01/07/2026 | Press release | Distributed by Public on 01/07/2026 14:49
Legislation passed during the 89th Texas Legislative Session changed The Real Estate License Act (TRELA) to require written agreements for buyer representation. Changes also allow for a non-representation status in certain instances to show property, among other updates. Here's what these changes mean for Texas real estate license holders as of January 1.
While these two sections are separate, they go together and should be read together.
A license holder may use a written non-representation agreement for the sole purpose of showing property.
Under 1101.562, a license holder may show property (including residential, farm and ranch, and commercial) to a buyer or tenant without representing the buyer or tenant if the requirements in 1101.562-and additionally, 1101.563 for residential buyers-are met.
If a license holder shows real property under 1101.562 without representing the party, there are limitations on the information the license holder may provide to the party. However, 1101.562 allows a license holder to provide information to the party regarding the size, price, and terms of the real property available for sale or lease.
The change in Texas law under 1101.563 now mandates written agreements related to brokerage activities performed for prospective buyers of residential property.
The written agreement requirement does not apply to commercial purchasers or residential/commercial tenants.
A license holder working with a prospective buyer of residential real property must enter into a written agreement with the prospective buyer before:
The written agreements required by 1101.563 can take two forms:
Representation agreements also can limit the services a broker agrees to provide to prospective buyers-such as limiting their services to showing only-but they cannot waive the minimum duties owed to clients which are provided by existing TREC rules and law.
The intent behind this change was to help protect consumers by requiring use of written agreements that clearly outline the obligations the license holder and prospective buyer owe to each other.
There are two scenarios for the agent hosting an open house:
When the agent hosting an open house is a member of a listing broker's office (e.g., a sales agent at the brokerage holding the listing), the agent does not need to provide the IABS or enter into a written agreement with prospective buyers.
The agent will need to disclose he or she represents the owner either orally or in writing as required by 1101.558(b).
When the agent hosting an open house is not a member of the listing broker's office and does not represent the seller (e.g., a showing agent), the agent must:
This is true even when a prospective buyer has a written representation agreement with another broker.
By law, the IABS must be provided and agreement entered into before the showing. In practical terms, what this means for an open house is that ideally, the agreement should be presented and entered into before the buyer enters the property, but at the very least before the buyer starts viewing the property (e.g., the agent greets the prospective buyer near the door).
If a buyer refuses to sign the agreement, then the agent cannot show the property, meaning a consumer cannot view the open house. License holders can face disciplinary action if they fail to enter into a written agreement as required by state law under 1101.563.
Ultimately, brokers can decide whether to allow agents to host open houses for another brokerage. Brokers could create policies and procedures that outline this.
Two references to subagency were removed from TRELA. This means the circumstances in which subagency could arise in your real estate practice are limited. However, subagency has not been eliminated generally as a legal concept. If you are in a situation where it seems subagency may be involved, contact your broker and/or attorney.