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Question 1
What type of agency relationship exists when a Texas broker represents BOTH the buyer and seller in the same transaction with written consent from both parties?
Answer: Intermediary relationship. In Texas, the term 'dual agency' is not used; instead, this arrangement is called an intermediary, governed by TRELA and TREC rules.
Question 2
What is a 'subagent' in a real estate transaction?
Answer: A subagent is a licensee who works for a broker who is acting as an agent for a principal, effectively making the subagent an agent of the principal through the broker.
Question 3
Under Texas law, what type of agent is authorized to perform only a specific act or transaction on behalf of the principal?
Answer: A special agent. Real estate brokers are typically special agents because they are authorized to perform one specific transaction, not broad business dealings.
Question 4
What type of agent has broad authority to act on behalf of the principal in a range of matters, similar to a property manager overseeing all aspects of a property?
Answer: A general agent. A general agent can bind the principal in a variety of transactions within a defined scope of authority.
Question 5
When a broker acting as an intermediary appoints a licensed associate to work with the buyer and another to work with the seller, what are those associates called?
Answer: Appointed licensees (or appointed associates). The broker may appoint different licensees to represent each party and communicate negotiating positions, provided written consent was obtained.