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Yes, but only if the business entity is licensed by TREC. A business entity owned by a broker or a sales agent that receives compensation on behalf of a license holder must hold a business entity broker’s license. If a business entity receives such compensation and does not hold a license, the business entity is engaging in unlicensed activity and the Commission can take action against the entity.

To comply with the Real Estate License Act and Commission rules, you must apply for a business entity broker’s license for your business entity.

If you already have an unlicensed business entity that you use to accept your commissions, obtain a license by applying now for a business entity broker’s license. You must stop accepting commissions through your business entity until the license for a business entity broker has been issued. Be aware that because the business entity has engaged in unlicensed activity, the Commission will likely take disciplinary action. However, the Commission does take into consideration a voluntary admission of such unlicensed activity by an applicant. In such a scenario, it is currently the Commission’s practice to pursue a two-year probationary license for the business entity, but no fine is typically assessed.

If you have any questions regarding this issue, please feel free to contact TREC.