Is there a law in Texas preventing real estate agents from representing both buyers and sellers?

They can represent both, but both the seller and buyer need to sign a contract acknowledging they know it is a dual agency.

You can search for "texas dual agency real estate" if you want to see it on a web page, as if that makes it right, LOL.

Dual agents have to favor the seller, the disclosure laws prevent them from really helping the buyer in this situation.

I am not sure how this would work? I guess if your were out of town looking for a house in a new town, you might engage a realtor to look for a house for you? Most people I know just go to a realtor and look at what they have or see a sign in a yard and contact the realtor on the sign and ask about the house? Star for you, good question.

In most instances, the realtor for the seller advertises the property for sale, and then the buyer contacts them to see the property, the buyer never really has an agent, doing so would add an additional 7% to the cost without any real value.

As a buyer you know what the seller is asking, you make your offer, and then they either counter offer or accept and you accept or you give them another counter offer.

If you are willing to go higher than your first offer, just don't tell the realtor. Why would you want another person involved to take more money from you and slow things down. Optimally, you would buy from a self seller and split the 7% commission savings.

She was hoping that you were a good enough friend to help her to make some of that 7% commission if you were looking for a house instead of giving it to a stranger (realtor). Not sure about the laws on this though.

Yes, there IS a law in Texas which prevents a real estate agent from working as both seller agent and buyer agent. However, under Texas law, an agent CAN work with both parties to a real estate transaction under what is called 'dual agency'. Texas Senate Bill 314, effective September 1, 1993, adds that under Dual Agency the licensee is obligated to treat both parties fairly and impartially.

In a nutshell, 'dual agency' requires that the agent represent NEITHER party's interests over the other. Hence, what you get is no actual representation, and the seller doesn't get representation either. The agent basically acts as an intermediary.

If you want actual representation as a buyer, insist that the agent in question clearly contract with you to work to represent you.

It is legal but note that the agent is really the seller's agent and looks out for their best interest, not the buyers. So you should not care but the buyer might. If I were the buyer, I would get my own agent because you have to pay the agents' fees so the extra 1% comes out of your money.

it is that way in most states as the agent has a fiduciary responsibility to one or the other and cannot be the same to every party involved. She has to be on some ones side in the transaction

I really do not like answering questions on Yahoo Answers, but questions like this with confused answers bother me as a professional real estate agent.

Please see the blog entry:

http://www.realty-tx.com/blog/dual-agency-vs-inter...