New Law Changes the Rules for Real Estate Agents Representing Buyers in Texas

By Trey Wilson, San Antonio Real Estate Attorney and Texas Water Lawyer

 

Starting January 1, 2026, a new Texas law—Senate Bill 1968—will significantly change the way real estate agents interact with buyers. This bill, passed with near-unanimous support in both chambers of the Texas Legislature, modernizes the Texas Real Estate License Act by revising the requirements for buyer representation and agency disclosure.

What’s Changing for Real Estate Agents Who Represent Buyers?

Under current law, many real estate agents informally begin working with buyers—showing homes, giving advice, and preparing offers—without a formal written agreement. SB 1968 ends that practice.

Going forward, agents must enter into a written agreement with a prospective buyer before taking any substantive action.

Here’s what the new law requires:

• No more property showings without a signed agreement—unless the agent is providing no advice or opinions and merely giving access to the property.
• Written buyer representation agreements are mandatory before:
  • Showing a home to a buyer, or
  • Submitting an offer on behalf of a buyer (even if no property was shown).
• These agreements must include:
  • The services the agent will provide
  • The termination date of the agreement
  • Whether the agreement is exclusive or non-exclusive
  • Compensation terms and disclosure that commissions are negotiable and not set by law

This represents a major departure from the old norm, where buyer’s representation often formed implicitly or after the fact. SB 1968 codifies a clear, up-front commitment between agent and client.  In my opinion, this will protect buyers and also limit the instances where buyer’s agents spend their time and energy showing properties only to get rebuffed when they later ask a buyer to sign a Buyer’s Representation Agreement.

What If a Buyer Doesn’t Want to Commit Yet?

That’s exactly the issue SB 1968 addresses. The bill authorizes a new concept: showings without representation. A real estate licensee can now show property without entering into an agency relationship, as long as they do not give advice or opinions.

This creates a new “neutral” space where agents can unlock a door but must refrain from providing guidance.  From my perspective, this is not a space that a buyer’s agent wants to occupy. If a buyer is serious and wants the benefits of a broker’s services, they should be willing to pull the trigger and engage full representation. Anything less leaves the agent susceptible to wasted time and energy.

Notwithstanding the new scheme for “showing only” services, the broker still must:

• Provide written notice under Section 1101.558(b-1) (commonly known as the “Information About Brokerage Services” notice), and
• Not perform any other act of brokerage—such as drafting, negotiating, or suggesting offer strategies.

For licensees, this means keeping their hands in their pockets—figuratively speaking—during the showing unless there’s a signed agreement. For brokers and teams, this change will demand new workflows, training, and compliance monitoring.

Why These Changes Matter

The bill’s sponsor, Senator Charles Schwertner, cited consumer confusion and hesitation as a motivating factor. Buyers want to see properties but often aren’t ready to commit to a specific agent. This law gives both agents and consumers clear boundaries and greater transparency.

It also provides new enforcement tools for the Texas Real Estate Commission (TREC). Agents who show property or submit offers without the required agreements could face disciplinary action, including suspension or revocation of their licenses under amended Section 1101.652.

Who This Affects

The new written agreement rule applies only to residential real property—defined as single-family homes, duplexes, triplexes, quadplexes, and condo units where title transfers to the buyer. It does not apply to land-only transactions or commercial real estate. But those sectors may be next in line for regulatory scrutiny.

What Texas Brokers and Agents Should Do Now

• Review and revise your buyer representation agreements to comply with SB 1968.
• Train agents on what they can and cannot do during non-representational showings.
• Update your IABS delivery procedures to ensure timely and compliant notice before any property showing or substantive conversation.
• Stay alert for future TREC rulemaking on this law. Rulemaking is authorized in several sections and may affect form content and delivery methods.

Final Thought

This isn’t just a paperwork shift—it’s a philosophical one. SB 1968 moves Texas real estate brokerage further in the direction of consumer disclosure, contractual clarity, and upfront transparency. For agents who are professional, organized, and client-focused, this law should pose no threat. For the rest, it’s time to get compliant or get out.

If you’re a buyer, agent, or broker trying to navigate these changes—or you need help enforcing or interpreting a buyer’s representation agreement—feel free to reach out. These are the kinds of issues I handle every day as a real estate attorney in San Antonio.

– Trey Wilson,
Trey Wilson, San Antonio Real Estate Attorney and Texas Water Lawyer