We have had callers who ask what they should insert into the blank in the Texas REALTORS® listing agreements and buyer/tenant representation agreements regarding the county for payment of the compensation under the agreement. Should it be the county where the brokerage is located, the county where the title company is located, or the county where the property is located?

This item appears in Paragraph 5F of all the listing agreements (TXR 1101, 1102, 1201, 1301, 1302, 1303), Paragraph 11I of the Residential Buyer/Tenant Representation Agreement (TXR 1501), and Paragraph 11D of the Commercial Buyer/Tenant Representation Agreement (TXR 1502).

Though it is the broker’s decision which county to place in the blank on the applicable agreement (since the broker is a principal to the agreement), inserting the county where the brokerage is located is the choice most consistent with what happens in practice if a brokerage seeks disbursement of funds from a title company. The brokerage is ultimately where the funds will be received upon disbursement.

Traci Jackson, staff attorney