Dual Agency (Prohibited in Texas)
One license holder fully representing both the buyer and the seller in the same transaction, a relationship Texas does not permit.
Dual agency is when one license holder tries to fully represent both the buyer and the seller in the same transaction. Because an agent owes undivided loyalty to a client, representing both sides creates a conflict that cannot be resolved. TREC states that Texas law does not permit dual agency.
When one Texas broker works with both parties, the lawful path is the intermediary relationship, which requires the written consent of both parties and may include appointed license holders. The intermediary acts fairly to both sides rather than as a full agent to each.
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Texas Agency & Intermediary (9% of the exam)
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- Intermediary
The Texas relationship in which one broker represents both the buyer and the seller in the same transaction with the written consent of both parties.
- Appointed License Holder
A license holder a broker may appoint, with written consent, to communicate with and advise one party while the broker acts as intermediary.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.