Section 1101.355 - Additional General Eligibility Requirements For Business Entities; Registration Of Certain Business Entities(a) To be eligible for a license under this chapter, a business entity must: (1) designate one of its managing officers as its broker for purposes of this chapter; and(2) provide proof that the entity maintains errors and omissions insurance with a minimum annual limit of $1 million for each occurrence if the designated broker owns less than 10 percent of the business entity.(b) A business entity may not act as a broker unless the entity's designated broker is a licensed individual broker in active status and good standing according to the commission's records.(b-1) In determining whether a designated broker is in good standing under this section, the commission may consider: (1) the disciplinary history of: (B) any business entity for which the broker serves or previously served as a designated broker; and(2) the payment status of any amount owed to the commission by: (B) any business entity for which the broker serves or previously served as a designated broker.(c) A business entity that receives compensation on behalf of a license holder must be licensed as a broker under this chapter.(d) Notwithstanding Subsection (c) or any other law, a business entity is not required to be licensed under this chapter if the business entity: (1) receives compensation on behalf of a broker or sales agent licensed under this chapter that is earned by the license holder while engaged in real estate brokerage; (2) performs no other acts of a broker; (3) is: (A) a limited liability company as defined by Section 101.001, Business Organizations Code; or (B) an S corporation as defined by 26 U.S.C. Section 1361; (4) is registered with the commission; and (5) is at least 51 percent owned by the license holder on whose behalf the entity receives compensation. (e) The commission shall adopt rules providing for the registration of a business entity described by Subsection (d). Tex. Occ. Code § 1101.355
Amended by Acts 2023, Texas Acts of the 88th Leg.- Regular Session, ch. 94,Sec. 9, eff. 1/1/2024.Amended by Acts 2023, Texas Acts of the 88th Leg.- Regular Session, ch. 94,Sec. 8, eff. 1/1/2024.Amended by Acts 2015, Texas Acts of the 84th Leg. - Regular Session, ch. 1158,Sec. 34, eff. 1/1/2016.Amended By Acts 2011, 82nd Leg., R.S., Ch. 1064, Sec. 7, eff. 9/1/2011.Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. 6/1/2003.