- (a) A corporation formed so as to unite those who engaged in the real estate business for the purpose of exerting effectively a beneficial influence upon the real estate business and to provide a computerized listing service for its members, but which does not receive compensation for the sale of real estate would not be required to be licensed under this Act.
- (b) Licensure would be required of a trade association or organization if it or its listing service lists real property and expects to receive compensation, either directly or indirectly, as a result of the listings.
- (c) A broker should take net listings only when the principal insists upon a net listing and when the principal appears to be familiar with current market values of real property. When a broker accepts a listing, the broker enters into a fiduciary relationship with the principal, whereby the broker is obligated to make diligent efforts to obtain the best price possible for the principal. The use of a net listing places an upper limit on the principal's expectancy and places the broker's interest above the principal's interest with reference to obtaining the best possible price. Net listings should be qualified so as to assure the principal of not less than the principal's desired price and to limit the broker to a specified maximum commission.
- (d) A real estate licensee is obligated to advise a property owner as to the licensee's opinion of the market value of a property when negotiating a listing or offering to purchase the property for the licensee's own account as a result of contact made while acting as a real estate agent.
Source Note:The provisions of this §535.16 adopted to be effective January 1, 1976; amended to be effective April 14, 1998, 23 TexReg 3682.