Texas Administrative Code

Texas Administrative Code

TITLE 22	EXAMINING BOARDS
PART 23	TEXAS REAL ESTATE COMMISSION
CHAPTER 535	GENERAL PROVISIONS
SUBCHAPTER B	GENERAL PROVISIONS RELATING TO THE REQUIREMENTS OF LICENSURE
RULE §535.6	Equitable Interests in Real Property

(a) A person may acquire an option or enter into a contract to purchase real property and then sell or offer to sell the option or assign or offer to assign the interest in the contract without having a real estate license if the person:

(1) does not use the option or contract to purchase to engage in real estate brokerage; and

(2) discloses in writing the nature of the equitable interest to any seller or potential buyer.

(b) A person selling or offering to sell an option or assigning or offering to assign an interest in a contract to purchase real property without disclosing the nature of that interest as provided by subsection (a) of this section is engaging in real estate brokerage.

(c) A license holder acting on his or her own behalf or in a capacity described by §535.144(a) of this chapter (relating to When Acquiring or Disposing of Own Property or Property of Spouse, Parent or Child) who is selling an option or assigning an interest in a contract to purchase real property must disclose in writing to any seller or potential buyer that the license holder is selling an option or assigning an interest in a contract and that the license holder does not have legal title to the real property.

Source Note: The provisions of this §535.6 adopted to be effective May 24, 2017, 42 TexReg 2723; amended to be effective January 1, 2024, 48 TexReg 6912