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The Broker Responsibility Working Group (BRWG) met April 12. Members reviewed public comment submitted in response to a new proposed rule, 535.157 — Obligation to Respond Timely, and proposed changes to 535.2 — Broker Responsibility Rule. The group also continued discussion regarding the difference between a broker and a sponsoring broker, and whether there should be additional education requirements for sponsoring brokers.

Two rules recommended for adoption

Broker Responsibility

At the February Commission meeting, the BRWG recommended amending 535.2(i)(5), to increase the minimum number of times a broker must ensure assistance and coaching are provided to a sponsored agent conducting a new type of brokerage activity from one time to three times.

The group reviewed public comments submitted in response to this proposed change, the majority of which were favorable. The BRWG unanimously voted to recommend the change be adopted as proposed at the May Commission meeting.   

Obligation to Respond Timely

At the February Commission meeting, the BRWG also recommended a new rule, 535.157, which requires a broker or sales agent to respond to his or her principal, a broker or sales agent representing another party to a real estate transaction, or an unrepresented party to a real estate transaction within two calendar days. 

The group reviewed public comments submitted in response to this proposed rule and discussed concerns presented by license holders in different areas of practice, specifically property management.  The group noted the obligation to respond under this rule is tied to a real estate transaction.  The group also highlighted that a sponsoring broker and delegated supervisor still have an obligation to respond to their sales agents, under 535.2.  Finally, the BRWG and TREC staff discussed the importance of education and agency communications regarding this rule.

The BRWG voted to recommend the new rule, 535.157, for adoption at the May Commission meeting.

Discussion related to brokers and sponsoring brokers continues

The BRWG continued its conversation related to brokers and sponsoring brokers with a focus on whether a sponsoring broker should complete specific education requirements related to sponsorship of sales agents.  The group acknowledged this conversation as an important one that will be impacted by recent changes to the Broker Responsibility Course and other recommended course changes by the Education Standards Advisory Committee.

Upcoming meeting information

At its July 12, 2023 meeting, the BRWG will discuss regulatory considerations related to broker-associates. 

In accordance with normal Commission practice, any meeting materials will be available on TREC's website before the meeting. To provide public comment during the meeting, contact us by 5 p.m. CT on July 11 with the agenda item number you wish to speak on. If you are unable to attend the meeting live, you can email your public comments instead.