TREC

If you prefer, you can also submit the Application for Inactive Broker or Sales Agent Status form by email.

• If there is no residential service company contract as part of the transaction, you do not need to provide this form.
• If you are not being paid a fee by a residential service company, you do not need to provide this form.
• If a residential service company contract is part of the transaction but you do not receive a fee from that specific company, you do not need to provide this form.

Generally, the only reason you might fill out this form if you do not receive a fee from a residential service company is because the other agent or broker in your transaction is providing their own disclosure. In this situation, you would fill out the appropriate portion of the form and check the box that says you "will receive no compensation from a residential service company." Your signature in this situation is merely disclosure and is not an endorsement, approval, or otherwise binding.

Parting Ways With a Broker: What You Need to Know

It’s a new year and our records show a lot of sales agents change brokers during this time. TREC wants you to know the rules that apply in this situation.

Rule §535.121(b) and (c) states that if a sales agent intends to terminate sponsorship they must notify their sponsoring broker immediately in writing. If a broker intends to terminate sponsorship they must notify their sponsored sales agent immediately in writing. Before this step occurs, a sales agent may want to review their sponsoring broker's termination/change of sponsorship procedures and to be aware that terminating the relationship could impact their representation in ongoing transactions.

Brokers may need to consider the requirements of their Errors and Omissions (E&O) insurance coverage or other security concerns regarding access to internal computer systems.

By rule, a broker or a sales agent must also immediately terminate the sponsorship through one of two ways: either online or by submitting the appropriate form. To ensure the quickest transition, license holders can use the free "Manage My Sponsorship" tool within TREC's online services after notifying the sponsored sales agent or sponsoring broker in writing of the termination. Keep in mind that when a sales agent terminates sponsorship and associates with a new broker online, the former broker is not automatically notified by TREC of the termination. The sales agent must communicate the termination with their sponsoring broker directly in writing as stated in TREC’s rules.

While it can be difficult to part ways, effective planning and open communication can avoid a violation of TREC rules or other issues during a transition.