Key Players in a Real Estate Transaction:

In a real estate transaction, several parties are typically involved, each with their own roles and responsibilities. Real Estate agents have a fiduciary relationship with their clients. According to the National Association of Realtors, ‘A real estate broker who becomes an agent of a seller or buyer, either intentionally through the execution of a written agreement or unintentionally by a course of conduct, will be deemed to be a fiduciary. Fiduciary duties are the highest duties known to the law. Classic examples of fiduciaries are trustees, executors, and guardians. As a fiduciary, a real estate broker will be held under the law to owe certain specific duties to his principal, in addition to any duties or obligations outlined in a listing agreement or other contract of employment.’ In other words, a realtor has a legal obligation to act in the best interest of their client. [Click to Read NAR’S Risk Management & License Law Forum - Fiduciary Duties]

The Listing Agent: A licensed professional who represents the seller in a real estate transaction. Listing agents help clients navigate the selling process, assist with paperwork, provide market analysis, and negotiate on their behalf.

The Cooperating Agent: a licensed professional who represents the buyer. The Coop Agent is the pivotal link that introduces potential buyers to MLS listings, ultimately serving as the driving force behind the sale. In recognition of this crucial role, it's essential that sellers acknowledge the cooperative agent's contribution and considers the decision to offer a fair compensation.

Real Estate Broker: A licensed individual or firm who oversees real estate transactions and employs real estate agents. Brokers may also represent clients directly in transactions and typically have more experience and education than agents.

Lender: The financial institution or mortgage company providing financing to the buyer. The lender's role involves evaluating the buyer's creditworthiness, approving a loan, and handling the disbursement of funds at closing.

Title Company: A neutral third party responsible for conducting a title search to ensure the property's title is clear of any liens or encumbrances. The title company also issues title insurance policies to protect the buyer and lender against any unforeseen issues with the title.

Home Inspector: A professional hired by the buyer to conduct a thorough inspection of the property to identify any potential issues or defects. The home inspector provides a detailed report to the buyer, which may influence negotiations with the seller.

Appraiser: A licensed professional who evaluates the property's market value on behalf of the lender. The appraiser assesses various factors such as the property's condition, location, and comparable sales to determine its value.

Escrow Officer: A representative of the title company who oversees the closing process and ensures that all necessary documents and funds are properly executed and transferred between the parties. The escrow officer also disburses funds to pay off any existing liens or mortgages on the property.

These are the primary parties involved in a typical real estate transaction in Texas, though the specific individuals or entities involved may vary depending on the circumstances of the sale.