One very important aspect of using a real estate agent in Texas to buy a home is to make sure you understand early in the transaction who they represent.  Although this can be done by asking a simple question, it should be confirmed in writing by the broker agent who is showing you property.  In Texas, the broker or agent can represent the owner, act as an intermediary, or represent you as the buyer.

TYPES OF REPRESENTATION IN TEXAS

There are three types of representation that comply with The Texas Real Estate License Act.

IF THE BROKER REPRESENTS THE OWNER, they can assist you, but will not represent you and must place their interests on the owner’s behalf first.  You should also not tell the owner’s agent anything you would not want the owner to know because by law, they must disclose any material information, such as your motivation to buy, to the owner.

A BROKER OR AGENT CAN ACT AS AN INTERMEDIARY between the owner and buyer provided they comply with the guidelines of The Texas Real Estate License Act and obtain written consent of each party to the transaction to act as an intermediary.  A broker or agent who acts as an intermediary shall treat all parties honestly; may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and may not disclose any confidential information or any information that a party specifically instructs the broker or agent in writing not to disclose.

YOU CAN CHOOSE TO HAVE A BROKER OR AGENT TO REPRESENT YOU.  A broker or realtor can represent you as a buyer’s agent if they do not represent the owner as a listing or subagent.  Although a buyer’s agent can assist an owner, they must place your interests first.  Also, a buyer’s agent must disclose to you any material information they may have knowledge of, such as the owner’s motivation to sell.  If you choose to have a broker or agent represent you, you should enter into a written agreement with the broker or agent that clearly establishes their obligations to you and yours to them.  This agreement should also state how and by whom the broker or agent will be paid.   

WHAT ARE OUR THOUGHTS ON BUYER’S REPRESENTATION

You have the right to choose the type of representation you want.  For those of you that are relocating into the area or are first time home buyers, we highly recommend that a texasliving.com agent represent you as a Buyer Representative.  For those of you who are more familiar with the area and buying process, it is completely up to you - although why not take advantage of buyer representation, as the buyer’s agents fees are paid by the owner’s broker if it is a property listed through the MLS.  

IF YOU WANT US TO SHOW YOU PROPERTIES, WILL YOU BE REQUIRED TO SIGN A BUYER'S REPRESENTATION AGREEMENT?

No.  However, at our first meeting, you will be given a disclosure titled "Information about Brokerage Services" along with a brief explanation of the benefits of hiring a buyer’s representative.  So you know, we will never require you to sign a buyer’s representation agreement to look at property.  However, when you are ready to submit an offer, it will be necessary for you to sign a Buyer's Representation Agreement or a Non-Representation Disclosure stating our role.