Information About Brokerage Services

Before working with a real estate broker, you should know that the duties of a broker depend primarily on whom the broker represents. The Texas Real Estate Commission (TREC) requires license holders to provide this Information About Brokerage Services (IABS) to prospective buyers, sellers, tenants, and landlords.

Types of Representation

If the broker represents the seller

The broker becomes the seller's agent by entering into an agreement with the seller, usually through a written listing agreement. The broker agrees to use reasonable efforts to find a ready, willing, and able buyer for the property and to secure the most favorable price and terms for the seller. A broker who acts as seller's agent owes the seller the undivided loyalty, reasonable care, confidentiality, accounting, and disclosure of material facts about the property known to the broker.

If the broker represents the buyer

The broker becomes the buyer's agent by entering into an agreement to represent the buyer, usually through a written representation agreement. A broker who acts as buyer's agent owes the buyer the undivided loyalty, reasonable care, confidence, accounting, and disclosure of material facts known to the broker about the property or the transaction. A broker acting as a buyer's agent can show the buyer properties that are listed with the broker's firm and properties listed with other firms.

If the broker acts as an intermediary

A broker may act as an intermediary between the parties if the broker obtains the written consent of both the buyer and the seller. The broker must obtain the written consent of each party to the intermediary relationship, and the written consent must state the source of any compensation the broker will receive. A broker acting as an intermediary must treat all parties honestly and fairly and may not disclose to one party confidential information obtained from the other party, except as required by the Texas Real Estate License Act or the rules of the Commission, or as instructed in writing by the party providing the confidential information.

Broker-Lawyer Committee

The Broker-Lawyer Committee consists of members of the Texas Real Estate Commission and the State Bar of Texas. The Committee writes and revises the forms that must be used by license holders when acting as agents in real estate transactions. License holders may use these forms only in transactions in which the license holder is acting as an agent.

How to File a Complaint

If you believe a license holder has violated the Texas Real Estate License Act or the rules of the Commission, you may file a complaint with the Texas Real Estate Commission. Information about how to file a complaint is available on the TREC website at trec.texas.gov or by contacting TREC directly.

Questions? Contact Anthony Sledge at Info@sledgerealty.com.