​Dual agency means you are representing the buyer and seller in the same transaction. It is against the law in Texas and we cannot (no broker can) approve the transaction. While you’ve probably heard about dual agency, you may not realize that you’re acting as a dual agent. For example, let’s say you’re the listing agent and an unrepresented buyer wants to purchase the property. You may be thinking “great, I’ll get to keep more commission”. However, you cannot represent that buyer in this scenario as that will be acting as a dual agent which is against the law.

To handle this situation correctly, have the buyer sign TAR’s Representation Disclosure form (TAR 1417) letting them know you are working for the seller AND you CANNOT represent them in any way. You can suggest that the buyer use an agent to represent them but do not provide any advice or info that would be considered privileged for a client. The other agent can be one that works for the same brokerage. When a broker has two different agents representing the parties in the same transaction, it’s known as acting as an intermediary and that is permitted. If the buyer doesn’t want to be represented, that’s on them.

Likewise, if you represent a buyer that wants to purchase a property from an unrepresented seller, the same rules apply. In this case, the seller would need to sign the Representation Disclosure and you cannot provide any representation, advice, etc. to the seller.