No. Texas law does not permit dual agency. A license holder may not represent both principals as a dual agent under the revisions to TRELA. Under the current law, a broker must agree to act as an intermediary in accordance with the statute if the broker agrees to represent more than one party in a transaction. [TRELA §1101.561(b)] To the extent a dual agency relationship is created by accident or otherwise, a license holder must resolve the matter by immediate compliance with the notice and consent requirements under TRELA §§1101.558-561 and act as either an intermediary or represent only one of the principals in a transaction while working with the other principal only as a customer.

If the broker appoints an associated license holder to represent the seller and another associated license holder to represent the buyer, the individual agents may offer advice and opinions regarding the real estate transaction to the party each has been appointed to represent. If the broker does not appoint associated license holders to represent the buyer and seller respectively, then the broker and/or agent may not offer advice and opinions relevant to the real estate transaction to either party and must not favor one principal in the transaction over the other principal. Appointments provide the agents the opportunity to provide a higher level of service to their clients.

An intermediary is a broker who negotiates the transaction between the parties when the broker or a sales agent sponsored by the broker has obtained consent from the parties to represent both the buyer and the seller. The broker intermediary may, with the written consent of the parties, appoint separate individual license holder associated with the broker to work with and advise the party to whom they have been appointed. [TRELA §§ 1101.558-1101.561 and §1101.651(d)]

Before a broker or sales agent sponsored by the broker can represent both the buyer and seller in a transaction, all of the following steps must occur:

1. Both the buyer and seller are presented with Information About Brokerage Services by their respective sales agent at the time of the first substantive communication;

2. the seller executes a Listing Agreement or other written document with the broker that authorizes the broker to act as intermediary and specifies in conspicuous bold or underlined print the conduct that is prohibited under TRELA §1101.651(d); and

3. the buyer executes a Buyer Representation Agreement or other written document that authorizes the broker to act as intermediary and specifies the conduct that is prohibited under TRELA §1101.651(d) in conspicuous bold or underlined print.

Yes. Rule 531.20(b) states that each broker and sales agent must provide a link on its homepage to the IABS Form labeled “Texas Real Estate Commission Information About Brokerage Services.” The link must be in at least a 10 point font and in a readily noticeable place on the homepage of the business website of the broker and sales agent. The link can also be ”TREC Information About Brokerage Services” in at least 12-point font.

Failure of the intermediary broker or the sponsored sales agents to comply with the Intermediary Provisions of TRELA §§ 1101.558-561 may subject them to disciplinary sanctions by the TREC, including but not limited to, revocation, suspension, reprimand and/or an administrative penalty.

No. A license holder is not required to provide the statutory written statement at the open house. [TRELA §1101.558(c)(3)].

Yes. The Information About Brokerage Services (IABS) representations disclosure is not required when:

1. a transaction is for a residential lease less than one year and a sale is not being considered;

2. a meeting is with a party currently known to be represented by another license holder; or

3. the communication is at an open house and the communication concerns that same property.

[TRELA §1101.558(c)]

In addition, the IABS is not generally required when the license holder is acting solely as a principal in the transaction.

A license holder must disclose the fact that he or she represents a party upon the first contact with another party or a license holder representing another party.

This disclosure may be oral or in writing.

No, but a license holder is required to provide a written notice to the other party that the license holder is licensed as a real estate broker or sales agent before entering into a contract, including a lease.

Additionally, the license holder may not use the license holder’s expertise to the disadvantage of the other party. [See Rule 535.144]

It is best to disclose it as early as possible, but it must be disclosed in the contract, lease, or in another written document given to the other principal before the agreement is signed. [Rule 535.144(b)] The disclosure is required even if the license holder is on inactive status.