The short version: Texas has no dual agency. If one brokerage represents both buyer and seller, the broker is an intermediary and needs both parties’ written consent. With appointments, the broker appoints a different associate to each side, and each can give their client advice. Without appointments, the agent is neutral and can’t give either side opinions or advice. The 2026 law changes didn’t alter the intermediary statutes.
Texas doesn’t have dual agency. When one brokerage represents both the buyer and the seller in the same deal, the broker becomes an intermediary, and how much the agents can actually help their clients depends on one word: appointments. It’s one of the most misunderstood parts of Texas agency law.
Intermediary, in plain English
- It requires written consent from both parties, including the source of the broker’s compensation. The listing agreement and buyer agreement usually provide it, as long as the intermediary prohibitions are in bold or underlined (Tex. Occ. Code §1101.559).
- The broker must act fairly and impartially toward both sides. A broker who represents both the buyer and the seller has to act as an intermediary (§1101.561).
- Some things can never be shared (§1101.651(d)). That includes that the seller will take less than the asking price, that the buyer will pay more than their written offer, or any confidential information a party asked not to be disclosed. Information about the property’s condition is the exception.
A notice isn’t consent. The intermediary notice form and the IABS inform people; they don’t replace the written consent.
With appointments: two agents, real advice
With both parties’ written consent, the broker can appoint one associate to the seller and a different associate to the buyer, and give written notice to everyone (§1101.560). An appointed associate may give opinions and advice to the party they’re appointed to during negotiations.
This is usually the best outcome for both clients: each side still has an agent in their corner, while the brokerage stays neutral. That’s why, whenever possible, we practice intermediary with appointments.
Without appointments: neutral, no opinions
If the same agent is working with both the buyer and the seller, or the broker doesn’t appoint, the agent acts only as the broker’s intermediary representative. TREC is clear about what that means: no advice or opinions to either party. No “I think it’s priced right.” No “I’d counter at…”
Plenty of buyers and sellers don’t realize that’s what they’re agreeing to when one agent “handles both sides.” Tell them clearly, before it happens.
Common misconceptions
- “It’s dual agency.” Not in Texas. The broker is an intermediary, with specific statutory duties.
- “Appointments are automatic.” They require both parties’ written authorization and written notice to all parties.
- “I can appoint myself to my own client.” Appointments generally go to different associates; one person can’t be appointed to both sides.
- “The 2026 changes rewrote intermediary.” They didn’t. Senate Bill 1968 changed buyer agreements and subagency, but the intermediary statutes are the same. The IABS form itself did change (version 1-2, effective January 1, 2026), so make sure you’re using the current one.
Before you work both sides
- Confirm both written consents are signed, with the intermediary provisions in place.
- Talk to your broker before you take the second side. At JRE, the broker decides on appointments.
- Explain to both clients, in plain English, what changes and what they give up.
- If you’re acting without appointments, stop giving advice. Facts only.
Sources
General information, not legal advice. TREC says I can’t practice law, and I like my license. Run your specific situation past your broker or a real estate attorney.
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