Texas has a very specific way of handling situations where a buyer and seller are represented by the same brokerage—it’s called intermediary.
This is one of the most misunderstood concepts in Texas real estate, and I explain it to clients almost every week.
Intermediary can be perfectly legal and perfectly safe if it’s done correctly. But you deserve to understand exactly what it means for you.
Let me break it down in plain English.
1. What Is Intermediary?
Intermediary happens when:
āļø The buyer is represented by an agent
AND
āļø The seller is represented by the same brokerage
This could be:
āļø Two different agents in the same brokerage
or
āļø One agent representing both sides (rare, but allowed with restrictions)
In Texas, intermediary is the legal alternative to dual agency, which is illegal here.
2. Intermediary Is Only Allowed With Written Consent
Both parties must agree in writing before intermediary can happen.
That means:
āļø Seller must sign listing agreement with intermediary authorization
āļø Buyer must sign buyer representation agreement with intermediary authorization
No one can be forced into intermediary.
I always explain this upfront so you fully understand your options.
3. Types of Intermediary in Texas
There are two forms:
A) Intermediary WITH Appointed Agents (Most Common & Most Preferred)
In this structure:
āļø You have your own agent (me)
āļø The other party has their own agent
āļø We are both within the same brokerage
āļø Each agent can give full advice and representation
This is the cleanest and most protective version.
B) Intermediary WITHOUT Appointed Agents (One Agent Represents Both Parties)
This structure means:
āļø One agent is the intermediary for both buyer and seller
āļø That agent cannot provide opinions or advice to either side
āļø They can only give facts and facilitate paperwork
This is very restrictive.
I avoid this structure because I want to advocate fully for you.
4. What I Can Do During Intermediary
If I’m appointed as your agent during intermediary, I can still:
āļø Advise you
āļø Negotiate for you
āļø Share market data
āļø Recommend strategies
āļø Point out contract risks
āļø Help you interpret inspection reports
āļø Work to get you the best deal
You still receive full representation.
5. What I Cannot Do During Intermediary
I cannot:
ā Share the other party’s confidential information
(e.g., bottom line, motivations, personal circumstances)
ā Favor one side over the other
I must stay neutral on information flow.
ā Disclose anything the other party tells me privately
unless it’s required by law.
This protects both buyer and seller.
6. Why Intermediary Exists in Texas
Intermediary allows:
āļø Large brokerages to function
āļø Agents to show in-house listings
āļø Buyers to access more homes
āļø Sellers to receive more exposure
Because the DFW market is huge and competitive, intermediary makes transactions smoother while still keeping representation legal.
7. Is Intermediary Good or Bad?
It depends on how it's structured.
š GOOD Intermediary:
āļø Two agents
āļø Same brokerage
āļø Each gives full advice
āļø Neutral intermediary broker
Example:
I represent you as the buyer.
Another agent from my brokerage represents the seller.
This is perfectly fine and very common.
š Risky Intermediary:
ā One agent tries to represent both sides
ā No appointed agents
ā No ability to give advice
ā Conflicts of interest possible
This is the version I try to avoid.
8. How I Handle Intermediary to Protect You
Here’s my standard approach:
āļø I explain intermediary in writing and verbally
āļø I make sure you're 100% comfortable
āļø I insist on appointed agents whenever possible
āļø I never compromise your confidentiality
āļø I document all representation roles clearly
āļø I avoid situations where I cannot advise you
āļø I prioritize your best interests at all times
If intermediary ever puts you at a disadvantage, I remove the risk immediately.
9. What Most Buyers Don’t Realize
Even if you LOVE the listing I show you, you are never required to use the listing agent.
You are always entitled to your own representation.
I make that absolutely clear to clients so they never feel pressured.
10. My Rule of Thumb
**Intermediary is safe when two agents are involved.
Intermediary is risky when one agent tries to represent both sides.**
And I avoid the second scenario unless there is a unique situation where both parties understand and insist on it.
Bottom Line: Intermediary Is Legal in Texas—But It Must Be Done Carefully
When you work with me, I make sure you understand:
āļø Your representation rights
āļø What intermediary means
āļø When it helps
āļø When it hurts
āļø Whether it’s the right choice for your situation
āļø How to protect your interests
Intermediary should never feel confusing or risky—and I make sure it doesn’t.
Have Questions About Intermediary or Representation?
If you want clarity on how representation works in Texas (or want me to walk you through your IABS or buyer rep agreement), I’m always here to help.
