This section covers what we would call a “listing agent.” When a real estate agent lists a home for sale (or lease), they become the agent of the owner through an agreement (typically and preferably through a written listing agreement) with that owner. At this point, an agent-client relationship is formed and the agent must perform the broker’s minimum duties (in the second section of this form) and must inform the owner of any material information about the property or transaction. The agent must do this even if the source of the information is the buyer or their agent. This is a crucial part of agency, as the agent representing the seller must pass on anything they know or discover. This is why a buyer or their agent should never tell the listing agent anything they don’t want the seller to know.
Much like when the agent represents the seller, the buyer (or tenant) enter into an agreement to begin the agent-client relationship, typically and preferably in written form, such as the Buyer Representation Agreement. Once again, anything the real estate agent knows about the property or transaction must be passed to the buyer, including information given to the agent by the seller or their agent.
intermediary to get a better understanding of how it works. It is important to note, must to allow intermediary and the written agreement must state who will pay the broker and in bold or underlined print outline the broker’s duties as an intermediary. These obligations for the broker are: they must treat all parties to the transaction impartially and fairly; they may, with the parties’ written consent, appoint a different license holder (agent) associated with the broker to each party to communicate with, provide opinions and advice to, and to carry out the instructions of each party (buyer and seller or tenant and landlord); and they must not, unless authorized in writing by the party, disclose the following: that the owner will accept a price less than the asking price, that the buyer (or tenant) will pay a price greater than the asking price, and any confidential information or information that a party specifically instructs the broker in writing not to disclose (unless required by law).Intermediary is Texas’ form of disclosed dual agency. This situation can often be very confusing for buyers and sellers and we suggest you read our post on
Subagents are license holders (agents) who aid a buyer in a transaction without any agreement in place to represent the buyer. This agent can assist the buyer, but does not represent them, and most importantly, the agent must place the interests of the owner (the seller or landlord) first. This is why we highly encourage any buyer to seek true representation through a written agreement, since according to the law of subagency, if you are not represented, everything you say as a buyer should be passed onto the seller. Confidentiality is a huge part of hiring an agent and moving through the process of a real estate transaction.