The 1993 amendment to the Texas Real Estate License Act replaced common-law dual agency with what framework?

The 1993 amendment to the Texas Real Estate License Act replaced common-law dual agency with what framework?

• A. Statutory Dual Agency
• B. Intermediary Agency
• C. Dual Agency by License
• D. Client Agent Model

Answer: (A)

Texas replaced the old, informal dual agency with a statutory approach to handling representing two clients in one transaction. This framework, established by the 1993 amendment, codifies how a broker may act for both sides, requiring informed written consent, specific duties to each client, and clear rules about loyalty, confidentiality, and disclosures. It also allows an intermediary structure under statute, where the broker can designate licensees to represent each party while remaining neutral. In short, the amendment created a formal, law-based framework for dual agency, rather than leaving it to common-law rules.

Texas replaced the old, informal dual agency with a statutory approach to handling representing two clients in one transaction. This framework, established by the 1993 amendment, codifies how a broker may act for both sides, requiring informed written consent, specific duties to each client, and clear rules about loyalty, confidentiality, and disclosures. It also allows an intermediary structure under statute, where the broker can designate licensees to represent each party while remaining neutral. In short, the amendment created a formal, law-based framework for dual agency, rather than leaving it to common-law rules.