1-1 By: Armbrister S.B. No. 314
1-2 (In the Senate - Filed February 10, 1993; February 11, 1993,
1-3 read first time and referred to Committee on Economic Development;
1-4 May 4, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; May 4, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 314 By: Lucio
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to a real estate broker's or salesman's ability to
1-24 represent more than one party to a transaction.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 15C, The Real Estate License Act (Article
1-27 6573a, Vernon's Texas Civil Statutes), is amended to read as
1-28 follows:
1-29 Sec. 15C. (a) A real estate broker may not act <This Act
1-30 does not prohibit a licensee from acting> as an agent for more than
1-31 one party to a transaction unless:
1-32 (1) the real estate broker, prior to entering into any
1-33 written agreements to represent more than one party to the
1-34 transaction, in accordance with the rules of the commission,
1-35 provides the parties with the applicable agency disclosure form
1-36 promulgated by the commission which defines common agency
1-37 relationships, duties of the broker, and potential conflicts that
1-38 may develop;
1-39 (2) the real estate broker enters into written
1-40 agreements in which all parties to the transaction consent to and
1-41 authorize the real estate broker to represent more than one party
1-42 to the transaction; and
1-43 (3) the written agreements set forth the source of any
1-44 expected compensation to the real estate broker.
1-45 (b) A written listing agreement to represent a seller or
1-46 landlord or a written agreement to represent a buyer or tenant
1-47 which authorizes a real estate broker to act as agent for more than
1-48 one party to a transaction is sufficient to establish written
1-49 consent of the party to the agreement for the real estate broker to
1-50 represent more than one party to the transaction under this section
1-51 if the written agreement sets forth, in conspicuous bold or
1-52 underlined print, the broker's obligations under Subsection (c) of
1-53 this section.
1-54 (c) A real estate broker who acts as an agent for more than
1-55 one party to a transaction shall:
1-56 (1) not disclose to the buyer or tenant that the
1-57 seller or landlord will accept a price less than the asking price
1-58 unless otherwise instructed in a separate writing by the seller or
1-59 landlord;
1-60 (2) not disclose to the seller or landlord that the
1-61 buyer or tenant will pay a price greater than the price submitted
1-62 in a written offer to the seller or landlord unless otherwise
1-63 instructed in a separate writing by the buyer or tenant;
1-64 (3) not disclose any confidential information or any
1-65 information a party specifically instructs the real estate broker
1-66 in writing not to disclose unless otherwise instructed in a
1-67 separate writing by the respective party or required to disclose
1-68 such information by law; and
2-1 (4) treat all parties to the transaction honestly and
2-2 impartially so as not to favor one party or work to the
2-3 disadvantage of any party.
2-4 (d) A real estate broker shall make a reasonable effort to
2-5 explain to the parties the effect of the agreements under this
2-6 section in which the real estate broker is permitted to represent
2-7 more than one party to a transaction <if the representation is
2-8 disclosed to the parties and the parties represented by the
2-9 licensee consent to the representation>.
2-10 SECTION 2. This Act takes effect September 1, 1993.
2-11 SECTION 3. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended.
2-16 * * * * *
2-17 Austin,
2-18 Texas
2-19 May 4, 1993
2-20 Hon. Bob Bullock
2-21 President of the Senate
2-22 Sir:
2-23 We, your Committee on Economic Development to which was referred
2-24 S.B. No. 314, have had the same under consideration, and I am
2-25 instructed to report it back to the Senate with the recommendation
2-26 that it do not pass, but that the Committee Substitute adopted in
2-27 lieu thereof do pass and be printed.
2-28 Parker,
2-29 Chairman
2-30 * * * * *
2-31 WITNESSES
2-32 FOR AGAINST ON
2-33 ___________________________________________________________________
2-34 Name: Ronald Walker x
2-35 Representing: Tx Assoc. of Realtors
2-36 City: Austin
2-37 -------------------------------------------------------------------
2-38 Name: Bob Wertheimer x
2-39 Representing: Tx Assoc. of Realtors
2-40 City: Dallas
2-41 -------------------------------------------------------------------
2-42 Name: Charlie Clark x
2-43 Representing: Self
2-44 City: El Paso
2-45 -------------------------------------------------------------------
2-46 Name: Sharon Teusink x
2-47 Representing: Self
2-48 City: Houston
2-49 -------------------------------------------------------------------
2-50 Name: Parker McCullough x
2-51 Representing: Tx Assoc. of Realtors
2-52 City: Austin
2-53 -------------------------------------------------------------------
2-54 Name: Erle Rawlins x
2-55 Representing: Tx Real Estate Buyer Agent
2-56 City: Dallas
2-57 -------------------------------------------------------------------
2-58 Name: Janee Briesemeister x
2-59 Representing: Consumers Union
2-60 City: Austin
2-61 -------------------------------------------------------------------
2-62 FOR AGAINST ON
2-63 ___________________________________________________________________
2-64 Name: Dennis Fletcher x
2-65 Representing: Buyers Resource
2-66 City: Austin
2-67 -------------------------------------------------------------------
2-68 Name: Vance Miller x
2-69 Representing: Henry Miller Realtors
2-70 City: Dallas
3-1 -------------------------------------------------------------------
3-2 Name: Mark Hanna x
3-3 Representing: Tx Realty Committee
3-4 City: Austin
3-5 -------------------------------------------------------------------
3-6 Name: Ralph Hull x
3-7 Representing: Ind. Brokers of America
3-8 City: Irving
3-9 -------------------------------------------------------------------
3-10 Name: Thomas Terrell x
3-11 Representing: Self
3-12 City: Grapevine
3-13 -------------------------------------------------------------------
3-14 Name: Vance C. Miller x
3-15 Representing: Texas Realty Committee
3-16 City: Dallas
3-17 -------------------------------------------------------------------