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Parker Compa…, Real Estate Pro in Houston, TX

What ways have you found to be the easiest in explaining agency relationships with your prospective clients?

Asked by Parker Company Real Estate Services, Houston, TX Sat May 25, 2013

Agency is a huge issue in Texas. We discuss representation thoroughly with our prospective clients. What ways have you found to be the easiest in explaining agency relationships with your prospective clients?

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Agency, in its basic form, is one person acting on behalf of another, with the consent of both the agent and the principal (client), and the agent acts under the control of the principal. There is always a delegation of authority. Agents owe their clients full fiduciary duties, which are the highest duties there are. We work for our clients and we work with customers. We provide clients with advice, opinions, advocacy and negotiation strategy, which we do not provide to customers. Customers are entitled to accurate information, honesty and fair dealings, and disclosure of material facts about the property.
Intermediary brokerage, also a agency relationship, occurs in one situation and one situation only: when a represented buyer or tenant is interested in offering on one of the firm's listings. It is the only agency relationship that MUST be in writing, and the broker must follow The Real Estate Licensing Act. Only the broker is the intermediary, and is unable to provide preferential advice or opinion to either party, and must treat all parties fairly, and keep confidential information confidential. The intermediary MAY choose to appoint one or more sponsored licensees to the buyer and one or more to the owner, and those appointed licensees then give advice and opinion to the respective parties.
0 votes Thank Flag Link Sat May 25, 2013
Personally I use the IABS form and talk about it in terms of who I represent in the transaction and what information can and will be disclosed and what is confidential based upon that representation.

If I am acting as an intermediary I let them know I can only disclose factual statements regarding the transaction to each party unless another party is offered by the broker to represent the other buyer.

I don't spend more than 5 mins on the conversation I just treat them fairly upfront by telling them who I represent and what I will do with the information they tel me upfront.

Chris Hutchinson
The Michael Group
0 votes Thank Flag Link Sat May 25, 2013
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