A new Texas law requires brokers to sign written buyer-representation agreements before showing any residential property—a compliance step many in the industry haven't yet prepared for.
Most Texas real estate brokers and sales agents don't yet realize they're operating under a new requirement that takes effect January 1, 2026. Senate Bill 1968, which overhauled licensing and regulation of real estate professionals, buried a provision that fundamentally changes how brokers can conduct business with buyers.
What Changed
Effective January 1, 2026, every licensed broker or sales agent in Texas must execute a written buyer-representation agreement before showing any residential property or submitting an offer on behalf of a buyer. This isn't optional, and it applies to all brokerages—large firms and small independent operators alike.
The written agreement must specify five key elements: the services the broker will provide, the termination date of the agreement, whether the representation is exclusive or non-exclusive, the nature of the agency relationship, and the compensation amount or rate. The requirement is codified in Section 1101.563 of the Texas Occupations Code (added by Section 10 of SB1968).
Why This Matters
This isn't a paperwork technicality. Failure to comply creates disciplinary exposure under Section 1101.65 of the Texas Occupations Code. The Texas Real Estate Commission can take action against brokers and agents who show properties or submit offers without a signed written agreement in place.
For brokers, the practical impact is significant. You cannot show a home to a prospective buyer without first having them sign an agreement that spells out your relationship, what you'll do for them, when the agreement ends, and how you're being paid. This applies whether you're a solo agent, a small brokerage, or part of a larger firm.
The requirement also affects how you structure your buyer interactions. Many brokers have historically used verbal agreements or informal understandings with buyers. That practice is no longer compliant as of the effective date.
The Timeline
The rule becomes effective January 1, 2026. Importantly, the Texas Real Estate Commission will only apply conduct-based discipline for violations that occur on or after that date. This means you have time to prepare—to update your forms, train your agents, and integrate the requirement into your showing process.
What You Should Do Now
Review your current buyer agreement forms to ensure they include all five required elements. If you don't have a written buyer agreement template, develop one or consult with your legal advisor. Train your agents on the new requirement so they understand they cannot show a property or submit an offer without a signed agreement in hand.
If you work with a broker or multiple listing service, check whether they've updated their standard forms or guidance. Some may provide compliant templates.
The change is straightforward in concept but requires real operational adjustment. Starting January 1, 2026, written buyer agreements are not a best practice—they're a legal requirement.
Source: Senate Bill 1968, Section 10 (adding Tex. Occ. Code § 1101.563), Section 19 (effective date).