Ask Texas REALTOR®

Q   What is TREC’s policy, rule, or law concerning a person who has a broker’s license being designated as the broker for two different and separate realty offices? I am not speaking of a broker/owner having two or more branch offices.

A   Nothing in the Real Estate License Act prohibits an individual broker from being the "designated officer" for more than one corporation or limited-liability company. A corporation or LLC under which real estate brokerage activity is conducted must maintain a corporate broker or LLC broker license at TREC. The corporation or LLC must designate one of its officers (or managers in the case of an LLC) to be the designated officer for the corporation or LLC. The designated officer is responsible to TREC for the real estate brokerage activities conducted under the corporate or LLC license.

Other brokers may be interested in the definition of and requirements for a branch office. The Real Estate License Act says: "A broker must apply for a branch office license if the broker maintains more than one place of business. A ‘place of business’ means a place where the licensee meets with clients and customers to transact business. A license is required for each branch office maintained by the broker, and the license certificate for each branch office must display the address at which the broker’s office is located." Also, TRELA requires brokers who maintain more than one office to "display the license of any salesperson sponsored by they broker either in the broker’s main office or in one of the broker’s branch offices."

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