Texas Attorney Real Estate Withholding
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FAQ
Lawsuits against real estate agents may be based on a number of different claims. Such claims may include allegations of misrepresentation, negligence, lack of disclosure, secret profits, conflict of interest, etc.
If real estate agents engage in practicing law or activities that are not legally permitted to them, they could be facing serious consequences. These consequences can include fines, losing their real estate license, and commissions.
Section 535.131 - Unlawful Conduct; Splitting Fees (a) A broker licensed in Texas may cooperate with a foreign broker and share earned commissions with a foreign broker. (b) Only Texas license holders may handle negotiations physically conducted within Texas.
The Purpose of TRELA The state legislature of Texas passed the Texas Real Estate License Act to protect the public from brokers and sales agents who are dishonest. TRELA also: Establishes rules that license holders must follow that pertain to obtaining, and later maintaining, a real estate license.
Schultz, 05-14-01624 (Tex. App., 2016) (licensed attorney, being statutorily exempt from RELA, may collect a commission for brokering real estate transaction, even in the absence of an attorney-client relationship with party for whom the transaction was brokered).