A new Texas law requires brokers to sign written buyer-representation agreements before showing any residential property—a compliance shift that affects nearly every brokerage in the state.
Most Texas real estate brokers and 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, creates a new compliance obligation with potential disciplinary consequences for brokerages of all sizes.
Under Section 10 of SB1968 (adding Texas Property Code Section 1101.563), every licensed broker or sales agent must obtain a written buyer agreement before showing any residential property or submitting an offer. The agreement must specify five key elements:
This is not optional. The rule applies to all licensed brokers and sales agents, including independent brokerages, small firms, and agents working for larger companies.
The practical impact is significant. Brokers can no longer show a property or write an offer based on a casual conversation or email exchange. A formal, written agreement must be in place first. Failure to comply exposes brokers to disciplinary action by the Texas Real Estate Commission under Section 1101.65, which governs conduct-based discipline.
For brokerages, this means updating intake procedures, creating or revising agreement templates, and training all agents on the new requirement. For agents, it means a new step in every buyer interaction before any showing or offer submission can occur.
The rule takes effect January 1, 2026. Importantly, the TREC's authority to impose conduct-based discipline for violations applies only to conduct occurring on or after that date. This gives brokerages a window to prepare systems and train staff before the rule becomes enforceable.
Brokerages should begin reviewing their current buyer intake and representation processes. If your firm relies on verbal agreements, email confirmations, or informal arrangements, those will no longer be sufficient. You'll need:
The rule does not specify a particular form or language, so brokerages have flexibility in how they structure their agreements—but the agreement must be in writing and executed before showing property or submitting offers.
SB1968 also makes other changes to real estate licensing and regulation. A detailed, free guide covering this provision and other business-relevant sections of the bill is available through industry associations and the Texas Real Estate Commission.
Source: Senate Bill 1968, Section 10 (adding Texas Property Code Section 1101.563); effective January 1, 2026.