Sponsoring Broker
The Texas broker who sponsors a sales agent, supervises the agent's brokerage activity, and is responsible for the agent's acts.
A sponsoring broker is the broker who sponsors a sales agent so the agent can perform brokerage. A sales agent must be sponsored by an active Texas broker to act, and the agent works in the name of and under the supervision of that broker. The relationship is recorded with TREC, and an agent can change sponsorship by following the required process.
The sponsoring broker is responsible for the brokerage activities of the sponsored sales agent and must pay the agent's brokerage compensation. An agent without an active sponsoring broker holds an inactive license and may not perform brokerage.
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- Sales Agent
A Texas license holder who performs real estate brokerage only under the sponsorship and supervision of a broker.
- Broker
A Texas license holder who may operate a brokerage independently, hold trust money, and sponsor and supervise sales agents.
- TRELA (The Real Estate License Act)
The Texas statute, Occupations Code Chapter 1101, that governs real estate licensing and brokerage. License holders call it The Act.
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.