Texas § PR.62.003 - DEFINITIONS

§ PR.62.003. DEFINITIONS

DEFINITIONS. In this chapter: (1) "Broker" means a person who: (A) is licensed as a broker under Chapter 1101 , Occupations Code, and is not acting as a residential rental locator as defined by Section 1101.002 , Occupations Code; or (B) is licensed or certified as a real estate appraiser under Chapter 1103 , Occupations Code. (2) "Commercial real estate" means all real estate except: (A) real estate improved with one to four residential units; (B) a single-family residential unit, including a condominium, townhouse, or home in a subdivision, if the unit is sold, leased, or otherwise conveyed on a unit-by-unit basis and regardless of whether the unit is part of a larger building or located on real estate containing more than four residential units; (C) real estate that is or includes on the real estate a person's homestead; (D) real estate that is not improved with a structure and is: (i) zoned for single-family residential use; or (ii) restricted for single-family use under restrictive covenants that will remain in effect for at least the next two years; or (E) real estate that: (i) is primarily used for farming and ranching purposes; (ii) will continue to be used primarily for farming and ranching purposes; and (iii) is located more than three miles from the corporate boundaries of any municipality. (3) "Commission" includes a fee or other valuable consideration. (4) "Commission agreement" means a written instrument that: (A) entitles a broker to a commission; (B) is signed by the person obligated to pay the commission or that person's authorized agent; (C) references the commission amount or describes the formula used to determine the commission amount; and (D) contains a description legally sufficient for identification of the real estate interest that is the subject of the agreement if the person obligated to pay the commission is a seller or lessor. (5) "Deferred commission" means a commission that is earned and is not yet payable. (6) "Real estate" has the meaning assigned by Section 1101.002 , Occupations Code. Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.803, eff. Sept. 1, 2003.