Activities Requiring an Active Texas Real Estate License

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In the State of Texas, to perform real estate activities on another’s behalf for an actual or expected commission or any other valuable consideration, one must possess an active real estate license.

The activities, which come under this category, are motioned below.

    • 1) Selling, purchasing, exchanging or leasing the properties of real estate
    • 2) Negotiating or attempting to negotiate the listing, exchange, sale, buying, or leasing of real estate properties
    • 3) Listing, attempting, or agreeing to list real estate for sale or exchange
    • 4) Auctioning, offering, attempting, or agreeing to auction real estate
    • 5) Buying, selling, or offering to buy or sell, or otherwise dealing in real estate, including giving a lease to purchase
    • 6) Aiding, attempting, or offering to help in locating real estate for purchase or giving to lease
    • 7) Procuring or assisting in procuring properties for dealing with an exchange, selling, or leasing real estate
    • 8) Selling, buying, leasing, or transferring an easement to utilize the connection with the railroad, or other services
    • 9) Control the acceptance of rent from a tenant of a single family
    • 10) Advising or offering advice to the property owner concerning the negotiation of the sale
    • 11) Providing analysis, or conclusion on the price of real estate property as long as:
      • Not referred to as an appraisal
      • Provided in the ordinary course of any person’s business
      • Related to the actual management, disposition, encumbrance or acquisition of an interest in real property

An active real estate license is required for anyone

who charges or collects a fine under a contract

to promote the sale of real estate.

Further, certain people and professions do not require an active real estate license.

The licensing act exempts:

      • An attorney at law licensed in Texas
      • A person who is under a duly executed power of lawyer when authorized to conduct more than three real estate transactions annually
      • A government official in the conduct of official duties
      • A person calling the sale of real estate by authority provided the person does not perform any other act of a real estate broker or sales agent as defined by the act
      • A person who is conducting a real estate transaction under law or court order or under the authority of any will
      • A person employed by an owner to sell both the building and the land
      • An on-site manager of a building complex
      • An owner who leases his/her improved or unimproved real estate
      • Transactions involving the lease of property, sale or transfer of cemetery lots
      • Transactions involving the management or lease of any hotel property or motel property
      • Transactions involving the sale, transfer, or mining of a mineral in real estate
      • The sale of real estate property under a power of sale conferred by a deed of trust

There is no need for a real estate license for a person or firm engaged solely in the following activities:

      • Constructing, repairing or remodeling a house or any other building
      • Promoting, sponsoring, managing as a partner, principal, or financial manager of a real estate investment
      • Entering into an obligation to pay another person who is already secured by an interest in real estate property

The real estate act raises many questions about specific activities or individuals that require a license or are exempt.

To give clear information on these issues, the real estate commission has designed rules and regulations in the code.

Anyone seeking an active real estate license must check that their activity fulfills the state’s commission requirements.

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