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.
An intermediary is a broker who, with the written consent of both parties, represents the buyer and the seller in the same transaction. Texas does not permit dual agency and uses the intermediary relationship instead. The written consent is normally obtained up front through the listing agreement and the buyer-representation agreement, which authorize the broker to act as an intermediary if the same firm ends up on both sides.
An intermediary must act fairly and may not favor one party over the other. Without the required separate writing, the intermediary may not disclose that the seller will accept less than the asking price, that the buyer will pay more than the price submitted in a written offer, or other protected information. The broker may, with written consent, appoint different associated license holders to communicate with and advise each party.
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Texas Agency & Intermediary (9% of the exam)
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- 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.
- IABS (Information About Brokerage Services)
The TREC notice required at the first substantive communication about a proposed transaction involving specific real property.
- 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.
- Sponsoring Broker
The Texas broker who sponsors a sales agent, supervises the agent's brokerage activity, and is responsible for the agent's acts.
Sources
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.