No. Traditional dual agency is not permitted in Texas real estate brokerage. Texas law instead uses an “intermediary” system when the same broker is involved with both the buyer and seller. The Texas Real Estate Commission (TREC) expressly states that a license holder may not represent both principals as a dual agent. If a broker represents both sides, the relationship must comply with Texas intermediary requirements.
What Is Dual Agency?
Dual agency generally occurs when one real estate agent or brokerage represents both the buyer and seller in the same transaction. Texas has chosen a different statutory framework. Rather than allowing a broker to act as a traditional dual agent, Texas law permits an intermediary relationship under the Texas Real Estate License Act (TRELA).
What Is an Intermediary in Texas?
An intermediary is a broker who negotiates a real estate transaction between parties when the broker, or a sponsored sales agent, has obtained the required consent to represent both the buyer and seller. TREC explains that an intermediary may, with written consent, appoint separate associated license holders to work with and advise each party.
Is Written Consent Required?
Yes. Written consent is a central requirement. TREC states that before a broker can act as an intermediary, the seller must sign a listing agreement or another written document authorizing the broker to act as intermediary. The buyer must likewise sign a buyer representation agreement or another written document providing that authorization.
What Can an Intermediary Broker Do?
An intermediary can facilitate negotiations between the parties, but the broker must remain neutral between the buyer and seller. TREC explains that the intermediary is prohibited from favoring one principal over the other.
If the broker appoints separate license holders to the parties, those appointed agents may provide advice and opinions to the clients they represent, subject to the law and brokerage relationship. If no appointments are made, the broker cannot provide transaction-specific advice or opinions to either principal and must not favor either side.
What Information Must Remain Confidential?
Confidentiality is an important part of the intermediary relationship. TREC states that an intermediary generally may not reveal confidential information obtained from one principal without that principal’s written instructions, unless disclosure is required by law, court order, or concerns the material condition of the property.
For example, without the seller’s written authorization, the intermediary generally cannot tell the buyer that the seller would accept less than the asking price. Similarly, the intermediary generally cannot disclose to the seller that the buyer would pay more than the price stated in the buyer’s written offer.
What Happens if Dual Agency Is Created by Mistake?
TREC explains that if a dual agency relationship is accidentally created, the license holder must address the situation by complying with the statutory notice and consent requirements and then proceed as an intermediary or represent only one principal while treating the other as a customer.
This means an accidental dual-agency situation does not simply become lawful because the parties continue with the transaction. The brokerage relationship must be brought into compliance with Texas law.
What Are the Consequences of Noncompliance?
Failure to comply with Texas intermediary requirements can expose a license holder to disciplinary action by TREC. According to TREC, potential sanctions can include suspension, revocation, reprimand, or an administrative penalty.
Because brokerage relationships involve statutory and fiduciary duties, agents and brokers should establish the correct relationship before providing representation and advice.
Do the 2026 Rules Change Intermediary Relationships?
Texas made significant changes to buyer representation requirements effective January 1, 2026. TREC states that residential buyer representation generally now requires a written agreement before a license holder shows residential real property to the prospective buyer or presents an offer on the buyer’s behalf, subject to statutory provisions and exceptions.
These changes do not legalize traditional dual agency. They add additional written-agreement requirements within the broader Texas brokerage framework.
Conclusion
Traditional dual agency is not legal in Texas real estate brokerage. When one broker is involved in representing both the buyer and seller, Texas law uses the intermediary relationship instead. That arrangement requires appropriate written consent and imposes specific restrictions concerning neutrality, advice, confidentiality, and representation.
Buyers and sellers should understand whether their broker is representing them individually, acting as an intermediary, or dealing with one party only as a customer. Reviewing the brokerage and representation agreements before signing can help clarify the relationship and the duties owed to each party.
