If there is one thing the COVID-19 pandemic has taught us is to expect the unexpected and that planning is essential for you and your business. While succession planning in the event of a broker’s death is largely outside of TREC’s jurisdiction and is primarily a private business decision, it may be helpful to keep a few things in mind.
Regardless of how, if you suddenly find yourself without a broker, your license will become inactive and you will be unable to perform real estate services that require a license. To resume your work, you need to find a new broker immediately. TREC has the easy and free "Relationship Management Tool" available through the agency's online services. This tool allows you to confirm a new sponsoring broker at any time with no wait. Without an active sponsoring broker, your license will remain inactive, so taking action quickly will help you and your business.
If the designated broker of a licensed business entity dies, the entity and all agents sponsored by that entity can no longer perform real estate brokerage services until a new designated broker is established with TREC. First, the entity must submit the Change of Designated Broker form. Once TREC approves the change of designated broker and the business entity receives an active license reflecting the change, the entity can manage sales agent sponsorship through the agency's online services. Remember, all agents sponsored by the entity will need to confirm sponsorship by the entity before they are returned to active status with TREC.
For additional resources on succession planning, see the following:
- Pointers related to succession planning in the 2021 Broker Responsibility Course
- The Texas Real Estate Research Center article "Who's on Deck" written by former TREC General Counsel Kerri Lewis
- Texas REALTORS has also published an article on "Real Estate Brokerage Succession Planning."