Header:
TEXAS ADMINISTRATIVE CODE
TITLE 22. EXAMINING BOARDS
PART 23. TEXAS REAL ESTATE COMMISSION
CHAPTER 535. GENERAL PROVISIONS
SUBCHAPTER B. GENERAL PROVISIONS RELATING TO THE REQUIREMENTS OF LICENSURE
Date:
03/07/2014
Document:
§ 535.2. Broker Responsibility
(a) A broker is required to advise a sponsored salesperson of the scope of the salesperson's authorized activities under the Act. Unless such scope is limited or revoked in writing, a broker is responsible for the authorized acts of the broker's salespersons, but the broker is not required to supervise the salespersons directly. If a broker permits a sponsored salesperson to conduct activities beyond the scope explicitly authorized by the broker, those too will be deemed to be authorized acts for which the broker is responsible.
(b) A real estate broker acting as an agent owes the very highest fiduciary obligation to the agent's principal and is obliged to convey to the principal all information of which the agent has knowledge and which may affect the princi-pal's decision.
(c) A broker is responsible for the proper handling of trust funds placed with the broker, although the broker may authorize other persons to sign checks on behalf of the broker.
(d) A broker is responsible for any property management activity which requires a real estate license that is con-ducted by the broker's sponsored salespersons.
(e) A broker may delegate to another licensee the responsibility to assist in administering compliance with the Act and Rules, but the broker may not relinquish overall responsibility for the supervision of licensees sponsored by the broker. Any such delegation must be in writing.
(f) Listings may only be solicited and accepted in a broker's name.
(g) A broker is responsible to ensure that a sponsored salesperson's advertising complies with § 535.154 of this ti-tle (relating to Advertising).
(h) Except for records destroyed by an "Act of God" such as a natural disaster or fire not intentionally caused by the broker, the following records, at a minimum, shall be maintained for at least four (4) years from the date of closing or termination of the contract in a format that can readily be made available to the commission.
(1) Disclosures;
(2) Commission Agreements such as listing agreements, buyer representation agreements or other written agreement relied upon to claim compensation;
(3) Work files;
(4) Contracts and related addenda;
(5) Receipts and disbursements of compensation for services subject to the Act;
(6) Property management contracts;
(7) Documents required by USPAP for appraisals; and
(8) Sponsorship agreements between the broker and sponsored salespersons.
(i) A broker shall maintain on a current basis written policies and procedures to ensure that:
(1) Each sponsored salesperson is advised of the scope of the salesperson's authorized activities subject to the Act and is competent to conduct such activities.
(2) Each sponsored salesperson maintains their license in active status at all times while they are engaging in ac-tivities subject to the Act.
(3) Any and all compensation paid to a sponsored salesperson for acts or services subject to the Act is paid by, through, or with the written consent of the sponsoring broker.
(4) Each sponsored salesperson is provided on a timely basis, prior to the effective date of the change, notice of any change to the Act, Rules, or commission promulgated contract forms.
(5) In addition to completing statutory minimum continuing education requirements, each sponsored salesperson receives such additional educational instruction the broker may deem necessary to obtain and maintain on a current basis competency in the scope of the sponsored salesperson's practice subject to the Act.
(6) Each sponsored salesperson complies with the commission's advertising rules.
(7) All trust accounts, including but not limited to property management trust accounts, and other funds received from consumers are handled by the broker with appropriate controls.
(8) Records are properly maintained pursuant to subsection (h) of this section.
(j) A broker must promptly respond to sponsored salespersons, clients, and licensees representing other parties in real estate transactions.
(k) A sponsoring broker shall deliver to or otherwise provide, within a reasonable time after receipt, mail and other correspondence from the commission to their sponsored salespersons. A broker may deliver such correspondence by facsimile or email.
(l) When the broker is a business entity, the designated broker is the person responsible for the broker responsi-bilities under this section.
(m) This section is not meant to create or require an employer/employee relationship between a broker and a sponsored salesperson.
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