Before you read
Test yourself first: 5 questions
Question 1 of 5
A Texas broker wants to represent both the buyer and the seller in the same transaction. Instead of traditional dual agency, what does Texas law authorize?
Answer: B. Texas abolished traditional dual agency. A broker may act as an INTERMEDIARY between the parties, but only with the written consent of both the buyer and the seller, typically obtained in the listing and buyer-representation agreements.
Question 2 of 5
Where must the written consent to act as an intermediary in Texas typically be obtained?
Answer: B. The required written consent to act as an intermediary is generally secured in the listing agreement and the buyer representation agreement, where the parties authorize the broker to act as intermediary if the same broker comes to represent both sides.
Question 3 of 5
The Texas IABS (Information About Brokerage Services) notice primarily explains which of the following to consumers?
Answer: B. The IABS notice describes the brokerage relationships available in Texas (representing the buyer, the seller, or acting as intermediary) and the minimum duties a license holder owes, helping the consumer make an informed choice about representation.
Question 4 of 5
Which statement about the IABS notice in Texas is TRUE?
Answer: B. The IABS is purely informational. It explains representation options and duties; it does not create an agency relationship or obligate the consumer. A separate representation agreement establishes agency.
Question 5 of 5
How is an agency relationship most commonly created between a Texas seller and a broker?
Answer: B. Agency is created by agreement; for a seller this is typically an express written listing agreement that defines the representation and compensation. A written agreement is required to enforce a commission.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Acting as an intermediary requires the written consent of both parties, typically obtained in the listing and buyer representation agreements. The broker may appoint different associated license holders to communicate with and advise each party, and the intermediary must treat both parties fairly and may not favor one over the other.
Texas Agency and the Intermediary Representation Model: FAQs
Is Texas Agency and the Intermediary Representation Model on the real estate exam?
Yes. State License Law is a scored domain on the Texas real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Texas test this differently?
Texas applies its own license law on top of the national portion. This page covers the Texas rules specifically, which is what the state section of your exam tests.
