A new Texas law requires brokers to sign written buyer-representation agreements before showing any residential property—and most aren't ready.
Most Texas real estate brokers don't realize that starting January 1, 2026, they'll face a new legal requirement that could affect every showing they conduct. Senate Bill 1968 adds a mandate that few in the industry are discussing: brokers and sales agents must execute a written buyer-representation agreement before showing any residential property or submitting an offer on behalf of a buyer.
Under the new Section 1101.563 (added by Section 10 of SB1968), every licensed broker or sales agent—including solo practitioners and small independent brokerages—must have a written agreement in place with a buyer before conducting certain activities. That agreement must specify:
This isn't a suggestion or best practice. It's a licensing requirement. Violating it gives the Texas Real Estate Commission grounds to suspend or revoke a broker's or agent's license under amended Section 1101.652(b)(34).
The rule applies to conduct occurring on or after January 1, 2026 (per Section 18 of the bill). That gives brokers roughly one year to update their processes, agreements, and training before the deadline.
If you hold a broker's license or employ licensed sales agents in Texas, this applies to you. The requirement covers all residential property showings and offer submissions. There are no carve-outs for repeat clients, informal arrangements, or small transactions. Whether you run a large brokerage or work solo, you need a written agreement signed before you show the first home.
Start by reviewing your current buyer-representation agreements. Do they address all five required elements? Are they in writing and signed before showings occur? If your current process relies on verbal agreements or paperwork signed after the first showing, you'll need to change it.
Consider whether your transaction management system or CRM can flag this requirement and prevent agents from scheduling showings until an agreement is in the file. Some brokers are also building this into their onboarding process with new buyer clients.
Document your compliance. Keep signed agreements organized and accessible. The TREC will expect brokers to demonstrate that they followed the rule if a complaint is filed.
This isn't a minor procedural change—it's a licensing requirement with real consequences. Starting January 1, 2026, a written buyer-representation agreement must be in place before you show a home. The time to prepare is now.
Source: Texas Senate Bill 1968, Sections 10, 18, and 19; Texas Property Code § 1101.563 and § 1101.652(b)(34).