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Texas law requires all real estate licensees to give the following information about Brokerage services to prospective
Before working with a real estate broker you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner´s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer´s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.
The broker becomes the owner´s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner´s agent anything the buyer would not want the owner to know because an owner´s agent must disclose to the owner any material information known to the agent.
The broker becomes the buyer´s agent by entering into an agreement to represent the buyer, usually through a written agreement to represent the buyer, usually through a written buyer representation agreement. A buyer´s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer´s agent anything the owner would not want the buyer to know because a buyer´s agent must disclose to the buyer any material information known to the agent.
A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker´s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: 1. Shall treat all parties honestly; 2. May not disclose that the owner will accept a price less than the asking prices unless authorized in writing to do so by the owner; 3. 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 4. May not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker´s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.
A real estate buyer's agent represents the consumer who is purchasing the property in the real estate transaction. This agent owes full fiduciary responsibilities, duties and loyalty to the real estate buyer. The buyer's agent works for the buyer client and has the client's best interests in mind throughout the entire real estate transaction process. The buyer compensates the agent through a negotiated fee or in some states the commission is split between the buyer's and seller's agents based on the selling price of the real estate property. It is important for the consumer to discuss the buyer agent's compensation in the initial interview. In many cases it is recommended that the consumer and buyer agent agree to the terms of compensation prior to viewing real estate properties and sign a written agreement based on these terms. This agreement should spell out the responsibilities of both parties throughout the real estate transaction. It is important to note that in some states, legislation has been enacted to protect the buyer to the point that absent a written agreement, the agent represents the buyer throughout the real estate transaction. Consult your local REALTOR® for complete details when you first start the search for purchasing any real estate property.
As a consumer, how often do you buy real estate property? Once, twice, three times in your lifetime? Purchasing real estate is a complex and major transaction with many details to be handled. In the majority of cases the seller will be represented by an agent. Wouldn't you want to have complete and fair representation in the real estate transaction? The real estate buyer agent is responsible to protect their clients' best interests. Research by the NATIONAL ASSOCIATION OF REALTORS® has shown that when a buyer agent is used, the prospective buyer found their home one week faster and examined three more properties than those consumers who did not use a buyer's agent.
The Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation. This coveted designation is awarded to real estate practitioners by the Real Estate BUYERS AGENT Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS® who met the specified educational and practical experience criteria.
· Completed the comprehensive two-day REBAC course in buyer representation. · Successfully passed a written examination. · Demonstrated a practical experience of having completed five closed real estate transactions in the field of buyer representation. · Received recommendations from two of the real estate practitioners buyer clients. · Be a member in good standing with the NATIONAL ASSOCIATION OF REALTORS®. Look for those real estate agents that proudly display the ABR® designation and know that they are professionals in the field of buyer representation.
· Evaluates the specific needs and wants of the buyer and locate properties that fit those specifications. · Assist the buyer in determining the amount that they can afford (pre-qualify) and show properties in that price range and locale the consumer has determined. · Assist in viewing properties and either accompany the client on the showings or preview the properties on behalf of the client to insure that the identified specifications are met. · Research the selected properties to identify any problems or issues to help the consumer in making an informed decision prior to making an appropriate offer on the property. · Advise the client on structuring an appropriate offer to purchase the selected property. · Present the offer to the seller's agent and seller on the clients behalf. · Negotiate on behalf of the buyer client to help obtain the identified property. Keep in mind that the buyer agent will be doing so with their client's best interests in mind. · Review and explain all legal documents to their buyer client. · Recommendations and assistance in securing appropriate financing for the selected property. · Provide a list of potential qualified vendors e.g. movers, attorneys, carpenters if these services are needed by the consumer. Most importantly, the buyer would know that they are fully represented throughout the real estate transaction.
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