Greater Dallas Association of REALTORS®
Information About Brokerage Services
Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner's agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer's agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you A broker is obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner's agent by entering into an agreement with
the owner, usually through a written listing agreement, or by agreeing
to act as a subagent by accepting an offer of subagency from the listing
broker. A subagent may work in a different real estate offfice. A listing
broker or subagent can assist the buyer but does not represent the buyer
and must place the interests of the owner first. The buyer should not
tell the owner's agent anything the buyer would not want the owner to
know because an owner's agent must disclose to the owner any material
information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer's agent by entering into an agreement to
represent the buyer, usually through a written buyer representation
agreement. A buyer's agent can assist the owner but does not represent
the owner and must place the interests of the buyer first. The owner
should not tell a buyer's agent anything the owner would not want the
buyer to know because a buyer's agent must disclose to the buyer any
material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties if the broker
complies with TheTexas Real Estate License Act. The broker must obtain
the written consent of each party to the transaction to act as an intermediary.
The written consent must state who will pay the broker and, in conspicuous
bold or underlined print, set forth the broker's obligations as an intermediary.
The broker is required to treat each party honestly and fairly and to
comply with The Texas Real Estate License Act. A broker who acts as
an intermediary in a transaction:
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shall treat all parties honestly;
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may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;
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may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and
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may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by TheTexas Real Estate License Act or a court order or if the information materially relates to the condition of the property.
With the parties' consent, a broker acting as an intermediary between the parties, may appoint a person who islicensed under The Texas Real Estate License Act andassociated with the broker to communicate with and carryout instuctions of one party and another person who islicensed under that Act and associated with the broker tocommunicate with and carry out instructions of the otherparty.
If you choose to have a broker represent you,
You should enter into a written agreement with the broker that clearly
establishes the broker's obligations and your obligations. The agreement
should state how and by whom the broker will be paid. You have the right
to choose the type of representation, if any, you wish to receive. Your
payment of a fee to a broker does not necessarily establish that the
broker represents you. If you have any questions regarding the duties
and responsibilities of the broker, you should resolve those questions
before proceeding.