ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS FOR BUSINESS ENTITIES; REGISTRATION OF CERTAIN BUSINESS ENTITIES.
Tex. OCC Code § 1101.355.
in effect(a) To be eligible for a license under this chapter, a business entity must:
(1) designate one of its managing officers as its broker for purposes of this chapter; and
(2) provide proof that the entity maintains errors and omissions insurance with a minimum annual limit of $1 million for each occurrence if the designated broker owns less than 10 percent of the business entity.
(b) A business entity may not act as a broker unless the entity's designated broker is a licensed individual broker in active status and good standing according to the commission's records.
(b-1) In determining whether a designated broker is in good standing under this section, the commission may consider:
(1) the disciplinary history of:
(A) the broker; or
(B) any business entity for which the broker serves or previously served as a designated broker; and
(2) the payment status of any amount owed to the commission by:
(A) the broker; or
(B) any business entity for which the broker serves or previously served as a designated broker.
(c) A business entity that receives compensation on behalf of a license holder must be licensed as a broker under this chapter.
(d) Notwithstanding Subsection (c) or any other law, a business entity is not required to be licensed under this chapter if the business entity:
(1) receives compensation on behalf of a broker or sales agent licensed under this chapter that is earned by the license holder while engaged in real estate brokerage;
(2) performs no other acts of a broker;
(3) is:
(A) a limited liability company as defined by Section 101.001 , Business Organizations Code; or
(B) an S corporation as defined by 26 U.S.C. Section 1361;
(4) is registered with the commission; and
(5) is at least 51 percent owned by the license holder on whose behalf the entity receives compensation.
(e) The commission shall adopt rules providing for the registration of a business entity described by Subsection (d).
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.
Acts 2011, 82nd Leg., R.S., Ch. 1064 (S.B. 747 ), Sec. 7, eff. September 1, 2011.