Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
In essence, we have to disclose who we represent in a transaction upon the first contact with a party or a licensee representing another party. There are different types of representation that we will explain below.
Real Estate License Holders Explained
- The Broker – Brokers are more experienced and qualified and can work as independent agents or have other agents work for them. A broker, on the other hand, owns a brokerage and employs real estate agents (or may not). A broker generally has more training than an agent and handles some of the more technical parts of a transaction.
- A Real Estate Agent – Real estate agents are licensed to facilitate real estate transactions, are paid commissions for their sales, and work for brokerages. They cannot work independently. A real estate agent is an industry professional who serves as the facilitator of real estate transactions. Everything that a Real Estate Agent completes, they do so on behalf of the broker.
- REALTOR® – Realtors are part of the National Association of Realtors, a trade organization, and can hold any position within the real estate industry.
- Seller’s Agents, commonly called “listing brokers” or “listing agents”, are contracted by owners to assist with marketing property for sale and/or lease.
- Buyer’s Agents are brokers or salespersons who assist buyers by helping them purchase property.
- Dual Agents help both the buyer and the seller in the same transaction. In 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.
- Intermediary – a person who acts as a link between people in order to try to bring about an agreement or reconciliation; a mediator. When the same brokerage represents the buyer and the seller, the broker must act as an intermediary and a sales rep will be assigned for each party. The broker will be neutral.
- Subagent – This is an agent that represents a buyer without and buyer’s representation agreement.