Texas Real Estate Sales Agent ExamAgencyMedium
A buyer approaches a real estate sales agent and expresses interest in a property listed by another agent within the same brokerage. The buyer does not have a buyer's representation agreement with any agent. If the broker intends to represent both the seller and the buyer in this transaction, what type of agency relationship is created under Texas law?
- AIntermediary brokerage, requiring written consent from both parties.
- BDual agency, which is prohibited in Texas.
- CSingle agency, with the broker representing only the seller.
- DSubagency, where the buyer becomes a customer of the listing agent.
Show answer & explanationAnswer & explanation
Correct answer: A. Intermediary brokerage, requiring written consent from both parties.
Under Texas law, when a broker represents both the seller and the buyer in the same transaction, it is called Intermediary Brokerage. This requires the written consent of both parties and includes specific rules regarding appointments.
Why the other options are wrong
- B. Dual agency is indeed prohibited in Texas, but the permissible form of representing both parties is called intermediary brokerage.
- C. Single agency would mean the broker only represents one party, which is not the case if they represent both.
- D. Subagency involves an agent working for another agent's client, not directly representing both principals in the same transaction.
Intermediary Brokerage (Texas)
A specific type of agency relationship in Texas where a broker represents both the buyer and the seller in the same real estate transaction.
- Requires written consent from both the buyer and the seller.
- The broker must remain neutral and impartial.
- May involve appointing different associates to represent each party.
Memory trick: Texas agents are Single, or Intermediary with specific rules.