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Texas · Occupations Code §1101.563Texas buyer agreement: required before showing (2026)

Since January 1, 2026, a Texas license holder who performs any brokerage act for a prospective buyer of a house, duplex to fourplex, condo or co-op unit must sign a written agreement with the buyer before showing any such property – or, if nothing will be shown, before presenting an offer (Occupations Code §1101.563). The agreement states the services, termination date, whether it is exclusive, whether the agent represents the buyer, and the compensation – and says in conspicuous language that broker compensation is not set by law and is fully negotiable.

What the law requires

  1. When (§1101.563(b))

    Before showing any residential property to the prospective buyer, or – if none will be shown – before presenting an offer on the buyer's behalf.

  2. Contents (§1101.563(c))

    The services to be provided; the termination date; exclusive or non-exclusive; whether the license holder represents the buyer or only shows property; the amount or rate of compensation and how it is determined; and a conspicuous statement that compensation is not set by law and is fully negotiable.

  3. Showing-only agreements (§1101.563(d)–(e))

    An agreement only to show property may not be exclusive and may not run more than 14 days; any further brokerage services need a separate agreement.

  4. Which property

    A single-family house; a duplex, triplex or quadraplex; or a condominium or cooperative unit.

What changes for a TC

  • The buyer agreement – with its date – belongs in the file before the first showing, not with the contract.
  • Check the termination date against the expected closing; a 14-day showing agreement does not cover the transaction.
  • Compensation in the contract (TREC 20-19 ¶12B) should match the buyer agreement.
  • The IABS notice still goes out at the first substantive communication.

Questions about the Texas buyer agreement

Is a buyer representation agreement required in Texas?

Yes, since January 1, 2026: before showing residential property to a prospective buyer, or before presenting an offer if nothing is shown (Occupations Code §1101.563).

What must a Texas buyer agreement include?

Services, termination date, exclusive or not, the representation status, the compensation amount or rate and how it is determined, and a conspicuous statement that compensation is negotiable.

Can a Texas agent show a home without representing the buyer?

Yes, under a non-exclusive written showing agreement of no more than 14 days; more services need a separate agreement.

Does the Texas buyer agreement apply to condos?

Yes – single-family houses, two- to four-unit buildings and condominium or cooperative units.

When did the Texas buyer agreement rule take effect?

January 1, 2026, under S.B. 1968 (2025).

Texas guides

Keep the signed buyer agreement with the deal documents in ClosingCode from day one – dated, before the first showing.

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Sources: Texas Occupations Code §1101.563 (added by S.B. 1968, eff. January 1, 2026) and §1101.558 (statutes.capitol.texas.gov, read October 24, 2026); TREC IABS 1-2.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage, and it is not affiliated with TREC.