New Texas Buyer-Agent Rules: What Austin Buyers Sign in 2026
Since January 1, 2026, Texas real estate agents cannot show you a home until you sign a written buyer representation agreement. That is the core of Senate Bill 1968, passed by the 89th Texas Legislature and covered in detail by Texas Realtors and HousingWire. This is the first full summer buying season under the new law, and plenty of Austin buyers are seeing the paperwork for the first time at the worst possible moment: standing on a porch, ready to tour, with a form on a clipboard. The agreement itself is short. What you agree to inside it can shape your negotiation, your closing costs, and even your mortgage math. Here is a practical checklist for reading it before you sign.
Key points:
- SB 1968 took effect January 1, 2026. A written buyer agreement is required before an agent shows you any residential property, or before they submit an offer for you if no showing happens.
- Commissions are negotiable by law. The agreement must say so, and it must state the compensation amount or formula in writing.
- Many Texas agreements now run short and non-exclusive, often around two weeks, so you are rarely stuck for months.
- Subagency is gone. A listing agent can no longer quietly represent you as an unrepresented buyer.
- An agent may still unlock a door without a signed agreement, but they cannot advise you, give opinions, or negotiate for you.
- In August 2026 Austin remains a buyer-leaning market (5.9 months of supply per Team Price Research, August 7, 2026), which strengthens your position when negotiating agreement terms.
What changed under SB 1968 on January 1, 2026?
SB 1968 rewrote part of the Texas Real Estate License Act. As of January 1, 2026, a license holder performing any act of real estate brokerage for a buyer must first put the relationship in writing: services provided, termination date, whether it is exclusive, and how the agent gets paid, including a disclosure that commissions are negotiable and not set by law. The law also eliminated subagency, the old practice where a listing agent could represent an otherwise unrepresented buyer.
Before 2026, a buyer could tour homes for weeks with an agent on a handshake. Compensation lived mostly in the background, set through the listing side. Now the conversation happens up front, on paper, before the first showing.
Do you have to sign a buyer agreement before touring a home in Texas?
Yes, with a narrow exception. Under SB 1968, an agent must have a signed written agreement with you before showing you a residential property. An agent may still physically unlock a door and let you walk through without one, but they cannot provide advice, share opinions about the property, or negotiate an offer on your behalf until the agreement is signed. If you want an agent actually working for you, the paperwork comes first.
That does not mean you should sign whatever is handed to you in a driveway. The law sets minimum contents for the agreement. It does not set the terms. Those are yours to negotiate.
The 7-point checklist before you sign
Read the agreement against this list. Every item is negotiable.
- Term length. Many Texas buyer agreements now run about two weeks on a non-exclusive basis, and tour-only versions can cover a single day or a single property. If the form in front of you says six months, ask why. Shorter first terms protect you while you evaluate the agent.
- Exclusive or non-exclusive. The agreement must state which one it is. Exclusive means that agent earns compensation on any home you buy during the term, even one you find yourself. Non-exclusive lets you work with more than one agent. Start non-exclusive if you are unsure.
- Compensation amount and structure. The number must be in writing: a percentage, a flat fee, or an hourly structure. The agreement must also disclose that commissions are negotiable and not set by law. If an agent tells you their fee is “standard,” that word does not appear anywhere in the statute.
- Services listed. The agreement must describe what the agent will do: showings, market analysis, preparing and submitting offers, negotiation. Vague service language plus a firm compensation number is a bad trade. Ask for specifics.
- Termination rights. Look for how you exit early if the relationship is not working, whether notice must be written, and whether any protection period survives termination (a clause that pays the agent if you later buy a home they showed you). A protection period of a few weeks is common; a protection period longer than the agreement itself deserves a question.
- Scope of the agreement. Some forms cover one property, some cover a defined area, some cover any residential purchase. Match the scope to reality. If you are only touring one Mueller condo, you can sign a one-property agreement for it.
- How compensation gets paid at closing. This is the item most buyers skip and the one that touches your mortgage. The agreement states what you owe your agent. Whether the seller covers it depends on your contract negotiation. The gap between those two numbers, if any, comes out of your cash at closing.
Before and after: how the rules compare
| Topic | Before January 1, 2026 | Under SB 1968 |
|---|---|---|
| When you sign | Often never, or at offer time | Before any showing, or before an offer if no showing |
| Compensation terms | Frequently unwritten on the buyer side | Stated in writing, with a negotiability disclosure |
| Subagency | Listing agent could represent an unrepresented buyer | Eliminated |
| Touring without an agreement | Routine | Door can be unlocked, but no advice or negotiation |
| Typical term | Open-ended or months-long | Often short and non-exclusive, around two weeks |
How do the new rules affect your mortgage and closing costs?
The agreement can change your cash-to-close. If your contract negotiation ends with the seller covering your agent’s full compensation, your mortgage math looks like it did before the law. If you agree to pay part of it yourself, that amount is due at closing alongside your down payment and closing costs, and your lender will verify you have the funds. A $10,000 compensation gap on a $435,000 purchase needs to show up in your asset documentation just like any other closing cost.
Two practical notes. First, seller-paid agent compensation is handled separately from seller concessions toward your closing costs, so a seller can do both; how much concession room you have depends on your loan type and down payment. Second, Austin conditions favor asking. Team Price Research reported on August 7, 2026 that the Austin metro had 5.9 months of supply, a median sold price of $435,000, and price cuts on 55.35% of active listings. Sellers competing in that market routinely negotiate on compensation and concessions. Our Austin housing market page tracks those numbers as they update.
At Mortgage Austin we suggest getting pre-approved before you sign with an agent, for a simple reason: the agreement asks you to commit to a compensation structure, and you can only judge what you can absorb at closing once you know your full budget. Pre-approval also tells you how much concession room your loan type allows, which shapes what you ask the seller to cover. From there, the path from signed agreement to keys follows the same 30-day contract-to-close timeline it always has.
What about builder model homes and open houses?
You can walk into a builder’s model home or a public open house without signing anything, because the salesperson there is not acting as your agent. That is the point to stay alert on. With subagency eliminated, the person greeting you represents the builder or the seller, full stop. Anything you tell them about your budget or timeline is information for the other side.
If you want your own representation on a new build, sign your buyer agreement first and bring your agent on the first visit; many builders require the agent to register with you at the door. Builder deals also bundle incentives tied to their preferred lender, which deserve a side-by-side quote comparison before you accept. We covered that math in our guide to builder incentives in Austin.
Frequently Asked Questions
Do I have to sign an agreement just to see a house in Texas?
Yes, if you want an agent to show it to you. Since January 1, 2026, Texas law requires a written buyer agreement before an agent shows you a residential property. An agent may unlock a door without one, but cannot advise you or negotiate for you. Tour-only agreements covering a single day or property are a common low-commitment option.
Can I negotiate the buyer agent commission in Texas?
Yes. The agreement must disclose that commissions are negotiable and not set by law. You can negotiate the amount, the structure (percentage, flat fee, or hourly), the term length, and the scope. Agents can decline your terms, but no rule fixes the number.
What happens if I want to switch agents?
Check your termination clause. Non-exclusive agreements let you work with other agents immediately, and short terms of around two weeks expire on their own. Watch for a protection period, which can owe your former agent compensation if you buy a home they showed you within a set window after termination.
Does the seller still pay my agent’s commission?
Often, but it is negotiated deal by deal rather than assumed. Your agreement states what you owe your agent; your purchase contract determines what the seller covers. In the current Austin market, with 5.9 months of supply as of August 7, 2026 per Team Price Research, sellers frequently agree to cover buyer-agent compensation. Any gap comes out of your funds at closing.
Do I need a buyer agreement to visit a builder’s model home?
No. You can visit a model home or open house without signing anything, because the on-site salesperson represents the builder or seller, not you. If you want your own representation on a new build, sign with your agent first and bring them on the initial visit, since many builders require registration at the door.
Should I get pre-approved before or after signing with an agent?
Before, ideally. Pre-approval defines your full budget, including the cash you could absorb at closing if a compensation gap lands on your side. It also shows how much room your loan type leaves for seller concessions, subject to credit, income, and property qualification. That makes the agreement’s compensation terms much easier to evaluate.
Reading a buyer representation agreement for the first time is a fifteen-minute job, and it is worth doing before the porch moment. If you want a second set of eyes on how the compensation terms interact with your loan budget, schedule a discovery call and we’ll walk through your options together, no pressure, no commitment, just clarity.
Ferrando Financial LLC | NMLS# 2403080 | Licensed in Texas. This content is for educational purposes only and does not constitute a commitment to lend. Loan approval is subject to credit, income, and property qualification. This article is general information about Texas law, not legal advice; consult a real estate attorney about your specific agreement. Market figures are illustrative, not a quote. Sources: Texas SB 1968 (89th Legislature, effective January 1, 2026), Texas Realtors agency-law explainer (2026), HousingWire (2026), Team Price Research (August 7, 2026).
