Texas License Law

Texas law allows a foreign (out-of-state) broker to cooperate with a Texas broker on a transaction. In this arrangement, the out-of-state broker:

AMust obtain a Texas license before receiving any compensation
BMay share in a commission paid by the Texas broker without obtaining a Texas license✓ Correct
CMust register their license with TREC for each transaction
DCan directly represent buyers and sellers in Texas

Explanation

A foreign (out-of-state) real estate broker may cooperate and share commissions with a Texas licensed broker without obtaining a Texas license, as long as the out-of-state broker does not perform licensed acts in Texas.

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