Agency & Brokerage

Texas has its own specific structure for handling one brokerage representing both sides of a deal — and it's tested separately from the general agency concepts on the national portion.

The intermediary relationship

When one Texas brokerage represents both the buyer and the seller in the same transaction, the broker generally becomes an intermediary — a distinct status under Texas law, with its own written-consent and conduct requirements, rather than simply "representing both sides" the way dual agency might be described more generally elsewhere.

Sponsoring broker supervision

Every active Texas sales agent works under a sponsoring broker, who carries legal responsibility for supervising the agent's real estate activities. An agent can't operate independently, and a license that goes inactive can't be used to practice real estate at all until it's reactivated.

How and when intermediary consent is obtained

Intermediary status isn't automatic just because a brokerage happens to represent both sides — it generally requires each party's written consent, and that consent is typically built into the representation agreements themselves (the listing agreement and the buyer representation agreement) rather than requested as an afterthought once a conflict has already arisen. A broker acting as intermediary generally must treat both parties fairly, may not disclose confidential information to the other side, and — separately — may not tell the buyer that the seller will accept less than the asking price, or tell the seller that the buyer will pay more than the price in a written offer, unless that party instructs it in a separate writing. Information that materially relates to the condition of the property is not protected as confidential.

What an unlicensed assistant can and can't do

Brokerages regularly employ unlicensed administrative staff, and Texas law draws a real line around what they're permitted to do. Generally permitted: scheduling appointments, submitting listings to the MLS on a licensed agent's instruction, distributing already-prepared marketing materials, and other purely clerical tasks. Generally prohibited without a license: negotiating on behalf of a party, discussing contract terms, showing property while answering substantive questions about it, or anything else that amounts to actually practicing real estate. An unlicensed assistant handing over a lockbox code and leaving is very different from one who stays and starts answering questions about the seller's flexibility on price — the second crosses into activity requiring a license.

Client vs. customer, Texas-style

The underlying distinction is the same as the national concept — a client gets full representation and fiduciary duties, a customer gets honesty and fair dealing without full representation — but Texas requires specific written disclosures at specific points to make clear which one a party actually is. Since January 1, 2026 (SB 1968), a license holder who performs brokerage for a prospective buyer of residential property must have a written agreement with the buyer before showing any residential property, or before presenting an offer if none will be shown (§1101.563). The agreement must state the services, the termination date, whether it is exclusive, whether the license holder represents the buyer, and the compensation, and must say that compensation is not set by law and is fully negotiable. A broker may instead show property without representing the buyer (§1101.562), but cannot give opinions or advice, and that showing agreement must be non-exclusive and last no more than 14 days.