, purchase, rental, or lease of the property. An advance fee is a contingent fee if the fee must be returned if the property is not sold, purchased, rented, or leased.

(m) A person must be licensed as a broker or salesperson if, for compensation, the person:

  (1) advertises for others regarding the sale, purchase, rent or lease of real property;

  (2) accepts calls received in response to such advertisements; and

  (3) refers the callers to the owner of the property.

Source Note: The provisions of this §535.4 adopted to be effective January 1, 2011, 35 TexReg 11674; amended to be effective January 2, 2012, 36 TexReg 9327

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