Texas Occupations Code

Sec. § 1101.806
Liability for Payment of Compensation or Commission

(a)

This section does not:

(1)

apply to an agreement to share compensation among license holders; or

(2)

limit a cause of action among brokers for interference with business relationships.

(b)

A person may not maintain an action to collect compensation for an act as a broker or sales agent that is performed in this state unless the person alleges and proves that the person was:

(1)

a license holder at the time the act was commenced; or

(2)

an attorney licensed in any state.

(c)

A person may not maintain an action in this state to recover a commission for the sale or purchase of real estate unless the promise or agreement on which the action is based, or a memorandum, is in writing and signed by the party against whom the action is brought or by a person authorized by that party to sign the document.

(d)

A license holder who fails to advise a buyer as provided by Section 1101.555 (Notice to Buyer Regarding Abstract or Title Policy) may not receive payment of or recover any commission agreed to be paid on the sale.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699), Sec. 91, eff. January 1, 2016.
Source

Last accessed
Jun. 7, 2021

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