Texas Laws on Brokerage Services & Dual Agency

Does My Real Estate Agent Represent Me or the Seller?

When I bought my first house in the mid 1990s, Texas was kind of a “Buyer Beware” state. In fact, a home Buyer could spend weeks looking for a home with a real estate agent, telling her secret information (like how much you were willing to pay for a house), not knowing that everything you told that real estate agent would be told to the Seller because the real estate agent was actually representing the Sellernot you (the buyer)!

Here’s what you need to know…

Unless you have a written Buyer’s Representation Agreement with a real estate agent, all Texas agents are always representing the sellertypically known as the “Subagent.” That is how agency works in Texas. This can be confusing for home buyers, so the Texas Real Estate Commission wants you to know about brokerage services, who represents whom, and intermediary agency, BEFORE you start working with an agent...not only is it the law, it’s also for your protection! (Read TREC’s Information About Brokerage Services.)

NOTE
Finding out “your agent” is actually representing the Seller after you’ve found the house you want to buy is NOT a good thing! If an agent doesn’t give you the Information About Brokerage Services form UP FRONT (before showing you houses), then you are dealing with someone who is unprofessional and not following the law.

Another fact that you need to know is that Texas is (kinda) a dual-agency state…although they call it “intermediary agency.” This means that a real estate broker (such as Keller Williams Southwest) can represent both the Buyer (you) and the Seller (them) in a the same transaction, but only with written permission from all parties. These visual aids will help you to understand…

info_brokerage_services1_small 

In this case, you are represented by Keller Williams Southwest (KWSW) while buying a house listed by another broker, such as a RE/MAX or a Coldwell Banker. This is not an intermediary agency since KWSW is only representing you.


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In this case, KWSW is representing both you and the Seller…because the house that you are buying is listed with KWSW but with a different agent.  However, you have an appointed agent (Sheila Cox) and the Seller has an appointed agent (Unknown) and both agents have to maintain their duty of confidentiality. So I am not allowed to share your private information with the other agent. This situation may occur frequently with large brokerages who have lots of listings, such as KWSW.


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This situation may only occur if both the Seller and the Buyer agree to it in writing. In this situation, you are buying a house that I have listed for one of my other clients. I would be representing both you and the Seller, so my fiduciary responsibilities would be limited and no advice could be given.

Frankly, I don’t work these types of deals. If you wanted to buy one of my listings, then I would step back and find another real estate agent to be your appointed agent…so you would still have full representation.

Now you need to understand two more important things:

How To Get Dedicated Buyer Representation in Texas?

Who Pays Real Estate Commissions in Texas?

 


Please share this info with your Friends!

 

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If You Think This Website is Great, Wait ’till You Get Me As Your Agent!

 

sheila cox five star realtor5Candid Advice—I promise to give you candid advice on all homes and areas so you can make the best decisions. I won’t ignore potential defects that can cost you money, or effect your resale value, in the future. My job is to protect you from defective homes as much as possible while helping you make a sound financial investment. (Read client testimonials)

Local Area Expertise—This isn’t just my business…it’s where I work and live (for 20 years) so I really know the area. I will help you narrow your options and find the best neighborhood for you based on your specifications. For long-term resale value, the neighborhood you choose is just as important as the home you buy. (Download my Ultimate Sugar Land Guide)

Great Data—I will give you the most in-depth data you have ever seen…to help you make the wisest decisions. This includes a professional CMA when you are ready to purchase a specific home…so you don’t pay too much. Plus, my proprietary House Report (see sample) includes the data and information you need to ensure that you are making great home purchase. (Also see Pricing a Home Correctly)

Best Home Searches—Yes, you can search on your own, but no other home search available can filter down to the school level…and filter out the subdivisions that may be known to flood. Tell me exactly what you want, and I can narrow down your options better than any search you have access to. (Request a Custom Search)

Easier Process—Moving your family (and possibly changing jobs) is stressful enough. I’m your transaction manager and will guide you, step-by-step, through the process so you never miss an important deadline. I assist with inspections, repair negotiations, home warranties, HOA compliance inspections, hazard insurance, surveys, appraisals, title commitment, home warranties, title company, and more. (View helpful videos on my YouTube channel)

Network of Experts—My network of experts can make your transition to the area as smooth as possible. Need a painter, electrician, mover, insurance company, etc.? I can help! 

 

How I Work to Protect You

My job isn’t “just” helping you find a house to buy…I’m helping you buy a home. There are over 100 tasks that I perform for you during the purchasing process. I’m looking out for you every step of the way and keeping my eye on the listing agent, the seller, the builder (if applicable), the lender, the inspector, and the title company. I’m on your side because I’m YOUR agent. I help with price analysis and negotiations, legal paperwork, inspections, repair negotiations, home warranties, HOA compliance inspections, hazard insurance, surveys, appraisals, title commitment, home warranties, and more. I have the expertise to help solve complicated problems that often occur in the process. Real estate is a huge financial and legal commitment. Don’t you deserve to have a Five-Star real estate agent on your side? 

Please read:

⇒  Does My Agent Really Represent Me?

⇒  How Real Estate Commissions Are Paid

Take a look at a sample House Report that I do for my clients. This is the extra “due diligence” I do for you, to make sure that you are getting a great home. This is when I triple check taxes, schools, aerial maps, sex offenders in the area, flood zones, etc. NO other agent in the world does this! Check out p. 27 regarding the sample Flood Map info I provide.

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