Approved by the Texas Real Estate Commission for Voluntary Use

Texas law requires all real estate licensees to give the following information

about brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage Services

Before working with a real estate broker, you shouldknow that the duties of a broker depend on whomthe broker represents. If you are a prospectiveseller or landlord (owner) or a prospective buyer or

tenant (buyer), you should know that the broker who liststhe property for sale or lease is the owner's agent. Abroker who acts as a subagent represents the owner incooperation with the listing broker. A broker who acts asa buyer's agent represents the buyer. A broker may act asan intermediary between the parties if the partiesconsent in writing. A broker can assist you in locating aproperty, preparing a contract or lease, or obtainingfinancing without representing you. A broker is obligatedby law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner's agent by entering into anagreement with the owner, usually through a written ­listing agreement, or by agreeing to act as a subagent byaccepting an offer of subagency from the listing broker. Asubagent may work in a different real estate office. Alisting broker or subagent can assist the buyer but doesnot represent the buyer and must place the interests ofthe owner first. The buyer should not tell the owner'sagent anything the buyer would not want the owner toknow because an owner's agent must disclose to theowner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer's agent by entering into anagreement to represent the buyer, usually through awritten buyer representation agreement. A buyer's agentcan assist the owner but does not represent the ownerand must place the interests of the buyer first. The ownershould not tell a buyer's agent anything the owner wouldnot want the buyer to know because a buyer's agent mustdisclose to the buyer any material information known to theagent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the partiesif the broker complies with The Texas Real Estate License

Act. The broker must obtain the written consent of eachparty to the transaction to act as an intermediary. Thewritten consent must state who will pay the broker and, inconspicuous bold or underlined print, set forth the broker'sobligations as an intermediary. The broker is required totreat each party honestly and fairly and to comply withThe Texas Real Estate License Act. A broker who actsas an intermediary in a transaction:

(1) shall treat all parties honestly;(2) may not disclose that the owner will accept aprice less than the asking price unless authorized inwriting to do so by the owner;(3) may not disclose that the buyer will pay a pricegreater than the price submitted in a written offerunless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information orany information that a party specifically instructs thebroker in writing not to disclose unless authorized inwriting to disclose the information or required to do soby The Texas Real Estate License Act or a courtorder or if the information materially relates to thecondition of the property.

With the parties' consent, a broker acting as anintermediary between the parties may appoint a person whois licensed under The Texas Real Estate License Actand associated with the broker to communicate with andcarry out instructions of one party and another person whois licensed under that Act and associated with the brokerto .communicate with and carry out instructions of theother party.

If you choose to have a broker represent you,you should enter into a written agreement with the brokerthat clearly establishes the broker's obligations and yourobligations. The agreement should state how and bywhom the broker will be paid. You have the right tochoose the type of representation, if any, you wish toreceive. Your payment of a fee to a broker does notnecessarily establish that the broker represents you. If youhave any questions regarding the duties andresponsibilities of the broker, you should resolve thosequestions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee's records.

Buyer, Seller, Landlord or Tenant Date

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question

or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960. is)[QUAL HOUSINC

OPPORTUNITY

KELLER WILLIAMS Legacy I 102 E. Sontera Blvd. # I 06 SAN ANTONIO, TX 78258Phone: 2 I 0-482-3200 Fax: 2 I 0-493-4669 Victor Luna

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Understanding Agency

It's important to understand what legal responsibilities your real estate salesperson has to youand to other parties in the transactions. Ask your salesperson to explain what type of agencyrelationship you have with him or her and with the brokerage company.

1. Seller's representative (also known as a listing agent or seller's agent). A seller's agent ishired by and represents the seller. All fiduciary duties are owed to the seller. The agencyrelationship usually is created by a listing contract.

2. Subagent. A subagent owes the same fiduciary duties to the agent's principal as the agentdoes. Subagency usually arises when a cooperating sales associate from another brokerage,who is not representing the buyer as a buyer's representative or operating in a nonagencyrelationship, shows property to a buyer. In such a case, the subagent works with the buyer as acustomer but owes fiduciary duties to the listing broker and the seller. Although a subagentcannot assist the buyer in any way that would be detrimental to the seller, a buyer-customercan expect to be treated honestly by the subagent. It is important that subagents fully explaintheir duties to buyers.

3. Buyer's representative (also known as a buyer's agent). A real estate licensee who is hiredby prospective buyers to represent them in a real estate transaction. The buyer's rep works inthe buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. Thebuyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid bythe seller or by a commission split with the listing broker.

4. Disclosed dual agent. Dual agency is a relationship in which the brokerage firm representsboth the buyer and the seller in the same real estate transaction. Dual agency relationships donot carry with them all of the traditional fiduciary duties to the clients. Instead, dual agentsowe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agencyrelationship, it's vital that all parties give their informed consent. In many states, this consentmust be in writing. Disclosed dual agency, in which both the buyer and the seller are told thatthe agent is representing both of them, is legal in most states.

5. Designated agent (also called, among other things, appointed agency). This is a brokeragepractice that allows the managing broker to designate which licensees in the brokerage willact as an agent of the seller and which will act as an agent of the buyer. Designated agencyavoids the problem of creating a dual-agency relationship for licensees at the brokerage. Thedesignated agents give their clients full representation, with all of the attendant fiduciaryduties. The broker still has the responsibility of supervising both groups of licensees.

6. Nonagency relationship (called, among other things, a transaction broker or facilitator).Some states permit a real estate licensee to have a type of nonagency relationship with aconsumer. These relationships vary considerably from state to state, both as to the dutiesowed to the consumer and the name used to describe them. Very generally, the duties owed tothe consumer in a nonagency relationship are less than the complete, traditional fiduciaryduties of an agency relationship.

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Reprinted from REALTO~ Magazine Online by permission of the NATIONAL ASSOCIA nON OF REALTOR~Copyright 2005. All rights reserved. www.REALTOR.org/realtormag