Disclaimer: This article provides general information about Texas law and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.
Detailed Answer
When two or more owners (tenants in common or joint tenants) sell real property in Texas, they must agree on a real estate agent or broker. Under Texas law, a real estate broker must hold a valid license issued per Texas Occupations Code Chapter 1101 (Tex. Occ. Code § 1101).
Here are the steps to coordinate realtor selection:
- Open Communication: Discuss goals, timelines and commission expectations. In writing, list each party’s priorities—price, marketing approach, property showing process and preferred commission rate.
- Gather Realtor Options: Each co-owner may interview 2–3 agents. Compare experience selling similar properties in your market, fee structures and marketing plans (online listings, professional photography, open houses).
- Negotiate Terms: Agree on a listing agreement type (exclusive or open). Exclusive agreements offer dedicated marketing but require a single agent. Open agreements allow each owner to find a buyer independently but can dilute the agent’s incentive.
- Draft a Joint Listing Agreement: Ensure both owners’ names appear on the contract. Texas Property Code Chapter 5 governs agency relationships (Tex. Prop. Code § 5.021). Specify commission splits, listing price and termination conditions.
- Execute the Agreement: All co-owners must sign before marketing begins. The broker must provide the required Consumer Protection Notice and use the Texas Real Estate Commission’s promulgated forms.
- Resolve Deadlocks: If co-owners cannot agree on an agent, any owner may file a partition action under Texas Property Code Chapter 23 (Tex. Prop. Code § 23.001). A court can order sale and split proceeds based on ownership interests.
Helpful Hints
- Document every decision in writing to avoid misunderstandings.
- Use TREC-approved listing forms to ensure compliance.
- Consider a neutral mediator if negotiations stall.
- Review each agent’s marketing portfolio and sold-data reports.
- Keep communication constructive: focus on shared goals.