By: Armbrister S.B. No. 314
A BILL TO BE ENTITLED
AN ACT
1-1 relating to real estate broker's or salesman's ability to represent
1-2 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 SECTION 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 <if the representation is disclosed to
1-10 the parties and the parties represented by the licensee consent to
1-11 the representation> unless:
1-12 (1) the real estate broker, prior to entering into any
1-13 written agreements to represent the parties to the transaction, in
1-14 accordance with the rules of the commission, provides the parties
1-15 with an agency disclosure form promulgated by the commission which
1-16 generally defines common agency relationships;
1-17 (2) the real estate broker enters into written
1-18 agreements with all parties to the transaction expressly consenting
1-19 to and permitting the real estate broker to represent more than one
1-20 party to the transaction;
1-21 (3) the real estate broker clearly sets forth, in the
1-22 written agreements, the source of any expected compensation; and
1-23 (4) the real estate broker discloses in writing to the
2-1 parties;
2-2 (i) any material prior business dealings
2-3 or business relationships that the real estate broker or his
2-4 associates had with either party and which occurred within the last
2-5 two (2) years and which are known to the individual broker or
2-6 associate with whom either party has direct contact; and
2-7 (ii) any existing or prior personal
2-8 relationships by blood or marriage known to the individual broker
2-9 or associate with whom either party has direct contact.
2-10 (b) A real estate broker who acts as an agent for more than
2-11 one party to a transaction must not disclose:
2-12 (1) to the buyer or tenant that the seller or landlord
2-13 will accept a price less than the asking price, unless otherwise
2-14 instructed in writing by the seller or landlord;
2-15 (2) to the seller or landlord that the buyer or tenant
2-16 will pay a price greater than the price submitted in a witten offer
2-17 to the seller or landlord, unless otherwise instructed in writing
2-18 by the buyer or tenant;
2-19 (3) the motivation of any party for selling, buying,
2-20 leasing, or renting a property, unless otherwise instructed in
2-21 writing by the respective party;
2-22 (4) any information provided to the real estate broker
2-23 or any associates in confidence, unless otherwise instructed in
2-24 writing by the respective party or required by this Act;
2-25 (5) any information a party specifically instructs the
3-1 real estate broker not to disclose unless otherwise required to
3-2 disclose such information by this Act; or
3-3 (6) 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 writing by the party to whom the opinion or
3-6 advice was given.
3-7 (c) 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 any party as to the value of the property, the adequacy
3-10 of an offer, or positions to take in negotiations between the
3-11 parties.
3-12 (d) A written listing agreement to represent a seller or
3-13 landlord or a written agreement to represent a buyer or tenant
3-14 which authorizes a real estate broker to act as agent for more than
3-15 one party to a transaction if a conflict of interest should arise
3-16 is sufficient to establish written consent for the real estate
3-17 broker to represent more than one party to the transaction under
3-18 this section provided the real estate broker, prior to any
3-19 negotiation between the parties,:
3-20 (1) provides all parties with written notification
3-21 identifying the other party or parties the real estate broker
3-22 represents;
3-23 (2) discloses any prior dealings or relationships with
3-24 the other party or parties as required under this section; and
3-25 (3) the written agreement expressly provides the
4-1 seller, landlord, buyer, or tenant with reasonable time to
4-2 terminate the agreement and representation if he objects to the
4-3 identity of the other party or parties or the disclosed prior
4-4 dealings or relationships before the real estate broker may act as
4-5 an agent for more than one party to the transaction.
4-6 SECTION 2. This Act takes effect September 1, 1993.
4-7 SECTION 3. The importance of this legislation and the
4-8 crowded condition of the calendars in both houses create an
4-9 emergency and an imperative public necessity that the
4-10 constitutional rule requiring bills to be read on three several
4-11 days in each house be suspended, and this rule is hereby suspended.