What action can a broker take regarding an unlicensed assistant working on a transaction?

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A broker must adhere to regulations set by the Texas Real Estate Commission (TREC) regarding the activities of unlicensed assistants. This classification of assistant is restricted in what they can legally do in a real estate transaction to ensure consumer protection.

Not paying the assistant any commission is correct because under TREC rules, unlicensed individuals cannot engage in activities that require a real estate license, including negotiating commission or transaction details. By withholding payment from the unlicensed assistant, the broker is ensuring compliance with the law and protecting both the assistant and the integrity of real estate transactions.

Paying an unlicensed assistant a share of the commission or providing bonuses would violate licensing laws, as compensation for services requiring a license can only be paid to licensed individuals. This underscores the importance of understanding the legal boundaries within which all parties must operate to maintain professionalism and legal compliance in real estate transactions. Adhering to these regulations helps maintain the integrity of the real estate profession.

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