From the Texas Association of Realtors (TAR) Legal FAQ. Updated August, 2016.
When representing a client in a real estate transaction, what are the minimum services that I must provide as a real estate license holder (Updated August 26, 2016)?
The Real Estate License Act contains provisions that impose requirements on all brokers representing a party regarding client communications and negotiations. A broker must …
1. inform his client if he receives material information related to the transaction, including the receipt of an offer
2. answer his client’s questions and present any offers to or from his client.
These duties exist regardless of the agreed-upon compensation payable to the broker. A broker cannot avoid these requirements by removing himself from negotiations. The minimum-services provisions also prohibit a broker from negotiating or attempting to negotiate directly with the represented party.
There are certain circumstances in which a broker may deliver an offer to a represented party without violating the Real Estate License Act, but the broker must have the other broker’s consent to the delivery and send him a copy of the offer. At no time may the broker cross the boundary into negotiations with the represented party.
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