Law & License

    Broker

    A Texas license holder who may operate a brokerage independently, hold trust money, and sponsor and supervise sales agents.

    A broker is a license holder who may operate a real estate brokerage independently, maintain a trust account, and sponsor the sales agents who work under the brokerage. The broker is responsible for the brokerage activities of each sponsored sales agent.

    Becoming a broker requires qualifying experience as an active license holder and additional education beyond the sales agent level, plus passing the broker exam.

    On the exam

    A Texas broker can operate independently, hold trust money, and sponsor sales agents. A sales agent cannot do those things.

    Exam trap

    Only a broker, not a sales agent, may run a brokerage independently and sponsor others. The broker answers for the sponsored agents' acts.

    Tested in

    Licensing (3% of the exam)

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    This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.