By Kaema Roberson, Vice President – Director of Education
Before the holiday lights come down, the ornaments go back in their boxes, and your Christmas tree officially becomes mulch, Texas real estate has one more thing to unwrap. While everyone else is focused on fresh starts and New Year’s resolutions, a significant update to Texas real estate agency law quietly takes effect on January 1. And unlike that gym membership you might forget about by February, this is one change you can’t afford to ignore.
Effective January 1, 2026, updates to Texas real estate agency law modernize how buyer relationships are established and documented.
A written agreement is required before a real estate agent may show residential property.
- No exceptions for “just one quick showing.”
- No waiting until the offer is written.
- And no “we’ll handle the paperwork later.”
Let’s break down what this means, which forms agents will be using, and how this change can actually make buyer conversations easier, not harder.
First Things First: Always Check with Your Broker
A critical reminder before diving in:
Texas real estate agents operate under a sponsoring broker and must follow their brokerage’s policies and procedures.
This article is intended for general informational purposes only. How these requirements are implemented may vary by brokerage.
- Sales agents: Your broker is your primary source for guidance on which forms to use and how to use them.
- Brokers: Texas REALTORS® and TREC remain the best sources for official rules, forms, and compliance guidance.
When in doubt, pause and ask. Brokerage policy and TREC legal compliance guidance always come first.
The Law Change in Plain English
Beginning January 1, 2026, Texas law requires:
- A written agreement with a prospective buyer
- Before showing residential property, or
- Before submitting an offer, if no showing takes place
The agreement can be either a full representation agreement or a showing-only agreement if that is the only service being provided. (See TRELA sections 1101.562 and 1101.563)
Simply put:
If you’re opening the door, the paperwork comes first.
Subagency Is Officially Eliminated
Another major update: subagency has been eliminated in all Texas real estate transactions, residential, commercial, land, and farm & ranch.
This change removes long-standing confusion and provides:
- Clearer consumer understanding
- Clearer agent responsibilities
- Reduced risk of unintended representation
It’s a simplification most agents will appreciate. The Information about Brokerage Services form has been updated to reflect this change. Make sure you are using the most current version that goes into effect on January 1st, 2026. Here is a link to the form on the TREC website.
https://www.trec.texas.gov/forms/information-about-brokerage-services
The Forms Going Forward: Three Possible Paths
Under the new law, buyer interactions will generally fall into one of three form options, depending on the brokerage and the level of service being provided.
Option 1: TXR 1501 – Residential Buyer/Tenant Representation Agreement
This is the full buyer representation agreement.
Use TXR 1501 when:
- You are representing the buyer or tenant
- You are providing advice, negotiation, or brokerage services
- Compensation is expected for those services
TXR 1501 establishes a true agency relationship and clearly outlines:
- Scope of services
- Term of the agreement
- Exclusivity
- Compensation terms
- Agency duties and disclosures
This form meets the new statutory requirements and will continue to be the primary representation agreement used by many Texas REALTORS® brokerages.
Option 2: TXR 1508 – Unrepresented Customer Showing Form (New Form!!!)
The TXR 1508 Unrepresented Customer Showing Form is new and serves a very specific purpose.
TXR 1508 does not create representation.
Instead, it allows a broker or agent to legally show property without representing the buyer when the only service being provided is access to the property.
TXR 1508:
- Confirms no representation and no exclusivity
- Limits services strictly to showing the property
- Prohibits advice or opinions
- Provides no compensation
- Automatically expires after the showing or after 14 days if no showing takes place.
Think of this form as a compliance tool, not a relationship-building document.
If the buyer wants advice, negotiation, or representation at any point, a separate representation agreement must be executed first. (Such as form TXR 1501 or 1507.)
Note: If the customer wants you to find other properties to view, that is a representation activity.
To help you remember how to utilize form 1508 you can use these easy-to-repeat mantras:
- “I can open the door, and nothing more!”
- “Facts are fine, but opinions are out of line.”
- “No agency, No strategy!”
Option 3: Brokerage-Created Buyer Agreements
Some brokerages may choose to draft and use their own buyer agreements that meet the new legal requirements rather than relying exclusively on Texas REALTORS® forms.
This is another reason it is so important for agents to:
- Understand their brokerage’s policies
- Use only broker-approved forms
- Avoid assuming that one form fits every situation
Whether your brokerage uses TXR forms, custom forms, or a combination of both, broker direction is a priority.
A Hidden Win: Easier Buyer Conversations
Let’s look at the bright side of change! It brings new opportunities and transparency.
This will actually make the representation conversation with buyers much easier.
Instead of saying:
“My broker needs you to sign this before we can move forward…”
Agents can now confidently say:
“Texas law requires a written agreement before I can show you property. Let’s walk through your options so you can decide what works best for you.”
That small shift:
- Removes awkwardness
- Adds credibility
- Sets clear expectations from the start
- Positions the conversation as informative rather than sales-driven
Clarity benefits everyone. Relationships can lead to representation.
A Quick Note on Open Houses
If you host an open house for a property not listed with your brokerage, the law now requires a written agreement with anyone who views the property. This can be handled at the open house before viewing.
Brokerages will vary on how this is handled, so agents should always follow their broker’s procedures for open houses under the new law.
Final Thoughts
January is upon us! Agents and brokers who prepare now by understanding the law, reviewing approved forms, and aligning with brokerage policies will transition smoothly.
- Agents: Follow your broker’s guidance.
- Brokers: Stay connected with Texas REALTORS® and TREC for updates.
- Everyone: Embrace the clarity this change brings.
Clear agreements lead to clearer relationships, and that’s good business for everyone.
