Agency & Brokerage

Intermediary status, sponsoring broker supervision, and how Texas structures agency differently from the general national rules.

6 minState (Texas) Portion

Texas has its own specific structure for handling one brokerage representing both sides of a deal — and it's tested separately from the general agency concepts on the national portion.

The intermediary relationship

When one Texas brokerage represents both the buyer and the seller in the same transaction, the broker generally becomes an intermediary — a distinct status under Texas law, with its own written-consent and conduct requirements, rather than simply "representing both sides" the way dual agency might be described more generally elsewhere.

Appointed license holders

As an intermediary, a broker may appoint one license holder to work with the buyer and a different one to work with the seller — each appointed license holder can advocate more directly for their own party's side, while the broker itself stays neutral between them.

Sponsoring broker supervision

Every active Texas sales agent works under a sponsoring broker, who carries legal responsibility for supervising the agent's real estate activities. An agent can't operate independently, and a license that goes inactive can't be used to practice real estate at all until it's reactivated.

Client vs. customer, Texas-style

The underlying distinction is the same as the national concept — a client gets full representation and fiduciary duties, a customer gets honesty and fair dealing without full representation — but Texas requires specific written disclosures at specific points in the relationship to make clear which one a party actually is.

Common trap

An agent doesn't personally set the intermediary status on a deal by deciding to be "extra helpful" to the other side. Intermediary status is triggered by the brokerage's representation on both sides of the same transaction, and it comes with its own required disclosures — it isn't just a description of an agent's attitude.

Quick Check
A Texas brokerage represents both the buyer and the seller in the same transaction. What does the broker generally become?
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