Texas Law of Agency/Exclusively Texas
Agency
BLUF: Understanding the legal relationships between brokers, agents, and clients in Texas real estate.
Last updated: |By Slate Azimuth Specialists
Core Examination Criteria
- Fiduciary duties require putting the client's interests above all others, including the broker's.
- The Information About Brokerage Services (IABS) form is a mandatory written statement, not a contract.
- Intermediary status allows a broker to represent both buyer and seller in the same transaction.
- An agency relationship is created by an agreement, which should be written to enforce a commission.
Statutory Breakdown & Case Studies
Agency in Texas Real Estate
Agency is the foundational concept of real estate relationships in Texas. Under the Texas Real Estate License Act (TRELA), license holders must understand their fiduciary duties and representation structures to protect the public and operate legally.
Exam Traps & Crucial Mistakes
TRAP
Exam Trap #01
Confusing the IABS form with an agency representation agreement.
TRAP
Exam Trap #02
Acting as an intermediary without written consent from both parties.
TRAP
Exam Trap #03
Disclosing confidential information of a client to a subagent.
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