(a)A complaint which names a licensed real estate
sales agent as the subject of the complaint but does not specifically
name the sales agent's sponsoring broker, is a complaint against the
broker sponsoring the sales agent 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 the broker’s
[his or her] professional responsibilities provided
the complaint concerns the conduct of the sales agent as an agent
for the broker.
(b)The designated broker is responsible for all real
estate brokerage activities performed by, on behalf of, or through
a business entity. A complaint which names a business entity licensed
as a broker as the subject of the complaint but which does not specifically
name the designated broker is a complaint against the designated broker
at the time of any alleged violation for the limited purposes of determining
the designated broker's involvement in any alleged violation and whether
the designated broker fulfilled the designated broker's [
his or her] professional responsibilities. A complaint which
names a sales agent sponsored by a licensed business entity but which
does not specifically name the designated broker of the business entity
is a complaint against the designated broker at the time of any alleged
violation by the sales agent for the limited purposes of determining
the designated broker's involvement in any alleged violation and whether
the designated broker fulfilled the designated broker's [
his or her] professional responsibilities provided the complaint
concerns the conduct of the sales agent as an agent of the business
entity.
(c)Using the criteria specified by §1101.204 [
Section 1101.204] of the Act, the Commission prioritizes and
investigates complaints received by the Commission as follows:
(1)Level 1.
(A)Fraud or misrepresentation that involves loss of
$10,000 or more [>$10K].
(B)Continuing threat to public welfare [Personal
safety issues].
(C)Unlicensed activity.
[(D)Mortgage Fraud.]
(2)Level 2.
(A)Fraud or misrepresentation that involves loss of
less than [money or property <] $10,000.
(B)Negligence.
[(C)Allegations involving education
providers.]
(C)[(D)] Violations of Chapter
1102[, Texas Occupations Code]:
(i)1102.301 negligence or incompetence by an inspector.
(ii)1102.302 employment contingent on inspection report.
(iii)1102.303 acting in conflicting capacities, i.e.
inspector, broker, principal.
(iv)1102.305 agreeing to perform repairs in connection
with inspection.
(D)[(E)] Violations of Standards
of Practice, §§535.227 - 535.233 [§§535.227-535.231
] of this chapter.
(3)Level 3.
(A)Technical violations.
(B)Chapter 1102 complaints other than those listed
in Level 2 above.
(C)Allegations involving education
providers.
(d)If information obtained during the course of an
investigation of a complaint reveals reasonable cause to believe the
respondents to the complaint may have committed other violations of
the Act or rules, no additional authorization shall be required to
investigate and take action based upon the information.
(e)If the Commission suspends or revokes a license
or probates an order of suspension or revocation against a license
holder, 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.
(f)A person whose license has been suspended may not
during the period of any suspension perform, attempt to perform, or
advertise to perform any act for which a license is required by the
Act or Commission rules [Rules].
(g)A person whose license is subject to an order suspending
the license must provide notice in writing not later than the third
day before the date of the suspension as follows:
(1)if the person is a sales agent, notify his or her
sponsoring broker in writing that his or her license will be suspended;
(2)if the person is a broker, notify any sponsored sales
agent [he or she sponsors], or any business entity for
which the person is designated broker that:
(A)his or her broker license will be suspended; and
(B)once the suspension is effective, any sponsored sales
agent [he or she sponsors], or who is sponsored by the
business entity, will no longer be authorized to engage in real estate
brokerage unless:
(i)the sales agent is sponsored by another broker
and files a change of sponsorship with the Commission; or
(ii)the business entity designates a new broker and
files a change of designated broker with the Commission;
(3)If the person is an apprentice inspector or real
estate inspector, notify his or her sponsoring professional inspector
that his or her license will be suspended;
(4)if the person is a professional inspector notify
any sponsored apprentice or real estate inspectors [he
or she sponsors] that:
(A)his or her professional inspector license will
be suspended; and
(B)once the suspension is effective any sponsored apprentice
or real estate inspectors [he or she sponsors] will no
longer be authorized to inspect any real property unless the apprentice
or real estate inspectors associate with another professional inspector
and file a change of sponsorship with the Commission.
(5)if the person has a contractual obligation to perform
services for which a license is required by law or Commission rule,
notify all other parties to the contract that the services cannot
be performed during the suspension;
(6)if the person is a sales agent and is directly
involved in any real estate transaction in which the sales agent acts
as an agent, notify all other parties, including principals and other
brokers, that the person cannot continue performing real estate brokerage
services during the suspension; and
(7)if the person holds money in trust in any transaction
in which the person is acting as a broker, remit such money in accordance
with the instructions of the principals.
(h)If, in conjunction with an application or disciplinary
matter, an applicant or license holder agrees to automatic suspension
or revocation of his or her license for failing to comply with an
administrative term or requirement of an agreed order such as payment
of a penalty or completion of coursework, the license may be automatically
suspended or revoked with no further action by the Commission.
[(i)A broker may not assign to another
broker a listing agreement, buyer's representation agreement or other
personal service agreement to which the broker is a party and which
obligates the broker to perform acts for which a license is required
without first obtaining the written consent of the other parties to
the contract.]
The agency certifies that legal counsel has
reviewed the proposal
and found it to be within the state agency's
legal authority to adopt.
Filed
with the Office of the Secretary of State on February 15, 2023
TRD-202300749 Vanessa E. Burgess
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 2, 2023
For further information, please call: (512) 936-3284
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