State ch 4: agency/brokerage

SB 489

Texas agency; requires IABS and disclosure of agency at first meeting, disclosure of representation at hiring, and intermediary regulations

IABS Form

a required written disclosure given at first substantive dialogue before being hired.

Exceptions to IABS Delivery

Not required at open houses, when the party is already represented by another license holder, or for leases under one year with no sale contemplated.

Disclosure of agency

entire page of written information - IABS

Disclosure of Representation

A single-sentence oral or written statement identifying whom the license holder represents.

Intermediary

Broker who represents both buyer and seller in the same transaction; may provide facts only, no advice or opinions.

Intermediary with Appointments

Form of intermediary where separate associates are appointed to give advice and opinions to their respective clients.

Non-Appointed Associate

Sales agent in an intermediary transaction who must give no advice or opinions—facts only.

One-Agent Brokerage Intermediary

can act only as a non-appointed intermediary.

RSC-3

Disclosure of Relationship with Residential Service Company; referenced in Paragraph 7H of the contract for 1-year renewable policies.

Abandonment

When a client has no contact from a broker for two days; client may freely seek another broker without written notice.

Broker Supervision Duty

Broker must ensure agents comply with laws and mentor them on their first three transactions in a new practice line.

Terminating an Agent

Broker must immediately return the agent’s license to TREC

Supervisor Notification to TREC

Broker must inform TREC if a license holder will supervise for more than 90 days; before delegation and after delegation within 30 days

Initial Sponsorship Activation

New licensee may not practice until the broker has received the license by email from TREC.

When transferring brokers,

an agent may conduct business once the sponsorship form has been emailed to TREC.

If there is a broker Death

Associated agents have 14 days before their licenses are placed on inactive status

Current Contract Forms

Broker must ensure agents use the latest TREC forms before their mandatory date.

Commission Payment Rule

All commissions must be paid through the sponsoring broker, who then chooses whether and how to pay the agent.

Unlicensed Assistant Penalty

If an unlicensed assistant performs activities requiring a license, the assistant, the license holder, and the broker all receive administrative penalties.

Administrative Activities

Tasks an unlicensed assistant may perform, such as clerical or secretarial work that does not require a real estate license.