Texas law sets new real estate buyer agency agreement rules

"After January 1, licensees must enter into a written agreement with a prospective buyer before taking any substantive action. This means that while an agent could unlock the door to a property for a buyer without having a signed agreement, the agent cannot offer any advice or opinions on the property. If the buyer would like the agent to do more than just open the door to the property, they must enter into a signed agreement."

"According to the law, the agreement must outline the services the agent will provide, when the relationship ends, whether the agreement is exclusive or non-exclusive, how the agent will be compensated and a disclosure that commissions are negotiable and not set by law. Additionally, to perform any acts of brokerage such as drafting or negotiating an offer, even for a buyer they just opened doors for, they must have a written buyer agency agreement."

"Under the current version of the law, licensees are able to begin working with a client, including showing them properties and preparing offers without a signed buyer broker agreement. However, if an agent is a Realtor, under the terms of the National Association of Realtors' (NAR) commission lawsuit settlement agreement, that agent must have a signed buyer broker agreement before touring a home with a client."

After January 1, Texas licensees must enter into a written agreement with a prospective buyer before taking any substantive action. Agents may unlock a door for a buyer without a signed agreement but may not provide advice or opinions on the property unless a signed agreement exists. Buyer agency agreements must specify services provided, relationship end date, exclusivity status, compensation terms, and a disclosure that commissions are negotiable and not set by law. Performing brokerage acts such as drafting or negotiating offers requires a written buyer agency agreement. The bill was sponsored by state senator Charles Schwertner. Alabama enacted a law requiring agreements only before submitting offers, not before touring.

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