Intermediary
A statutory process in Texas where a single broker represents both the buyer and the seller in a real estate transaction with written consent.
Exam Context & Texas Nuance
Intermediary
In Texas, the Intermediary relationship is the only legal way a broker can represent both parties in a single transaction. It requires written consent from both parties (typically through the listing agreement and buyer representation agreement).
Texas-Specific Nuance & Citation
Under TRELA §1101.559, the broker acting as an intermediary must act fairly and impartially. The broker can make “appointments” by assigning one sponsored sales agent to the seller and another to the buyer to provide advice, opinions, and representation, provided both parties agree in writing.
The Trap
A major exam trap is what a broker can do when they do not make appointments. If a broker acts as an intermediary without appointing separate agents (e.g., they work with both parties themselves), they are prohibited from giving any advice or opinions to either party. They must remain strictly neutral.
Worked Example
A broker in Austin acts as an intermediary. They appoint agent Alice to represent the seller and agent Bob to represent the buyer. Because appointments were made, Alice can advise the seller on negotiation strategy, and Bob can advise the buyer on offer terms, while the broker remains a neutral supervisor.