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 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.

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.

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.

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

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.

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.