Texas Allows Intermediary Brokers in Commercial Real Estate
Okay, so Texas allows Intermediary Brokers in commercial real estate transactions. What does that mean?
It means that the agent for the sellers and the agent for the buyers both work for the same broker of record. This arrangement is actually illegal in other jurisdictions like California.
However, in the wild west of business in Texas, it is A-OK to have both agents working in the same office, sitting next to each other if necessary.
So what should you do if you find yourself in a situation where there is an intermediary relationship? Get a new agent.
Would you ever hire a lawyer from the same law firm that is representing your opponent at law? Of course not. So why should you hire an agent who works for the same broker and shares the same commissions with the same broker?
Just because Texas allows this practice does not mean it is a good practice. It isn't. It is allowed because Texas is all about 'Bidness' as George W. used to say but just like the real wild west, you better have your head on a swivel.