(1)A business entity must be qualified to transact
business in Texas to receive, maintain, or renew a broker’s
(2)A Franchise Tax Account Status page from the Texas
Comptroller of Public Accounts issued within 21 days prior to the
date of its license or renewal application constitutes evidence of
being qualified to transact business in Texas.
(3)A business entity must notify the Commission not
later than the 10th day after the date it receives notice that it
is not qualified to transact business in Texas.
(4)A foreign business entity must meet the additional
requirements of §535.132 of this chapter (relating to Eligibility
for Licensure) to be eligible for a broker's license.
(1)For the purposes of qualifying for, maintaining,
or renewing a license, a business entity must designate an individual
holding an active Texas real estate broker license in good standing
with the Commission to act for it.
(2)An individual licensed broker is not in good standing
with the Commission if:
(A)the broker's license is revoked or suspended, including
probated revocation or suspension;
(B)a business entity licensed by the Commission while
the broker was the designated broker for that business entity had
its license revoked or suspended, including probated revocation or
suspension, in the past two years;
(C)the broker has any unpaid or past due monetary
obligations to the Commission, including administrative penalties,
Real Estate Recovery Trust Account payments, or [ and]
Real Estate Inspection Recovery Fund payments; or
(D)a business entity licensed by the Commission has
any unpaid or past due monetary obligations to the Commission, including
administrative penalties or [ and] Real Estate
Recovery Trust Account payments, that were incurred while the broker
was the designated broker for the entity.
(3)Regardless of the type of business entity, the
designated broker must have managing authority for [ be
a managing officer of] the business entity.
(4)The business entity may not act as a broker during
any period in which it does not have a designated broker to act for
it who meets the requirements of the Act.
(5)To obtain or renew a license, or upon any change
in the business entity's designated broker, the entity must provide
to the Commission:
(A)proof of the designated broker's current status
as a corporate officer, an LLC manager, an LLC member with managing
authority, or a general partner for that entity; and
(B)if the designated broker does not own at least
10 percent of the business entity, proof that the business entity
maintains errors and omissions insurance:
(i)in at least the minimum coverage limits required
by the Act; and
(ii)that provides coverage for losses due to a violation
of the Act or this Chapter.
(6)A broker may not act as a designated broker at
any time while the broker's license is inactive, expired, suspended,
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