March 1, 2010
Dear George: I found a REALTOR® to help me purchase a home. She asked for an up-front fee, which I paid. Now I hear from other REALTORS® that charging an up-front fee isn't the way things are done in Texas. Is charging such a fee legal?
Answer: Texas real estate licensees, including licensees who are members of the REALTOR® trade association, can charge you up front for their services. Although the practice is legal, it's not popular. Regardless of the compensation, you need to know whether the REALTOR® represents your interests. Did you sign a Residential Buyer/Tenant Representation Agreement? If so, the REALTOR® will be representing you. If not, the REALTOR® will represent the owners of any properties she shows you; that means her primary duty is to protect the interests of the sellers, not your interests.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
