By: Armbrister S.B. No. 314
A BILL TO BE ENTITLED
AN ACT
1-1 relating to a real estate broker's or salesman's ability to
1-2 represent more than one party to a transaction.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 15C, The Real Estate License Act (Article
1-5 6573a, Vernon's Texas Civil Statutes), is amended to read as
1-6 follows:
1-7 Sec. 15C. (a) A real estate broker may not act <This Act
1-8 does not prohibit a licensee from acting> as an agent for more than
1-9 one party to a transaction unless:
1-10 (1) the real estate broker, prior to entering into any
1-11 written agreements to represent more than one party to the
1-12 transaction, in accordance with the rules of the commission,
1-13 provides the parties with the applicable agency disclosure form
1-14 promulgated by the commission which defines common agency
1-15 relationships, duties of the broker, and potential conflicts that
1-16 may develop;
1-17 (2) the real estate broker enters into written
1-18 agreements in which all parties to the transaction consent to and
1-19 authorize the real estate broker to represent more than one party
1-20 to the transaction; and
1-21 (3) the written agreements set forth the source of any
1-22 expected compensation to the real estate broker.
1-23 (b) A written listing agreement to represent a seller or
2-1 landlord or a written agreement to represent a buyer or tenant
2-2 which authorizes a real estate broker to act as agent for more than
2-3 one party to a transaction is sufficient to establish written
2-4 consent of the party to the agreement for the real estate broker to
2-5 represent more than one party to the transaction under this section
2-6 if the written agreement sets forth, in conspicuous bold or
2-7 underlined print, the broker's obligations under Subsection (c) of
2-8 this section.
2-9 (c) A real estate broker who acts as an agent for more than
2-10 one party to a transaction shall:
2-11 (1) not disclose to the buyer or tenant that the
2-12 seller or landlord will accept a price less than the asking price
2-13 unless otherwise instructed in a separate writing by the seller or
2-14 landlord;
2-15 (2) not disclose to the seller or landlord that the
2-16 buyer or tenant will pay a price greater than the price submitted
2-17 in a written offer to the seller or landlord unless otherwise
2-18 instructed in a separate writing by the buyer or tenant;
2-19 (3) not disclose any confidential information or any
2-20 information a party specifically instructs the real estate broker
2-21 in writing not to disclose unless otherwise instructed in a
2-22 separate writing by the respective party or required to disclose
2-23 such information by law; and
2-24 (4) treat all parties to the transaction honestly and
2-25 impartially so as not to favor one party or work to the
3-1 disadvantage of any party.
3-2 (d) The real estate broker shall use due diligence to assist
3-3 the parties in understanding the consents, agreements, or
3-4 instructions under this section in which the real estate broker is
3-5 permitted to represent more than one party to a transaction <if
3-6 the representation is disclosed to the parties and the parties
3-7 represented by the licensee consent to the representation>.
3-8 SECTION 2. This Act takes effect September 1, 1993.
3-9 SECTION 3. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended.