OCCUPATIONS CODE

TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND HOUSING

SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE

CHAPTER 1101. REAL ESTATE BROKERS AND SALES AGENTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1101.001.

SHORT TITLE. This

chapter may be cited as The Real Estate License Act.

Added by Acts 2001, 77th Leg., ch. 1421,

Sec. 2, eff. June 1, 2003.

Sec. 1101.002.

DEFINITIONS. In this chapter:

(1) "Broker":

(

A) means a person who, in exchange for a commission or other valuable consideration or with the expectation of receiving a commission or other valuable consideration, performs for another person one of the following acts:

(

i) sells, exchanges, purchases, or leases real estate;

(ii) offers to sell, exchange, purchase, or lease real estate;

(iii) negotiates or attempts to negotiate the listing, sale, exchange, purchase, or lease of real estate;

(iv) lists or offers, attempts, or agrees to list real estate for sale, lease, or exchange;

(

v) auctions or offers, attempts, or agrees to auction real estate;

(vi) deals in options on real estate, including a lease to purchase or buying, selling, or offering to buy or sell options on real estate;

(vii) aids or offers or attempts to aid in locating or obtaining real estate for purchase or lease;

(viii) procures or assists in procuring a prospect to effect the sale, exchange, or lease of real estate;

(ix) procures or assists in procuring property to effect the sale, exchange, or lease of real estate;

(

x) controls the acceptance or deposit of rent from a resident of a single-family residential real property unit;

(xi) provides a written analysis, opinion, or conclusion relating to the estimated price of real property if the analysis, opinion, or conclusion:

(

a) is not referred to as an appraisal;

(

b) is provided in the ordinary course of the person's business; and

(

c) is related to the actual or potential management, acquisition, disposition, or encumbrance of an interest in real property; or

(xii) advises or offers advice to an owner of real estate concerning the negotiation or completion of a short sale; and

(

B) includes a person who:

(

i) is employed by or for an owner of real estate to sell any portion of the real estate; or

(ii) engages in the business of charging an advance fee or contracting to collect a fee under a contract that requires the person primarily to promote the sale of real estate by:

(

a) listing the real estate in a publication primarily used for listing real estate; or

(

b) referring information about the real estate to brokers.

(1-a) "Business entity" means a "domestic entity" or "foreign entity" as those terms are defined by

Section 1.002 , Business Organizations Code, that is qualified to transact business in this state.

(2) "Certificate holder" means a person registered under Subchapter K.

(3) "Commission" means the Texas Real Estate Commission.

(3-a) "Easement or right-of-way agent" means a person who sells, buys, leases, or transfers an easement or right-of-way for another, for compensation or with the expectation of receiving compensation, for use in connection with telecommunication, utility, railroad, or pipeline service.

(4) "License holder" means a broker or sales agent licensed under this chapter.

(4-a) "Mineral" has the meaning assigned by

Section 75.001 , Property Code. The term includes oil, gas, related hydrocarbons, coal, lignite, uranium, and substances classified as base, industrial, precious, or strategic minerals.

(4-b) "Other energy source" means a natural resource other than water or a mineral that is necessary to produce energy, including geothermal, nuclear, solar, and wind energy.

(5) "Real estate" means any interest in real property, including a leasehold, located in or outside this state. The term does not include an interest given as security for the performance of an obligation.

(6) "Residential rental locator" means a person who offers for consideration to locate a unit in an apartment complex for lease to a prospective tenant. The term does not include an owner who offers to locate a unit in the owner's complex.

(7) "Sales agent" means a person who is sponsored by a licensed broker for the purpose of performing

an act described by Subdivision (1).

(8) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1172 (S.B. 1968 ),

Sec. 13(1), eff. January 1, 2026.

(9) "Water" means:

(

A) diffused surface water;

(

B) groundwater, as defined by

Section 36.001 , Water Code; or

(

C) state water, as described by

Section 11.021 (a), Water Code.

Added by Acts 2001, 77th Leg., ch. 1421,

Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276,

Sec. 14A.151, eff. Sept. 1, 2003.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 1064 (S.B. 747 ),

Sec. 1, eff. September 1, 2011.

Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699 ),

Sec. 2, eff. January 1, 2016.

Acts 2023, 88th Leg., R.S., Ch. 871 (H.B. 4123 ),

Sec. 67, eff. June 13, 2023.

Acts 2025, 89th Leg., R.S., Ch. 147 (S.B. 1172 ),

Sec. 1, eff. May 24, 2025.

Acts 2025, 89th Leg., R.S., Ch. 1172 (S.B. 1968 ),

Sec. 13(1), eff. January 1, 2026.

Sec. 1101.003. QUALIFYING REAL ESTATE COURSES. (

a) For purposes of this chapter, "qualifying real estate courses" include:

(1) agency law;

(2) contract law;

(3) principles of real estate;

(4) property management;

(5) real estate appraisal;

(6) real estate brokerage;

(7) real estate finance;

(8) real estate investment;

(9) real estate law;

(10) real estate marketing; and

(11) real estate mathematics.

(

b) The commission may designate a course as an equivalent of a course listed in Subsection (a).

(

c) The commission by rule may prescribe:

(1) the content of the qualifying real estate courses listed in Subsection (a); and

(2) the title and content of additional qualifying real estate courses.

(

d) A daily course segment for a qualifying course may not exceed 12 hours.

(

e) An applicant, license holder, or education provider may not report to the commission the completion of an alternative delivery or correspondence course offered as a qualifying course until the elapsed time between the time the applicant or license holder registers for the course and the time the completion of the course is reported exceeds twice the number of hours for which credit is claimed.

Added by Acts 2001, 77th Leg., ch. 1421,

Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276,

Sec. 14A.152(a), eff. Sept. 1, 2003.

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699 ),

Sec. 3, eff. January 1, 2016.

Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699 ),

Sec. 4, eff. January 1, 2016.

Acts 2025, 89th Leg., R.S., Ch. 1172 (S.B. 1968 ),

Sec. 1, eff. January 1, 2026.

Sec. 1101.004. REAL ESTATE BROKERAGE. (

a) A person is engaged in real estate brokerage if the person, with the expectation of receiving valuable consideration, directly or indirectly performs or offers, attempts, or agrees to perform for another person any act described by

Section 1101.002 (1), as a part of a transaction or as an entire transaction.

(

b) A person is not engaged in real estate brokerage, regardless of whether the person is licensed under this chapter, based solely on engaging in the following activities:

(1) constructing, remodeling, or repairing a home or other building;

(2) sponsoring, promoting, or managing, or otherwise participating as a principal, partner, or financial manager of, an investment in real estate; or

(3) entering into an obligation to pay another person that is secured by an interest in real property.

Added by Acts 2001, 77th Leg., ch. 1421,

Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276,

Sec. 14A.153, eff. Sept. 1, 2003.

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699 ),

Sec. 5, eff. January 1, 2016.

Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (

a) A person may acquire an option or an interest in a contract to purchase real property and then sell or offer to sell the opt