Texas Occupations Code
Sec. § 1101.652
Grounds for Suspension or Revocation of License


(a)

The commission may suspend or revoke a license issued under this chapter or Chapter 1102 (Real Estate Inspectors) or take other disciplinary action authorized by this chapter or Chapter 1102 (Real Estate Inspectors) if the license holder:

(1)

enters a plea of guilty or nolo contendere to or is convicted of a felony or a criminal offense involving fraud, and the time for appeal has elapsed or the judgment or conviction has been affirmed on appeal, without regard to an order granting community supervision that suspends the imposition of the sentence;

(2)

procures or attempts to procure a license under this chapter or Chapter 1102 (Real Estate Inspectors) for the license holder by fraud, misrepresentation, or deceit or by making a material misstatement of fact in an application for a license;

(3)

fails to honor, within a reasonable time, a check issued to the commission after the commission has sent by certified mail a request for payment to the license holder’s last known business address according to commission records;

(4)

fails to provide, within a reasonable time, information requested by the commission that relates to a formal or informal complaint to the commission that would indicate a violation of this chapter or Chapter 1102 (Real Estate Inspectors);

(5)

fails to surrender to the owner, without just cause, a document or instrument that is requested by the owner and that is in the license holder’s possession;

(6)

fails to consider market conditions for the specific geographic area in which the license holder is providing a service;

(7)

fails to notify the commission, not later than the 30th day after the date of a final conviction or the entry of a plea of guilty or nolo contendere, that the person has been convicted of or entered a plea of guilty or nolo contendere to a felony or a criminal offense involving fraud; or

(8)

disregards or violates this chapter or Chapter 1102 (Real Estate Inspectors).

(a-1)

The commission may suspend or revoke a license issued under this chapter or take other disciplinary action authorized by this chapter if the license holder:

(1)

engages in misrepresentation, dishonesty, or fraud when selling, buying, trading, or leasing real property in the name of:

(A)

the license holder;

(B)

the license holder’s spouse; or

(C)

a person related to the license holder within the first degree by consanguinity;

(2)

fails or refuses to produce on request, within a reasonable time, for inspection by the commission or a commission representative, a document, book, or record that is in the license holder’s possession and relates to a real estate transaction conducted by the license holder; or

(3)

fails to use a contract form required by the commission under Section 1101.155 (Rules Relating to Contract Forms).

(b)

The commission may suspend or revoke a license issued under this chapter or take other disciplinary action authorized by this chapter if the license holder, while engaged in real estate brokerage:

(1)

acts negligently or incompetently;

(2)

engages in conduct that is dishonest or in bad faith or that demonstrates untrustworthiness;

(3)

makes a material misrepresentation to a potential buyer concerning a significant defect, including a latent structural defect, known to the license holder that would be a significant factor to a reasonable and prudent buyer in making a decision to purchase real property;

(4)

fails to disclose to a potential buyer a defect described by Subdivision (3) that is known to the license holder;

(5)

makes a false promise that is likely to influence a person to enter into an agreement when the license holder is unable or does not intend to keep the promise;

(6)

pursues a continued and flagrant course of misrepresentation or makes false promises through an agent or sales agent, through advertising, or otherwise;

(7)

fails to make clear to all parties to a real estate transaction the party for whom the license holder is acting;

(8)

receives compensation from more than one party to a real estate transaction without the full knowledge and consent of all parties to the transaction;

(9)

fails within a reasonable time to properly account for or remit money that is received by the license holder and that belongs to another person;

(10)

commingles money that belongs to another person with the license holder’s own money;

(11)

pays a commission or a fee to or divides a commission or a fee with a person other than a license holder or a real estate broker or sales agent licensed in another state for compensation for services as a real estate agent;

(12)

fails to specify a definite termination date that is not subject to prior notice in a contract, other than a contract to perform property management services, in which the license holder agrees to perform services for which a license is required under this chapter;

(13)

accepts, receives, or charges an undisclosed commission, rebate, or direct profit on an expenditure made for a principal;

(14)

solicits, sells, or offers for sale real property by means of a lottery;

(15)

solicits, sells, or offers for sale real property by means of a deceptive practice;

(16)

acts in a dual capacity as broker and undisclosed principal in a real estate transaction;

(17)

guarantees or authorizes or permits a person to guarantee that future profits will result from a resale of real property;

(18)

places a sign on real property offering the real property for sale or lease without obtaining the written consent of the owner of the real property or the owner’s authorized agent;

(19)

offers to sell or lease real property without the knowledge and consent of the owner of the real property or the owner’s authorized agent;

(20)

offers to sell or lease real property on terms other than those authorized by the owner of the real property or the owner’s authorized agent;

(21)

induces or attempts to induce a party to a contract of sale or lease to break the contract for the purpose of substituting a new contract;

(22)

negotiates or attempts to negotiate the sale, exchange, or lease of real property with an owner, landlord, buyer, or tenant with knowledge that that person is a party to an outstanding written contract that grants exclusive agency to another broker in connection with the transaction;

(23)

publishes or causes to be published an advertisement that:

(A)

misleads or is likely to deceive the public;

(B)

tends to create a misleading impression;

(C)

implies that a sales agent is responsible for the operation of the broker’s real estate brokerage business; or

(D)

fails to include the name of the broker for whom the license holder acts, which name may be the licensed name, assumed name, or trade name of the broker as authorized by a law of this state and registered with the commission;

(24)

withholds from or inserts into a statement of account or invoice a statement that the license holder knows makes the statement of account or invoice inaccurate in a material way;

(25)

publishes or circulates an unjustified or unwarranted threat of a legal proceeding or other action;

(26)

establishes an association by employment or otherwise with a person other than a license holder if the person is expected or required to act as a license holder;

(27)

aids, abets, or conspires with another person to circumvent this chapter;

(28)

fails or refuses to provide, on request, a copy of a document relating to a real estate transaction to a person who signed the document;

(29)

fails to advise a buyer in writing before the closing of a real estate transaction that the buyer should:

(A)

have the abstract covering the real estate that is the subject of the contract examined by an attorney chosen by the buyer; or

(B)

be provided with or obtain a title insurance policy;

(30)

fails to deposit, within a reasonable time, money the license holder receives as escrow or trust funds in a real estate transaction:

(A)

in trust with a title company authorized to do business in this state; or

(B)

in a custodial, trust, or escrow account maintained for that purpose in a banking institution authorized to do business in this state;

(31)

disburses money deposited in a custodial, trust, or escrow account, as provided in Subdivision (30), before the completion or termination of the real estate transaction;

(32)

discriminates against an owner, potential buyer, landlord, or potential tenant on the basis of race, color, religion, sex, disability, familial status, national origin, or ancestry, including directing a prospective buyer or tenant interested in equivalent properties to a different area based on the race, color, religion, sex, disability, familial status, national origin, or ancestry of the potential owner or tenant; or

(33)

disregards or violates this chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.154(c), eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 825 (S.B. 810), Sec. 9, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 297 (H.B. 1530), Sec. 9, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 23 (S.B. 862), Sec. 6, eff. May 12, 2009.
Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699), Sec. 69, eff. January 1, 2016.
Acts 2017, 85th Leg., R.S., Ch. 974 (S.B. 2212), Sec. 3, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 334 (S.B. 624), Sec. 15, eff. September 1, 2019.
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Last accessed
Aug. 4, 2020