The Real Estate License Act (TRELA) says a licensed sales agent may not engage in real estate brokerage activity unless that sales agent is sponsored by a licensed broker and is acting for that broker.

In Texas, transaction coordinators and showing agents are frequently used by brokerages as part of their business model, but sometimes these models entail working for other brokerages. Here is what “acting for” your broker means in these situations.

Transaction Coordinators

Transaction coordinators, sometimes called TCs, are not defined nor mentioned in TREC rules and statutes. In practice, transaction coordinators typically handle administrative tasks related to a real estate transaction, so they would not be required to hold a real estate license. Even so, there is a risk that the activities of a transaction coordinator might blur the line between what is considered brokerage activity.

Often, the simplest way to reduce the risk of engaging in unlicensed brokerage activity and facing disciplinary action is to hold an active Texas real estate license.

If you are a licensed sales agent and you engage in brokerage activity while providing transaction coordinator services (even if inadvertent), you must get written authorization from your sponsoring broker first and only act within the scope of that authorization.

Showing Agents

A showing agent is not defined under Texas law, either. A showing agent is typically hired by a buyer’s agent to show a property to a prospective buyer. This arrangement might arise because the buyer’s agent is out of town or unavailable during a particular time. The showing agent may or may not receive a fee for their services.

Showing a property for compensation (or with the expectation of receiving compensation) is considered real estate brokerage activity, so an individual must have an active real estate license to do so. TREC Rule 535.4(c) says showing a property includes “causing or permitting the property to be viewed by a prospective buyer or tenant, unlocking or providing access onto or into a property for a prospective buyer or tenant, and hosting an open house at the property.”

If a licensed sales agent shows a property listed by another brokerage for compensation, the sales agent must obtain written authorization from the agent’s sponsoring broker prior to the showing. Any compensation received must be paid to the agent’s sponsoring broker unless written consent has been given pursuant to TREC Rule 535.3, Compensation to or Paid by a Salesperson.