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 office. 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 The Texas 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
(1) shall treat all parties honestly;
(2) 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;
(3) 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
(4) 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 The Texas
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 is licensed under The Texas Real
Estate License Act and associated with the broker to communicate with and carry out
instructions of one party and another person who is licensed under that Act and associated
with the broker to communicate with and carry out instructions of the other party.
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. |
