This section prohibits certain brokers and sales agents from paying or accepting compensation in prohibited ways, and restricts intermediary disclosures and conduct.
Sec. 1101.651. CERTAIN PRACTICES PROHIBITED. (a) A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is: (1) a license holder; or (2) a real estate broker licensed in another state who does not conduct in this state any of the negotiations for which the commission or other compensation is paid. (b) A sales agent may not accept compensation for a real estate transaction from a person other than the broker that is sponsoring the sales agent or was sponsoring the sales agent when the sales agent earned the compensation. (c) A sales agent may not pay a commission to a person except through the broker that is sponsoring the sales agent at that time. (d) A broker and any broker or sales agent appointed under Section 1101.560 who acts as an intermediary under Subchapter L may not: (1) disclose to the buyer or tenant that the seller or landlord will accept a price less than the asking price, unless otherwise instructed in a separate writing by the seller or landlord; (2) disclose to the seller or landlord that the buyer or tenant will pay a price greater than the price submitted in a written offer to the seller or landlord, unless otherwise instructed in a separate writing by the buyer or tenant; (3) disclose any confidential information or any information a party specifically instructs the broker or sales agent in writing not to disclose, unless: (A) the broker or sales agent is otherwise instructed in a separate writing by the respective party; (B) the broker or sales agent is required to disclose the information by this chapter or a court order; or (C) the information materially relates to the condition of the property; (4) treat a party to a transaction dishonestly; or (5) violate this chapter. Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003. Amended by: Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699), Sec. 68, eff. January 1, 2016.