BRAC Meeting Recap: Recommendations on Intermediary, Inactive Licenses, and Transaction Coordinator Oversight

At its April 8, 2026, meeting, the Broker Responsibility Advisory Committee (BRAC) focused on three areas: intermediary, requirements for inactive license holders to return to active, and the growing role of transaction coordinators.

Intermediary and Designated Brokers

BRAC discussed how intermediary applies under current law when the brokers involved are business entities who share the same designated broker. TREC does not consider this to be a situation where intermediary is triggered, even if the designated broker may be shared, because ultimately the broker representing each side of the transaction is not the same.

Committee members raised concerns related to this, particularly as business entity brokers grow more numerous and structures grow more complex.

BRAC voted to recommend that the definition of intermediary be reconsidered to include situations where the designated broker of a business entity may be the same on both sides of a transaction, even if the broker is not. This recommendation will be forwarded to the Commission for further evaluation.

Inactive License Requirements: Ensuring Competency Upon Reactivation

The committee also discussed current requirements for license holders returning from inactive to active status. One of the things license holders must do is submit proof they have completed continuing education (CE) requirements looking back two years from the date the application is filed.

BRAC raised concerns about scenarios where license holders may remain inactive for extended periods and then return to active status with minimal updated training, particularly since industry practices, contracts, and regulations may significantly change during long periods of inactivity. The committee discussed the potential risk to consumers if returning license holders are not fully up to date.

As a result of these discussions, BRAC members expressed interest in:

• Developing a required refresher course for inactive license holders returning to active status.
• Identifying key topic areas such as contracts, agency, and representation.
• Exploring a tiered or "step-up" education model based on inactivity duration.

A subcommittee was formed to further develop recommendations, with plans to present more detailed proposals at the July 14 meeting.

Transaction Coordinators: Oversight and Consumer Protection

The committee heard public comment highlighting concerns about the increasing use of transaction coordinators (TCs), particularly those who are unlicensed. The discussion was wide-ranging, including how TCs often handle sensitive information, including contracts, financial data, and personal client details and that some work across multiple brokerages, which might create unclear lines of supervision and accountability.

BRAC asked the Broker-Lawyer Committee to investigate the possible development of a consumer disclosure form about transaction coordinators, including identifying whether a transaction coordinator is licensed or unlicensed.

Looking Ahead

In addition to continuing work on the topics above, BRAC identified a future area of focus: Guidelines for the use of artificial intelligence (AI) in real estate practice.

The committee will reconvene on July 14.