Facebook, Google, blog posts, and other websites. There’s so much information out there to sift through for would-be Transaction Coordinators. A few questions we see asked a lot are “Do I need a license to be a TC (Transaction Coordinator)?” and “Do I need to be certified to be a TC?”. Bad information is everywhere on the internet, however, the good information is buried, hard to find, and somewhat obscure. I did some digging for you and put it in this article. I’ll keep this up-to-date anytime I find new information about being a Texas Transaction Coordinator.
Disclaimer: I am not an attorney. I am only a licensed Texas Real Estate Broker. This is not legal advice. If you have questions about acting as a Transaction Coordinator, talk to TREC, your broker, and an attorney.
Table of Contents
▼Do you need a license to be a Transaction Coordinator in Texas?
No, you do not need a Texas Real Estate license to be a Transaction Coordinator in Texas. You should be acting as an unlicensed assistant, as defined by TREC, when working as a Transaction Coordinator for an agent.
There’s a lot of poor information on the internet about being a Transaction Coordinator. We regularly see advice telling unlicensed individuals that they can write contracts for their clients or do all sorts of things where a real estate license is required. TREC is quite clear on what you may and may not do: https://www.trec.texas.gov/what-can-unlicensed-office-personnel-or-unlicensed-assistant-do
An unlicensed person may not engage in any activity for which a license is required. [TRELA §1101.002(1) and Rules 535.4 and 535.5].
They’re also clear on what could happen to you and your clients if you do things that require a license.
Sections 1101.351(a) and 1101.758 of The Real Estate License Act establish that it is a crime for an unlicensed person to engage in activity for which a real estate license is required. The broker or sales agent that employs an unlicensed person might be criminally charged for the crime as well.
Do I need a license to write contracts for my clients?
If you and your client are both licensed Texas real estate agents, and you are both sponsored by the same broker, and your broker permits it - then yes, you can write contracts for your client.
If the answer to any of those is “no”, then as a Transaction Coordinator, you are limited to filling in contract forms at the direction of the licensee even if you hold a license and you should be acting as an unlicensed assistant.
When can I write contracts for another agent?
Typically you see this type of activity in teams within a brokerage.
Is it illegal to work as a Transaction Coordinator in Texas without a license?
No, it is not illegal to work as a Transaction Coordinator in Texas without a license.
Paperless Pipeline says, “For example, in Texas, it’s illegal to work as a Transaction Coordinator without a license.”, which is incorrect. The TREC page they link to states “The Real Estate License Act establish that it is a crime for an unlicensed person to engage in activity for which a real estate license is required”. There are a vast number of administrative activities you can do as an unlicensed assistant that fall under Transaction Coordination.
What can I do as an unlicensed assistant?
MetroTex Association of Realtors has a really good list of duties that an unlicensed assistant can and cannot do. Here are a few items from their list:
YES
- Data entry
- Filling in contract forms at the direction of the licensee
NO
- Negotiating listing agreements
- Negotiating contracts for sale or lease
- Soliciting prospective clients
- Review contracts
- Direct or advise agents in helping others buy, sell or lease property
The Texas Association of Realtors also gives a good qualifier on what you may/may not do, “…your unlicensed assistant may perform administrative tasks that are clerical or secretarial in nature.”
What are the Texas Statutes and Regulations for Unlicensed Assistants?
The National Association of Realtors (NAR) provides a comprehensive PDF listing of state statutes and regulations where working as an Unlicensed Assistant / Transaction Coordinator are concerned.
