Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What role does a broker assume when representing both the buyer and the seller in the same transaction?

1. General Agent

2. Principal

3. Intermediary

4. Dual Agent

The correct answer is: Intermediary

In the context of real estate transactions, when a broker represents both the buyer and the seller, they assume the role of an intermediary. This designation is specific to Texas real estate law, where an intermediary acts as a neutral party, facilitating the transaction between two clients with potentially conflicting interests. The intermediary is responsible for ensuring that both parties are treated fairly and that their rights and interests are protected. This role involves maintaining impartiality, providing necessary information to both parties without favoring one over the other, and ensuring that all legal requirements related to disclosure and consent are met. The broker must also have written consent from both the buyer and the seller to operate in this capacity, making it a regulated practice. Understanding the concept of intermediary is essential in maintaining the ethical and legal standards of brokerage, as it underscores the broker's obligation to remain unbiased while successfully guiding both parties toward a mutually agreeable transaction outcome.