If a broker wishes to terminate sponsorship, what must they do?

The correct procedure for a broker wishing to terminate sponsorship of a sales agent involves notifying the sales agent in writing and returning the agent’s license certification to the Texas Real Estate Commission (TREC). This requirement ensures that there is a formal record of the termination and that the agent's license status is appropriately updated. By notifying the agent in writing, the broker provides a clear and documented communication that officially ends the sponsorship relationship, which is a critical step in maintaining compliance with TREC regulations.

Additionally, returning the sales agent's license certification is important because it prevents the agent from operating independently under the broker's license, ensuring that the legal and ethical responsibilities associated with real estate transactions are upheld. This process not only fulfills the broker's obligations but also safeguards the interests of clients and the general public. Proper termination procedures are essential in real estate practice to maintain industry standards and protect all parties involved.