Real Estate Salesperson · Texas: Agency and brokerage · 10 min read
Buyer agreements, duties to clients and broker supervision
- Identify statutory rules for showing residential real property, establishing buyer representation, and drafting required buyer agreements under Texas law.
- Explain statutory disclosures and fiduciary duties owed to clients and unrepresented parties, including title notice requirements and liability protections.
- Detail broker supervision mandates, operational timeframes, delegation rules, and licensing requirements for property activities in Texas.
Written Buyer Agreements and Showing Residential Property
In Texas, residential real property means a single-family house, a duplex, triplex, or quadraplex, or a unit in a multiunit residential structure in which title to an individual unit is transferred under a condominium or cooperative system (Tex. Occ. Code §1101.563(a)). A license holder who performs any act of real estate brokerage for a prospective buyer of residential real property must enter into a written agreement with the prospective buyer before showing any residential real property to that prospective buyer (Tex. Occ. Code §1101.563(b)(1)). If no residential real property will be shown, a license holder who performs an act of real estate brokerage for a prospective buyer of residential real property must enter into a written agreement before presenting an offer to purchase residential real property on the buyer's behalf (Tex. Occ. Code §1101.563(b)).
The required written agreement with a prospective buyer must state the services to be provided by the license holder, the termination date of the agreement, whether the agreement is exclusive or non-exclusive, and the amount or rate of compensation the broker will receive along with how this amount will be determined (Tex. Occ. Code §1101.563(c)(1)(A)-(C), (E)). The written agreement must also disclose in conspicuous language that broker compensation is not set by law and is fully negotiable (Tex. Occ. Code §1101.563(c)(2)). Furthermore, the agreement must state, as applicable, that the license holder represents the prospective buyer as the buyer's agent, or does not represent the prospective buyer as the buyer's agent if the only act being performed is showing real property under Section 1101.562 (Tex. Occ. Code §1101.563(c)(1)(D)).
A written agreement with a prospective buyer solely for showing real property under Section 1101.562 carries specific statutory restrictions. It may not be an exclusive agreement with the license holder (Tex. Occ. Code §1101.563(e)(1)), and it may not state a termination date more than fourteen days from the date the agreement is entered into (Tex. Occ. Code §1101.563(e)(2)). If additional real estate brokerage acts are to be provided after showing the property, a license holder who entered into an agreement solely for showing under Section 1101.562 must enter into a separate agreement (Tex. Occ. Code §1101.563(d)). For example, when sales agent Carlos meets buyer Maria to show a townhome without representation, Carlos must execute a non-exclusive showing agreement lasting no more than fourteen days before unlocking the door; if Maria later decides to write an offer, Carlos must execute a separate agreement before proceeding.
Common mistakes
- Believing a broker can directly supervise sales agents without writing down their scope of authorized activities; Texas law requires written notice of the authorized scope (22 TAC §535.2(a)).
- Assuming an unrepresented buyer showing agreement can last for months or grant exclusive rights; Section 1101.563(e) strictly limits showing-only agreements to non-exclusive status and a maximum duration of fourteen days.
- Thinking a sales agent can receive commission funds from a title company or client without the written consent of either the agent's sponsoring broker or the broker who sponsored the agent when the agent became entitled to the commission (22 TAC §535.3).
- Allowing unescorted rental property access without satisfying all requirements, including having the property owner sign a consent form featuring bold print in at least 12-point font (22 TAC §535.4(d)).
Key points
- A license holder performing a brokerage act for a prospective buyer of residential real property must enter into a written agreement before showing any residential real property or, if none will be shown, before presenting an offer to purchase residential real property on the buyer’s behalf; the agreement must conspicuously disclose that broker compensation is not set by law and is fully negotiable (Tex. Occ. Code §1101.563(b), (c)(2)).
- Showing agreements under Section 1101.562 cannot be exclusive, cannot exceed fourteen days in duration, and require a separate agreement if subsequent brokerage services are provided (Tex. Occ. Code §1101.563(d), (e)).
- A license holder must disclose existing representation orally or in writing at first contact with another party or a license holder representing another party; subject to statutory exceptions, the written notice in at least 10-point font is required at the first substantive communication with a party about a proposed transaction involving specific real property (Tex. Occ. Code §1101.558(b), (b-1), (c)).
- When an offer to purchase real estate is signed, license holders must advise buyers in writing to obtain an attorney abstract review or a title insurance policy (Tex. Occ. Code §1101.555).
- License holders have no duty to disclose deaths by natural causes, suicide, or accidents unrelated to property condition, or occupant HIV or AIDS status (Tex. Occ. Code §1101.556).
- Brokers must retain transaction records for at least four years, enforce coaching for a sales agent's first three activities of a given type, respond to sponsored agents within two calendar days, and forward TREC correspondence within three calendar days (22 TAC §535.2(h), (i)(5), (j), (k)).
- A license holder who leads, supervises, directs, or manages a team must be delegated as a supervisor in writing; the broker must notify TREC within 30 days of a delegation that has lasted or is anticipated to last more than three consecutive months and within 30 days after it ends; brokers and sales agents who supervise another license holder must attend a broker responsibility course of no more than six classroom hours during the license term (Tex. Occ. Code §1101.458; 22 TAC §535.2(e)).
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Original lesson written for Real Estate Salesperson practice · updated October 30, 2026. Exam names are trademarks of their owners; tests.global is not affiliated with them.