State of Texas
Agency Disclosure
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.
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