We sometimes get asked how to handle a situation where the broker will be representing both parties (buyer and seller or landlord and tenant) in the transaction.
Under the Texas Real Estate License Act, a broker may act as an “intermediary” between the parties in a transaction. A broker must have written consent from both sides to act as the intermediary. This consent is contained as an option in all members-only listing agreements and buyer/tenant representation agreements. An intermediary broker can choose to appoint licensed associates to each party. Each appointed associate can then provide advice and opinions during negotiations to the party to whom they were appointed. If the broker does not appoint associates to the parties, the broker may facilitate the transaction but may not render opinions or advice to either party.
David Jones, associate counsel