(a) A broker who represents a party in a real estate transaction or who lists real estate for sale under an exclusive agreement for a party is that party’s agent.
(b) A broker described by Subsection (a):
(1) may not instruct another broker to directly or indirectly violate § 1101.652(b)(22);
(2) must inform the party if the broker receives material information related to a transaction to list, buy, sell, or lease the party’s real estate, including the receipt of an offer by the broker; and
(3) shall, at a minimum, answer the party’s questions and present any offer to or from the party.

Terms Used In Texas Occupations Code 1101.557

  • Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
  • Contract: A legal written agreement that becomes binding when signed.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • Property: means real and personal property. See Texas Government Code 311.005

(c) For the purposes of this section:
(1) a license holder who has the authority to bind a party to a lease or sale under a power of attorney or a property management agreement is also a party to the lease or sale;
(2) an inquiry to a person described by § 1101.005(6) about contract terms or forms required by the person’s employer does not violate § 1101.652(b)(22) if the person does not have the authority to bind the employer to the contract; and
(3) the sole delivery of an offer to a party does not violate § 1101.652(b)(22) if:
(A) the party’s broker consents to the delivery;
(B) a copy of the offer is sent to the party’s broker, unless a governmental agency using a sealed bid process does not allow a copy to be sent; and
(C) the person delivering the offer does not engage in another activity that directly or indirectly violates § 1101.652(b)(22).

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