A new Texas law requires brokers to sign written buyer-representation agreements before showing any residential property—a requirement many in the industry haven't yet prepared for.
Most Texas real estate brokers and sales agents don't yet realize that starting January 1, 2026, they cannot show a residential property or submit an offer on behalf of a buyer without first executing a written buyer-representation agreement. This requirement, buried in Senate Bill 1968, represents a significant operational change for brokerages of all sizes.
Under Section 10 of SB1968, which adds Section 1101.563 to the Texas Occupations Code, every licensed broker or sales agent must have a written buyer agreement in place before showing any residential property or submitting an offer. The agreement must specify:
This applies to every licensed broker and sales agent in Texas—from large national firms to small independent operations. There are no exceptions based on company size or transaction type.
The requirement isn't merely procedural. Failure to obtain a written buyer agreement before showing property or submitting an offer is now grounds for disciplinary action by the Texas Real Estate Commission, including license suspension or revocation. This is codified in amended Section 1101.652(b)(34) of the Texas Occupations Code.
For brokers and agents, the practical impact is clear: every buyer interaction must begin with a signed agreement. This means no informal showings, no "just looking around" without documentation, and no offers submitted without a signed representation agreement already in place.
The rule takes effect on January 1, 2026, and applies to all conduct occurring on or after that date (per Section 18 of SB1968). Brokers should begin preparing now—updating agreement templates, training staff, and revising intake procedures to ensure compliance before the deadline.
If you haven't already, review your current buyer-representation agreements to ensure they address all five required elements. If you're currently using informal processes or verbal agreements, you'll need to transition to written documentation for every buyer interaction. Consider consulting with legal counsel to ensure your templates comply with the new standard.
For property management firms that occasionally facilitate residential sales or showings, the same requirement applies. Any showing or offer submission requires a signed agreement first.
The Texas Real Estate Commission enforces this rule, and violations can result in serious consequences for your license. Compliance isn't optional—it's a condition of operating as a licensed broker or agent in Texas after January 1, 2026.
Source: Senate Bill 1968, Sections 10, 18, and 19; Texas Occupations Code Sections 1101.563 and 1101.652(b)(34).