Acting as Your Own Real Estate Agent in Texas

If you decide to act as your own agent in a Texas real estate transaction, you need to be aware of several important laws and regulations. Here are the key points you should consider:

1. Licensing and Registration

  • License Requirement: According to the Texas Real Estate Commission (TREC), you must be a licensed real estate agent or broker to legally perform the functions of a real estate agent.

  • Fiduciary Duties: If you are acting as your own agent, you are subject to fiduciary duties, meaning you must act in the best interest of the transaction and with utmost integrity and honesty.

2. Legal and Ethical Considerations

  • Conflict of Interest: TREC regulations prevent a licensed professional inspector from acting as both the inspector and real estate agent in the same transaction.

  • Principal Transactions: If you are a principal in the transaction (i.e., you own the property being bought or sold), you may act as your own agent without the need for a separate license.

3. Commission and Fees

  • Commission Handling: As an attorney or principal in the transaction, you may handle the commission from the sale. However, generally, attorneys acting merely as agents cannot take commissions unless they are principals in the transaction.

Timeline for Real Estate Transactions in Texas

Understanding the timeline for a real estate transaction is crucial to ensure all actions are taken promptly and legally. Here is a general timeline of what needs to be done post-contract signing in Texas:

Day 1: Contract Signing

  • Contract Executed: The contract is signed by both parties.

  • Earnest Money Deposit: Buyer provides an earnest money deposit, which is held by the title company.

Within 3-5 Days: Initial Steps

  • Deliver Contract to Title Company: The agent (or buyer, if acting as their own agent) must deliver the contract and earnest money to the title company.

  • Loan Application: Buyer submits a loan application to the lender.

Within 7-10 Days: Inspections and Disclosures

  • Property Inspections: Conduct mechanical and termite inspections.

  • Loan Disclosures: Lender provides loan terms disclosures to the buyer.

Day 14: Appraisal and Title Work

  • Appraisal Ordered: The lender orders an appraisal of the property.

  • Title Commitment: The title company orders a title commitment to ensure the property title is clear of any liens or encumbrances.

Day 15-21: Review and Update

  • Inspection Reports: Review the inspection reports and negotiate any repairs or credits.

  • Loan Processing: Lender processes the loan application and borrower documentation.

Day 22-28: Final Preparations

  • Final Loan Approval: Obtain final loan approval from the lender.

  • Title Review: Review the final title commitment and resolve any outstanding issues.

Day 30: Closing Preparation

  • Closing Disclosure: Lender provides the closing disclosure to the buyer at least three days before closing.

  • Final Walkthrough: Conduct a final walkthrough of the property to ensure it is in the agreed-upon condition.

Day 33: Closing

  • Closing Meeting: Attend the closing meeting to sign all necessary documents, transfer funds, and finalize the purchase.

  • Receive Keys: Buyer receives the keys to the property.

Additional Considerations

  • Legal Counsel: It is advisable to seek legal counsel to review contracts and disclosures, especially if you are not a licensed real estate professional.

  • Insurance: Ensure that property insurance is in place and effective from the date of closing.

  • Record Keeping: Maintain thorough records and documentation of all transactions, inspections, and communications related to the transaction.

By following these guidelines and adhering to the timeline, you can navigate the process of acting as your own real estate agent in Texas more effectively.

Disclaimer

This content is generated by AI and is intended for informational purposes only. Realty Watchers is not a licensed real estate company nor a law office. We strongly recommend that you conduct your own research and consult with licensed professionals in real estate, law, or any other relevant field before making any decisions based on the information provided. Realty Watchers disclaims any and all liability for actions taken or not taken based on the content of this AI-generated material.