Is a business entity that is licensed as broker required to have a designated officer?

Question:  Is a business entity that is licensed as broker required to have a designated officer?

Answer:  Yes. In order for a business entity to obtain a license as a real estate broker in the state of Texas it must have a designated officer in the company that is also licensed as a Broker by TREC (see TREC Rule §535.53).  This designated broker must be a managing officer of the business entity. Additionally, if the designated broker does not own at least 10% of the entity then the Licensed Business Entity must be able to show proof of a one million dollar E&O insurance policy per occurrence. All these requirements are expected to be shown at any renewal of licensure or change of a designated broker.

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