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Home Buying Guide

Glossary of Real Estate Brokerage Relationships

In Texas, real estate brokers and their salespersons are required to disclose the type of working relationship they have with the buyers in a real estate transaction. There are several types of relationships that are available to you. You should understand these at the time a broker provides specific assistance to you in buying real estate.


Buyer's Agent and Seller's Agent relationships are commonly referred to as "agency" relationships and carry with them legal duties and responsibilities for the broker as well as for the buyer and seller.

Buyer's Agent

A Buyer's Agent acts solely on behalf of the buyer and owes duties to the buyer, which includes the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of, and act as an advocate for; the buyer. The buyer is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. The agent must disclose to sellers all adverse material facts concerning the buyer's financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property.


Seller's Agent

A Seller's Agent acts solely on behalf of the seller and owes duties to the seller, which includes the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of, and act as an advocate for; the seller. The seller is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. The agent must disclose to buyers or tenants all adverse material facts about the property known by the broker.


Dual Agent

A dual agent is an agent that represents both the Buyer's and the Seller's in a transaction. This occurs when a buyer wishes to purchase a listing held by the agent or the agent's firm. Dual Agents must be loyal to both the buyer and the seller not disclosing any information on price, terms or conditions to either side without the other's consent.