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BRAC Recommends Closer Review of Intermediary, Inactive Licenses, and Transaction Coordinator Oversight

Category: Industry regulation, and updatesPublished: May 2, 2026
BRAC Recommends Closer Review of Intermediary, Inactive Licenses, and Transaction Coordinator Oversight
At its April 8, 2026, meeting, the Texas Real Estate Commission’s Broker Responsibility Advisory Committee focused on three issues with real impact for brokers across the state: intermediary, the path from inactive to active license status, and oversight of transaction coordinators. One of the biggest discussions centered on intermediary in transactions involving business entities that share the same designated broker. Under current interpretation, TREC does not treat that situation as intermediary if the brokers representing each side are not the same. BRAC members raised concerns that brokerage structures are becoming more complex and that the current definition may not fully address those realities. The committee voted to recommend reconsidering the definition so the Commission can evaluate whether the rule should better reflect those scenarios. BRAC also examined the current process for returning an inactive license to active status. Members discussed the concern that a license holder could remain inactive for a long period and return with only limited recent training, even though contracts, regulations, and industry practices may have changed significantly. The committee expressed support for exploring stronger reactivation standards, including a refresher course, topic-specific education in areas like contracts and agency, and a tiered approach based on how long a license has been inactive. A subcommittee will develop recommendations for the July 14 meeting. Another major topic was the growing use of transaction coordinators, especially unlicensed coordinators. Public comment highlighted concerns about supervision, accountability, and the handling of sensitive client and transaction information. In response, BRAC asked the Broker-Lawyer Committee to study whether a consumer disclosure form should be developed to clearly identify whether a transaction coordinator is licensed or unlicensed. The committee also identified another issue for future discussion: guidance for the use of artificial intelligence in real estate practice. Taken together, these discussions show where brokerage regulation may be heading next. For brokers, this is an important signal to stay engaged as the Commission considers possible changes tied to intermediary, licensing competency, transaction support roles, and emerging technology.