A new Texas law requires brokers to sign written buyer-representation agreements before showing any residential property—a compliance shift that affects every brokerage firm.
Most Texas real estate brokers and agents don't yet realize that SB1968 has quietly rewritten a fundamental rule of their business: as of January 1, 2026, you cannot legally show a residential property or submit an offer on behalf of a buyer without first executing a written buyer-representation agreement.
This isn't a minor paperwork tweak. It's a new licensing compliance mandate with real teeth. Violating it can result in license suspension or revocation.
Under Section 10 of SB1968, which adds Section 1101.563 to the Texas Property Code, every licensed broker and sales agent must obtain a written buyer-representation agreement before showing any residential property or submitting an offer. That agreement must specify:
The requirement applies to all brokers and sales agents licensed by the Texas Real Estate Commission—regardless of firm size. There are no exemptions for small brokerages, independent agents, or specific transaction types.
If you own or operate a brokerage firm in Texas, or if you're a licensed sales agent, this rule applies to you. The law covers any residential property showing or offer submission, meaning the agreement must be in place before you take a buyer to a property or present an offer to a seller's agent.
This changes the workflow for many firms. Brokers accustomed to informal buyer relationships or verbal understandings will need to formalize agreements upfront. Agents who show properties to prospective buyers without a signed agreement after January 1, 2026, will be operating in violation of state law.
The effective date is January 1, 2026 (Section 19 of the bill). Conduct occurring before that date remains governed by prior law (Section 18), giving brokers and agents a transition window to update processes, templates, and training.
That means now is the time to review your current buyer-representation forms, ensure they capture all required elements, and train your team on the new requirement. Waiting until December 2025 to make changes creates compliance risk.
The Texas Real Estate Commission enforces this requirement through its standard licensing penalties. A broker or agent who violates the written agreement requirement can face license suspension or revocation. This isn't a fine or a warning—it's a direct threat to your ability to operate.
For brokers managing multiple agents, this also means adding this requirement to your compliance checklist and your agent training materials. Your firm's liability increases if agents show properties without the required written agreement.
Review your current buyer-representation agreement template against the five required elements. Confirm it addresses services, termination, exclusivity, agency relationship, and compensation. Update your transaction workflow to require the signed agreement before any property showing or offer submission. Train your team on the January 1, 2026 effective date and the compliance requirement.
Source: Texas SB1968, Section 10 (adding Sec. 1101.563); Section 18 (prior law applies to pre-2026 conduct); Section 19 (effective date).