Buyer-Agent Agreements in Texas
Texas went beyond the national NAR settlement baseline by codifying buyer representation requirements directly into state law. A written agreement is now required before an agent can show a buyer any residential property, not just before closing.
Senate Bill 1968 (Texas Occupations Code § 1101.563) — effective January 1, 2026
Requirements
- Written buyer representation agreement required before showing any residential property, or before presenting an offer if no property is shown
- Agreement must state a specific compensation amount or rate — "to be determined" is no longer allowed
- Must include a termination date and specify exclusive vs. non-exclusive representation
- Must include a conspicuous notice that broker compensation is not set by law and is fully negotiable
- Updated IABS (Information About Brokerage Services) form required to reflect the new notice rules
- Does not apply to commercial purchasers or to residential/commercial tenants
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.