I recently wrote about the intermediary relationship in Texas (see http://activerain.com/blogsview/1251968/texas-intemediary-relationship)

The Texas Real Estate License act has very specific rules a broker must follow for Intermediary to take place. A broker may act as an intermediary between parties to a real estate transaction if the broker obtains written consent from each party for the broker to act as an intermediary in the transaction; and the written consent of the parties states the source of any expected compensation to the broker.  The law goes on to say a written listing agreement and a written buyers rep agreement are sufficient to establish the written consent..

Additionally the intermediary shall act fairly and impartially.

Also the intermediary may not disclose to the buyer or tenant that the seller or landlord will accept a price less than the asking price, unless otherwise instructed in a separate writing by the seller or landlord.

May not disclose to the seller or landlord that the buyer or tenant will pay a price greater than the price submitted in a written offer to the seller or landlord, unless otherwise instructed in a separate writing by the buyer or tenant.

May not disclose any confidential information or any information a party specifically instructs the broker or salesperson in writing not to disclose, unless: (A) the broker or salesperson is otherwise instructed in a separate writing by the respective party; (B) the broker or salesperson is required to disclose the information by this chapter or a court           order; or (C) the information materially relates to the condition of the property;

Must not treat a party to a transaction dishonestly 

And finally must not violate the Real Estate License Act. 

If the law is followed Intermediary works well.