In Texas, real estate transactions involve various types of brokerage services, each with distinct roles and responsibilities. Understanding these can help buyers, tenants, sellers, and landlords make informed decisions.
Types of Real Estate License Holders:
- Broker: Responsible for all brokerage activities, including supervising sales agents.
- Sales Agent: Must be sponsored by a broker and works on behalf of the broker.
Broker’s Minimum Duties Required by Law:
- Prioritize the client’s interests above all others, including the broker’s own interests.
- Disclose any material information about the property or transaction to the client.
- Respond to the client’s questions and present any offers or counteroffers.
- Treat all parties involved in the transaction honestly and fairly.
Representation Types:
- Seller’s Agent (Agent for Owner): Represents the seller or landlord, typically through a written listing or property management agreement. The agent must act in the owner’s best interest and disclose any material information known about the transaction.
- Buyer’s Agent (Agent for Buyer/Tenant): Represents the buyer or tenant, usually through a written representation agreement. The agent must prioritize the buyer’s interests and disclose any material information known about the property or transaction.
- Intermediary: A broker can act as an intermediary between the buyer and seller if both parties provide written consent. In this role, the broker must:
- Treat all parties honestly.
- Not disclose that the seller will accept a price lower than the asking price unless authorized in writing.
- Not disclose that the buyer will pay a price higher than the offer unless authorized in writing.
- Not disclose any confidential information unless required by law.
Subagent: A license holder who assists a buyer without an agreement to represent them. The subagent works with the buyer but owes fiduciary duties to the seller.
Key Considerations:
- All agreements between you and a broker should be in writing to clearly establish the broker’s duties and your obligations.
- The agreement should specify who will pay the broker and how the payment will be calculated.
- Your payment of a fee does not necessarily establish representation; it’s essential to have a clear agreement.
Understanding these aspects of brokerage services ensures transparency and helps in making informed decisions during real estate transactions in Texas.
Contact 360 Realty & Management
360 Realty & Management: Houston Leasing & Property Management | 281.859.5959
Please mail inquiries To: 16111 Cairnway Drive #210 Houston TX 77084