Can a broker who is a solo practitioner act as an intermediary?

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Yes. The solo practitioner may act as an intermediary, but he cannot make appointments of associated licensees to each of the parties (as may be done when the broker has two or more other licensees working for the broker’s firm). Section 1101.559(a) of the Texas Real Estate License Act provides that a broker may act as an intermediary between parties to a real estate transaction as long as the broker has the written consent from each of the parties and that written consent states who will pay the broker. Any broker acting as an intermediary must treat each party fairly, honestly, and impartially and otherwise comply with the requirements of the act. Additionally: 1. The broker may not disclose any confidential information obtained from one party without the written instructions of that party unless disclosure is required by the act or a court order, or unless the information materially relates to the condition of the property. 2. The broker may not disclose without written authorization that the seller will accept less than the asking price or that the buyer will pay more than the price submitted in a written offer. It should be noted that nothing in the Texas Real Estate License Act prevents a broker from handling a real estate transaction when one party is a client and the other party is a customer. In that case, the broker would not be acting as an intermediary. The requirements of the act regarding intermediaries applies to all brokerage activity including landlord/tenant and commercial transactions.

Source: TAR

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