Key points
- A broker who represents you generally must put your interests first, disclose material information and convey all offers.
- A breach of fiduciary duty claim generally has a four-year limitations period. Negligence and DTPA claims generally have two.
- Texas law generally shields agents who pass along a seller’s misrepresentation without knowing it was false (Occ. Code § 1101.805).
- The Real Estate Recovery Trust Account may pay certain unpaid judgments against licensees, subject to statutory limits.
Common claims against real estate agents and brokers
- Undisclosed conflicts of interest: the agent or a relative is the buyer, or the agent has an undisclosed stake in the deal;
- Failure to disclose known defects or material facts (see seller disclosure fraud);
- Misrepresentation of square footage, flood history, school zoning, permits or income;
- Failure to present offers or steering clients toward a preferred buyer or seller;
- Mishandling earnest money, option fees or other funds;
- Improper intermediary or dual agency conduct that favors one side; and
- Negligent contract preparation, such as missed deadlines or omitted contingencies.
The law that governs Texas licensees
The Real Estate License Act, Chapter 1101 of the Texas Occupations Code, and TREC’s rules set licensee duties. A broker representing a party must, among other things, act in the client’s interest, inform the client of material information, and present all offers. When a broker acts as an intermediary between buyer and seller, the Act imposes neutrality duties, and the parties’ written consent is required. Licensees must also deliver the TREC Information About Brokerage Services notice at first substantive contact.
Beyond the statute, Texas common law treats an agent as a fiduciary of the client, with duties of loyalty, candor and full disclosure.
| Claim | Typical limitations period | Notes |
|---|---|---|
| Breach of fiduciary duty | 4 years | Can support disgorgement of the commission. |
| Fraud / statutory real estate fraud | 4 years | Statutory fraud under Bus. & Com. Code § 27.01 allows fee recovery. |
| Negligence / negligent misrepresentation | 2 years | Requires proof of a breach of the standard of care. |
| Deceptive Trade Practices Act | 2 years | The professional-services exemption limits some claims, with exceptions for misrepresentations and unconscionable conduct. |
Found out your agent had an undisclosed interest in the deal?
Don’t confront the agent before you’ve talked to us. Preserve texts, emails and MLS records, then book a discovery call.
TREC complaints and the Recovery Trust Account
A TREC complaint can lead to discipline, including license suspension or revocation, but it doesn’t compensate you. Compensation comes through a civil claim. If you obtain a judgment against a licensee for certain statutory violations or fraud and can’t collect it, the Real Estate Recovery Trust Account may pay part of the judgment, up to statutory limits per transaction and per licensee. Strict procedural requirements apply, so we plan for them from the start.
Commission disputes
We also represent brokers and clients in commission disputes, including disputes over procuring cause, listing agreement interpretation, termination, and commissions on transactions that close after the listing expires. Under Occupations Code § 1101.806, a person can’t sue to recover a commission unless the promise or agreement is in writing and signed by the person charged.
Defending agents and brokers
We defend licensees against civil claims and TREC complaints, often by showing that the client received required disclosures, that the agent relied on information from the seller without knowledge of falsity, or that the claimed damages weren’t caused by the agent’s conduct.