Buyer/Tenant Representation Agreement

Texas REALTORS® Residential Buyer/Tenant Representation Agreement – Long Form formalizes the professional relationship between a real estate agent and their client, clearly defining the rights and responsibilities of both parties.

📌 The purpose of this form:

• Ensures that a buyer or tenant is officially represented when working with an agent.
• Explains what duties the agent has while representing you, and what responsibilities you have throughout the process.
• Covers commission matters, the term of the agreement, cancellation conditions, confidentiality provisions, and much more.

1. PARTIES

The parties to this agreement are:

• Client: That's you — the person looking to purchase or lease a property. Your name, address, phone number, and email address will be entered here.
• Broker: The licensed real estate agent or firm that will represent you. In this example, the firm is Executive Texas Realty. Their address and contact information are also listed.

📌 Key concept: This section simply identifies who is entering into the agreement with whom.

2. APPOINTMENT

The client grants the broker the exclusive right to represent them in purchasing property within a specific geographic area (market area).

📌 Key concept: This means "exclusive right" — in other words, sole authorized representation. Once you sign this agreement with an agent, you are required to conduct all purchases or leases in that area through them. You cannot bring another agent into the process.

3. DEFINITIONS

This section defines some important terms used throughout the agreement:

• A. "Acquire": Means to purchase or lease.
• B. "Closing":
  • In a purchase transaction, the date on which title transfers to the buyer.
  • In a lease transaction, the date the official lease agreement is signed between the tenant and landlord.
• C. "Market area":
  • The geographic area covered by this agreement. It may be a neighborhood, zip code, city, or county.
• D. "Property":
  • Homes listed on the MLS (multiple listing service), properties listed for sale or rent, properties offered for sale by owners, or real estate offered by builders.

📌 Key concept: These definitions clarify the meaning assigned to each word throughout the agreement — for example, what is meant when the word "acquire" is used.

4. TERM

The start and end dates of this representation agreement are entered here. It is typically executed for a period of several months, though this may vary by mutual agreement.

5. BROKER'S OBLIGATIONS

What the broker is required to do:

• Make a good-faith effort to find suitable properties in the area on the client's behalf,
• Assist with negotiations and contract processes during the purchase or lease transaction,
• Comply with all other terms specified in this agreement.

6. CLIENT'S OBLIGATIONS

Your obligations:

• Search for properties and conduct negotiations in that area exclusively through this agent,
• Inform any other agent or seller that this agent represents you,
• Keep this agent informed and work with them throughout the process,
• Fully comply with all other terms of the agreement.

📌 Key concept: This section explains what you are required to do — meaning this agreement is binding on you as well. Calling another agent and asking them to show you a home would be a breach of contract.

7. BROKER COMPENSATION

General Definition:

Broker compensation is not set by law or fixed at a standard rate. This means:

• Neither the MLS nor Realtor associations impose any mandatory rate.
• Each broker's fee is independently negotiated.
• However, no more than the amount specified in this agreement may be charged.
• Accepting undisclosed commissions from other sources is prohibited.

A. Broker's Fee:

This section clearly states how much you will pay the broker. It may vary depending on whether the transaction is a purchase or a lease:

(1) Purchases:

• What percentage of the total sales price will be paid?
  Example: 3%
• Or will a flat fee be paid?
  Example: $2,000.

(2) Leases:

• What percentage of the first month's rent will be paid?
• Or what percentage of the total rent paid over the entire lease term?
• Or a flat fee (for example: $500)?

📌 The parties will fill in this section on the agreement. Written agreement from both sides is required.

B. Source of Compensation:

The broker will first attempt to collect this fee from the property owner, seller, or their representative.
But if they do not pay, then you (the client) become responsible for paying this fee.

📌 Important: The broker first pursues the seller's side for payment, but if they cannot collect from them, you are the fallback.

C. Earned and Payable:

The broker's fee is considered earned when:

1. You sign a purchase or lease agreement for a property.
2. You breach this agreement (for example, by working with another agent).
3. Even if the agreement has expired, if a closing occurs on a deal that was initiated during the term, the fee is still considered earned.

In other words, if the transaction is completed or you breach the agreement, the broker earns their fee.

D. Acquisition of Broker's Listing:

If the property you are purchasing or leasing is a listing directly held by your broker, the compensation that would otherwise go to another broker is folded into the commission your broker earns.

📌 In other words, if "dual representation" exists, this is clarified, and your broker may not share their fee with another agent.

E. Additional Compensation:

The broker may receive extra payment in the following special circumstances:

1. Construction:
   If the broker arranges a contractor to perform renovations, additions, or similar work on a property for you, they may receive an additional fee upon completion of that construction work.
2. Service Providers:
   If the broker refers you to companies such as cable TV, internet, electricity, or security system providers and those companies pay the broker a referral fee, the broker may accept it.
3. Other Fees:
   Any other additional fees that are identifiable and agreed upon at the time of contracting may be written here. Vague language like "TBD" (to be determined) is not permitted. There should be no ambiguity.

Notice Regarding Bonuses:

For the broker to receive a "bonus" (additional payment, gift, etc.) from the seller or any other party, they must disclose it to you in writing.
In other words, they cannot receive a hidden payment — everything must be transparent.

7F. Protection Period

Under this provision:

• A protection period is defined, starting the day after the agreement expires and lasting a specified number of days (for example, 30 days).
• If the broker, within 10 days of that period, sends you a written notice listing properties you showed interest in during that time, and:
  • You or a close family member purchases or leases one of those properties,
  • The commission the broker would have been owed under the agreement is still paid to the broker.

📌 This provision means: Even if the agreement has expired, if you later purchase a property you were interested in during that period, the broker still earns their rightful commission.

💡 Exception: If during this protection period you enter into a new representation agreement with another agent who is a Texas REALTORS® member, this provision becomes void.

7G. Escrow Authorization

You authorize the broker and the escrow company handling the closing to:

• Collect and receive all payments the broker is entitled to at closing when the property is purchased.

7H. County

All payments owed to the broker must be made in cash in Harris County, Texas.

8. REPRESENTATIONS

This section contains certain declarations made by you — the person signing the agreement — and by the broker:

• A. The person signing this agreement has the legal authority to enter into a binding contract.
• B. You represent that you are not currently party to an active representation agreement with another agent.
• C. You represent that you have sufficient financial means to purchase or lease real estate.
• D. If there is a company, employer, or relocation service that will be supporting you, you must provide that information.
• E. The broker does not have the authority to sign legal documents on your behalf.

9. INTERMEDIARY

There are two options here:

• A (Selected): Intermediary Status
• B: No Intermediary Status

In your agreement, Option A is selected.

A. Intermediary Status

In this case, the broker may represent both you and the property owner.
However, for this to be fair, the following rules apply:

1. If the property is represented by another agent within the same firm, the firm will notify you.
2. If the same person represents both you and the seller, the firm will notify you, and that person may not give advice to either party — they simply facilitate the transaction.

📌 The goal here is to fairly represent both parties without a conflict of interest.

B. No Intermediary Status

Had this box been checked, it would mean the broker represents you exclusively and will never simultaneously represent the seller. However, this box was not selected.

⚠️ Confidentiality Rules:

The broker and their staff:

• May not tell you that the seller is willing to accept a lower price,
• May not tell the seller that you are willing to pay more —
  unless that information was communicated in writing and designated as confidential.

📌 This protects the integrity of a trust-based system.

• The broker may not disclose confidential information — such as a willingness to lower or raise a price — to you or the seller without written permission from the other party.
• Such information may only be disclosed:
  • With written consent from the parties
  • By court order
  • If the physical condition of the property is legally required to be disclosed

The broker must:

• Deal honestly with all parties
• Comply with the Texas Real Estate License Act.

10. COMPETING CLIENTS

The client (you) acknowledges that the broker may simultaneously represent other buyers or tenants.
The broker may:

• Show the same property to you and to another client,
• Work with other clients in the same market area.

📌 This is very common. The key thing to know is: It is normal for your broker to work with other clients, but they cannot share your private information with anyone else.

11. CONFIDENTIAL INFORMATION

A.

The broker, during and after this agreement:

• May not disclose confidential information about you to others.
• May only share it with your permission or if legally required to do so.

B.

The seller or the seller's representative is not required to disclose to you the existence of another offer. However, they must treat all parties with honesty and equal fairness.

📌 In other words: Confidentiality is maintained, but disclosure is permitted if legally required or if the parties give consent.

12. MEDIATION

In the event of a dispute arising from this agreement, the parties must attempt mediation before going directly to court.

• If mediation is unsuccessful, other legal remedies may be pursued.
• Both parties share the cost of this process.

13. DEFAULT

If either party breaches the agreement:

• The other party may terminate the agreement and seek damages.
• If you breach it, the broker may seek their earned commission from you.
• If the broker breaches it, you may pursue compensation or other legal remedies.

14. ATTORNEY'S FEES

If either party goes to court and wins, the losing party:

• Is required to pay the winning party's court costs and attorney's fees.

15. LIMITATION OF LIABILITY

This is a very important provision:

• The broker and associated parties are not liable for personal injury or property loss you may suffer.
• If the damage was not caused by the broker, they bear no responsibility.
• You agree to indemnify and hold the broker and associated parties harmless against such claims.

📌 In other words: The broker cannot be held responsible for problems you experience that were not caused by their own negligence.

16. ADDENDA

The following documents are additional attachments to this agreement that may be provided to you at signing (included by checking the appropriate box):

• Consumer Protection Notice
• Mold Remediation and Consumer Protection
• Insurance Information
• General Notices to Buyers and Sellers
• Protect Your Family from Lead in Your Home
• Information About Flood Risk
• Home Inspection Guide
• Wire Fraud Warning

Whichever boxes are checked, those documents are part of the agreement and are materials you should read.

17. SPECIAL PROVISIONS

This section is left blank.
If you or the broker have special terms you want added to the agreement, they are written here.
📌 Example: A special restriction such as "Client will only look at 3-bedroom homes" could be included here.

18. ADDITIONAL NOTICES

A. Fair Housing and Ethics

The broker is required to provide services to you without discrimination based on race, color, religion, national origin, sex, disability, familial status, sexual orientation, or gender identity.
Local laws may also identify additional protected classes (for example, students, seniors, marital status, etc.).

B. Areas Outside the Broker's Expertise

The broker does not perform and is not qualified to perform the following:

• Property inspection
• Pest control
• Appraisal
• Surveys, engineering, environmental analysis
• Compliance inspection

📌 You must work with qualified professionals for these matters. The broker can only refer you.

C. Title and Ownership Documentation

When purchasing a home, it is recommended that the legal history of the property be reviewed by an attorney.
Alternatively, you may also obtain a title insurance policy.

D. Residential Service Contracts

There are companies in Texas that offer contracted coverage packages for home repairs and maintenance.
If you wish, you may purchase a residential service contract from one of these companies.

E. Hidden Cameras and Recording Notice

When touring homes, be aware that some properties may have:

• Hidden cameras, microphones, or concealed monitoring systems.
• If you wish to record or photograph a home, it is recommended that you obtain the owner's written consent in advance.
• Consulting an attorney on this matter is also advisable.

F. Wire Fraud Warning

This provision is critically important:

• Never share your personal information (bank details, account numbers, etc.) through unsecured channels like email.
• If someone sends you an email asking you to wire money, verify its legitimacy first.
• Verify by calling an official phone number or visiting in person.
• Your broker will never ask you to wire money via email.

📌 Wire fraud incidents have become increasingly common in recent years. This provision is included to protect you.

⚖️ CONSULT AN ATTORNEY

This agreement is legally binding.

• The broker cannot provide legal advice.
• If you do not fully understand the agreement, you should consult an attorney before signing.

SIGNATURE SECTION

The signatures and information of the parties appear here:

• Brokerage firm name and license number
• Name, license number, and signatures of the broker and their representative, if applicable
• Your name and signature
• Dates

📌 Both parties must approve and sign this agreement for it to become valid.

CONCLUSION

The purpose of this 5-page form is to:

• Clarify the mutual rights and responsibilities of the client and the broker,
• Make the process transparent and secure,
• Ensure that both parties operate within legal and ethical boundaries.