Texas Occupations Code
Sec. § 1101.355
Additional General Eligibility Requirements for Business Entities


(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.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1064 (S.B. 747), Sec. 7, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699), Sec. 34, eff. January 1, 2016.
Source
Last accessed
Aug. 6, 2020