By Seidlits H.B. No. 841
Substitute the following for H.B. No. 841:
By Jones of Lubbock C.S.H.B. No. 841
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to real estate broker's or salesman's ability to represent
1-3 more than one party to a transaction.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 15C, the Real Estate License Act (Article
1-6 6573a, Vernon's Texas Civil Statutes), is amended to read as
1-7 follows:
1-8 Sec. 15C. (a) A real estate broker may not act <This Act
1-9 does not prohibit a licensee from acting> as an agent for more than
1-10 one party to a transaction <if the representation is disclosed to
1-11 the parties and the parties represented by the licensee consent to
1-12 the representation> unless:
1-13 (1) the real estate broker, prior to entering into any
1-14 written agreements to represent more than one party to the
1-15 transaction, in accordance with the rules of the commission,
1-16 provides the parties with an agency disclosure form promulgated by
1-17 the commission in plain language which defines common agency
1-18 relationships, duties of the broker, and potential conflicts that
1-19 may develop;
1-20 (2) the real estate broker enters into written
1-21 agreements in which all parties to the transaction consent to and
1-22 permit the real estate broker to represent more than one party to
1-23 the transaction by assuming the role of an intermediary and
2-1 facilitator to assist the parties to the transaction; and
2-2 (3) the real estate broker sets forth, in the written
2-3 agreements, the source of any expected compensation.
2-4 (b) A written listing agreement to represent a seller or
2-5 landlord or a written agreement to represent a buyer or tenant
2-6 which authorizes a real estate broker to act as agent for more than
2-7 one party to a transaction if a conflict of interest should arise
2-8 is sufficient to establish written consent for the real estate
2-9 broker to represent more than one party to the transaction under
2-10 this section.
2-11 (c) A real estate broker who acts as an agent for more than
2-12 one party to a transaction must not disclose:
2-13 (1) to the buyer or tenant that the seller or landlord
2-14 will accept a price less than the asking price, unless otherwise
2-15 instructed in a separate writing by the seller or landlord;
2-16 (2) to the seller or landlord that the buyer or tenant
2-17 will pay a price greater than the price submitted in a written
2-18 offer to the seller or landlord, unless otherwise instructed in a
2-19 separate writing by the buyer or tenant;
2-20 (3) the motivation of any party for selling, buying,
2-21 leasing, or renting a property, unless otherwise instructed in a
2-22 separate writing by the respective party;
2-23 (4) any information or confidences a party
2-24 specifically instructs the real estate broker in writing not to
2-25 disclose unless otherwise instructed in a separate writing by the
3-1 respective party or required to disclose such information by this
3-2 Act; or
3-3 (5) any opinions or advice which the real estate
3-4 broker had previously given to either party unless otherwise
3-5 instructed to do so in a separate writing by the party to whom the
3-6 opinion or advice was given.
3-7 (d) A real estate broker who acts as an agent for more than
3-8 one party to a transaction must not provide or give any opinions or
3-9 advice to either party as to the value of the property, the
3-10 adequacy of an offer, or positions to take in negotiations between
3-11 the parties unless permitted to do so in a separate writing by the
3-12 other party, provided however, that the real estate broker may
3-13 provide factual data or factual information to a party.
3-14 (e) A broker should act with due diligence so that the
3-15 parties understand the consents, agreements, or instructions under
3-16 this section in which the broker is permitted to represent more
3-17 than one party to a transaction.
3-18 SECTION 2. This Act takes effect September 1, 1993.
3-19 SECTION 3. The importance of this legislation and the
3-20 crowded condition of the calendars in both houses create an
3-21 emergency and an imperative public necessity that the
3-22 constitutional rule requiring bills to be read on three several
3-23 days in each house be suspended, and this rule is hereby suspended.