Sponsoring a real estate agent in Texas is a formal process overseen by the Texas Real Estate Commission (TREC). Here are the general steps for a broker to sponsor a real estate sales agent in Texas:

1. Research and Identify Potential Sponsoring Brokers:
   • You must hold an active Texas real estate broker license. This is a fundamental requirement.
2. Understand Your Responsibilities as a Sponsoring Broker:
   • Supervision: As a sponsoring broker, you are legally responsible for supervising the real estate activities of your sponsored agents. This includes ensuring they comply with all real estate laws, rules, and the TREC’s Code of Ethics.
   • Advertising Review: You must review your sponsored agents’ advertising to ensure it complies with TREC’s advertising rules. Both you and the agent can face disciplinary action for violations.
   • Policies and Procedures: You are required to maintain written policies and procedures to ensure your sponsored agents comply with TREC’s advertising rules.
   • Fiduciary Duty: You have a high fiduciary obligation to your clients and are responsible for ensuring your sponsored agents also fulfill their fiduciary duties.
   • Competence: You are responsible for ensuring that you and your sponsored agents are knowledgeable and competent in real estate brokerage practices.
3. Reach an Agreement with the Agent:
   • Independent Contractor Agreement: While not directly submitted to TREC, it’s crucial to have a signed Independent Contractor Agreement (or similar employment agreement) with the agent. This document should clearly outline:
     • Commission splits and any fees (desk fees, transaction fees, E&O insurance, etc.).
     • Responsibilities of both the broker and the agent.
     • Terms of termination.
     • Any specific policies of your brokerage (e.g., training requirements, lead generation expectations).
4. Initiate the Sponsorship with TREC:
   • Online Services (Recommended): The fastest and cheapest way to manage sponsorships is through TREC’s online services, often called “My License Services.”
     • The agent typically initiates the sponsorship request through their online account.
     • You, as the sponsoring broker, will then confirm and accept the sponsorship request online.
     • If you are a newly licensed agent, you may also be able to submit a sponsorship request with your initial application.
   • Paper Form (Sales Agent Sponsorship Form-1 or Form-2/3):
     • Sales Agent Sponsorship Form-1 (SF1-4): This form is used for changing brokers or going from inactive to active status.
     • Sales Agent Sponsorship Form-2 (SF2-1): This form is used for first-time sponsorships.
     • Sales Agent Sponsorship Form-3 (SF3-2): This form is used for sponsorships related to a late renewal.
     • The agent will fill out their portion, and you (or your designated broker if it’s a business entity) will fill out the broker portion, certifying that you hold an active license and agree to be responsible for the agent’s activities.
     • The completed form, along with any applicable fees, is then mailed or submitted to TREC.
5. Ensure Agent Compliance (CE, Fingerprinting, etc.):
• Before an agent can actively practice real estate under your sponsorship, they must have met all continuing education (CE) and fingerprinting requirements (if applicable) and received an active license from TREC. You are responsible for ensuring they meet these criteria before permitting them to engage in brokerage activities.

Important Notes for Texas Brokers:

• Broker Responsibility Course: Brokers who sponsor one or more sales agents, or a designated broker of a business entity that sponsors agents, are typically required to take the “Broker Responsibility” continuing education course.
• Delegated Supervisors: If you delegate supervisory authority to another license holder, that person must be designated as a supervisor by the broker and is also required to complete the Broker Responsibility course.
• Termination of Sponsorship: If either the broker or the agent intends to terminate sponsorship, they must notify the other party immediately in writing. Additionally, both parties should process the termination through TREC’s online services or by submitting the appropriate form (Notice of Sales Agent Sponsorship Termination).

It’s highly recommended to visit the official Texas Real Estate Commission (TREC) website (trec.texas.gov) for the most up-to-date forms, rules, and procedures, as these can change. You can find “Sponsorship Forms” directly on their site.