Is dual agency legal in Texas?

In Texas, dual agency is indeed legal, but it comes with specific requirements that must be adhered to for it to be valid. The correct answer highlights that dual agency is permissible under Texas law provided there is mandatory disclosure to all parties involved. This means that both clients must be made fully aware that the agent is representing both sides in the transaction and must consent to this arrangement.

The importance of disclosure in dual agency lies in ensuring transparency and maintaining the trust of both parties. When an agent represents both the buyer and the seller, the ability to advocate fully for either party can be compromised, which is why explicit consent and knowledge are vital to the process.

In contrast, while other options may touch on elements of dual agency, they do not accurately encompass the legal framework specific to Texas. The notion that dual agency is illegal contradicts the state's provisions, while the idea that it's restricted only to licensed brokers overlooks the necessity of informed consent from both parties, critical under Texas law. Thus, the emphasis on mandatory disclosure not only fulfills a legal obligation but also upholds ethical standards in real estate transactions in Texas.