Brokerage & Agency

Broker Responsibility

A broker's liability for conduct engaged in under TRELA by the broker or by a sales agent associated with or acting for the broker.

Under TRELA Sec. 1101.803, a licensed broker is liable to the Commission, the public, and the broker's clients for any conduct engaged in under Chapter 1101 by the broker or by a sales agent associated with or acting for the broker.

The rule follows from Sec. 1101.351(c): a sales agent may not engage in real estate brokerage unless sponsored by a licensed broker and acting for that broker. Because the agent acts through the broker, the broker answers for the conduct. Supervisory duties can be delegated; the responsibility cannot.

On the exam

Any answer that lets a broker escape responsibility because a task was delegated, or because the broker did not know, is wrong.

Exam trap

Sec. 1101.803 contains no knowledge requirement. "The broker did not know" is a distractor, not a defense.

Tested in

Texas Agency & Intermediary (9% of the exam)

From definition to recall

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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.