ask george & chuck
Nov. 3, 2008

Representation confusion
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: My buyer's agent and the seller's agent both work in the same realty office. My offer was never given to the seller, just the seller's agent who rejected it. I was not allowed to make a second offer, and I was never given a clear explanation for the rejection. This whole deal seems fishy with both agents working in the same office. And it doesn't seem ethical for the listing agent to determine what offers go to table and what do not. Isn't there a conflict of interest here?

Answer: Agents do not represent buyers or sellers. Only the real estate broker who is responsible for the brokerage operation can represent buyers and sellers. The agents sign listing agreements and buyer-representation agreements on behalf of the real estate broker. The Texas Real Estate Commission publishes a form, Information About Brokerage Services, that describes the three different types of relationships that can exist between you and a real estate licensee working for a real estate broker. This form should have been given to you before you had any substantive discussion with your agent.

The three scenarios are: If the brokerage represents only the owner, the agent works with you but the brokerage does not represent you. If the agent represents you, the buyer, you would have signed a Buyer/Tenant Representation Agreement and you would be referred to as a client of the real estate brokerage. If the real estate broker represents the owner of the property and you, the brokerage is acting as an intermediary and special rules govern what is permissible and what is not permissible, as well as additional disclosures that must be made.

Call the Texas Association of REALTORS® 800/873-9155 and ask about the Ombudsman Program. A volunteer REALTOR® will listen to your side of the story and your REALTOR®'s side. You'll learn the options available to you, including filing a complaint or lawsuit against the REALTOR®.

Dear George: Who sets the length of the term of representation in the Residential Buyer/Tenant Representation Agreement?

Answer: The buyer ultimately has the power to accept or reject the term proposed by his real estate broker. If you disagree with what your agent proposes, do not sign the agreement.