Texas Real Estate Sales Agent ExamAgencyMedium
A real estate sales agent, working under a broker, is representing a seller. The agent receives an offer from a potential buyer who is also represented by an agent from the same brokerage. To proceed with this transaction in Texas, what specific disclosure and consent process must be followed?
- AOnly the buyer's agent needs to disclose to the buyer that the seller is represented by the same brokerage.
- BThe broker must obtain written consent from both the seller and the buyer to act as an intermediary.
- CThe sales agent must disclose to both parties that they are both clients of the same brokerage.
- DNo specific disclosure is required as long as both parties have their own agents within the brokerage.
Show answer & explanationAnswer & explanation
Correct answer: B. The broker must obtain written consent from both the seller and the buyer to act as an intermediary.
In Texas, when a single broker represents both the buyer and the seller in the same transaction, it creates an intermediary relationship. This requires the broker to obtain written consent from both parties, specifically stating how the intermediary will be compensated and who will pay the intermediary.
Why the other options are wrong
- A. This is insufficient; both parties must consent to the intermediary relationship.
- C. While disclosure is part of it, the specific process involves the broker obtaining written consent to act as an intermediary, not just the sales agent making a general disclosure.
- D. Specific disclosure and written consent are absolutely required for an intermediary relationship, which is created when both parties are clients of the same broker.
Intermediary Brokerage
A type of agency relationship in Texas where a single broker represents both the buyer and the seller in the same transaction, requiring specific written consent from both parties.
- Requires written consent from both parties.
- Broker may (or may not) appoint associates to work with each party.
- Broker cannot give advice or opinions to either party in a non-appointed intermediary.
Memory trick: Intermediary: Two clients, one broker, written consent is the key.