From the Legal Hotline: The Proper Way to Establish an Intermediary Relationship

March 01, 2019

We often receive questions about the proper way to establish an intermediary relationship. If a broker plans to represent both the seller/buyer or landlord/tenant, then the broker must have written authorization from both clients. The various Texas REALTORS listing agreements and buyer representation agreements contain the required intermediary authorizations as well as a requirement that the broker notify the parties in accordance with the type of intermediary relationship that will take place. This can be done using the Intermediary Relationship Notice form (TXR 1409). The use of the Intermediary Relationship Notice form will also address The Real Estate License Act requirement on the broker to send written notice to both clients when a broker appoints sales agents to both clients.

Iman Ali, associate counsel

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