Supervising Sales Agents in Texas: The Broker Responsibility Rule, Delegated Supervisors, Teams and Records

Short answer: Under TREC's broker responsibility rule, a Texas broker must tell each sponsored sales agent in writing what the agent is authorized to do, and is responsible for the agent's authorized acts unless that scope is limited or revoked in writing. The broker need not supervise directly and may delegate supervision in writing to another license holder, but can never give up overall responsibility. Team leaders must be delegated supervisors, and a delegation that lasts more than three consecutive months is reported to TREC within 30 days. The broker also keeps current written policies, keeps records for four years, responds to agents within two calendar days and passes on TREC mail within three calendar days.

Start with the written scope of authority

The broker's first duty is to notify each sponsored sales agent in writing of the scope of the agent's authorized activities. That notice decides what the broker answers for: the broker is responsible for the agent's authorized acts, and also for activities beyond the explicit scope if the broker permits them. The broker is responsible for any property management activity by a sponsored agent that requires a license. By statute, the broker is liable to TREC, the public and the broker's clients for conduct under the Act by a sales agent associated with or acting for the broker. A sales agent may work from a location other than the broker's main office, but the broker stays responsible for the agent there.

Delegated supervisors and teams

• A broker may delegate to another license holder the responsibility to assist in administering compliance, but may not relinquish overall responsibility for supervision.
• Any license holder who leads, supervises, directs or manages a team must be delegated as a supervisor, and every delegation must be in writing.
• Report the delegated supervisor's name to TREC within 30 days of a delegation that has lasted or is expected to last more than three consecutive months, and notify TREC within 30 days after it ends. A delegated supervisor who is a broker may send the end notice instead.
• A sales agent who supervises another license holder must attend the Broker Responsibility Course, and delegated supervisors include it in their renewal continuing education.
• A team name must end in "team" or "group", is registered by the broker before use, and the broker tells TREC within 10 days after the team stops using it.

Written policies every sponsoring broker needs

A broker who sponsors sales agents, or who is the designated broker of a business entity, keeps current written policies and procedures that ensure each agent:

• knows the scope of authorized activities and is competent, including in the geographic market where the agent represents clients;
• keeps the license active while doing licensed work;
• is paid only by, through or with the written consent of the sponsoring broker;
• hears about changes to the Act, TREC rules and promulgated contract forms before they take effect;
• gets coaching and assistance from an experienced, competent license holder the first three times the agent performs a type of brokerage activity;
• follows the advertising rules;

and that trust accounts and consumer funds are kept with appropriate controls and records are properly maintained.

Deadlines and records at a glance

The records list covers disclosures; commission agreements; substantive communications with parties; offers, contracts and addenda; receipts and disbursements of compensation; property management contracts; appraisals, broker price opinions and comparative market analyses; and sponsorship agreements.

Compensation, sponsorship and unlicensed staff

• A sales agent may accept compensation only from the sponsoring broker or the broker who sponsored the agent when it was earned, and may pay a commission only through the current sponsoring broker.
• Listings and other brokerage agreements are taken in the broker's name.
• Unlicensed assistants may do nothing that requires a license. Showing property, including unlocking it or hosting an open house, requires a license.
• When the broker is a business entity, its designated broker carries these responsibilities. The rule does not create an employer-employee relationship.

Complaints come back to the broker

Since January 1, 2026, TREC may send its notice of an investigation to a license holder associated with the person under investigation. TREC staff guidance says a complaint against a sponsored sales agent is also a complaint against the broker, to determine the broker's involvement and whether the broker properly supervised. Study the details in the broker supervision lesson and the trust account guide.

Independent exam-prep guide. Not affiliated with the Texas Real Estate Commission or Pearson VUE. Always confirm current requirements with TREC.