Question

According to TRELA, a broker may act as an intermediary if he/she obtains written consent from all parties, which states...?

The standard commission to be paid to the broker
The closing date
The source of any expected compensation to the broker
All of the above

Answer 1

"All of the above." because according to TRELA (Texas Real Estate License Act), when a broker seeks to act as an intermediary, they must obtain written consent from all involved parties.

Step-by-step explanation:

In accordance with TRELA (Texas Real Estate License Act), a broker can function as an intermediary when they acquire written consent from all involved parties.

This written consent is essential as it outlines several crucial details, including the standard commission to be paid to the broker, the closing date, and the source of any expected compensation to the broker.

When a broker seeks to serve as an intermediary, obtaining written consent from all parties involved becomes a fundamental requirement. This consent should comprehensively document the terms and conditions, particularly the specifics related to compensation, such as the standard commission expected by the broker.

By ensuring explicit written consent, the intermediary status of the broker is legally established, allowing them to facilitate the transaction while safeguarding the interests of all parties involved.

Moreover, the consent serves as a formal agreement between the broker and the parties, explicitly stating the closing date. This ensures clarity and agreement on the timeline for the completion of the transaction, thereby avoiding potential misunderstandings or conflicts regarding the closing date.

Lastly, the written consent also necessitates the disclosure of the source of any expected compensation to the broker. This disclosure is vital for transparency, enabling all involved parties to understand how the broker will be compensated and from which sources, ensuring fairness and legality in the real estate transaction.

Therefore, "All of the above" accurately encapsulates the necessity for written consent encompassing the standard commission, the closing date, and the disclosure of the expected compensation source as stipulated by TRELA for a broker to act as an intermediary.

Answer 2

In the context of TRELA, a broker may act as an intermediary with written consent that outlines the broker's duties to both parties, the circumstances of the intermediary action, and an agreement that the broker will not favor one party over the other. Details like commission, closing date, and compensation sources are not the primary focus of the intermediary consent.

Step-by-step explanation:

According to the Texas Real Estate License Act (TRELA), when acting as an intermediary, a broker can represent both the buyer and the seller in a transaction with written consent from all parties. This written consent must disclose certain information, which includes the duties of the broker to each party, indicating potentially how negotiations will be handled and, circumstances under which the broker may act as an intermediary.

It also should state that the broker will not act as an agent for either party to the detriment of the other. While it is important for a broker to clarify the commission, closing date, and compensation sources in the overall agreement with their clients, the written consent for intermediary services focuses specifically on the authorizations and limitations placed on the broker while acting as an intermediary.