(a) A complaint which names a licensed real estate sales agent as the subject of the complaint but does not specifically name the sales agent's sponsoring broker, is a complaint against the broker sponsoring the sales agent at the time of any alleged violation for the limited purposes of determining the broker's involvement in any alleged violation and whether the broker fulfilled the broker's professional responsibilities provided the complaint concerns the conduct of the sales agent as an agent for the broker.
(b) The designated broker is responsible for all real estate brokerage activities performed by, on behalf of, or through a business entity. A complaint which names a business entity licensed as a broker as the subject of the complaint but which does not specifically name the designated broker is a complaint against the designated broker at the time of any alleged violation for the limited purposes of determining the designated broker's involvement in any alleged violation and whether the designated broker fulfilled the designated broker's professional responsibilities. A complaint which names a sales agent sponsored by a licensed business entity but which does not specifically name the designated broker of the business entity is a complaint against the designated broker at the time of any alleged violation by the sales agent for the limited purposes of determining the designated broker's involvement in any alleged violation and whether the designated broker fulfilled the designated broker's professional responsibilities provided the complaint concerns the conduct of the sales agent as an agent of the business entity.
(c) Using the criteria specified by §1101.204 of the Act, the Commission prioritizes and investigates complaints received by the Commission as follows:
  (1) Level 1.
    (A) Fraud or misrepresentation that involves loss of $10,000 or more.
    (B) Continuing threat to public welfare.
    (C) Unlicensed activity.
  (2) Level 2.
    (A) Fraud or misrepresentation that involves loss of less than $10,000.
    (B) Negligence.
    (C) Violations of Chapter 1102:
      (i) 1102.301 negligence or incompetence by an inspector.
      (ii) 1102.302 employment contingent on inspection report.
      (iii) 1102.303 acting in conflicting capacities, i.e. inspector, broker, principal.
      (iv) 1102.305 agreeing to perform repairs in connection with inspection.
    (D) Violations of Standards of Practice, §§535.227 - 535.233 of this chapter.
  (3) Level 3.
    (A) Technical violations.
    (B) Chapter 1102 complaints other than those listed in Level 2 above.
    (C) Allegations involving education providers.
(d) If information obtained during the course of an investigation of a complaint reveals reasonable cause to believe the respondents to the complaint may have committed other violations of the Act or rules, no additional authorization shall be required to investigate and take action based upon the information.
(e) If the Commission suspends or revokes a license or probates an order of suspension or revocation against a license holder, the Commission may monitor compliance with its order and initiate action based on the authority of the original complaint or original authorization by the members of the Commission.
(f) A person whose license has been suspended may not during the period of any suspension perform, attempt to perform, or advertise to perform any act for which a license is required by the Act or Commission rules.
(g) A person whose license is subject to an order suspending the license must provide notice in writing not later than the third day before the date of the suspension as follows:
  (1) if the person is a sales agent, notify his or her sponsoring broker in writing that his or her license will be suspended;
  (2) if the person is a broker, notify any sponsored sales agent, or any business entity for which the person is designated broker that:
    (A) his or her broker license will be suspended; and
    (B) once the suspension is effective, any sponsored sales agent, or who is sponsored by the business entity, will no longer be authorized to engage in real estate brokerage unless:
      (i) the sales agent is sponsored by another broker and files a change of sponsorship with the Commission; or
      (ii) the business entity designates a new broker and files a change of designated broker with the Commission;
  (3) If the person is an apprentice inspector or real estate inspector, notify his or her sponsoring professional inspector that his or her license will be suspended;
  (4) if the person is a professional inspector notify any sponsored apprentice or real estate inspectors that:
    (A) his or her professional inspector license will be suspended; and
    (B) once the suspension is effective any sponsored apprentice or real estate inspectors will no longer be authorized to inspect any real property unless the apprentice or real estate inspectors associate with another professional inspector and file a change of sponsorship with the Commission.
  (5) if the person has a contractual obligation to perform services for which a license is required by law or Commission rule, notify all other parties to the contract that the services cannot be performed during the suspension;
  (6) if the person is a sales agent and is directly involved in any real estate transaction in which the sales agent acts as an agent, notify all other parties, including principals and other brokers, that the person cannot continue performing real estate brokerage services during the suspension; and
  (7) if the person holds money in trust in any transaction in which the person is acting as a broker, remit such money in accordance with the instructions of the principals.
(h) If, in conjunction with an application or disciplinary matter, an applicant or license holder agrees to automatic suspension or revocation of his or her license for failing to comply with an administrative term or requirement of an agreed order such as payment of a penalty or completion of coursework, the license may be automatically suspended or revoked with no further action by the Commission.

Source Note: The provisions of this §535.141 adopted to be effective January 1, 1976; amended to be effective October 20, 1983, 8 TexReg 3998; amended to be effective February 8, 1991, 16 TexReg 461; amended to be effective May 7, 1992, 17 TexReg 2997; amended to be effective November 23, 1993, 18 TexReg 8198; amended to be effective May 27, 1998, 23 TexReg 5437; amended to be effective October 1, 2000, 25 TexReg 8646; amended to be effective August 31, 2004, 29 TexReg 8297; amended to be effective March 23, 2008, 33 TexReg 2536; amended to be effective January 1, 2011, 35 TexReg 11691; amended to be effective November 1, 2011, 36TexReg 7332; amended to be effective January 1, 2015, 39 TexReg 9669; amended to be effective December 6, 2017, 42 TexReg 6801; amended to be effective May 28, 2019, 44 TexReg 2613; amended to be effective June 11, 2023, 48 TexReg 2948