Is a broker who doesn’t sponsor agents required to have a policies and procedures manual?

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06/05/2015 | Author: Editorial Staff

I know that Texas Real Estate Commission rules require a broker to maintain written policies and procedures for the broker’s sponsored salespersons. I recently got my broker’s license, but I don’t sponsor any agents. Am I still required to have a manual? 

No. The Texas Real Estate Commission recently adopted a clarification to the TREC rule regarding the requirement for a broker to maintain a written policies and procedures manual. Now it is clear that only a broker who sponsors salespersons or who is a designated broker for a business entity must maintain up-to-date written policies and procedures. A broker who sponsors salespersons is subject to this rule regardless of how long the broker sponsors the salespersons. A broker who is the designated broker for a business entity is subject to this rule whether or not the business entity sponsors salespersons. 

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Categories: Legal
Tags: legal, legal faq, brokers, trec rules, texas real estate commission


Comments

Candace Cargill on 06/11/2015

I am a single broker, I don’t have any licensee’s under my license be it active or in-active.  I wouldn’t be without one.  It not only is a good CYA for you and your business, it is good to actually read and possibly follow, what a concept!  May help many in my same position create a business plan if they don’t have one.  What the heck could it hurt?  You may end up with someone and then you wouldn’t have to scramble around for one.

David Davis on 06/11/2015

If you are practicing real estate brokerage, and you don’t have one, you are subject to one!  In other words, if you are the responsible or designated broker for an entity, you must have one!  If you are sponsored by, or affiliated with a broker, that broker must also have one, which you are subject to.  There are a couple of online sources for this manual.  They offer basic guidelines, in an editable format that you can change to suit you brokerage.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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