Agency Relationships

# Agency Relationships in Texas Real Estate ## Overview of Texas Agency Law Texas agency law is governed by the Texas Real Estate License Act (TRELA), codified in Texas Occupations Code Chapter 1101. Texas uses a unique intermediary model that differs significantly from most other states. Understanding intermediary brokerage is one of the most heavily tested topics on the Texas exam. --- ## Definitions — What the Statute Actually Says ### Broker (Tex. Occ. Code §1101.002) A broker is a person who, for commission or valuable consideration, performs any of the following: - Sells, exchanges, purchases, or leases real estate - *"Negotiates or attempts to negotiate the listing, sale, exchange, purchase, or lease of real estate"* (§1101.002) - Deals in real estate options - Aids in locating or obtaining property for purchase or lease - *"Procures or assists in procuring a prospect to effect the sale, exchange, or lease"* (§1101.002) - Manages rent deposits from residential tenants - Provides written property valuations in the ordinary course of business - Advises on short sales ### Sales Agent (Tex. Occ. Code §1101.002) A sales agent is *"a person who is sponsored by a licensed broker for the purpose of performing an act"* that would constitute broker activity under the statute. This is why a sales agent license alone is not enough — sponsorship is legally required. ### The Sponsorship Requirement (Tex. Occ. Code §1101.351) *"A licensed sales agent may not engage or attempt to engage in real estate brokerage unless the sales agent is sponsored by a licensed broker…