What are the minimum services a broker must provide?

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08/26/2016 | Author: Editorial Staff

When representing a client in a real estate transaction, what are the minimum services that I must provide as a real estate license holder

The Real Estate License Act contains provisions that impose requirements on all brokers representing a party regarding client communications and negotiations. A broker must ...

  1. inform his client if he receives material information related to the transaction, including the receipt of an offer
  2. answer his client’s questions and present any offers to or from his client.

These duties exist regardless of the agreed-upon compensation payable to the broker. A broker cannot avoid these requirements by removing himself from negotiations. The minimum-services provisions also prohibit a broker from negotiating or attempting to negotiate directly with the represented party.

There are certain circumstances in which a broker may deliver an offer to a represented party without violating the Real Estate License Act, but the broker must have the other broker’s consent to the delivery and send him a copy of the offer. At no time may the broker cross the boundary into negotiations with the represented party.

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Categories: Legal
Tags: legal, legal faq, minimum services, real estate license act


Cyndi Broschat on 09/01/2016

There are still discount companies out there that don’t follow the minimum requirement.  As a matter of fact I closed on a deal with one of those companies.  I never spoke with the listing agent.  I spoke with a receptionist who then told me to contact the owner for everything.  I continued to CC the listing agent on all communication but not 1 time did I ever get a response or call from the listing agent.  I was doing double the work but my commission stayed the same.

Kevin on 08/29/2016

Minimum Services is need to be expanded… It appears to becoming a trend to deal with clients on impersonal means vs working directly one-on-one with their clients… Granted some clients prefer subscribing to electronic means in the transaction and communication for various reasons…

Real Estate is a people business where we get paid a fee at the end vs the appearance that fee focused business with minimal one-on-one interaction.  Most agents and broker do no like being compared to used car salespersons, however with high volume minimal service model where is the distinction? How do you build a relationship for future referrals with minimal customer/client interaction?

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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