Texas Out of State Broker Cooperation
- An out-of-state licensee may split a commission from Texas licensee so long as out-of-state licensee does not conduct any of the activities related to the transaction in Texas.
- Texas considers out-of-state licensee as acting within Texas if;
a) the out-of-state licensee is conducting brokerage business from another state by mail, telephone, the internet, e-mail, or other medium;
b) if all the prospective buyers, seller, landlords, or tenants are legal residents of the State of Texas and the property concerned is located wholly or in part within the State.
- No bar exists to filing a commission lawsuit in Texas.
QUASI - BIZ BROKER STATE*
Texas Reverse Reciprocity
These states specifically mention Texas in their Reciprocity:
These States recognize any other State licenses but may have additional requirements:
Alaska, Alabama, Colorado, Georgia, Idaho, Indiana, Kansas, Kentucky, Maine, Nebraska, North Carolina, Rhode Island, South Dakota, Tennessee, Vermont, Washington
Texas Real Estate Customs
Title companies normally handle closings.
Conveyance is by warranty deed. Deeds of trust are the most common security instruments.
Texas uses only Texas standard policy forms of title insurance.
Buyers and sellers negotiate closing costs.
There aren’t any documentary, transfer, or mortgage taxes.
Texas is a community-property state.
Texas is a NON-DISCLOSURE state. Transaction details and the Buyer, Seller, Sales Price, or even if a property sold is NOT PUBLIC RECORD.
Texas has no state income tax.
*QUASI - BIZ BROKER STATE
If a business brokerage commission includes "as a part of a transaction" the transfer of an interest in real estate as part of the transaction, (includes a lease transfer) then the business broker must possess a real estate license to be paid.
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.