Broker Responsibilities

# Broker Responsibilities, License Requirements, and Supervision ## The Broker as the Legally Accountable Party In Texas, the broker — not the sales agent — is the legally accountable entity for brokerage operations. A sales agent can do nothing without a sponsoring broker, and the broker answers for the agent's conduct under Tex. Occ. Code Chapter 1101. --- ## License Requirements ### Sales Agent Pre-Licensing Education (Tex. Occ. Code §1101.358) Effective January 1, 2024 (per SB 1577, 88th Legislature), sales agent applicants must complete at least 12 semester hours (or equivalent classroom hours): | Course | Minimum Hours | |---|---| | Principles of real estate | 4 semester hours | | Agency law | 2 semester hours | | Contract law | 2 semester hours | | Contract forms and addendums | 2 semester hours | | Real estate finance | 2 semester hours | | Total | 12 semester hours | Commission waives these requirements if the applicant held a broker or sales agent license within the 6 months before application. ### Broker License Requirements (Tex. Occ. Code §1101.356) Two requirements must both be met: 1. Experience: *"at least four years of active experience as a license holder during the 60 months preceding the date the application is filed"* (§1101.356) 2. Education: number of hours in qualifying courses required by TREC rule, not to exceed 60 semester hours or equivalent The commission must define "active experience" by rule. Exception: another-state brokers with comparable requirements are exempt. ### Sponsorship Requirement (Tex. Occ. Code §1101.351) *"A licensed sales agent may not…