Doing the bare minimum might be OK for some, but when it comes to something as complex as a real estate transaction, there must be standards for what is acceptable and what falls short. Though the Texas Real Estate Commission has a rule requiring brokers to negotiate the best possible transaction for those they represent, the rule doesn’t spell out exactly what that entails.

Anyone who has ever bought or sold a house knows that the success of the transaction rests largely on how much work the parties involved – including the buyers, sellers, and their agents – put into the process.

Tremendous growth in the number of real estate licensees in Texas and rapid technological changes in the industry have led to questions about what adequate representation of clients really means. Buyers hop on the Internet to research homes and other information before making purchases. Sellers have access to a wealth of resources, too. So buyers and sellers have more information and are increasingly dependent on their agents to decipher the information and make the best decisions.

The minimum acceptable level
While many buyers and sellers are sophisticated enough and sufficiently motivated to handle many parts of real estate transactions themselves, a consumer who is represented by a real estate agent should be able to rely on certain basic services. That’s why the Texas Association of REALTORS® recommended to the Texas Real Estate Commission a more-detailed definition of the rule requiring a broker to negotiate the best possible transaction. Specifically, the recommendation proposes that the word “negotiate” be defined, at a minimum, as follows:

• Accepting on behalf of and presenting to the client offers and counteroffers;
• Helping the client develop, communicate, and present offers, counteroffers, and related notices;
• Answering the client’s questions relating to offers, counteroffers, and notices.

Obviously, the majority of agents do much more than the steps outlined above. Most sellers who hire an agent trust that person to market the house for sale, find buyers, negotiate the transaction, keep the seller informed throughout the transaction, and answer any questions. After all, they’re the experts. But there have been some instances of brokers who do less than the minimum described above.

Of course, there are laws and rules that regulate real estate agents and brokers beyond just negotiating the best possible transaction for clients. Things like what information must be included in advertisements, how to properly handle funds in a transaction, and how much continuing education agents and brokers must complete.

Brokers and agents who also are REALTORS® (only those who belong to an association of REALTORS® may call themselves REALTORS®) go even further than the minimum standards and regulations by subscribing to a Code of Ethics. This code sets high standards for how REALTORS® should treat clients, the public, and each other. They also have additional educational requirements.

Texas REALTORS® support Texas property owners
Individually, Texas REALTORS® provide clients with the services they need to successfully buy and sell homes as well as commercial and investment properties. As a group, they fight for consumers’ rights, as is the case with asking the Texas Real Estate Commission to define the minimum level of negotiation required. They also bring private-property owners’ concerns to the Legislature, championing legislation such as homeowners insurance reform and regulation of mortgage brokers and bankers.

The bottom line is that standards for minimum service are important, but there’s a lot more to it than meets the eye. REALTORS® work hard for Texas consumers – going way beyond the minimum legal standard.