When representing a client in a real estate transaction, what are the minimum services that I must provide as a real estate license holder

The Real Estate License Act contains provisions that impose requirements on all brokers representing a party regarding client communications and negotiations. A broker must ...

1. inform his client if he receives material information related to the transaction, including the receipt of an offer
2. answer his client’s questions and present any offers to or from his client.

These duties exist regardless of the agreed-upon compensation payable to the broker. A broker cannot avoid these requirements by removing himself from negotiations. The minimum-services provisions also prohibit a broker from negotiating or attempting to negotiate directly with the represented party.

There are certain circumstances in which a broker may deliver an offer to a represented party without violating the Real Estate License Act, but the broker must have the other broker’s consent to the delivery and send him a copy of the offer. At no time may the broker cross the boundary into negotiations with the represented party.

I represent the buyer in a transaction, and I seem to be doing a lot of duties that the seller’s broker usually handles. What are the minimum services required of the seller’s broker? What can I do if the seller’s broker isn’t meeting that requirement?

The Real Estate License Act contains provisions that impose requirements on all agents regarding client communications and negotiations. At a minimum, an agent must ...

  1. inform his client if he receives material information related to the transaction
  2. answer his client’s questions
  3. present any offer to or from his client.

These duties exist regardless of the agreed-upon compensation payable to the broker. An agent cannot avoid these requirements by removing himself from negotiations. The minimum-services provisions also prohibit a seller’s agent from instructing a buyer’s agent to negotiate directly with the represented seller. Likewise, a buyer’s agent is prohibited from instructing a seller’s agent to negotiate directly with the represented buyer.

There are certain circumstances in which an agent may deliver an offer to a represented party without violating the Real Estate License Act, but the agent must have the other broker’s consent to the delivery and send him a copy of the offer. At no time may the agent cross the boundary into negotiations with the represented party.

If the seller’s broker isn’t fulfilling the minimum duties required of him, there’s not much you can do in the short-term. You have a fiduciary duty to look after your client’s best interests; however, you may not interfere with the other broker’s agency relationship or do anything to prevent the transaction from closing. Continue to make every effort to contact the seller’s broker to discuss your concerns, and keep a record of your communications with him.

If you believe the seller’s broker violated any rules or the REALTOR® Code of Ethics, you may take steps to file a complaint with the Texas Real Estate Commission or the Texas REALTORS®.

If you believe that you deserve an additional fee, you may seek compensation through arbitration or other legally available means after the transaction closes.