Buyer Representation Agreements in Texas: What Agents Must Do in 2026

What changed for Texas agents in 2026?

TREC explains that Section 1101.563 of the Texas Occupations Code now requires written agreements for brokerage activities performed for prospective buyers of residential property. Before 2026, many Texas agents worked with buyers on a handshake. That is no longer enough for residential buyers.

This is a law about your license, not just a form your brokerage prefers. TREC says license holders can face disciplinary action if they fail to enter into a written agreement as required. Read the TREC article linked in the sources below, and ask your broker which forms your office uses.

When must the agreement be signed?

The timing rule is simple. The written agreement must be in place before one of two things happens.

• You show any residential real property to the prospective buyer.
• If no property will be shown, you present an offer to purchase residential property on the buyer's behalf.

What are the two kinds of written agreement?

TREC says either of two agreements satisfies the rule. Pick the one that matches the real relationship you have with the buyer.

What must the agreement say?

TREC lists these items. Use them as a checklist when you review any form.

• The services you will provide.
• A termination date. For a non-representation agreement it can be no more than 14 days.
• Whether the agreement is exclusive or non-exclusive. Non-representation agreements must be non-exclusive.
• Whether you represent the buyer or do not.
• The amount or rate of your compensation and how it will be determined.
• A conspicuous statement that broker compensation is not set by law and is fully negotiable.

Who owns the agreement, you or your broker?

TREC's FAQ says a buyer representation agreement is a private contract between the buyer and the real estate broker, not the sales agent. TREC says it does not promulgate or regulate the agreement. TREC does not list a buyer representation agreement form. It points agents to the Texas Association of Realtors for member forms, or to a private attorney.

That is why your sponsoring broker decides which form you use. Ask for it on your first day. If you later change brokers, the buyer agreement does not move with you automatically. The buyer stays with the previous broker unless released. Our guide on taking clients when you change brokerages covers that.

How does this work at an open house?

Open houses are where new agents feel the rule most. TREC says the agreement should ideally be signed before a buyer enters the property, and at the latest before the buyer begins viewing it, for example when you greet them at the door.

There is an exception. TREC says agents in the listing broker's office who host an open house do not need to provide the IABS or enter into a written agreement with prospective buyers. They must still disclose that they represent the owner. If you host someone else's open house through another office, ask your broker how to handle it first.

For ideas on turning visitors into clients, read how new agents get leads from open houses.

What if the buyer refuses to sign?

TREC states that if a buyer refuses to sign, the agent cannot show the property. That means a buyer who will not sign cannot tour the home with you, including at an open house. Stay calm and polite. Explain that the law requires it, and offer the showing-only option if the buyer is not ready to hire you.

The rule does not apply to commercial purchasers or to residential or commercial tenants, according to TREC.

How do you explain the agreement to a buyer?

Many buyers have never seen one. A clear, short talk helps. Do not rush it or read it like a legal script. Use plain words.

• Start with your role: what you will do for them, step by step.
• Show where the services, dates and compensation sit on the form.
• Say clearly that compensation is not set by law and can be negotiated.
• Explain how long the agreement lasts and what happens when it ends.
• Give them time to read it, and invite questions. Never pressure.

What does the IABS have to do with it?

The Information About Brokerage Services form still matters. TREC's FAQ says the buyer and seller must each receive it at the first substantive communication. The written agreement is a separate document. Read our guide on when to give the IABS.

What about representing both sides?

If you may end up acting as an intermediary, the rules get stricter. TREC says the buyer must sign a Buyer Representation Agreement or other written document that authorizes the broker to act as intermediary, and it must state the prohibited conduct under Section 1101.651(d) in conspicuous bold or underlined print. Study how intermediary works in Texas before your first dual situation.

What mistakes should new agents avoid?

Most problems come from skipping steps, not from bad intent.

• Showing a home first and planning to sign "later."
• Using an old form from before 2026.
• Leaving compensation blank or vague.
• Setting a showing-only agreement longer than 14 days.
• Promising a buyer a rate you have not cleared with your broker.
• Forgetting that the contract belongs to the broker, not you.

How The Bauer Group fits

The Bauer Group is a Frisco brokerage welcoming licensed DFW agents. Opportunities are earned, not guaranteed. If you want a calm conversation about how an office handles forms and training, you can start on the join page.

Education only, not legal, tax or financial advice. Confirm licensing rules with TREC and ask your broker or an attorney about your own forms. Last reviewed October 29, 2026.