Under Texas law, in what instance is a broker justified in paying an unlicensed assistant?

Prepare for the TREC Sales Agent Exam. Study with multiple choice questions and flashcards, complete with hints and detailed explanations. Get ready for your test!

A broker is justified in paying an unlicensed assistant provided that the assistant does not engage in any licensed activities. This is crucial because Texas law stipulates that only individuals who are licensed can perform certain functions that constitute licensed real estate activities, such as negotiating contracts, showing properties, or giving real estate advice.

When an unlicensed assistant stays within the boundaries of providing non-licensed support, such as administrative tasks, marketing assistance, or other supportive roles, they can be compensated legally. This ensures compliance with real estate regulations while allowing brokers to leverage the support they need to operate efficiently.

In contrast, having a real estate certificate does not qualify someone to perform licensed activities if they have not obtained the appropriate license. Providing limited support services could be seen as engaging in licensed functions unless carefully defined and confined to non-licensed activities. Likewise, simply being a family member does not change the legal requirements regarding licensing – compensation for services rendered must still comply with Texas laws governing real estate practices.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy