In Texas, when might a broker act as an intermediary?

• A. When both the seller and the buyer are clients of the same broker
• B. When the broker represents the seller and the buyer separately
• C. When there is no broker involved
• D. When a dual agency agreement is signed

Answer: (A)

In Texas, a broker acts as intermediary when both the seller and the buyer are clients of the same broker in the same transaction. This arrangement lets the broker facilitate the deal while staying neutral, rather than advocating for one side. To do this properly, the broker must obtain written consent from both clients and usually designate separate licensees within the brokerage to represent each party on individual issues. The key is that the same broker holds relationships with both sides, which creates the need for guardrails to protect fairness and confidentiality. If the parties aren’t both clients of the same broker, there isn’t an intermediary situation.