BROKER RISK MANAGEMENT FEE
TexasBrokerSponsor.com™ sponsoring broker's have an experienced staff ready to assist agents with questions.
According to the Texas Real Estate Commission (TREC) regulations, the broker is directly responsible for any real estate transaction broker has approved, that his/her agent completes while actively sponsored by the broker sponsor. To cover possible expenses connected with this responsibility, we collect a Risk Management fee for agent-owned properties.
IMPORTANT: any unreported sales activity by the agent to broker, makes the agent 100% liable for all legal expenses associated with these transactions.
Standard Risk Management Fee:
For real estate transactions for third-party clients up to $1.0 million, the Risk Management fee is included in broker fee collected. However, there is an additional $145 per every Hundred Thousand Dollar price increment over $1.0 million. Note: Fees are an additional $150 per side when broker allows intermediary transaction.
Selling Agent Owned or Direct Relative Property:
When an agent chooses to SELL their privately-owned, direct relatives, including step relations or relation by adoption owned property, there is additional E & O insurance fee required. The Standard Risk Management fee for selling agent-owned property is $145. There is an additional $145 per every Hundred Thousand Dollar price increment over $1.0 million. There is an additional $145 per every Hundred Thousand Dollar price increment over $1.0 million. Note: Fees are an additional $150 per side when broker allows intermediary transaction.
IMPORTANT: Please note that E & O covers “errors and omission”, not fraud, nondisclosure, or agent’s illegal activity. Agent will be 100% liable and not covered by E & O insurance if they have conducted themselves against the sponsoring broker’s and/or TREC rules and regulations. If you are not sure how to proceed in a real estate situation, always consult with your broker for advice before performing any real estate services.
Copy of E & O Insurance Policy and E & O Insurance Declarations may be requested from our office at any time.
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According to the Texas Real Estate Commission (TREC) regulations, the broker is directly responsible for any real estate transaction broker has approved, that his/her agent completes while actively sponsored by the broker sponsor. To cover possible expenses connected with this responsibility, we collect a Risk Management fee for agent-owned properties.
IMPORTANT: any unreported sales activity by the agent to broker, makes the agent 100% liable for all legal expenses associated with these transactions.
Standard Risk Management Fee:
For real estate transactions for third-party clients up to $1.0 million, the Risk Management fee is included in broker fee collected. However, there is an additional $145 per every Hundred Thousand Dollar price increment over $1.0 million. Note: Fees are an additional $150 per side when broker allows intermediary transaction.
Selling Agent Owned or Direct Relative Property:
When an agent chooses to SELL their privately-owned, direct relatives, including step relations or relation by adoption owned property, there is additional E & O insurance fee required. The Standard Risk Management fee for selling agent-owned property is $145. There is an additional $145 per every Hundred Thousand Dollar price increment over $1.0 million. There is an additional $145 per every Hundred Thousand Dollar price increment over $1.0 million. Note: Fees are an additional $150 per side when broker allows intermediary transaction.
IMPORTANT: Please note that E & O covers “errors and omission”, not fraud, nondisclosure, or agent’s illegal activity. Agent will be 100% liable and not covered by E & O insurance if they have conducted themselves against the sponsoring broker’s and/or TREC rules and regulations. If you are not sure how to proceed in a real estate situation, always consult with your broker for advice before performing any real estate services.
Copy of E & O Insurance Policy and E & O Insurance Declarations may be requested from our office at any time.
Back to Agent Benefits
