Agency vs. intermediary in Texas: the distinction the exam loves

If there's one Texas-specific agency concept the exam returns to again and again, it's intermediary status. Candidates trained on generic 'dual agency' material get tripped up here, because Texas handles it differently from most states.

What Texas did

Texas doesn't use common-law dual agency. Instead, when a single brokerage represents both the buyer and the seller in the same transaction, the broker acts as an intermediary — a statutory role that requires the written consent of both parties, typically obtained up front in the listing and buyer-representation agreements.

Key points the exam tests

• Intermediary status requires written consent from both parties, obtained before the situation arises.
• The broker (not the individual agent) is the intermediary; the broker may appoint different associated license holders to each party.
• The Information About Brokerage Services (IABS) notice must be provided at the first substantive communication about a specific property with a party the license holder doesn't represent.

Why it matters beyond the exam

This isn't just test trivia — it's a compliance area TREC takes seriously in practice. Getting the consent and disclosure sequence wrong is a real disciplinary risk once you're licensed, which is exactly why the exam weights it.