19-Feb-2008

TREC Rule 1260-1-.04(1) provides that "No principal broker shall permit an affiliate broker (or broker) under his supervision to engage in the real estate business unless the affiliate broker (or broker) has been issued a valid license."

In order to comply with this rule, it is not enough for managing brokers to verify that an affiliate broker is in fact licensed by the TREC before he/she begins working for the managing broker's firm. Managing brokers must verify this information annually to insure that affiliate brokers renew their licenses and/or have complied with continuing education requirements.
In the event an affiliate broker fails to renew his/her license in a timely fashion or comply with continuing education requirements, a managing broker should "suspend" the affiliate broker from engaging in the practice of real estate until his/her license has been renewed and/or he/she has complied with continuing education requirements and any penalty fees have been paid.