Texas does not permit traditional dual agency in the same way some states do. A broker cannot act as a true dual agent with divided loyalty to both buyer and seller in the same transaction.

Instead, Texas uses intermediary representation as its legal alternative when the same brokerage is involved on both sides of a deal. This structure allows the broker to remain neutral while the brokerage may still help both parties under specific rules.

Under intermediary rules, the broker may appoint one license holder to work with the buyer and another to work with the seller. These appointments require proper disclosure, and both parties generally must consent to the arrangement.

The broker must not favor one side over the other. The level of assistance is also limited, so clients should not expect the same advocacy they would receive in a single-client relationship.

For Texas real estate license candidates, this topic is especially important because agency duties are central to day-to-day practice. Agents must know who they represent, what they can disclose, and when neutrality is required.

Misunderstanding intermediary relationships can lead to legal and ethical problems, especially in competitive markets where one brokerage may handle both sides of a transaction. A strong pre-licensing course can help clarify these rules before you enter the field.

Consumers in Texas should ask whether the brokerage is acting as an intermediary and whether a specific license holder has been appointed to assist them. For current requirements, the Texas Real Estate Commission is the best source for licensing, disclosure, and representation rules.