(a)The Act applies to any person acting as a real
estate broker or sales agent while physically within Texas, 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 acting within Texas if the
real property concerned is located wholly or partly in Texas.
(b)This section does not prohibit cooperative arrangements
between foreign [
|non-resident] brokers and Texas
brokers pursuant to §1101.651(a)(2) of the Act and §535.131
of this chapter (relating to Unlawful Conduct; Splitting Fees) [
(c)Unless otherwise exempted by the Act, a person
must be licensed as a broker or sales agent to show a property. For
purposes of this section, to "show" a property includes
causing or permitting the property to be viewed by a prospective buyer
or tenant, unlocking or providing access onto or into a property for
a prospective buyer or tenant, and hosting an open house at the property.
(d)A license holder may permit a prospective tenant
unescorted access to view a property available for rent or lease only
(1)the property is vacant, meaning no person lives
at, and no personal property except property intended to remain or
convey is stored at, the property;
(2)the license holder employs a method to control
access and verify the identity of the prospective tenant; and
(3)the property owner has signed a written consent
that sets out in bold print in at least 12-point font that:
(A)the property owner is aware that unescorted access
may occur; and
(B)specifies whether the broker enabling unescorted
access or the property owner will be responsible for any damage that
results from such unescorted access.
(e)The employees, agents, or[ ,]
associates of a licensed broker must be licensed as brokers or sales
agents if they direct or supervise other persons who perform acts
for which a license is required.
(f)A real estate license is required for a person
to solicit listings or to negotiate in Texas for listings.
(g)A business entity owned by a broker or sales agent
which receives compensation on behalf of the license holder must be
licensed as a broker under the Act.
(h)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 the person has the authority
(1)use the rent to pay for services related to management
of the property;
(2)determine where to deposit the rent; or
(3)sign checks or withdraw money from a trust account.
(i)For purposes of subsection (h) of this section,
a single-family residential real property unit includes
a single-family [ 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,
(j)A person must be licensed as a broker to operate
a rental agency.
(k)A real estate license is required of a subsidiary
corporation, which, for compensation, negotiates in Texas for the
sale, purchase, rent, or lease of its parent corporation's real property.
(l)A person who arranges for a tenant to occupy a
residential property must have a real estate license if the person:
(1)does not own the property or lease the property
from its owner;
(2)receives valuable consideration; and
(3)is not exempt under the Act.
(m)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, including
the operation of a service which finds apartments or homes.
(n)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.
(o)A person must be licensed as a broker or sales
agent if, for compensation, the person:
(1)advertises for others regarding the sale, purchase,
rent, or lease of real property;
(2)accepts inquiries received in response to such
(3)refers the inquiry to the owner of the property.
The agency certifies that legal counsel has
reviewed the proposal and found
it to be within the state agency's
legal authority to adopt.
with the Office of the Secretary of State on February 15, 2023
Vanessa E. Burgess
Texas Real Estate Commission
Earliest possible date of adoption: April 2, 2023
For further information, please call: (512) 936-3284