At the time of the first substantive dialogue with a seller or a prospective buyer, a license holder must provide the party with a copy of the Information About Brokerage Services (TXR-2501, TREC IABS 1-0) as required by The Real Estate License Act (TRELA). The IABS form includes an explanation of the intermediary relationship.
Before a broker may act as intermediary, TRELA requires the broker to obtain written consent from both parties. A written representation agreement between a broker and a seller or buyer will satisfy the consent requirement if the agreement: 1) authorizes the broker to act as an intermediary between the parties; 2) lists the conduct an intermediary is prohibited from performing in conspicuous bold or underlined print; and 3) states who will pay the broker. The agreement must also authorize the broker to appoint associated license holders if the broker intends to make appointments when the intermediary relationship arises. The Texas REALTORS® promulgated listing agreements and buyer/tenant representation agreements contain language necessary to fully comply with TRELA when creating an intermediary relationship.
When it becomes evident that the buyer represented by the firm wishes to purchase property listed with the firm, the intermediary status comes into play.