No. Merely discussing the listing and providing the rental application will not trigger an intermediary relationship. However, if the prospective tenant requests that you represent her in the lease negotiation process, you will need to obtain her written consent for your broker to act as an intermediary. You can use the Residential Buyer/Tenant Representation Agreement (TXR 1501) for this purpose. Then you’ll need to comply with the steps required for an intermediary relationship, which apply to both sales and leasing transactions.
Intermediary Relationships in Leasing Transactions
Last Updated August 25, 2025
These facts will likely trigger an intermediary relationship. If you are still within the term of your listing agreement you need to verify that the listing agreement allows you to act as intermediary. If not, but the seller agrees to allow you to represent the seller, you need either a new listing agreement to be signed allowing you to act as intermediary, or you need a Compensation Agreement Between Broker and Owner (TXR 2401) signed indicating that you are representing both the buyer and seller as intermediary. The tenant will also need to give written consent for an intermediary relationship. The Residential Buyer/Tenant Representation Agreement (TXR 1501) is sufficient for obtaining written consent. Next, you will need to determine whether it's the policy of the brokerage firm to appoint licensees to each side. If so, the broker is prohibited from appointing himself to represent the tenant. If appointments are made, the owner and the tenant will need to be provided with written notice of the appointment. The Intermediary Relationship Notice (TXR 1409) serves this purpose. Appointments are not mandatory, but they allow licensees to provide advice and opinions to the parties.
Last Updated August 25, 2025
