Intermediary

The Texas Intermediary Relationship ## What Makes Texas Unique Texas abolished traditional dual agency in favor of the intermediary framework. Where traditional dual agency allows one agent to actively represent both parties simultaneously (a conflict-prone arrangement), the intermediary is specifically designed to be neutral — the broker facilitates the transaction rather than advocating for either side. The intermediary relationship may only be created by written consent from both the buyer and the seller. Consent is typically embedded in the listing agreement (for the seller) and the buyer representation agreement (for the buyer). A broker cannot become an intermediary by conduct or accident — written consent from both parties is a mandatory prerequisite. What the intermediary CANNOT do: - Advise either party on price or terms - Share the seller's minimum acceptable price with the buyer - Share the buyer's maximum willingness to pay with the seller - Disclose either party's personal motivation or urgency - Provide negotiating strategy to either side What the intermediary CAN do: - Facilitate the transaction honestly - Present offers and counteroffers - Disclose material facts about the property to both parties - Provide objective factual information ## Appointed Associates When an intermediary broker has multiple sales agents in the office, the broker may appoint different agents to represent each party. These are called "appointed associates." Unlike the neutral intermediary broker, appointed associates ARE permitted to advise their respective clients on price, motivation, and negotiating strategy — they function as advocates. Critical exam point: The broker remains neutral; the appointed associates can advocate. If the broker personally handles both sides without appointing associates (or if there is only one agent and that agent is working…