1. (a) The Real Estate License Act permits Texas-licensed brokers to cooperate with and share earned commissions with persons licensed as brokers in other states, but all negotiations within Texas must be handled by Texas licensees.
2. (b) 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, provided that such unlicensed person performs none of the activities of a real estate agent and the public is not led to believe that such unlicensed 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 the activity of a real estate agent, the person is not required to be licensed and may share in the income earned by the partnership or corporation.

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.