Texas SB 1968: New Written Buyer Agreement Requirements - What Brokers Must Know | Contre AI Blog

Effective January 1, 2026, Texas Senate Bill 1968 fundamentally changes how real estate professionals work with buyers. If you're a broker managing a team, this is your compliance moment.

The bill passed with near-unanimous support in both chambers of the Texas Legislature. It's not controversial—it's a modernization that eliminates the gray areas that have caused confusion for consumers and liability exposure for agents.

Here's what you need to implement before your agents show another property.

The Core Requirement

Before performing any act of real estate brokerage for a prospective buyer of residential property, agents must now have a written agreement in place. This includes showing property or making an offer on behalf of a buyer.

No more informal "quick looks." No more showing homes while the relationship remains undefined. The agreement comes first.

According to TREC's official guidance, license holders who show property or submit offers without the required agreements face disciplinary action, including potential suspension or revocation.

What the Agreement Must Include

Every written buyer agreement under SB 1968 must contain:

Services to be provided — What exactly will the agent do for this buyer?
Termination date — When does this agreement end?
Exclusivity status — Is this exclusive or non-exclusive?
Compensation terms — How and how much will the agent be paid?
Negotiability disclosure — A conspicuous statement that broker compensation is not set by law and is fully negotiable

The compensation disclosure requirement aligns with broader industry changes following the NAR settlement. Texas is codifying what's becoming standard practice nationwide.

Your Two Options

SB 1968 gives agents two paths for working with buyers. Understanding the difference is critical for compliance.

Option 1: Buyer Representation Agreement

This is the traditional approach most Texas agents know:

You represent the buyer's interests throughout the transaction
You provide advice and opinions on properties
You negotiate on their behalf
You perform full brokerage services
Agreement can be exclusive or non-exclusive
No time limit specified by law

This is what you use when you're actually representing a buyer.

Option 2: Showing Without Representation

SB 1968 introduces a new concept: agents can show property without entering into a representation relationship. But this option comes with strict constraints:

No oral or written agreement to represent the party can exist
You may not provide advice or opinions about the property
You may not provide advice about real estate transactions
You may not perform any other brokerage services during the showing
The buyer must receive appropriate disclosure about the lack of representation

Think of this as unlocking a door and nothing more. The moment you offer guidance, counsel, or transaction assistance, you've crossed into representation territory—and you need the written agreement to back it up.

The End of Subagency

SB 1968 repeals all references to subagency in Texas real estate law. This eliminates the confusing practice where a listing agent might assist an unrepresented buyer while technically representing the seller.

As Shawn Buck, 2026 president of the Greater Fort Worth Association of REALTORS, put it: "All parties will know clearly before you head into that relationship."

No more ambiguity about who represents whom. Every relationship must be documented in writing before substantive services begin.

What This Applies To

The written agreement requirement applies only to residential real property:

Single-family homes
Duplexes, triplexes, and quadplexes
Condominium units where title transfers to the buyer

It does not apply to:

Commercial property transactions
Raw land transactions
Seller representation (existing rules continue to apply)

Broker Responsibility Course Changes

SB 1968 also changes continuing education requirements. Starting January 1, 2026, the Broker Responsibility Course becomes mandatory for:

All new broker license applicants
Every broker license renewal
Existing delegated supervisors (continuing requirement)

This applies regardless of whether you sponsor agents. If you hold a broker license, you take the course.

TREC Complaint Notification

Here's a change that affects how you manage your team: TREC will now notify sponsoring brokers when their associated agents receive complaints.

The notification won't include specific complaint details—you'll need to contact your agent directly for that information. But you'll know when something's been filed, allowing you to address issues proactively rather than being blindsided later.

Action Items for Brokers

Get your house in order before January 1:

Update your buyer representation agreements — Ensure all agreements include required elements: services, termination date, exclusivity, compensation, and the negotiability disclosure
Create a showing-without-representation protocol — If your agents will use this option, establish clear guidelines for what they can and cannot do
Train your team — Every agent needs to understand both options and when each applies. The line between "showing only" and "representation" must be crystal clear
Update your procedures — Every showing requires documentation. Build this into your transaction workflows
Review your IABS forms — Updated Information About Brokerage Services forms take effect January 1, 2026. Ensure you're using current versions
Complete your Broker Responsibility Course — If your renewal is coming up, factor this requirement into your timeline

Why This Matters

For too long, the relationship between agents and prospective buyers existed in a gray area. Agents would show homes without clear documentation of who they represented or what services they were providing.

That ambiguity created confusion for consumers and liability risk for agents. SB 1968 eliminates that gray area entirely.

The brokerages that implement these requirements cleanly will build trust with consumers who increasingly expect transparency. The ones who treat it as a paperwork burden will find themselves explaining gaps in documentation when disputes arise.

The Bottom Line

SB 1968 isn't punitive—it's clarifying. Written agreements protect both consumers and agents by establishing expectations upfront. The elimination of subagency removes a source of confusion that has plagued the industry for decades.

Your agents can still show property without representation when appropriate. They can still provide full buyer representation services. They just need to document which path they're on before they start.

Get your agreements updated, train your team, and treat January 1 as your compliance deadline. The law is clear, the requirements are reasonable, and the enforcement mechanisms are real.

Need help tracking compliance across your transactions? Document intelligence tools can help ensure required agreements are in place before your agents take action—protecting both your team and your clients.