What is a Business Entity Real Estate Broker?

Oct 24, 2019 | LLC Sponsorship

What is a Business Entity Real Estate Broker? The simple answer to this question is, “A licensed business entity real estate broker is an organization that can act as a real estate broker and is qualified to conduct business in Texas.” (source – TREC)

However, there’s more to it than just understanding the definition of a business entity real estate broker. Can a real estate agent start a business entity? What is a real estate broker of record? Why does any of this matter to you as a real estate agent?

Real Estate Agents Starting Business Entity

Real estate agents start business entities all the time. This isn’t an uncommon thing; however, it does require a separate license from TREC if the agent wants to perform real estate activites in the name of the business.  To receive a business entity real estate broker license, you will need a designated real estate broker for your company, which is known as the real estate broker of record.

How to Own a Real Estate Brokerage in Texas: An Alternative Option

​Becoming a business entity real estate broker isn’t the same process as becoming a licensed broker as an individual.  Instead, you must own a company that’s authorized to transact business in Texas and you need to designate an individual that’s an active Texas real estate broker to be the broker for the company (broker of record). In addition, you will need to submit an application and certain business documents, along with paying a fee.

The main reason why real estate agents choose to go the business entity real estate broker route is the time and cost involved in becoming a licensed real estate broker as an individual. In other words, you don’t have to go through the training, classroom hours, and other requirements for a real estate broker license in Texas. Instead, you simply need to have a Texas Real Estate Salesperson License and a real estate broker of record to sponsor you.

Using the Elite Agent LLC Sponsorship Program

With the Elite Agent LLC Sponsorship program, your company can become a business entity real estate broker without the need for you to become licensed as a broker individually.  You don’t have to pay extra for licensing or take the time to go through the training. Instead, you can join the LLC Sponsorship program for one low monthly fee.

You’ll have the flexibility to hire agents and you won’t need to worry about expensive transaction fees, annual fees, or even sign up fees. We even provide broker support, resources, and so much more. Find out more about the Elite Agents LLC Sponsorship Plan here.

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