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

• 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.

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 an agreement with the owner, usually in a written listing to sell or property management agreement.

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.

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 between you and a broker 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

Regulated by the Texas Real Estate Commission · Information available at trec.texas.gov