Chapter 5 – Real Estate Brokerage and the Law of Agency

The 15th Edition of Modern Real Estate Practice in Texas was published in November 2011.  There are no critical updates to the content of Chapter 5; the information listed below is just FYI.

Broker-Salesperson Relationship:  Among other things, a broker is required to advise a sponsored salesperson regarding the scope of the salesperson’s authorized activities and the requirement to maintain an active license and to receive all compensation through or with the written consent of the sponsoring broker.  (See Rule 535.2, Broker Responsibility.) For more information about broker responsibilities, refer to the TREC-mandated textbook for the new MCE Broker Responsibility course.  http://www.trec.state.tx.us/pdf/education/brokerresponsiblitycourse-edition_1.0.pdf#search=’broker responsibilities’

Independent Contractors:  The IRS has announced that it will randomly audit 6,000 businesses over a three-year period, investigating whether workers are properly classified as employees or independent contractors. The House and Senate are considering legislation which would strengthen classification standards, toughen reporting requirements and raise penalties against employers that intentionally misclassify workers.  [“IRS Ups Audits on Independent Contractors.” Units, May 2010]

Procuring CauseNAR’s Arbitration Guidelines define procuring cause as “the uninterrupted series of causal events which results in the successful transaction.”  NAR recommends these actions to ensure a more substantial claim should a dispute ever arise: (1) Remain in continuous contact with the buyer throughout the period of the buyer’s agreement, (2) Document your search for properties that meet a buyer’s specifications, and your conversations with him or her, (3) Keep your buyer informed of your efforts on his/her behalf, (4) Ask frequently if there are any properties they’ve become aware of that they’d like you to show them. [NAR, Real Estate Buyer’s Agency Council, Vol. XVIII, No. 12, December 12, 2009]  

 Updated: April 15, 2013
 
 Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error, the authors and editors do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors or omissions or for the results obtained from use of such information. We assume no responsibility, express or implied, for errors or omissions of any kind, and no warranties of merchantability or fitness, express or implied, are made or to be implied, the product being accepted as is and with all faults. The information in this Website is not a final statement of the law on any given matter and does not substitute for experienced legal counsel.

© 2009 Cheryl Nance. All Rights Reserved.

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