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Texas: what an unlicensed TC can do

What an unlicensed transaction coordinator may do in Texas, what needs a license, and why typing a contract as directed is not the same as reviewing it.

Yes, you can work as a TC in Texas without a real estate license.Stick to administrative work under a licensed agent and their broker, and leave anything that needs a license to them. Here's where the line is.
Texas infographic for unlicensed transaction coordinators: administrative tasks done as directed by a license holder, such as typing contracts, scheduling showings and confirming advertised facts, next to activities that need a license, such as reviewing contracts, negotiating, showing property, hosting open houses and calling prospects.

What you can do without a license

You work at the direction of a license holder, and TREC tells brokers to set written guidelines for unlicensed assistants and monitor them closely.

You can do (no license needed)

  • Enter data into a computer or type contracts, but only as specifically directed by a license holder.
  • Set a showing appointment for the license holder who will show the property.
  • Confirm information already advertised about a specific property, such as its size or price, and whether compensation is offered and how much.
  • Order supplies, schedule maintenance and handle other tasks that keep the office running.
  • Do bookkeeping, as long as you are not authorized to withdraw or transfer money from a trust account.
  • Train or motivate staff and handle office administration and personnel matters.
  • Handle property management tasks that generally do not need a license, such as bookkeeping and arranging repairs.

Needs a license

  • Review a contract or facilitate a transaction.
  • Call people to find out whether they want to buy, sell or lease, even just to set an appointment for a license holder.
  • Show a property, including unlocking a door or otherwise letting a prospective buyer or tenant in.
  • Host an open house.
  • Answer questions that go beyond what was advertised, or suggest other properties. Refer those to a license holder.
  • Withdraw or transfer money from a trust account.
  • Direct or supervise others who perform real estate brokerage activity.
  • Lease a single-family home for someone else, or control the acceptance or deposit of its rent, for pay.
Typing a contract is not reviewing itTREC allows an unlicensed assistant to put information into a contract only when a license holder specifically directs it. Checking the contract, spotting problems or explaining terms is the license holder's job: "An unlicensed assistant cannot review a contract or facilitate a transaction."

A practical example

You can:
Your agent tells you the sales price, option fee and closing date, and you type them into the contract exactly as given.
Refer to the agent:
The buyer asks what the option period means, or you notice a term that looks wrong. Send it to your agent.

Staying on the right side of the rules

Your job title doesn't change the rules

TREC says that whatever the title (unlicensed assistant, office manager or transaction coordinator), "the real estate license status determines what type of activities they can legally perform in Texas."

Penalties

Doing brokerage activity without a license is a Class A misdemeanor, with a fine of up to $4,000, up to one year in jail, or both. TREC says the broker or sales agent who employs the unlicensed person commits the offense too.

Broker responsibility

TREC may take disciplinary action against a broker or sales agent who pays or associates with an unlicensed person who does activities that require a license.

How Closima handles it

Closima asks once whether you hold a Texas license. If you don't, purchase agreements and addenda go to your agent with a link: they check every value and complete the form, and Closima records that a licensee completed it. If you do, you fill them in yourself and send them to your agent for approval before they go out. Everything else (deadlines, documents, emails, other forms) works as usual.

Thinking about a license?

You don't need one to work as a TC in Texas. A license lets you also do the work in the "Needs a license" column, under a broker. Here's what's involved:

TREC requires 180 classroom hours of qualifying courses: Principles of Real Estate I, Principles of Real Estate II, Law of Agency, Law of Contracts, Promulgated Contract Forms and Real Estate Finance (30 hours each). After you apply in the REALM Portal, you get fingerprinted with the Texas Department of Public Safety for a background check and pass the state and national exams given by Pearson. You are then issued an inactive license and must be sponsored by a licensed broker to go active. How to apply.

Resources

Questions about what's allowed? Ask the regulator: Texas Real Estate Commission (TREC), 512-936-3000, [email protected].

Source: Texas Real Estate Commission, "Can You Use Unlicensed Individuals to Help With Your Texas Real Estate Transactions? It Depends." (11-17-2024).

Buying or selling a home yourself? These pages are for people who work in real estate. Work with a licensed agent or a real estate attorney.

General information, not legal advice. Rules change, and your broker's policies may be stricter: confirm your duties with your supervising broker and your state's real estate regulator.

See also: Texas contract deadlines · How to become a transaction coordinator

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