this relationship is that the agent owes the client the fiduciary duties we covered earlier in this chapter. By contrast, the single agent representing his or her client owes the parties on the other side of the transaction, the customer duties we described earlier. Technically speaking, the supervising broker is the only licensee with the legal authorization to be the agent of a buyer, landlord, seller, or tenant. All licensees working for the supervising broker, brokers or salespersons, are associates of the supervising broker and agents of the client. End of Page Subagency Subagency is practiced between brokerage firms where "cooperating" licensees, of other firms, are subagents of the listing supervising broker of the principal. Subagency is legal in Texas. A subagent is a license holder who: • Represents a principal through cooperation with a broker, and the consent of a broker representing the principal: and • Is not sponsored by, or associated with the principal's broker Intermediary Agency Intermediary agency is where a licensee represents both sides of a transaction in an agent- client capacity. In a firm, intermediary agency can occur in two ways: • The supervising broker or a single licensee represents both parties. • One of the principal broker's agents represents a seller and another of his agents represents a buyer. In the latter case, since the licensees are associates of the supervising broker, technically the supervising broker is representing both sides as an agent. An intermediary shall act fairly and impartially. 25 . Agency Positions (cont)
End of Page A broker may act as an intermediary between parties to a real estate transaction if both of the following are true: • The broker obtains written consent from each party for the broker to act as an intermediary in the transaction. • The written consent states the source of any expected compensation to the broker. A written listing agreement or a written agreement to represent a buyer that authorizes a broker to act as an intermediary in a real estate transaction is sufficient consent provided it states that the broker may not: • Disclose to the buyer that the seller will accept a price less than the asking price. • Disclose to the seller that the buyer will pay a price greater than the price submitted in a written offer. • Disclose any confidential information or any information a party specifically instructs the broker or salesperson in writing not to disclose, unless: • The broker or salesperson is otherwise instructed in a separate writing by the respective party. • The broker or salesperson is required to disclose the information. • The information materially relates to the condition of the property. • Treat a party to a transaction dishonestly.
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- Fall '16