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When and how to disclose agency

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10/20/2016 | Author: Legal Staff

One of the requirements of The Real Estate License Act relates to disclosing agency. Specifically, Section 1101.558 requires license holders to disclose which party they represent to other parties or license holders who represent another party in a proposed real estate transaction.

But when and how should license holders disclose who they represent?

A license holder must disclose which party she represents at the first contact with another party or another license holder representing a party in a proposed transaction. For example, disclosure must be provided when a seller’s agent meets the buyer (who is unrepresented or working with an agent), or when a buyer’s agent meets the seller’s agent. In either scenario, the disclosure can be verbal or in writing, but it’s easier to prove you’ve made the disclosure if it’s in writing. There is no required language for this disclosure.

For answers to more questions about disclosing agency and providing information about brokerage services, check out the September/October Texas REALTOR® magazine.

Categories: Legal
Tags: agency, disclosure, legal, real estate license act

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Legal disclaimer

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 Any legal or other information found here, on, or at other sites to which we link, should be verified before it is relied upon.

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