Real Estate Agent Fee Law

Contract Lawyer Austin Texas

Mar 13, 2013 — by Jeff Mundy
Tags: Contract Law

 

...the Real Estate License Act. See TEX. OCC. CODE ANN. §§ 1101.001-.806 (West 2012)....

Section 1101.806(b) of RELA provides a party may not maintain an action to collect compensation for an act as a broker or salesperson that is performed in Texas unless the party alleges and proves it was a license holder at the time the act was commenced. TEX. OCC. CODE ANN. § 1101.806(b). A party acts as a broker or salesperson if it directly or indirectly performs or offers, attempts, or agrees to perform any act listed in section 1101.002(1)(A) including selling, exchanging, purchasing, or leasing real estate or negotiating or listing the sale, exchange, purchase, or lease of real estate. Id. §§ 1101.002(1)(A); 1101.004. To bring an action to recover a commission for the sale of real estate, RELA also requires that "the promise or agreement on which the action is based, or a memorandum, is in writing and signed by the party against whom the action is brought or by a person authorized by that party to sign the document." Id. § 1101.806(c).

RELA provides a party may not maintain an action to recover a commission for the sale or purchase of real estate unless the promise or memorandum on which the action is based is in writing. TEX. OCC. CODE ANN. § 1101.806(c). Strict compliance with RELA is required; an agreement to pay a real estate commission must be in writing to be enforceable. Lathem v. Kruse, 290 S.W.3d 922, 925 (Tex. App.--Dallas 2009, no pet.).

 Because the Agreement includes real estate, RELA applies and any oral contract between the parties would be unenforceable. See TEX. OCC. CODE ANN. § 1101.806(c); Lathem, 290 S.W.3d at 925.

 

Dean A. Smith Sales Inc. v. Metal Systems Inc., (Tex. Ct. App. - Dallas 2013)

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