Information About Brokerage Services

Types of real estate license holders

• A broker is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.
• A sales agent must be sponsored by a broker and works with clients on behalf of the broker.

A broker's minimum duties required by law

A client is the person or party that the broker represents:

• Put the interests of the client above all others, including the broker's own interests;
• Inform the client of any material information about the property or transaction received by the broker;
• Answer the client's questions and present any offer to or counter-offer from the client; and
• Treat all parties to a real estate transaction honestly and fairly.

How a license holder can represent a party

As agent for owner (seller/landlord)

The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker's minimum duties above and must inform the owner of any material information about the property or transaction known by the agent. An owner's agent fees are not set by law and are fully negotiable.

As agent for buyer/tenant

The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker's minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent. A buyer/tenant's agent fees are not set by law and are fully negotiable.

As agent for both — intermediary

To act as an intermediary between the parties, the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. An intermediary must treat all parties impartially and fairly, may appoint a different license holder to each party with written consent, and must not disclose confidential information without written authorization.

Written agreements

A license holder who performs brokerage activity for a prospective buyer of residential property must enter into a written agreement with the buyer before showing any residential property. To avoid disputes, all agreements between you and a broker should be in writing and should clearly establish the broker's duties and responsibilities, your obligations, and the amount or rate of compensation the broker will receive.

License holder contact information

This notice is being provided for information purposes. It does not create an obligation for you to use the broker's services.

Regulated by the Texas Real Estate Commission. Information available at www.trec.texas.gov. TREC form IABS 1-2. See also our Privacy Policy and contact page.