The Texas intermediary relationship notice is the written document a broker uses to confirm, for a specific transaction, that the same brokerage is representing both the buyer and the seller and to name any associates appointed to work with each side. The most common version is Form TXR 1409, published by Texas REALTORS for its members; brokerages outside that association use their own templates to meet the same statutory requirements. The Texas Real Estate Commission sets the rules but does not promulgate this particular form.
When You Need to Use It
The notice becomes necessary the moment a single brokerage has agreed to represent both sides of the same transaction. Under Texas Occupations Code § 1101.561, a broker in that position must act as an intermediary; it is not optional once the situation exists.1State of Texas. Texas Occupations Code 1101.561 – Duties of Intermediary Prevail
Section 1101.559 requires written consent from each party before the broker can act in that capacity, and that consent must state the source of any compensation the broker expects to receive.2State of Texas. Texas Occupations Code 1101.560 – Associated License Holder Acting as Intermediary Most listing agreements and buyer representation agreements already include a general consent clause. The intermediary notice then reaffirms that consent for the specific deal and documents any appointments the broker is making.
Completing the Form
The form is short, but every line matters. Whatever template you use, it needs to capture the parties, the property, the appointment decision, and the brokerage identifying information.
Parties and Property
Enter the full legal names of the seller (or landlord) and buyer (or tenant) exactly as they appear on the purchase contract or lease. A mismatch between the notice and the contract creates problems if anything is later disputed. Use the same property address as the contract, including unit or lot numbers.
The Appointment Decision
This is the most consequential part of the form. Under § 1101.560, a broker with proper written consent may appoint one associated license holder to communicate with and carry out the instructions of the buyer and a different associated license holder to do the same for the seller.2State of Texas. Texas Occupations Code 1101.560 – Associated License Holder Acting as Intermediary An appointed associate can provide opinions and advice during negotiations to the party they are assigned to.
If no appointments are made, no one in the firm may give opinions or advice that favors one side over the other. Everyone in the brokerage becomes a neutral conduit. Most experienced brokers make appointments whenever possible because it gives clients a point person who can actually guide them.
When making appointments, write the full name and license number of each appointed associate in the designated spaces. Confirm each license is current. An appointment of someone with a lapsed or inactive license is worse than no appointment.
Brokerage Information
The firm name should match the name registered with TREC exactly. Include the broker’s own license number. Clerical errors here rarely derail a transaction but can cause problems during a TREC audit.
Signing and Delivering It
The seller, the buyer, and the broker all sign. Standard practice is to complete the notice before or at the same time as the purchase contract. Waiting until after the contract is signed undercuts the purpose of the disclosure, which is to let the parties understand the representation arrangement before they commit.
Electronic signatures are valid. The federal E-SIGN Act prevents a record from being denied legal effect solely because it is in electronic form. If you use an e-signature platform, confirm that each signer receives the fully executed document, not just a notice that they signed. The broker must deliver a copy to every party.
Keeping the Record
TREC requires brokers to keep transaction records for at least four years from the date of closing or contract termination, in a format that can be readily provided to the Commission on request.3Texas Real Estate Commission. How Long Does a License Holder Have to Keep Financial and Real Estate Transactions on File? The signed intermediary notice falls within those records. Paper or digital storage is fine, as long as you can produce the notice quickly on request.
What the Broker Can and Cannot Do Once Signed
Once intermediary status is in place, the broker shifts from advocate to neutral facilitator. Under § 1101.651(d), an intermediary broker and any appointed associates may not:4State of Texas. Texas Occupations Code 1101.651 – Certain Practices Prohibited
- Tell the buyer that the seller would accept less than the asking price, unless the seller gives separate written permission.
- Tell the seller that the buyer would pay more than the written offer, unless the buyer gives separate written permission.
- Disclose information a party has instructed the broker in writing to keep confidential, with narrow exceptions for court orders, statutory requirements, or facts materially related to the property’s condition.
- Treat either party dishonestly or violate any provision of the licensing chapter.
These restrictions apply whether or not appointments are made. With appointments, each associate can offer opinions and advice to their assigned party; without, no one in the firm can.
What Goes Wrong If You Skip It
Failing to provide proper intermediary disclosure creates licensing and civil risk. Section 1101.652 gives TREC authority to suspend or revoke a license when a license holder fails to make clear whom they are acting for, or receives compensation from more than one party without full knowledge and consent of everyone involved.5State of Texas. Texas Occupations Code 1101.652 – Grounds for Suspension or Revocation of License TREC can also impose administrative penalties of up to $5,000 per violation, and each day a violation continues can count as a separate offense.
On the civil side, a broker who failed to obtain proper consent risks losing the entire commission on the deal, and buyers or sellers who felt disadvantaged by an undisclosed conflict may pursue claims for damages. The notice takes a few minutes; the aftermath of skipping it can take years.
Where to Get the Form
Texas REALTORS members access Form TXR 1409 through the organization’s forms library. Brokerages not affiliated with Texas REALTORS typically use their own intermediary notice drafted to meet §§ 1101.559 and 1101.560. Any version you use needs to include the parties’ names, the property identification, the broker’s decision on appointments (with names and license numbers of any appointees), and signature lines for all parties. TREC does not publish a promulgated version of this notice; its forms page lists contracts, addenda, and other required disclosures, but the intermediary notice is not among them.6Texas Real Estate Commission. Texas Real Estate Commission – Contracts