Legal FAQs for REALTORS®
— Brokerage Liability Issues
Maintaining written policies and procedures
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? (Updated June 5, 2015)
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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