What You Need to Know About Intermediary in Texas Real Estate

In Texas, we do things a bit differently, and real estate is no exception. If you’ve ever asked yourself, “what is an Intermediary?” or wondered about “intermediary relationships – what you need to know,” you’re not alone. These terms are not just important – they are foundational to understanding how real estate is practiced legally and ethically in our state.

Back in 1994, Texas real estate took a major shift with Senate Bill 489. Before that, buyers were often left without representation, and the idea of one agent serving two masters – buyer and seller – was becoming a real legal and ethical problem. That all changed with the introduction of Intermediary. Dual agency was out. Transparency was in. And here we are today, navigating a very Texas-specific way of representing clients.

Let me walk you through it, from the perspective of someone who not only lives this every day but teaches it nationwide. I’m Robbie English, REALTOR and Broker at Uncommon Realty, and I use this knowledge to protect and strategically position my clients right here in Texas.

Intermediary is Texas’ replacement for dual agency, and it draws a line in the sand: an individual agent may never represent both the buyer and the seller in the same transaction. That’s not a suggestion. That’s law.

So, how does it work when both sides of a transaction are associated with the same brokerage? That’s where Intermediary comes into play. And it comes in two forms.

TLDR: What You Need to Know About Intermediary in Texas Real Estate

“What is an Intermediary” in Texas real estate refers to the specific way brokers can handle transactions involving both buyer and seller under one brokerage.
Intermediary relationships – what you need to know: there are two types – with appointments (where separate associates represent each side) and without appointments (where the broker facilitates but cannot advise).
Texas law strictly prohibits any individual agent or broker from representing both sides in a transaction.
Choosing Robbie English means working with a nationally recognized real estate instructor who knows how to properly manage Intermediary relationships.
Missteps in Intermediary status can lead to poor representation or even legal consequences. Choose strategic experience. Choose Robbie English.

Intermediary With Appointments

When a broker has two different agents available, they may appoint one to the buyer and the other to the seller. Each agent works solely in their client’s best interest. They provide advice. The provide opinions. They negotiate. They advocate. Meanwhile, the broker steps back into a neutral position, ensuring everything is fair and by the book.

But what if your agent works for a smaller brokerage with no other associates? That’s when things shift because the broker themselves may never be appointed.

Intermediary Without Appointments

In this situation, a single associate cannot give advice or opinions to either party. Their role becomes one of a facilitator, not an advisor. Everything must be communicated equally to both sides. No opinions. No negotiating on behalf of one party over the other. Just a conduit of information.

This is where things can get tricky. Many clients don’t realize that the relationship changes the moment Intermediary Without Appointments is triggered. Sellers who have been relying on guidance may suddenly feel like their agent has gone silent. Buyers may find the same. And in a sense, they’re right.

If you’re wondering how you’ll know what kind of Intermediary you’re in, you won’t unless your agent is experienced, clear, and thorough from the beginning. And sadly, many are not. I know this because I see it every single day.

Why It Matters

The biggest reason you need to understand “intermediary relationships – what you need to know” is because your experience in the transaction hinges on it. Whether you’re buying or selling, knowing how representation works will keep your expectations matched the reality of what your agent can and cannot do.

If your agent or broker ever claims they “represent both sides,” that’s a red flag. In Texas, they legally cannot. At most, they can facilitate. (Now, the brokerage of course can.) And you deserve better than an agent who doesn’t even understand their own legal limits.

So, what’s required to enter into Intermediary? Consent. And documentation. And disclosure. You can’t become part of an Intermediary situation without first signing an agreement. It’s embedded in the listing and buyer representation contracts you sign and in Texas we have an Intermediary Relationship form that all parties must sign stating you are entering into an Intermediary transaction. But don’t confuse that with the Information About Brokerage Services form. That’s disclosure – not consent.

The Practical Side of Intermediary

Let’s talk logistics. When you’re involved in a transaction under Intermediary Without Appointments, it can feel awkward. Suddenly, you’re no longer receiving advice from the professional you hired. You may feel exposed. Sellers often say, “I feel like I lost my agent.” That’s because you did – in terms of advocacy, anyway.

In Intermediary With Appointments, both parties still benefit from guidance, but that only works when the brokerage has more than one associate. Smaller brokerages may not offer this flexibility. Again, this is where working with an experienced broker like me matters.

What happens if things fall apart? Say the deal falls through after an inspection. The seller must re-disclose all known defects to future buyers. That includes those in backup positions. And it must happen quickly. Your broker is responsible for getting that information where it needs to go. If they’re asleep at the wheel, you could end up in legal hot water.

This is why Intermediary isn’t just a checkbox on a form. It’s a carefully governed process, and mishandling it can cost you.

Representation Is a Right, Not a Favor

Buyers need to know this: if you don’t agree to Intermediary, you cannot buy a home listed by your agent’s brokerage. You’d have to use another agent from a different firm. This is where decisions about representation get personal. Some buyers choose to waive representation to move forward with a particular listing (not the brightest decision honestly). But that’s a choice that should come with full understanding – and guidance.

Sellers have more flexibility. The listing agent can continue with the sale and even facilitate the buyer’s offer, but only under circumstances where the buyer is unrepresented. Again, no advice. No opinions. Only information.

This is why every consumer – buyer or seller – must understand what Intermediary really means in Texas. And more importantly, understand what it means for their real estate transaction.

Know the Boundaries

Agents working under Intermediary cannot:

Disclose that the seller would take less than asking price, unless instructed in writing.
Disclose that the buyer would pay more than offered, unless instructed in writing.
Share any confidential information unless permitted in writing.

And most importantly, they cannot give advice or opinions under Intermediary Without Appointments.

All of this is laid out clearly by the Texas Real Estate Commission. But interpretation is everything, and sloppy understanding leads to sloppy representation. That’s not how I work.

Final Thoughts

Intermediary status changes what your agent can and can’t do for you in a transaction, worth understanding before you sign anything. I’m Robbie English, REALTOR, Broker at Uncommon Realty. Reach out if you have questions.