16 Sep TEXAS INTERMEDIARY RELATIONSHIPS
Intermediary relationships have been part of the Texas Real Estate License Act (TRELA) for over a decade. Even though these relationships have been well established, there is still confusion about how it works.
An intermediary is a broker who negotiates a real estate transaction between two parties. An intermediary relationship can occur when a broker, or a sales agent sponsored by the Broker, has obtained written consent from the parties to represent both the buyer and the seller. A broker acting as an intermediary can make appointments in some circumstances.
Texas Broker intermediary reminders
Below are some reminders to help brokers before acting as an intermediary in a real estate transaction. These reminders will also help in having a Broker’s sponsored sales agents performing these acts on their behalf:
Brokers have written consent from each party. This consent will be in the Broker’s written representation agreement.
A “Notice” is not a representation agreement.
The Information About Brokerage Services Form (IABS) is not a representation agreement.
The following documents give written consent for an intermediary relationship:
- A listing agreement
- A buyer/tenant representation agreement
When writing the contract, to show an Intermediary transaction, the Broker must
On the Broker Information page, on the right side under “Listing Broker Firm,” check the first box for “represents Seller and Buyer as an intermediary,” then fill in the listing broker’s and listing and selling associates’ information.
If a Broker wishes to make an appointment, so the agents can give opinions and advice to their respective clients, then:
- This appointment is only possible if the company has a Broker and at least two Agents or Associated Brokers. If there is only the Broker, or a Broker and only one Agent or Associated Broker, the Broker may still have an Intermediary but without appointments.
What happens if an unrepresented buyer wants to buy one of my or my Broker’s listings?
- You can still negotiate the transaction, but it is not an intermediary transaction. Your duty to the buyer is only to treat the buyer fairly, and you cannot give them any opinions or advice.
- On the Broker Information page, on the right side under “Listing Broker Firm,” check the second box for “represents Seller only as Seller’s agent,” then fill in the listing broker’s and associate’s information.