Texas Real Estate Sales Agent ExamTexas Real Estate LawMedium
A buyer client is interested in a property listed by an agent with the same brokerage, making it an in-house transaction. The broker decides to act as an intermediary in this transaction. According to TRELA, what is the broker allowed to do in this intermediary relationship?
- ARepresent only the seller's interests, as the buyer can find their own representation.
- BRepresent only the buyer's interests, as the seller's agent is already within the same firm.
- CAppoint one sales agent to represent the buyer and another to represent the seller, giving both advice and opinions.
- DProvide advice and opinions to both the buyer and the seller directly, without appointing agents.
Show answer & explanationAnswer & explanation
Correct answer: C. Appoint one sales agent to represent the buyer and another to represent the seller, giving both advice and opinions.
In an intermediary relationship with appointments, the broker appoints different agents to represent each party. These appointed agents can then provide advice and opinions to their respective clients. The broker, as intermediary, cannot provide advice to either directly, but the appointed agents can.
Why the other options are wrong
- A. An intermediary represents both parties impartially, not just the seller.
- B. An intermediary must remain neutral and facilitate the transaction for both parties, not represent only one side.
- D. The intermediary broker cannot provide advice or opinions to either party directly; this is the role of appointed associates.
Intermediary Broker with Appointments
A type of agency relationship in Texas where a broker represents both the buyer and the seller in the same transaction, and appoints different licensed associates to each party to provide advice and opinions.
- Requires written consent from both parties.
- Broker remains neutral and cannot give advice to either party.
- Appointed associates can give advice and opinions to their respective clients.
Memory trick: Intermediary is 'Impartial and Appointed'.