Texas law requires license holders who own more than what percentage of a business entity to notify the other party before entering a contract?

In Texas law, individuals who hold a license and own more than 10% of a business entity are required to disclose their ownership interest before entering into a contract with that entity. This regulation is in place to promote transparency and maintain ethical standards in real estate transactions. By informing the other party of such a significant ownership stake, potential conflicts of interest are minimized, ensuring that all parties involved can make informed decisions. This requirement is particularly relevant in real estate to uphold trust and integrity within the industry, allowing for more transparent dealings among stakeholders.