Significant changes to The Real Estate License Act (TRELA) will take effect in Texas starting January 1, 2026, impacting how real estate license holders work with buyers and tenants. The changes, which were enacted during the 89th Texas Legislative Session, introduce new requirements for written agreements when representing residential buyers and clarify circumstances where non-representation is permitted.
Two new sections have been added to TRELA: Section 1101.562, covering property showings without representation, and Section 1101.563, mandating written agreements for certain activities. Under these provisions, license holders can now use a written non-representation agreement solely for the purpose of showing property. They may show residential, farm and ranch, or commercial properties to a buyer or tenant without formal representation if specific requirements are met.
These requirements state that the license holder must not have agreed to represent the buyer or tenant in any form and cannot provide advice or opinions regarding the property or real estate transactions. Additionally, they are prohibited from performing other brokerage services for the buyer or tenant. If representing the owner of the property, this must be disclosed; otherwise, license holders must provide the Information About Brokerage Services (IABS) form to prospective buyers or tenants before showing a property.
The law also mandates that information shared under these circumstances is limited to factual details about size, price, and terms of sale or lease.
A major update is that written agreements are now required before working with prospective residential buyers on brokerage activities such as showing properties or presenting offers. This requirement does not extend to commercial purchasers or residential/commercial tenants. Written agreements can either be for non-representation showings only—complying with both new sections—or traditional representation arrangements.
Representation agreements may limit broker services but cannot waive minimum duties owed to clients as established by TREC rules and law. All written agreements must specify provided services, include a termination date (with non-representation agreements limited to 14 days), indicate exclusivity status (non-representation must be non-exclusive), clarify whether the agent represents the buyer or not in non-representation cases, disclose compensation details including negotiability of broker fees.
According to officials behind these legislative changes: “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.”
Open house procedures have also changed depending on whether an agent is affiliated with the listing brokerage. Agents hosting open houses who are part of the listing broker’s office do not need separate IABS forms nor additional written agreements with visiting buyers but must disclose their representation status as required by existing regulations.
For agents outside of the listing brokerage who do not represent the seller but host an open house—as showing agents—they must provide both an IABS form and enter into a written agreement with any prospective buyer before allowing them access beyond greeting at entry.
If a potential buyer refuses to sign such an agreement at an open house hosted by an external agent: “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 risk disciplinary action if they fail to comply with these requirements.
Brokers retain discretion over policies regarding agents hosting open houses on behalf of other brokerages.
Additionally, references relating specifically to subagency have been removed from TRELA following this legislative session. While subagency remains possible under general legal principles in Texas real estate practice situations involving potential subagency should prompt consultation with brokers or legal counsel.
These measures aim at increasing transparency between consumers and real estate professionals while reducing ambiguity regarding agency relationships within Texas real estate transactions.
