S.B. No. 314
                                        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.