1. (a) The Real Estate License Act, Texas Civil Statutes, Article 6573a,( the Act) permits Texas-licensed brokers to cooperate with and share earned commissions with persons licensed as brokers in other states, but all negotiations physically conducted within Texas must be handled by Texas licensees.
2. (b) As used in §14 of the Act, the word "state" refers to the states, territories, and possessions of the United States and any foreign country or governmental subdivision thereof.
3. (c) An unlicensed person may share in the income earned by a real estate brokerage operation if the person engages in no acts for which a license is required and does not lead the public to believe that the person is in the real estate brokerage business.
4. (d) If a member of a partnership or an officer of a corporation does not engage in acts for which a license is required, the person is not required to be licensed and may share in the income earned by the partnership or corporation.
5. (e) A resident of a foreign state that does not require a person to be licensed to act as a real estate broker is considered to be licensed as a broker for the purposes of the Act, §14(a), if the person complies with the law of the foreign state and practices there as a real estate broker.

Source Note:The provisions of this §535.131 adopted to be effective January 1, 1976; amended to be effective March 11, 1981, 6 TexReg 725; amended to be effective May 27, 1998, 23 TexReg 5437; amended to be effective October 1, 2000, 25 TexReg 8645.