What is the broker's overall responsibility for a sponsored sales agent?

The broker is responsible for the authorized acts of the sponsored sales agent under TRELA §1101.803 and TREC Rule 535.2(a). The broker must maintain written policies and procedures, supervise (or properly delegate supervision of) the agent, handle all trust money, ensure advertising compliance, and keep records for 4 years. Even with a delegated supervisor in place, the broker does not relinquish overall responsibility.

What's the broker's deadline to respond to a sponsored sales agent's question?

2 calendar days under Rule 535.2(j). This parallels the general response-time obligation in Rule 535.157 (license holder to client) and is one of the most-tested specific numbers in the supervision area. A delegated supervisor has the same 2-day obligation.

What is a delegated supervisor, and how is one appointed?

A delegated supervisor is a license holder (broker or sales agent with appropriate experience) to whom the sponsoring broker has delegated supervision responsibility in writing. The delegation must be in writing, and the broker must notify TREC within 30 days of any delegation that has lasted or is anticipated to last more than 3 consecutive months. The broker also notifies TREC within 30 days after the delegation ends. Even with a delegated supervisor, the broker remains responsible for the agent's authorized acts.

Can a sales agent receive commission directly from a buyer or seller?

No. Under TRELA, a sales agent may not receive a commission or other valuable consideration except with the written consent of the sponsoring broker (or the broker who sponsored at the time of earning). All compensation flows through the broker. Listings and other agreements must be solicited and accepted in the broker's name under Rule 535.2(f).

Texas Broker Supervision of Sales Agents — TREC Rule 535.2 in Plain English

TL;DR

In Texas, a sales agent always operates under the supervision of a sponsoring broker, who is responsible for the agent's authorized acts under TRELA §1101.803 and TREC Rule 535.2(a). The broker may delegate supervision in writing to another license holder (a "delegated supervisor"), but the broker may not relinquish overall responsibility. Brokers must maintain written policies and procedures, ensure trust money is maintained in a broker trust account or delivered to an authorized escrow agent (a sales agent may not maintain a trust account and must immediately deliver any trust money received to the sponsoring broker), respond to sponsored agents within 2 calendar days, deliver TREC correspondence within 3 calendar days, and notify TREC of supervisor delegations lasting more than 3 months within 30 days. A complaint against a sponsored sales agent is also a complaint against the broker for purposes of determining the broker's involvement and supervision.

The Foundational Rule: Brokers Supervise, Sales Agents Are Supervised

Every Texas sales agent operates under the sponsorship of a licensed broker. A sales agent cannot work independently, cannot maintain a trust account, cannot solicit listings in the agent's own name, and generally cannot accept transaction compensation except through or with the written consent of the sponsoring broker — all of these activities require a broker, and the broker is responsible for the agent's conduct under both statute and TREC rule.

The statutory foundation is in the Texas Real Estate License Act §1101.803, which makes the broker responsible for the authorized acts of sponsored sales agents. The implementing rule is 22 Texas Administrative Code §535.2, "Broker Responsibility", which spells out the broker's duties in detail and is the most heavily tested supervision rule on the exam. Since January 1, 2026, the broker's supervision exposure now includes ensuring sales agents comply with the SB 1968 written-agreement requirement for prospective residential buyers — a complaint about an agent's compliance failure can also trigger a broker-supervision review under Rule 535.141.

What a Broker Must Do Under Rule 535.2

TREC Rule 535.2 imposes affirmative supervision duties on a broker who sponsors sales agents. The duties cluster into a few categories:

Overall responsibility

§535.2(a) — the broker is responsible for the proper handling of trust funds and must comply with §535.146 (trust money rules).
§535.2(d) — the broker is responsible for any property management activity by a sponsored sales agent that requires a real estate license. This includes eviction-related advice and conduct by a sponsored sales agent who is managing rental property for an owner.
§535.2(e) — the broker may delegate supervision but may not relinquish overall responsibility. Any license holder who leads, supervises, directs, or manages a team must be delegated as a supervisor in writing.

Written policies and procedures (§535.2(i))

The broker must maintain, on a current basis, written policies and procedures to ensure that:

Each sponsored sales agent is advised of the scope of authorized activities and is competent to conduct them, including competence in the geographic market area where the sales agent represents clients.
Each sponsored sales agent maintains active license status while engaging in activities subject to the Act.
Each sponsored sales agent complies with TREC's advertising rules.
All trust accounts (including property management trust accounts) and other consumer funds are maintained by the broker with appropriate controls in compliance with §535.146.
Records are properly maintained.

Response time (§535.2(j))

The broker or delegated supervisor must respond to sponsored sales agents within 2 calendar days. This is a parallel response-time obligation to the general response-time rule in §535.157 (which requires license holders to respond to clients and other license holders within 2 calendar days). The 2-day window for broker-to-agent communication is one of the most-tested supervision facts.

Mail delivery (§535.2(k))

The sponsoring broker or delegated supervisor must deliver mail and other correspondence from the Commission to sponsored sales agents within 3 calendar days after receipt. TREC sends notices, complaints, and other regulatory correspondence through the sponsoring broker; the broker's 3-day delivery obligation ensures the agent actually receives it.

Recordkeeping (§535.2(h))

The broker must maintain records (disclosures, contracts, closing documents, trust account records, and similar transaction documents) in a format readily available to the Commission for at least 4 years from the date of closing, termination of the contract, or end of the real estate transaction. The 4-year retention period is the second most-tested specific number in the supervision area, after the 2-day response time.

Delegated Supervisors

A broker is not required to personally supervise every sponsored sales agent. Under §535.2(e), the broker may delegate that responsibility to another license holder. The delegated supervisor can be either a broker or a sales agent with appropriate experience and expertise to provide proper supervision.

Several rules govern delegation:

The delegation must be in writing.
Any license holder who leads, supervises, directs, or manages a team must be delegated as a supervisor. Team leads cannot operate informally — the supervisor role must be a formal written delegation.
TREC notification within 30 days. The broker must provide the name of each delegated supervisor to TREC within 30 days of any delegation that has lasted or is anticipated to last more than 3 consecutive months. The broker must also notify TREC within 30 days after a delegation ends.
The broker does not relinquish overall responsibility. Even with a delegated supervisor in place, the sponsoring broker remains responsible for the agent's authorized acts. If TREC investigates a complaint, "I delegated supervision" is not a defense for the broker.
Delegated supervisors have the same 2-day and 3-day obligations as the broker.
CE requirement. A broker, designated broker of a business entity, or delegated supervisor must complete the 6-hour Broker Responsibility Course as part of the 18-hour CE requirement for each renewal cycle.

Trust Money: The Broker-Only Rule

One of the brightest lines in Texas real estate supervision is the trust-money rule. Under Rule 535.146(b)(2), a sales agent may not maintain a trust account. Any trust money received by a sales agent must be turned over to the sponsoring broker immediately. The broker holds the trust account, makes the deposits, makes the disbursements, and is responsible for the funds.

The trigger for the broker's deposit obligation, under Rule 535.146, is the date the broker receives the trust money — the broker must deposit in a trust account or deliver to an authorized escrow agent by the close of business on the second working day after the broker receives the trust money, unless the principals agree otherwise in writing. The trigger is receipt, not contract execution.

Exam questions that describe a sales agent depositing trust money, keeping trust money in the agent's own account, or maintaining a trust account are wrong on their face. A sales agent who receives trust money must immediately deliver it to the sponsoring broker — the agent cannot retain it. The supervision violation is automatic — the broker is responsible regardless of whether the broker knew or authorized the agent's conduct.

Commission and Compensation

Sales agents earn commission through the sponsoring broker, not directly from the parties to a transaction. The rules:

Under TRELA, a sales agent may not receive a commission or other valuable consideration except with the written consent of the sponsoring broker or the broker who sponsored the sales agent when the agent became entitled to the compensation.
Under Rule 535.3, the sales agent may receive compensation through the current sponsoring broker or the broker who sponsored at the time of earning. A sales agent who changes brokers after earning a commission can still be paid through the original sponsoring broker.
Listings and other brokerage agreements must be solicited and accepted in the broker's name under Rule 535.2(f). A sales agent cannot list property in the agent's own name.

A sales agent who accepts payment directly from a buyer or seller without going through the broker has violated the supervision rules — and the broker, again, is responsible. The commission agreement itself must also satisfy the TRELA statute-of-frauds provision at Tex. Occ. Code §1101.806(c), which means real estate commission claims need a written, signed agreement to be enforceable against the party to be charged.

What Happens When a Sales Agent Is Investigated

Under Rule 535.141(c) and (d), a complaint filed against a sponsored sales agent is also a complaint against the broker for the purpose of determining the broker's involvement in the alleged violation and whether the broker properly supervised. The exam tests this directly — the broker cannot stand apart from the agent's alleged misconduct. TREC's investigation will look at both the agent's actions and the broker's supervision.

This is one of the practical reasons brokers maintain detailed written policies, document training, and use formal delegated supervisors — to be able to demonstrate that the supervision system was reasonable, even if a particular agent acted outside its scope.

Business Entity Brokers and Designated Brokers

When the sponsoring "broker" is a business entity (LLC, corporation, partnership), the entity must have a designated broker — a natural person who holds an individual broker license and is the person responsible for the entity's compliance with the supervision rules. Under Rule 535.2(l), when the broker is a business entity, the designated broker is the person responsible for the broker responsibilities under §535.2. The supervision rules apply to the designated broker personally.

This is one reason the Broker Responsibility Course matters for designated brokers, who must personally satisfy the response-time, written-policy, and recordkeeping obligations — they are the human responsible for the entity's compliance.

Common Misconceptions

"A broker can transfer all supervision responsibility to a delegated supervisor." No — under §535.2(e), the broker may delegate but may not relinquish overall responsibility. Delegation moves the operational task, not the regulatory liability.
"A sales agent can hold trust money if the amount is small." No — Rule 535.146(b)(2) prohibits a sales agent from maintaining a trust account regardless of amount.
"A team lead is automatically a supervisor." No — any team lead, supervisor, or manager must be delegated as a supervisor in writing under §535.2(e). The role does not arise informally.
"A broker has 5 days to respond to a sponsored sales agent." No — Rule 535.2(j) requires response within 2 calendar days. The 5-day figure does not appear in the rule.
"The broker's recordkeeping requirement is 7 years." No — §535.2(h) requires at least 4 years from the date of closing, termination of the contract, or end of the real estate transaction. Some other professions require longer retention, but the TREC rule is 4 years.
"If the agent acted alone, the broker is not in trouble." No — under Rule 535.141, a complaint against a sponsored sales agent is also a complaint against the broker for supervision purposes. The broker is part of the inquiry.

Frequently Asked Questions

What is the broker's overall responsibility for a sponsored sales agent?: The broker is responsible for the authorized acts of the sponsored sales agent under TRELA §1101.803 and TREC Rule 535.2(a). The broker must maintain written policies and procedures, supervise (or properly delegate supervision of) the agent, handle all trust money, ensure advertising compliance, and keep records for 4 years. Even with a delegated supervisor in place, the broker does not relinquish overall responsibility.
Can a sales agent supervise other sales agents?: Yes, if the broker delegates that responsibility to the sales agent in writing under §535.2(e). The delegated supervisor must have the level of experience and expertise to provide proper supervision under the law. A sales agent acting as delegated supervisor has the same 2-day response and 3-day mail-delivery obligations as the broker.
What's the broker's deadline to respond to a sponsored sales agent's question?: 2 calendar days under Rule 535.2(j). This parallels the general response-time obligation in Rule 535.157 (license holder to client) and is one of the most-tested specific numbers in the supervision area. A delegated supervisor has the same 2-day obligation.
How long must a broker keep transaction records?: At least 4 years from the date of closing, termination of the contract, or end of the real estate transaction, under Rule 535.2(h). The rule applies to disclosures, contracts, closing documents, trust account records, and similar transaction documents. The retention requirement is per transaction — the clock starts at closing or termination for each transaction, not at the broker's license renewal cycle.
What is a delegated supervisor, and how is one appointed?: A delegated supervisor is a license holder (broker or sales agent with appropriate experience) to whom the sponsoring broker has delegated supervision responsibility in writing. The delegation must be in writing, and the broker must notify TREC within 30 days of any delegation that has lasted or is anticipated to last more than 3 consecutive months. The broker also notifies TREC within 30 days after the delegation ends. Even with a delegated supervisor, the broker remains responsible for the agent's authorized acts.
Can a sales agent receive commission directly from a buyer or seller?: No. Under TRELA, a sales agent may not receive a commission or other valuable consideration except with the written consent of the sponsoring broker (or the broker who sponsored at the time of earning). All compensation flows through the broker. Listings and other agreements must be solicited and accepted in the broker's name under Rule 535.2(f).

Bottom Line

Broker supervision is one of the highest-volume topics in the laws cluster, and Texas rules are specific enough that the right answers reduce to memorized numbers and bright-line rules. Lock in the key facts: TRELA §1101.803 makes the broker responsible for the agent's authorized acts; Rule 535.2(e) allows delegation but never relinquishment; trust money under Rule 535.146 is maintained by the broker (or an authorized escrow agent), and a sales agent must immediately deliver received trust money to the broker; Rule 535.2(j) requires a 2-day response and §535.2(k) requires 3-day mail delivery; Rule 535.2(h) requires 4-year recordkeeping; Rule 535.141 makes a complaint against a sales agent also a complaint against the broker for purposes of determining broker involvement and supervision. Candidates who can recite these from memory will handle the supervision questions confidently. For the full laws-cluster blueprint and the other Texas-specific topics you'll need to know, see our Texas real estate laws hub.

Source: Texas Occupations Code Chapter 1101 (TRELA) — §1101.803 · 22 Texas Administrative Code §535.2 (TREC Broker Responsibility rule) · TREC guidance on delegated supervisors