Information About Brokerage Services
Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers, and landlords.
Types of Real Estate License Holders
- Broker is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.
- 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 broker who represents a client (a seller, buyer, landlord, or tenant) is the client's agent, and must:
- 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.
A License Holder Can Represent a Party in a Real Estate Transaction:
As Agent for Owner (Seller/Landlord)
The broker becomes the property owner's agent through a written listing agreement and represents the owner's interest in the transaction.
As Agent for Buyer/Tenant
The broker becomes the buyer/tenant's agent by entering into a written representation agreement with the buyer/tenant. A buyer's agent must perform the broker's minimum duties above and inform the buyer of any material information about the property or transaction known by the agent.
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.
As Subagent
A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
To Avoid Disputes, All Agreements Should Be in Writing
All agreements with brokers and agents should be in writing and clearly establish:
- The broker's duties and responsibilities to you, and your obligations under the representation agreement.
- Who will pay the broker for services provided to you, when payment will be made, and how the payment will be calculated.
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. Please acknowledge receipt of this notice below and retain a copy for your records.
Regulated by the Texas Real Estate Commission. P.O. Box 12188, Austin, Texas 78711-2188 · (512) 936-3000 · www.trec.texas.gov.