(a) The Commission will notify an applicant if the application for license is denied. Any hearing on denial of a license will be conducted in accordance with §1101.364 of the Act and Chapter 533 of this title (relating to Practice and Procedure).
(b) If the Commission determines that issuance of a probationary license is appropriate, the order entered by the Commission with regard to the application must set forth the terms and conditions for the probationary license. Terms for a probationary license may include any of the following:
  (1) that the probationary license holder comply with the Act and with the rules of the Commission;
  (2) that the probationary license holder fully cooperate with the Commission in the investigation of any complaint filed against the license holder;
  (3) that the probationary license holder attend a prescribed number of classroom hours in specific areas of study during the probationary period;
  (4) that the probationary license holder limit real estate brokerage practice as prescribed in the order;
  (5) that the probationary license holder report regularly to the Commission on any matter which is the basis of the probationary license holder;
  (6) that the probationary license holder comply with any other terms contained in the order which have been found to be reasonable and appropriate by the Commission after consideration of the circumstances involved in the particular application; or
  (7) that the probationary license holder comply with any other terms contained in an order from any other court or administrative agency under which the probationary license holder is bound.
(c) Unless the order granting a probationary license specifies otherwise, a probationary license holder may renew the license after the probationary period by filing a renewal application, satisfying applicable education requirements and paying the prescribed renewal fee.
(d) If a license expires before the completion of a probationary term and the license holder files a late renewal application as authorized by §535.91 of this chapter (relating to Renewal of a Real Estate License), any remaining probationary period shall be reinstated effective as of the day following the renewal of the previous license.

Source Note: The provisions of this §535.54 adopted to be effective January 1, 2015, 39 TexReg 9669; amended to be effective October 1, 2023, 48 TexReg 2952