Some agents fail to follow TREC rules for intermediaries
Q: I know of some agents who do not follow the Texas Real Estate Commission rules for acting as intermediaries. What should I tell them that would get their attention? A: Point them in the direction of the TREC website (www.trec. texas.gov) then get them to search the TREC database for “FAQs” then Intermediary, then the third answer down: “Failure of the intermediary broker or the sponsored sales agents to comply with the Intermediary Provisions of Texas Real Estate License Act §§ 1101.558561 may subject them to disciplinary sanctions by the TREC, including but not limited to, revocation, suspension, reprimand and/or an administrative penalty.” That definitely should gain their attention. Q: I know of a real estate salesperson who transacts business from her home and not from the broker’s office. I thought that salespersons were required to act under the broker at all times. A: In TREC’s language, “The sponsoring broker is still responsible for the sales agent’s actions, even when the sales agent does not work out of the broker’s main office. [TRELA §1101.803, Rule 535.2(a)] A sales agent may not lawfully engage in brokerage activ- ity unless the sales agent is associated with, and acting for, a sponsoring broker at all times. [TRELA §1101.351(c)]” But here is the hook: “The broker will also need to obtain a branch office license for the office location from which the sales agent transacts business. [Rule 535.112].” Q: I am the broker for a group of my agents. One of my business contacts has asked me if I can be a real estate broker for a separate entity. Do you know? A: Yes, you can be a broker and function as the designated officer for more than one company. Q:
I’ve seen signs that display the word “agent” in very small print, on the reverse side of the sign. Is that legal? A: The TREC rules state, “No. An advertisement placed where it is likely to attract the attention of passing motorists or pedestrians must contain language that clearly and conspicuously identifies the publisher as a real estate broker or agent. The Commission considers the required language to be clear and conspicuous if it is at least half the size of the largest contact information on the sign.”