Texas Register

RULE §535.1License Required
ISSUE 10/31/2003
ACTION Final/Adopted
Preamble Texas Admin Code Rule

(a)Texas Occupations Code, Chapter 1101 (the Act) applies to persons acting as real estate brokers or salespersons while physically within this state, 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, e-mail or other medium is also considered acting within this state if all the prospective buyers, sellers, landlords, or tenants are legal residents of this state, and the real property concerned is located wholly or in part within this state.

(b)This section does not prohibit cooperative arrangements between non-resident brokers and Texas brokers pursuant to the Act, §1101.651(a)(2) and §535.131 of this title (relating to Unlawful Conduct: Splitting Fees).

(c)Unless otherwise exempted by the Act, a person must be licensed as a real estate broker or salesperson to show a broker's listings, solicit listings of real property, or perform any act defined as that of a real estate broker by the Act. An unlicensed person may be hired by a broker to act as a host or hostess at a property being offered for sale by the broker, provided the unlicensed person engages in no activity for which a license is required.

(d)The employees, agents or associates of a licensed broker, including a corporation or limited liability company licensed as a broker, must be licensed as real estate brokers or salespersons if they direct or supervise other persons who perform acts for which a license is required. A license is not required for the performance of secretarial, clerical, or administrative tasks, such as training personnel, performing duties generally associated with office administration and personnel matters. Unlicensed employees, agents, or associates may not solicit business for the broker or hold themselves out as authorized to act as real estate brokers or salespersons.

(e)As used in this chapter, the terms "property" and "real property" have the same meaning as "real estate" as that term is defined in the Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 20, 2003


Loretta DeHay

General Counsel

Texas Real Estate Commission

Effective date: January 1, 2004

Proposal publication date: August 29, 2003

For further information, please call: (512) 465-3900

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