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State Bill 747 (SB747) was passed in the Texas congress with changes effective September 1 Ugo Amadi Womens Jersey , 2011. Several of these changes deal specifically with the duties of a real estate brokerage. The bill now defines the Texas state law as requiring a license for anyone who controls the receipt and deposit of rent from single-family residential or properties under four units. If you, as landlord, hire a property manager or real estate agency to control and maintain your properties, the agency must employ a broker that is licensed by the Texas Real Estate Commission.
Finding a Broker:
For potential or current Texas real estate investors who rely on a licensed real estate brokerage company to collect rent then this bill is already in accordance with your business. However, if you employ a property manager who is not a employee to collect rent from your tenants without a license you may want to look into hiring a property management company with a licensed real estate broker. For many investors a property management company can be a wonderful stress reliever as the company will not only collect monthly rent Phil Haynes Womens Jersey , but also provide a wide range of services ranging from everyday menial to annual maintenance.
If you are concerned about finding a legitimate broker you can contact the Texas Real Estate Commission (TREC). This is the state鈥檚 official real estate committee that keeps a database of updated laws, licensing requirements and list active brokerage companies in the state of Texas. The broker you choose will be largely responsible for your principle earnings (rent) and you want to make sure it is a brokercompany that you trust. The SB 747 defines a broker as anyone who is licensed by Texas and performs the following duties for the landlord:
1. A person who, in exchange for a commission, etc. performs for another person the following acts:
b) Offers to sell, exchange, purchase or lease real estate
c) Maintains rent collection
2. Defined as a person who
a) Is employed by or for an owner of real estate to sell any portion of the real estate
b) Contracts to collect a fee under a contract that requires the person primarily to promote the sale of real estate
To put in layman鈥檚 terms, if a person (property manager, etc.) is providing you real estate brokerage services (collecting rent Cody Barton Womens Jersey , leasing property, etc.) then that person must have a license issued by the state of Texas. If you hire an entire company to manage and collect rents and deposits, then it is your duty, as a landlord, to ensure that the business is legitimately registered as a broker and designates a licensed officer to perform these acts for you. In many markets such as Houston and Dallas D.K. Metcalf Womens Jersey , there are many property management firms out there, so please do the due diligence to insure that you are not dealing with unlicensed individuals.
Licensed Brokerages are subject to oversight and requirements to obtain their licenses, and this provides the owners of property in Texas comfort that their rentals have regulation. Additionally, this also means that real estate agents cannot manage property without it being involved through the brokerage. If your agent is not managing the property with the money being subject to the supervision of the broker, then the real estate agent is also in violation of this provision.
Ashoka Lion - About Author: Jay Raman is the managing director of Ashoka Lion Marquise Blair Womens Jersey , a Houston and Dallas area property management firm. Ashoka Lion is a full licensed real estate brokerage in the Houston and Dallas Markets, and you can verify Ashoka Lion鈥檚 license with the Texas Real Estate Commission.