From the Hotline: Can Brokers Appoint Themselves in an Intermediary Situation?

By Ryan Bauman

March 01, 2020

Brokers have called to ask whether they can appoint themselves to work with and advise one of the parties in an intermediary situation. The answer is no. The Real Estate License Act requires brokers acting as an intermediary to be fair and impartial. Appointing oneself, as the firm’s broker, to represent one party and appointing a sponsored license holder to represent the other party in an intermediary situation is not fair and impartial. The broker may, with the written consent of the parties, appoint one sponsored license holder to work with and advise the seller and a different sponsored license holder to work with and advise the buyer.

Ryan Bauman is a staff attorney for Texas REALTORS®.

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