What takes precedence between statutory intermediary and common law dual agency?

The correct answer is that statutory intermediary takes precedence over common law dual agency. In Texas, the law provides for a statutory intermediary arrangement which is a specific and defined way for a broker to represent both the buyer and the seller in a real estate transaction. This statutory framework is established in the Texas Real Estate License Act, which outlines the guidelines and requirements for brokers who act as intermediaries, ensuring clarity, protection, and proper conduct within the real estate transaction.

In contrast, common law dual agency is not codified in the same way and can lead to misunderstandings and conflicts of interest, as it lacks the structured guidelines provided by Texas law. The statutory intermediary model allows for a more regulated environment where the duties and responsibilities are clear, ensuring both parties are treated fairly while still allowing the broker to facilitate the transaction effectively.

By prioritizing the statutory intermediary, Texas law aims to enhance transparency and accountability in real estate transactions, making it the prevailing approach over the more general and less regulated common law dual agency. This legal framework is designed to safeguard all parties involved, thereby promoting a smoother and more reliable real estate process.