Subagency
A former agency arrangement removed from Texas law by SB 1968, effective January 1, 2026.
Subagency described an arrangement in which a cooperating broker worked on behalf of the listing broker's principal rather than the party they were assisting. SB 1968 removed the two references to subagency from TRELA effective January 1, 2026, and Chapter 1101 no longer mentions it. TREC states that this limits the circumstances in which subagency could arise but does not eliminate subagency generally as a legal concept.
For current Texas exam purposes the working relationships are representation under a written agreement, intermediary with written consent, a limited showing without representation under Sec. 1101.562, and dealing with an unrepresented customer.
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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.
- Client
The party a broker represents in a transaction, owed the duties that come with representation.
- Customer
The party on the other side of a transaction, who is not represented by the broker but is still owed honesty and material-defect disclosure.
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.