One broker, both sides
AgencyNational / most statesNational materials discuss single agency, subagency, and disclosed dual agency as concepts. State law decides what is allowed.
TexasTexas law does not permit dual agency. A broker representing both parties must follow the statutory intermediary process and obtain the required written consent.
TrapDo not relabel the Texas relationship as dual agency. The tested Texas term is intermediary.
Agency disclosure
AgencyNational / most statesAgency disclosure form and timing vary by state.
TexasThe IABS notice is given at the first substantive communication about a specific property.
TrapIABS is a disclosure, not a representation agreement.
Advising both parties
AgencyNational / most statesA dual agent represents both, often with limited duties.
TexasWith the parties' written consent, the intermediary broker may appoint separate associated license holders to work with and advise the respective parties.
TrapWithout appointments, the intermediary and associated license holders cannot give either party opinions or advice in the negotiation.
Contract forms
Contracts & FormsNational / most statesAgents often use association forms; attorney involvement varies by state.
TexasA license holder must use a TREC form approved for mandatory use when it fits the transaction, unless an exception in Rule 537.11 applies.
TrapA license holder may fill blanks and add factual statements or business details, but may not practice law or give legal advice.
Who drafts the forms
Contracts & FormsNational / most statesVaries: state associations, attorneys, or agencies.
TexasThe Texas Real Estate Broker-Lawyer Committee drafts and revises standard contract forms, and TREC adopts them.
TrapThe committee prepares forms and TREC adopts them. The Texas Legislature enacts TRELA.
Security instrument
Finance & ForeclosureNational / most statesThe mortgage (a two-party instrument) is common.
TexasThe deed of trust (three parties, including a trustee) is the norm.
TrapThe deed of trust adds a trustee with a power of sale, the key Texas difference.
Foreclosure method
Finance & ForeclosureNational / most statesMany states require judicial foreclosure through the courts.
TexasA deed of trust with a power of sale can be foreclosed nonjudicially after the lender follows the governing documents and Texas notice and sale requirements.
TrapA foreclosure sale is generally held on the first Tuesday of the month. Do not assume every foreclosure bypasses court.
Marital property
Ownership & TitleNational / most statesMost states follow common-law (separate) property rules.
TexasTexas is a community-property state; property acquired during marriage is generally community.
TrapCommunity property changes who must sign: both spouses for the homestead.
Homestead protection
Ownership & TitleNational / most statesHomestead protection is limited or absent in many states.
TexasTexas has strong homestead protection from forced sale by most creditors.
TrapHomestead protects against most creditors, but not a purchase-money loan, taxes, or a properly executed home-equity lien.
Transfer tax
Taxes & ClosingNational / most statesMany states charge a real estate transfer or documentary stamp tax.
TexasTexas has no statewide real estate transfer tax.
TrapAdding a transfer/stamp tax to a Texas closing is a classic out-of-state trap.
Property tax math
Taxes & ClosingNational / most statesOften expressed in mills (per $1,000 of value).
TexasStated per $100 of taxable value; the current school-district homestead exemption is $140,000, voter-approved in 2025.
TrapUse the per-$100 rate for Texas; the homestead exemption reduces taxable value first.
Who closes the deal
Taxes & ClosingNational / most statesAttorney-closing states are common in parts of the country.
TexasTitle companies and escrow officers commonly handle closing in Texas.
TrapTexas is not an attorney-required closing state for typical residential sales.
Regulator and law
Law & RegulatorNational / most statesEach state has its own commission and license act.
TexasTREC regulates under TRELA (Occupations Code Ch. 1101) and the TREC Rules (22 TAC Ch. 535).
TrapTREC enforces the law and adopts rules; the Legislature writes TRELA.
Activating a license
Law & RegulatorNational / most statesSponsorship and activation rules vary.
TexasA sales agent must be sponsored by an active Texas broker to act; an unsponsored license is inactive.
TrapPassing the exam does not let you practice. You must be sponsored by a broker first.