Delegated Supervisor Requirements — TREC Rule §535.2

Exam: Real Estate Broker — Texas Chapter: Chapter 1 — TRELA and TREC Rules Authority: TREC Rule §535.2 (Broker Supervision)

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Overview

Texas brokers may delegate supervisory authority over their sponsored agents to other licensees. However, this delegation is subject to strict procedural requirements under TREC Rule §535.2, and the broker retains ultimate liability regardless of delegation.

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What Is a Delegated Supervisor?

A delegated supervisor is a licensee designated by the broker to supervise other agents on the broker's behalf. Delegated supervisors act as an extension of the broker's supervisory authority but do not replace the broker's responsibility.

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Requirements for Valid Delegation

1. Designation Must Be in Writing

• The broker must designate supervisors in writing — oral or informal delegations are not valid under TREC rules
• No written designation = no valid delegation
• Undocumented supervision arrangements are a compliance violation

2. Written Designation Must Specify Scope

• The written designation must specify the scope of supervisory authority granted to the delegated supervisor
• A blanket "supervise everyone" designation without scope specificity may not satisfy TREC requirements

3. Who May Serve as a Delegated Supervisor

Delegated supervisors must be:

• A sponsoring broker (another broker), OR
• A salesperson with at least 3 years of active license experience

Newly licensed agents or agents with less than 3 years active experience cannot be delegated supervisors.

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Broker Remains Ultimately Responsible

The broker's delegation does NOT transfer liability.

• The broker remains ultimately responsible for all supervised licensees, regardless of whether a delegated supervisor has been designated
• TREC can take disciplinary action against the broker for supervisory failures even if a delegated supervisor was technically responsible
• "I delegated it" is not a defense against a TREC enforcement action if the broker's overall supervisory system was inadequate

> Exam Tip: Written designation is mandatory. The broker cannot escape liability through delegation. Both the broker AND the delegated supervisor can face TREC discipline for supervision failures.

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Common Violations

| Violation | Consequence | |---|---| | Informal/oral delegation without written documentation | Violation of §535.2; potential disciplinary action | | Delegating to an agent with fewer than 3 years active experience | Invalid delegation; broker remains solely responsible | | Broker failing to supervise delegated supervisors | Broker disciplinary exposure | | Delegated supervisor exercising authority outside specified scope | Both supervisor and broker may face discipline |

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Exam Application

• Know that written designation is required — this is a frequently tested procedural rule
• Know the 3-year active experience requirement for salesperson-delegated supervisors
• Know that broker liability survives delegation — this is the most important policy point
• Team leaders in real estate teams are often designated supervisors — their written designation must meet §535.2 requirements

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Tags: #RealEstate #Texas #Broker #Chapter1 #TREC #Supervision #DelegatedSupervisor #Rule535 #BrokerLiability #WrittenDesignation #TeamLeader