Texas Real Estate Sales Agent ExamTexas Real Estate LawMedium
A real estate broker operating in Texas wants to open a branch office. According to TREC Rules, which of the following is REQUIRED for the branch office?
- AIt must have a separate broker's license issued by TREC.
- BIt must be managed by a sales agent with at least 5 years of experience.
- CIt must be under the direct supervision of the broker or a licensed broker associate.
- DIt must display the original broker's license prominently at all times.
Show answer & explanationAnswer & explanation
Correct answer: C. It must be under the direct supervision of the broker or a licensed broker associate.
TREC Rules mandate that a branch office must be under the direct supervision of the principal broker or a licensed broker associate. It does not require a separate license or a sales agent with specific experience to manage it.
Why the other options are wrong
- A. A branch office generally operates under the principal broker's license; a separate license is not required for the branch itself.
- B. TREC Rules do not specify a minimum experience level for sales agents managing branch offices, if allowed.
- D. While the main office often displays the original license, TREC rules focus on supervision for branch offices, not the physical display of the original license there.
TREC Branch Office Requirements
Regulations set forth by the Texas Real Estate Commission regarding the establishment and operation of branch offices by licensed real estate brokers.
- Must be supervised by a broker or broker associate.
- Broker must file an application and pay a fee for the branch office.
- Broker is responsible for all activities at the branch office.
Memory trick: Brokers must follow TREC's 'Office Oversight' rules.