Hiring or Working With A Real Estate Agent (Red Flags) & Fiduciary Duties

by Keith & Sheila Campbell

Your agent should protect your interests—not pressure you toward the fastest
closing or largest commission. Learn 10 fiduciary red flags Texas buyers and
sellers should recognize before a costly problem develops.

Protecting Your Interests in a Real Estate Transaction

Buying or selling a home involves large financial decisions, strict deadlines, confidential information, and plenty of pressure. Your real estate agent should help you make informed choices—not push you toward whatever produces the fastest closing or the easiest commission.

Most real estate professionals work hard for their clients. Still, consumers should understand the difference between an agent who is merely friendly or responsive and one who is truly protecting the client's interests.

In Texas, the fiduciary relationship is between the client and the broker. A sponsored sales agent works on behalf of that broker. Texas rules state that a broker owes the principal the highest fiduciary obligation and must convey information known to the agent that may affect the principal's decision, unless disclosure is prohibited by law. REALTORS® also pledge under Article 1 of the Code of Ethics to protect and promote their client's interests while treating all parties honestly.

The simplest test: Is your agent helping you understand your options and make your own informed decision, or steering you toward the result that is easiest or most profitable for the agent?

What Does a Real Estate Agent's Fiduciary Responsibility Mean?

In practical terms, fiduciary responsibility means the broker and agent representing you must place your lawful interests ahead of their own. That includes loyalty, confidentiality, disclosure of material information, reasonable care, obedience to lawful instructions, proper accounting, and avoiding undisclosed self-dealing or conflicts of interest.

Fiduciary duty does not mean an agent must follow an unlawful instruction, guarantee a result, provide legal or tax advice outside the agent's expertise, or conceal a material fact that must be disclosed. It does mean the agent should explain choices, disclose conflicts, protect confidential information, meet agreed responsibilities, and recommend qualified professionals when specialized advice is needed.

10 Red Flags When Hiring or Working With a Real Estate Agent

They Never Clearly Explain Whom They Represent

A buyer, seller, landlord, or tenant should know whether an agent represents them, represents the other party, or is working under a permitted intermediary arrangement. In Texas, the Information About Brokerage Services notice explains common brokerage relationships, but it is not itself a representation agreement.

Watch for: vague answers such as “I help everybody,” failure to discuss agency, or pressure to share negotiating information before the relationship is clear.

They Rush You to Sign Without Explaining the Agreement

Representation agreements can address the services provided, compensation, the length of the relationship, exclusivity, termination, and each party's responsibilities. An agent should give you time to review the document, answer questions within the agent's expertise, and encourage legal advice when needed.

Watch for: “This is just standard—sign here,” blank spaces, missing copies, or reluctance to discuss how compensation and cancellation work.

Every Recommendation Seems Designed to Get to Closing Faster

Strong advice considers your goals, risk tolerance, finances, timing, and alternatives. Sometimes the best advice is to negotiate harder, obtain more information, pause, or walk away—even if that means the agent does not get paid on that transaction.

Watch for: automatic recommendations to offer more, accept less, overlook a concern, shorten every deadline, or “just make the deal work” without a clear explanation of benefits and risks.

They Discourage Inspections or Other Due Diligence Without Context

Market conditions can affect negotiating strategy, but waiving an inspection, option period, survey review, financing protection, or other safeguard may create substantial risk. Your agent should explain the tradeoffs and available alternatives—not treat consumer protections as obstacles.

Watch for: minimizing visible defects, discouraging a qualified inspection, or assuring you that a newer home “doesn't need one.”

They Push Only Their Preferred Vendors

Agents commonly maintain lists of lenders, inspectors, title companies, contractors, and other service providers. Recommendations can be helpful, but the consumer should understand any financial relationship or other conflict and remain free to compare qualified providers.

Watch for: insisting that you use one company, refusing to provide alternatives, guaranteeing another professional's work, or failing to disclose a relevant business or referral relationship.

They Share or Mishandle Confidential Information

Your motivation, urgency, financial ceiling, willingness to accept a certain price, family circumstances, and negotiating strategy can all affect your bargaining position. An agent should understand what may be shared, what should remain confidential, and what disclosure the law or contract requires.

Watch for: casual comments about another client's finances or strategy. If an agent freely shares someone else's confidential information, consider how your own information may be handled.

They Filter Information or Fail to Present Options

A fiduciary should not hide an offer, showing request, property, incentive, defect, or negotiation option simply because it is inconvenient or could reduce compensation. Clients need relevant information to make their own decisions.

Watch for: a listing agent who will not explain how offers are being delivered, or a buyer's agent who dismisses properties based on the compensation offered rather than the buyer's stated criteria.

They Are Vague About Conflicts or Intermediary Representation

When the same brokerage is involved with both sides of a Texas transaction, specific intermediary rules may apply. The arrangement and any appointments should be properly authorized and explained, including how the agents' ability to give opinions and advice may be affected.

Watch for: “We do dual agency all the time” without a clear explanation of the Texas intermediary process, written consent, confidentiality, and who can provide advice to each party.

They Avoid Written Communication and Documentation

Important instructions, disclosures, contract deadlines, offers, amendments, repair negotiations, and financial terms deserve accurate documentation. A dependable agent should provide copies and keep you informed—not rely on memory and verbal promises for major decisions.

Watch for: repeated missed deadlines, unsigned changes, unexplained fees, missing documents, or resistance when you ask for confirmation in writing.

They Become Defensive When You Ask Reasonable Questions

Good representation includes education. Your agent may not always give the answer you hoped for, but they should be able to explain the basis for a recommendation, identify uncertainty, and tell you when a lawyer, lender, inspector, CPA, engineer, or other specialist is better qualified to answer.

Watch for: pressure, intimidation, dismissive answers, claims that nothing can go wrong, or attempts to isolate you from independent professional advice.

Keep the situation in perspective: One delayed reply or honest mistake does not automatically prove a fiduciary breach. Look for patterns—especially undisclosed conflicts, self-dealing, mishandled confidential information, concealed facts, ignored instructions, or pressure that consistently favors the agent over the client.

Questions to Ask Before You Hire an Agent

Whom will you represent, and when does that representation begin?
What services will you and your brokerage provide?
How are you and your brokerage compensated?
What happens if I want to end the representation agreement?
How do you protect confidential information?
How do you identify and disclose conflicts of interest?
How will you present offers, options, and material information?
What is your approach when walking away may be in my best interest?
Which parts of the transaction require advice from another professional?
Who is your sponsoring broker or delegated supervisor if a concern arises?

Listen for specific, understandable answers. Experience and production matter, but so do judgment, transparency, communication, and the willingness to protect a client when a transaction becomes difficult.

What Should You Do If Something Feels Wrong?

Ask the agent to explain the recommendation or action. A misunderstanding may be resolved with a direct conversation.
Put important concerns and instructions in writing. Keep your contracts, disclosures, texts, emails, inspection reports, and transaction timeline together.
Review your representation agreement. Pay attention to the broker named in the contract, services promised, duration, compensation, and termination provisions.
Contact the sponsoring broker or designated supervisor. In Texas, the brokerage relationship is with the broker, who is responsible for brokerage activity performed by sponsored sales agents.
Get independent professional advice when appropriate. An attorney can advise you about legal rights and remedies. TREC provides consumer information and a complaint process for possible violations of the Real Estate License Act or Commission rules.

Do not cancel a contract, miss a deadline, refuse to close, or take another action with legal or financial consequences based only on a blog post. Obtain advice based on your documents and circumstances.

Good Representation Should Feel Clear, Not Confusing

The best agents do more than open doors, upload a listing, or carry forms from one party to another. They help clients understand risks, compare choices, protect negotiating positions, meet deadlines, and bring the right professionals into the conversation.

Keith and Sheila Campbell have served Greater San Antonio buyers, sellers, veterans, and military families with a client-first approach built on experience, education, and straightforward advice. Sometimes protecting a client means negotiating harder. Sometimes it means slowing down. And sometimes it means recommending that the client walk away.

Looking for Straightforward Real Estate Guidance?

Let's talk about your goals, explain how representation works, and decide whether Keith & Sheila Realty Group is the right fit for you.

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Frequently Asked Questions

What fiduciary duties does a real estate agent owe a client?

In practical terms, a broker and sponsored agent representing a client must put the client's lawful interests ahead of their own. Duties generally include loyalty, confidentiality, disclosure of material information, reasonable care, obedience to lawful instructions, proper accounting, and avoiding undisclosed conflicts or self-dealing.

Is the Texas IABS notice a representation agreement?

No. The Information About Brokerage Services notice explains common brokerage relationships and provides required license-holder information. A buyer or listing representation agreement is a separate contract that establishes the relationship and its terms.

Can a real estate agent recommend an inspector or lender?

Yes. Recommendations can be useful, but consumers should be free to compare qualified providers. The agent should disclose relevant financial or business relationships and should not guarantee another professional's work.

Is poor communication automatically a fiduciary breach?

Not necessarily. A slow reply or isolated mistake does not automatically establish a breach. More serious warning signs include undisclosed conflicts, self-dealing, concealed information, ignored lawful instructions, mishandled confidential information, or conduct that repeatedly favors the agent over the client.

Who should I contact if I have concerns about my Texas agent?

Start by asking the agent for an explanation and documenting the concern. You may also contact the sponsoring broker or designated supervisor. For legal advice, consult a qualified attorney. TREC provides consumer information and a complaint process for possible violations of Texas licensing law or Commission rules.

Authoritative Resources

Disclaimer: This article provides general consumer education and is not legal, tax, lending, or financial advice. Real estate duties and remedies depend on the relationship, contracts, facts, and applicable law. Consult a qualified professional regarding your specific situation.