Information About Brokerage Services

Texas law requires all real estate license holders to give prospective parties the following information about brokerage services at the first substantive communication. This document explains the agency relationships available to you when working with a Texas real estate professional.

Before working with a real estate broker

The Texas Real Estate Commission (TREC) requires license holders to provide you with this Information About Brokerage Services. Please read it carefully. It describes your options for representation when you work with a licensed Texas real estate professional.

Types of brokerage representation

1. Representing the seller (“Seller’s Agent”)

A seller’s agent represents the seller in a transaction and owes loyalty to the seller. The seller’s agent’s duties include:

Obeying the seller’s lawful instructions
Being loyal to the seller
Disclosing material facts about the property
Being accountable for funds handled on the seller’s behalf
Using skill, care, and diligence in performing duties
Maintaining confidentiality of the seller’s personal and financial information (unless disclosure is required by law)

2. Representing the buyer (“Buyer’s Agent”)

A buyer’s agent represents the buyer in a transaction and owes loyalty to the buyer. The buyer’s agent’s duties include:

Obeying the buyer’s lawful instructions
Being loyal to the buyer
Disclosing material information relevant to the transaction
Being accountable for funds handled on the buyer’s behalf
Using skill, care, and diligence in performing duties
Maintaining confidentiality of the buyer’s personal and financial information (unless disclosure is required by law)

3. Representing both seller and buyer (“Intermediary”)

A broker may act as an intermediary between buyer and seller when the broker is representing both parties in a transaction. As an intermediary, the broker:

Treats all parties honestly
May not disclose that the seller will accept less than the asking price, or that the buyer will pay more than offered, without written permission
May not disclose confidential information about either party without written permission
Must disclose any known material defects about the property

An intermediary may be appointed to provide advice and opinions to one or both parties, or may act without appointments and simply facilitate the transaction without advice.

Who pays the commission?

Compensation is typically paid by the seller from the seller’s proceeds at closing, as agreed in the listing agreement. In some transactions — particularly for-sale-by-owner (FSBO) properties or certain buyer-representation agreements — the buyer may be responsible for paying their agent’s commission. Commission is always negotiable and is not set by law.

Your right to representation

You have the right to decide whether you want to be represented in a real estate transaction, and if so, how. You are not obligated to work with any particular agent. Before signing a representation agreement, review it carefully and ask questions about anything you do not understand.

Complaints and the role of TREC

The Texas Real Estate Commission (TREC) regulates real estate license holders in Texas. If you believe a license holder has violated TREC rules or Texas law, you may file a complaint with TREC:

Texas Real Estate Commission
P.O. Box 12188 · Austin, TX 78711-2188
www.trec.texas.gov · (512) 936-3000

Official TREC documents

This page summarizes the Information About Brokerage Services. The official, current TREC document is available directly from TREC:

License information

Minh Quan Nguyen
Texas Real Estate License #0774451
Sponsored by Walzel Properties