Texas Intermediary and Agency Rules Under TRELA
Texas intermediary practice is a sequence of written consent, appointment authority, written notice, and disclosure limits. Each document does a different job.
This guide follows the language of TRELA and TREC's rendered rules page. It keeps the actors and the writings precise without turning a statutory permission into a broader prohibition.
Updated · Facts cited to the Texas Legislature and TREC — sources at the end of this page.
The short answer
A broker needs written consent from each party, and that consent must state the source of expected compensation. An appointment also needs authority in that written consent and written notice to every party. Separate-writing rules control the price disclosures in TRELA §1101.651(d).
Intermediary consent has two express requirements
- Form of consent
Written consent from each party
TRELA §1101.559(a)(1).
- What the consent must state
The source of expected compensation to the broker
TRELA §1101.559(a)(2).
- When a representation agreement can supply consent
Only when the §1101.651(d) prohibitions appear in conspicuous bold or underlined print
TRELA §1101.559(b).
Keep the notice and consent duties separate
Representation disclosure and IABS mechanics appear in TRELA §1101.558 and 22 TAC 531.20. Intermediary consent and appointments appear in §§1101.559–.560. Completing one step does not supply the distinct writings required by the other sections.
An appointment adds authority and notice
The written consent must authorize appointments.
A license holder may be appointed only if the parties' written consent under §1101.559 authorizes the broker to make the appointment.
The broker must give written notice to all parties.
Appointment authority in the consent is not the end of the process. Section 1101.560(b) separately requires written notice of the appointment to every party involved in the transaction.
The appointed license holder may provide opinions and advice.
Section 1101.560(c) permits advice during negotiations to the party to whom the license holder is appointed. It grants that permission; it does not state a categorical exclusion for every unappointed participant.
Appointment is consistent with impartiality
TRELA §1101.559(c) expressly says that an intermediary acts fairly and impartially and that making an appointment under §1101.560 is a fair and impartial act.
The disclosure limits turn on separate writings
Section 1101.651(d) applies its listed prohibitions to a broker and to a broker or sales agent appointed under §1101.560 who acts as an intermediary.
| Information | What the section says |
|---|---|
| Seller or landlord will accept less than asking | Do not disclose unless that party instructs otherwise in a separate writing |
| Buyer or tenant will pay more than the written offer | Do not disclose unless that party instructs otherwise in a separate writing |
| Confidential or specifically withheld information | Paragraph (3) supplies its own exceptions, including information materially related to property condition |
Put the rule in its larger exam domain
- Agency & Brokerage topic guide →The broader agency domain and the skills it covers
- License Law & Regulation topic guide →Texas law, conduct, and regulatory context
- Texas real estate exam prep →All Texas and national domains in one place
- What a license holder may change on a form →The writing rules for contract changes and IABS delivery
Check the distinction
Intermediary writing check
Choose an answer once. The explanation identifies the controlling statutory distinction; nothing is saved or added to your study record.
Question 1 of 3
What must the broker obtain before acting as an intermediary under TRELA §1101.559(a)?
Frequently asked questions
Does intermediary consent have to be in writing in Texas?
Yes. TRELA §1101.559(a) requires written consent from each party, and the consent must state the source of any expected compensation to the broker.
What is required before a broker appoints associated license holders?
The parties' written consent must authorize appointments, and the broker must provide written notice of the appointment to all parties involved in the transaction. TRELA §1101.560(b) requires both.
Does appointing license holders violate an intermediary's duty to act impartially?
No. TRELA §1101.559(c) expressly describes an appointment under §1101.560 as a fair and impartial act.
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Sources
- Texas Occupations Code ch. 1101 — §§1101.558, 1101.559, 1101.560 and 1101.651(d)
- TREC rendered rules page — 22 TAC 531.20
The facts above were verified against these sources using source text read . Rules change — always confirm current requirements with the Texas Legislature and TREC before acting.
Keep reading: Texas Contract Forms · Texas Contract Form Changes · Failed the Texas Exam: What Next · Texas exam prep
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