New legislation in Texas will require written agreements for buyer representation beginning January 1, 2026. The changes, passed during the 89th Texas Legislative Session, amend The Real Estate License Act (TRELA) and introduce new rules for how real estate license holders interact with buyers and tenants.
Two new sections have been added to TRELA: Section 1101.562 covers real property showings without representation, while Section 1101.563 mandates written agreements for certain brokerage activities. Under these updates, a license holder may use a written non-representation agreement solely to show property. According to the law, “a license holder may show property (including residential, farm and ranch, and commercial) to a buyer or tenant without representing the buyer or tenant if the requirements in 1101.562—and additionally, 1101.563 for residential buyers—are met.”
When showing property under non-representation status, several conditions apply:
– The license holder must not have agreed to represent the buyer or tenant in any form.
– They cannot provide opinions or advice about the property or transactions.
– No other brokerage services can be performed for the party.
– Disclosure is required if representing the owner; otherwise, the Information About Brokerage Services (IABS) form must be provided.
The law also specifies that “if a license holder shows real property under 1101.562 without representing the party, there are limitations on the information the license holder may provide to the party.” However, factual details such as size, price, and terms of available properties can still be shared.
A significant change is that written agreements are now mandatory before showing residential properties or presenting offers on behalf of prospective buyers. This requirement does not extend to commercial purchasers or tenants. The agreement can either be a non-representation showing-only agreement meeting both sections’ criteria or a full representation agreement under Section 1101.563.
Representation agreements may limit broker services but cannot waive minimum duties set by TREC rules and law. Required elements in these agreements include:
– Description of services provided
– Termination date (no more than 14 days for non-representation)
– Exclusivity status
– Disclosure of representation status
– Compensation details and method of determination
– Notice that broker compensation is negotiable
According to TRELA updates, “the intent behind this change was to help protect consumers by requiring use of written agreements that clearly outline the obligations the license holder and prospective buyer owe to each other.”
For open houses, requirements differ based on whether an agent is part of the listing broker’s office:
– Agents from within do not need IABS forms or written agreements but must disclose owner representation.
– Agents outside must provide IABS forms and enter into written agreements before allowing buyers to view properties—even if those buyers already have another broker’s representation.
If a buyer refuses to sign an agreement at an open house hosted by an agent outside of the listing brokerage, they cannot view the property: “If a buyer refuses to sign the agreement, then the agent cannot show the property… License holders can face disciplinary action if they fail to enter into a written agreement as required by state law under 1101.563.”
Brokers retain discretion over whether their agents host open houses for other brokerages and may establish internal policies accordingly.
Additionally, two references to subagency were removed from TRELA. While this limits when subagency might arise in practice, it remains recognized as a legal concept: “If you are in a situation where it seems subagency may be involved, contact your broker and/or attorney.”
These legislative changes aim to clarify relationships between real estate professionals and clients while strengthening consumer protections across Texas.
