What is the primary condition under which a foreign broker may collect a commission from a Texas broker?

Prepare for the Texas Real Estate Commission (TREC) State Exam. Access comprehensive study resources with quizzes and detailed explanations. Ensure you're ready for success!

The primary condition under which a foreign broker may collect a commission from a Texas broker is that the foreign broker must not negotiate in Texas. This means that while a foreign broker can work with a Texas broker to facilitate a transaction, they are prohibited from engaging directly in negotiations within the state.

This regulation helps to protect consumers in Texas by ensuring that all negotiation activities are conducted by licensed Texas brokers, who are familiar with local laws, market conditions, and practices. By requiring that foreign brokers do not negotiate in Texas, the Texas Real Estate Commission ensures that the state maintains control over the real estate transaction process and protects the interests of consumers engaging in real estate transactions within its jurisdiction.

The other options imply that foreign brokers can engage in activities or hold licenses that would not comply with Texas regulations, which is not the case. The focus on the prohibition against negotiating in Texas underscores the importance of compliance with local laws in real estate practice.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy