: Texas Register

Texas Register

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
ISSUE	11/24/2023
ACTION	Final/Adopted

Preamble

Texas Admin Code Rule

(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.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 9, 2023

TRD-202304134

Vanessa E. Burgess

General Counsel

Texas Real Estate Commission

Effective date: January 1, 2024

Proposal publication date: August 25, 2023

For further information, please call:(512) 936-3284

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