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The information in the IABS form explains the working relationship
between an agent and the buyer or seller. This relationship has a
distinct fiduciary difference depending on whether there is a
written agreement between the agent and the parties wanting to buy
or sell.
A listing agent works exclusively for the SELLER and must do
everything possible to facilitate an advantage and get the best deal for their clients. This
is outlined in the Information About Brokers Services
(IABS) form that the state of Texas requires
all real estate agents present to new customers.
If you are a buyer, and you want to be represented with the same
commitment as the seller, utilizing a
Buyers Representation Agreement will provide that advantage.
This simply means that if you buy a house using the listing
agent, that agent works only for the Seller and can not
represent your best interests. If you are going to buy a house,
use a Real Estate agent that will represent you as a buyer,
signing a Buyers Rep. agreement creates that type of agency.
The same applies to the Seller; a buyers agent works exclusively
for the buyer, provided there is a signed buyers rep. agreement
, and has a fiduciary responsibility to only the buyer.
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 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.
IF THE
BROKER REPRESENTS THE OWNER:
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.
IF THE
BROKER REPRESENTS THE BUYER:
The broker becomes
the buyer’s agent by entering into an
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.
IF THE
BROKER ACTS AS AN INTERMEDIARY:
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 as 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 price 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.
With the parties’
consent, a broker acting as an
intermediary
between the parties may appoint a person who
is licensed under
The Texas Real Estate License Act
and associated
with the broker to communicate with and
carry out
instructions of one party and another person who
is licensed under
that Act and associated with the broker
to communicate
with and carry out instructions of the
other party.
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.
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.
If you are interested in purchasing a new
home or selling your existing home,
Call 214-336-7088 or e-mail me at jay@realestatedal.com
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