Designated Broker & Broker Sponsorship Services
Texas broker alliance RESOURCE CENTER
Use this page to stay organized as you move through setup, onboarding, compliance, and ongoing brokerage operations. Completing each checklist as you go will help make your onboarding process smoother and easier to manage.
Once onboarding is complete, you will have access to the production tracking portal for 1099 and transaction tracking purposes.
This page is designed to help you keep everything in one place without having to search through emails, documents, or links.
Access Checklist
Enter the access code provided with your brokerage guide.
To find the access code, download the Business Entity Brokerage Guide, open your email, and locate the code. Then enter it below.
Access Checklist
Enter the access code provided with your brokerage guide.
To find the access code, download the Business Entity Brokerage Guide, open your email, and locate the code. Then enter it below.
Texas Broker Alliance
Appointment Checklist
Use this checklist as you prepare your business entity documents and move through the Designated Broker / Broker of Record appointment process.
Step 1: Franchise Tax Account Status
Step 2: Proof of Managing Authority
Proof of the Designated Broker's current status as an officer of a corporation, manager or managing member of an LLC, or general partner for a partnership.
Corporation Requirements
LLC Requirements
Partnership Requirements
Step 3: Proof of Ownership or E&O Insurance
If the designated broker owns 10% or more of the entity, provide proof of ownership. If the designated broker does not own at least 10%, provide proof that the business entity maintains errors and omissions insurance in the amount of $1 million per occurrence.
Corporation
LLC
Partnership
Step 4: Submit TREC Application and Fees
TREC Application
Submit Additional Documents to Broker Upon TREC Approval
Brokerage Documents & Templates
Review or access the documents below as you prepare for onboarding and brokerage operations.
Designated Broker plans start at $250/month.
Texas Broker Alliance
Property Management Requirements
Property Management is a higher-risk brokerage activity and requires prior written approval from the Designated Broker before any property management operations begin.
Property Management Approval Requirements
No business entity, agent, or team may conduct Property Management activities under sponsorship without prior written approval from the Designated Broker.
- Soliciting Property Management business
- Advertising Property Management services
- Executing Property Management Agreements
- Collecting rents, deposits, or fees
- Hiring vendors on behalf of owners
- Managing maintenance coordination
- Holding security deposits
- Issuing owner disbursements
Required Business Structure
- Operate through an approved LLC or Corporation
- Maintain active Texas entity status
- Maintain all required TREC licensing
- Maintain proper insurance coverage as required by the Designated Broker
- Designate approved authorized signers for trust account access
- Maintain separate bookkeeping for Property Management operations
- Maintain separate business banking accounts for trust and operating activities
- Maintain accounting systems capable of producing monthly ledgers and reconciliations
Trust Account & Escrow Requirements
Approved Property Management operators must maintain separate accounts for trust and operating activities.
Trust Account
Used only for:
- Tenant rent collections
- Security deposits
- Owner funds
- Repair reserves
- HOA deposits
- Pet deposits
Operating Account
Used only for:
- Company income
- Management fees
- Payroll
- Marketing
- Business expenses
Commingling personal, operating, or trust funds is strictly prohibited.
Accounting & Recordkeeping
Property Management operators must maintain complete records including:
- Tenant ledgers
- Owner ledgers
- Security deposit records
- Repair invoices
- Vendor payments
- Bank reconciliations
- Management agreements
- Lease agreements
- Copies of notices and communications
- Maintenance documentation
- Deposit records
- Monthly owner statements
- Vendor W-9 records when applicable
- Trust account transaction histories
Quarterly Compliance Audits
All approved Property Management operations are audited every quarter or every 90 days.
- Monthly ledger reports must be submitted by the 5th day of each month
- Tenant and owner balances must remain accurate at all times
- Additional audits may be required at the discretion of the Designated Broker
Leasing & Fair Housing Compliance
Approved Property Managers must follow all federal, state, and local Fair Housing laws.
- Advertising language
- Screening criteria
- Application procedures
- Assistance animals
- Occupancy standards
- Disability accommodations
- Consistent qualification standards
- Tenant communication procedures
- Fair and equal application processing
Lease & Form Requirements
Unauthorized forms or independent legal drafting of leases and forms are prohibited unless approved by legal counsel.
Security Deposit Procedures
Security deposits must:
- Be deposited properly into approved trust accounts
- Be tracked separately from operating funds
- Be accounted for per property and tenant
- Be handled in accordance with Texas Property Code requirements
- Be documented through proper accounting records
Owner & Tenant Communication Standards
Property Managers are expected to maintain professional communication standards with:
- Property owners
- Tenants
- Vendors
- HOA representatives
- Attorneys
- Courts
- Government agencies
Eviction & Legal Matters
Property Managers may coordinate eviction filings and court appearances only as permitted by Texas law. The Designated Broker does not provide legal representation.
- Follow proper notice procedures
- Maintain complete documentation
- Utilize approved legal vendors when necessary
- Avoid unauthorized practice of law
- Maintain detailed communication records during disputes
Designated Broker Authority
The Designated Broker reserves the right to:
- Review trust account activity at any time
- Require operational changes
- Require additional training or compliance procedures
- Require corrective accounting actions
- Terminate sponsorship for non-compliance or risk exposure
Who This Program Is Designed For
This program is best suited for:
- Established Property Management companies
- Experienced real estate operators
- Investor-focused real estate businesses
- Teams managing recurring rental portfolios
- LLCs and Corporations with operational systems already in place
This program is not intended for individuals seeking casual or unstructured Property Management operations.
Property Management Documents
Review the requirements first, then complete the authorization addendum if Property Management approval is requested.
Designated Broker plans start at $250/month.