As your Real Estate Agent, I’m here to make sure you understand every part of this agreement so you can feel confident and empowered in your real estate journey. But first, let’s clarify the relationship here: this agreement is officially between you, the Buyer or Tenant, and the Real Estate Broker—not the Real Estate Agent. I’m appointed by the broker to represent you in the transaction and will work closely with you, but the broker is the main party to this contract.
Let’s dive into each part of the Texas Residential Buyer/Tenant Representation Agreement and explore what it means for you and how it’s designed to protect and empower you as you navigate the buying or renting process.
How Can You Be Represented in a Real Estate Transaction?
In Texas, there are several ways a buyer or tenant can be represented. The Information About Brokerage Services Notice breaks down the different types of representation available to you:
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Buyer/Tenant Representation: This agreement appoints the broker and their Real Estate Agent (me) to represent you exclusively, putting your interests first throughout the transaction.
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Intermediary Representation: Texas law allows brokers to represent both the buyer and the seller in the same transaction. If this happens, the broker acts as a neutral party, ensuring confidentiality and fair treatment for both sides.
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Subagent Representation: Sometimes, another agent from a different brokerage might help in a transaction without representing you directly. In that case, they act as a subagent, working with your broker to facilitate the deal.
Now that we understand the types of representation, let’s walk through each section of the Residential Buyer/Tenant Representation Agreement to see how it all works to serve you in your home-buying or renting journey.
1. PARTIES
This section officially identifies you (the Buyer or Tenant) and the Broker as the parties to this agreement. My role as your Real Estate Agent is to represent the broker and work as your primary point of contact throughout the process. Contact information for both parties is included here, making it easy to stay connected.
2. APPOINTMENT
In this section, you formally appoint the broker as your representative in finding, negotiating, and securing a property. By appointing the broker, you’re giving them the authority to act in your best interest, and I’ll be here to provide guidance and support as we work together to find the right home or rental.
3. DEFINITIONS
Here, we define important terms used throughout the agreement, such as “Client” (you), “Broker,” and other terms specific to this document. These definitions ensure that everyone is on the same page, making the language clear and specific.
4. TERM
- A. Beginning and Ending Date: This part defines the start and end dates of the agreement, specifying how long the broker has the exclusive right to represent you.
- B. Early Termination: Sets out the conditions under which either party can terminate the agreement before the end date.
5. BROKER’S OBLIGATIONS
This section explains what you can expect from the broker. The broker agrees to use reasonable efforts to find a property that meets your criteria and provide guidance through the entire process. As your Real Estate Agent, I’ll be working on behalf of the broker to support you, offer insights, and make the journey as smooth as possible.
6. CLIENT’S OBLIGATIONS
Just as the broker has obligations, you as the client also have responsibilities. This part outlines your commitment to work exclusively with the broker during the term of the agreement and communicate openly about your property needs. By working together, we can stay focused on finding the best property to meet your needs.
7. COMPENSATION
- A. Earned: This part defines when the broker’s compensation is considered “earned,” such as when a suitable property is found or an offer is accepted.
- B. Payable: Specifies when the broker’s compensation becomes “payable,” often at the time of closing on a property or when a lease is signed.
8. AGENCY RELATIONSHIPS
This section covers potential types of agency relationships:
- A. Intermediary: If the broker represents both you and the seller in a transaction, they act as an intermediary, ensuring fair and balanced representation.
- B. Subagency: Other agents might work with the broker to facilitate the transaction without representing you directly, which is covered here.
9. CONFIDENTIAL INFORMATION
Confidentiality is crucial in real estate. This section assures that any personal or sensitive information you provide will remain protected during and after the agreement, building a foundation of trust and security.
10. BROKER’S AUTHORITY
This part outlines what the broker can do on your behalf, including making offers, negotiating terms, and sharing your offers with sellers. As your Real Estate Agent, I’ll work closely with you to make sure you understand and are comfortable with each step.
11. LIMITATION OF LIABILITY
This section limits the broker’s liability for events outside their control, such as changes in market conditions or property issues that arise after closing. It helps set realistic expectations and protects the broker in cases beyond their influence.
12. SPECIAL PROVISIONS
If there are any custom terms specific to your situation, they can be added here. This section allows for flexibility in addressing any unique requirements or preferences you may have.
13. MEDIATION
Disputes can sometimes arise, and this section encourages both parties to attempt mediation as a first step before legal action. Mediation offers a fair, non-confrontational way to resolve any misunderstandings.
14. ATTORNEY’S FEES
This part clarifies that the prevailing party in any legal dispute related to this agreement may recover attorney’s fees, which helps ensure fairness and compliance on both sides.
15. ADDENDA AND OTHER DOCUMENTS
Here we list any additional documents or addenda that may be required, such as disclosures or additional Texas Real Estate Commission forms. Having these items in place helps streamline the process and avoid delays.
16. AGREEMENT OF PARTIES
- A. Entire Agreement: Confirms that this document is the full agreement between you and the broker.
- B. Assignability: States that neither party can transfer the agreement to another person or entity without written consent.
- C. Binding Effect: Ensures that the agreement applies to both parties and any successors, administrators, or assigns.
- D. Governing Law: Specifies that Texas law governs the agreement.
- E. Severability: If a court finds any part of the agreement invalid, the rest remains enforceable.
- F. Notices: Outlines how notices and updates should be communicated, ensuring both parties stay informed.
17. ADDITIONAL NOTICES
This final section includes important reminders about fair housing laws, compliance practices, and any disclosures required by law to protect both you and the broker throughout the transaction.
Wrapping It Up
The Texas Residential Buyer/Tenant Representation Agreement is here to support and protect you in your property search, making sure both you and your broker are on the same page and working toward a successful outcome. Each section clarifies expectations, roles, and safeguards, so you know exactly what to expect throughout the buying or leasing process.
If you’re ready to get started or have any questions, I’m here to guide you every step of the way. Let’s work together to find the perfect property for you!
Ready to Start Your Home Search? Let’s Find Your Perfect Property Together!
Understanding the Texas Residential Buyer/Tenant Representation Agreement is a big first step, and now that you’re in the know, we’re ready to make your home search seamless and successful. Whether you’re buying or leasing, I’m here to represent you every step of the way.
Have questions or ready to dive into the market? Reach out today, and let’s get started on finding the right property for you. Together, we’ll make your real estate journey smooth, transparent, and enjoyable!
