When and how to disclose agency
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.
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