Question

Mary just got her sales license. She has no experience in Texas, but she does have some experience managing her own properties in New York that she owns as real estate investments. Can her sponsoring broker limit her ability to do property management for third parties?

a) Yes, without any restrictions
b) No, Mary has the right to manage properties in any state
c) Yes, but only if Mary undergoes additional training
d) No, as long as Mary follows state-specific property management regulations

Answer 1

A sponsoring broker in Texas can limit a new salesperson's ability to perform property management for third parties, even if the salesperson has experience in another state. This is to ensure compliance with Texas real estate law and regulations.

Step-by-step explanation:

The question pertains to whether Mary's sponsoring broker can limit her ability to do property management for third parties. The correct answer is: a) Yes, without any restrictions. According to Texas real estate law, a sponsoring broker has the principal role in overseeing the real estate activities of licensed salespersons. This oversight includes ensuring that salespersons conform to all applicable laws and regulations, which might involve limiting their activities in certain areas such as property management. Mary's experience managing her own properties in New York does not automatically give her the right to manage properties for third parties in Texas without her sponsoring broker's approval. Mary must follow Texas state regulations for property management, which may differ significantly from New York's regulations. This could involve additional training or adherence to specific Texas laws. Hence, her sponsoring broker can impose limitations on her ability to manage properties for others, especially if her license is newly obtained and she does not have direct experience with Texas real estate law.