By Seidlits                                            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        SECTION 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 the parties to the transaction, in
   1-15  accordance with the rules of the commission, provides the parties
   1-16  with an agency disclosure form promulgated by the commission which
   1-17  generally defines common agency relationships;
   1-18              (2)  the real estate broker enters into written
   1-19  agreements with all parties to the transaction expressly consenting
   1-20  to and permitting the real estate broker to represent more than one
   1-21  party to the transaction;
   1-22              (3)  the real estate broker clearly sets forth, in the
   1-23  written agreements, the source of any expected compensation; and
    2-1              (4)  the real estate broker discloses in writing to the
    2-2  parties;
    2-3                    (i)  any material prior business dealings or
    2-4  business relationships that the real estate broker or his
    2-5  associates had with either party and which occurred within the last
    2-6  two (2) years and which are known to the individual broker or
    2-7  associate with whom either party has direct contact; and
    2-8                    (ii)  any existing or prior personal
    2-9  relationships by blood or marriage known to the individual broker
   2-10  or associate with whom either party has direct contact.
   2-11        (b)  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 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
   2-19  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
   2-22  writing by the respective party;
   2-23              (4)  any information provided to the real estate broker
   2-24  or any associates in confidence, unless otherwise instructed in
   2-25  writing by the respective party or required by this Act;
    3-1              (5)  any information a party specifically instructs the
    3-2  real estate broker not to disclose unless otherwise required to
    3-3  disclose such information by this Act; or
    3-4              (6)  any opinions or advice which the real estate
    3-5  broker had previously given to either party unless otherwise
    3-6  instructed to do so in writing by the party to whom the opinion or
    3-7  advice was given.
    3-8        (c)  A real estate broker who acts as an agent for more than
    3-9  one party to a transaction must not provide or give any opinions or
   3-10  advice to any party as to the value of the property, the adequacy
   3-11  of an offer, or positions to take in negotiations between the
   3-12  parties.
   3-13        (d)  A written listing agreement to represent a seller or
   3-14  landlord or a written agreement to represent a buyer or tenant
   3-15  which authorizes a real estate broker to act as agent for more than
   3-16  one party to a transaction if a conflict of interest should arise
   3-17  is sufficient to establish written consent for the real estate
   3-18  broker to represent more than one party to the transaction under
   3-19  this section provided the real estate broker, prior to any
   3-20  negotiation between the parties,:
   3-21              (1)  provides all parties with written notification
   3-22  identifying the other party or parties the real estate broker
   3-23  represents;
   3-24              (2)  discloses any prior dealings or relationships with
   3-25  the other party or parties as required under this section; and
    4-1              (3)  the written agreement expressly provides the
    4-2  seller, landlord, buyer, or tenant with reasonable time to
    4-3  terminate the agreement and representation if he objects to the
    4-4  identity of the other party or parties or the disclosed prior
    4-5  dealings or relationships before the real estate broker may act as
    4-6  an agent for more than one party to the transaction.
    4-7        SECTION 2.  This Act takes effect September 1, 1993.
    4-8        SECTION 3.  The importance of this legislation and the
    4-9  crowded condition of the calendars in both houses create an
   4-10  emergency and an imperative public necessity that the
   4-11  constitutional rule requiring bills to be read on three several
   4-12  days in each house be suspended, and this rule is hereby suspended.