Types of Real Estate License Holders
A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.
A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.
A Broker's Minimum Duties Required by Law
A client is the person or party that the broker represents. The broker must:
- Put the interests of the client above all others, including the broker's own interests
- Inform the client of any material information about the property or transaction received by the broker
- Answer the client's questions and present any offer to or counter-offer from the client
- Treat all parties to a real estate transaction honestly and fairly
Written Agreements
A license holder who performs brokerage activity for a prospective buyer of residential property must enter into a written agreement with the buyer before showing any residential property to the buyer, or before presenting an offer on behalf of the buyer. This written agreement must contain specific information required by Texas law.
Even if a written agreement is not required, to avoid disputes, all agreements between you and a broker should be in writing and clearly establish: (i) the broker's duties and responsibilities to you and your obligations under the agreement; and (ii) the amount or rate of compensation the broker will receive and how this amount is determined.
For more information, see Section 1101.563 of the Texas Occupations Code.
How a License Holder Can Represent You
As Agent for Owner (Seller/Landlord): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent fees are not set by law and are fully negotiable.
As Agent for Buyer/Tenant: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer/tenant's agent fees are not set by law and are fully negotiable.
As Agent for Both — Intermediary: To act as an intermediary between the parties, the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and set forth the broker's obligations as an intermediary.
License Holder Contact Information
This notice is being provided for information purposes. It does not create an obligation for you to use the broker's services. Please retain a copy for your records.
Sponsoring Broker
Designated Broker
Licensed Supervisor of Sales Agent
Sales Agent / Associate
Regulatory Information
Regulated by the Texas Real Estate Commission (TREC). Information available at www.trec.texas.gov.
IABS Form 1-2 · Effective 11-03-2025