Subagency in Texas After 2026: What Buyers Need to Know

What Was Subagency in Texas?

Subagency historically described an agency relationship in which one broker or license holder assisted another broker while owing agency duties to that broker’s client. In a traditional residential transaction, that could mean a license holder working with a buyer was treated as a subagent of the seller’s broker rather than as the buyer’s representative.

This created a major source of consumer confusion. A buyer might tour homes with a helpful real estate professional, discuss preferences, and ask questions without realizing that the license holder did not legally represent the buyer’s interests.

The old framework made it especially dangerous for buyers to assume that the person opening the door was automatically their agent. Friendliness, responsiveness, and assistance with a showing did not necessarily create buyer representation.

What Changed on January 1, 2026?

Senate Bill 1968 changed the Texas Real Estate License Act, commonly called TRELA. The law removed statutory references to subagency and added two important sections governing real property showings and written agreements with prospective buyers:

• Section 1101.562: Real Property Showings Without Representation
• Section 1101.563: Written Agreement Required

Together, these provisions create a more direct framework. A license holder may represent the buyer under a written representation agreement, or the license holder may conduct a limited showing without representing the buyer when all legal requirements are satisfied.

The law also requires written agreements before certain residential brokerage activities and requires those agreements to explain the relationship, services, duration, exclusivity, and compensation.

Was Subagency Completely Eliminated in Texas?

You may hear people say that Texas “eliminated subagency” on January 1, 2026. That statement is directionally correct when discussing ordinary Texas real estate brokerage practice, but it benefits from a legal qualification.

Texas removed references to subagency from TRELA, the statute governing real estate license holders. The updated Information About Brokerage Services notice also removed subagency language. As a result, subagency is no longer part of the statutory agency framework that Texas consumers and license holders ordinarily rely upon in residential transactions.

The Texas Real Estate Commission has cautioned, however, that subagency was not necessarily eliminated as a legal concept in every possible context. TREC states that the circumstances in which it could arise are now limited and recommends consulting a broker or attorney if a situation appears to involve subagency.

Why Did Texas Change the Law?

The central problem was clarity. Buyers often did not understand whom a license holder represented, what duties were owed, or whether the buyer was receiving advice as a client.

The legislative analysis for Senate Bill 1968 described the law as an effort to increase transparency between brokers and prospective buyers and to address imbalances associated with subagency. The new framework requires the parties to put important terms in writing instead of relying on assumptions or unclear default relationships.

The change gives buyers an opportunity to understand, before receiving significant brokerage services:

• Whether the license holder represents the buyer
• Which services the broker will provide
• How long the relationship will last
• Whether the agreement is exclusive
• How the broker may be compensated
• How the agreement may be terminated

What Replaced Subagency in Texas?

The 2026 system replaces the old default subagency discussion with clearer written choices. In most residential buyer situations, the relevant relationship will be one of the following:

This framework does not mean every person who opens a property automatically becomes the buyer’s agent. It means the relationship should be identified in a written agreement before the showing when Texas law requires one.

Buyer Representation After January 1, 2026

Under buyer representation, the broker and buyer enter into a written agreement establishing that the broker represents the buyer. The agreement should identify the services being provided and the terms governing the relationship.

A represented buyer may receive services that can include:

• Property-search assistance
• Advice regarding price, condition, terms, and strategy
• Offer preparation and presentation
• Negotiation assistance
• Guidance concerning inspections, financing, appraisal, and closing
• Confidential handling of information subject to applicable duties and law

The exact services depend on the written agreement. Buyers should read it carefully and ask questions before signing.

A buyer representation agreement is a contract with the broker, not merely with the individual sales agent. It may be exclusive or non-exclusive, and compensation must be stated in an objectively ascertainable manner.

Can a License Holder Show Property Without Representing the Buyer?

Yes. Texas law now expressly permits a license holder to show real property without representing the prospective buyer or tenant when the statutory requirements are met.

A non-representation showing arrangement is intentionally limited. The license holder:

• Must not have agreed to represent the buyer, orally or in writing
• Must not otherwise be acting as the buyer’s agent
• May not provide opinions or advice about the property or real estate transactions generally
• May not perform other brokerage services for the buyer
• Must disclose if the license holder represents the owner
• Must provide the Information About Brokerage Services notice when required

The license holder may provide limited factual information such as the property’s size, price, and offered terms. But the license holder cannot function as the buyer’s strategist, negotiator, or advisor under a showing-only non-representation agreement.

For residential buyers, a non-representation agreement must be in writing, non-exclusive, and have a termination date no more than 14 days after the agreement begins.

When Is a Written Agreement Required Before Showing a Home?

A Texas license holder working with a prospective buyer of residential real property must generally enter into an appropriate written agreement with the buyer before:

• Showing residential real property to the buyer; or
• Presenting an offer to purchase residential real property for the buyer when no property will be shown.

The written agreement may be a buyer representation agreement or a qualifying non-representation agreement. Therefore, it is more accurate to say that Texas generally requires a written agreement before a residential showing—not that every buyer must enter into full buyer representation before viewing a property.

The written agreement must address matters including:

• The services the license holder will provide
• The agreement’s termination date
• Whether the agreement is exclusive or non-exclusive
• Whether the broker represents the buyer
• The broker’s compensation or how it will be determined
• A conspicuous disclosure that broker compensation is not set by law and is negotiable

For a deeper explanation, read:

Is a Buyer Agreement Required Before Showing a Home in Texas?

Can a Buyer Work Directly With the Listing Agent?

A buyer may contact the listing agent and may view a listed property through the seller’s brokerage. But the buyer should not assume that the listing agent represents the buyer.

The listing broker represents the seller unless a different legally permitted relationship is established. A seller’s agent may provide information about the property, communicate the seller’s instructions, and perform duties connected with the listing. That agent’s loyalty, however, is owed to the seller.

Texas may permit intermediary relationships in certain transactions when the legal requirements are satisfied and the parties provide written consent. Intermediary is not the same thing as the former subagency framework.

Buyers should ask one direct question before discussing negotiating strategy or financial limits:

“Who do you represent in this transaction?”

Do the Written-Agreement Rules Apply at Open Houses?

The answer depends on who is hosting the open house.

Open House Hosted by the Listing Brokerage

When the host is affiliated with the brokerage holding the listing, the host does not generally need to enter into a written agreement with each visitor merely to allow entry. The host must disclose that the host represents the owner.

Open House Hosted by an Outside Brokerage

When the host is not affiliated with the listing brokerage and does not represent the seller, the host may need to provide the IABS notice and enter into a qualifying written agreement before showing the property to a prospective buyer.

This distinction is easy to miss. Buyers should ask whether the open-house host represents the seller, represents the buyer, or is conducting the showing without representation.

How Did the Information About Brokerage Services Form Change?

The Texas Real Estate Commission updated the Information About Brokerage Services form, commonly called the IABS notice, for use beginning January 1, 2026.

The revised form:

• Removes references to subagency
• Reflects the new non-representation status
• Reflects the written-agreement requirements
• Explains the roles brokers and sales agents may have in a transaction

The IABS notice is a disclosure. It is not itself a buyer representation agreement and does not, by itself, appoint the broker as the buyer’s representative.

What Texas Buyers Should Do Now

The most important lesson from the 2026 changes is simple: do not rely on assumptions about agency relationships.

1. Ask who the license holder represents.
   Do this before sharing your maximum price, urgency, motivation, or negotiating strategy.
2. Read the written agreement.
   Determine whether it creates representation or permits only a showing without representation.
3. Review the scope of services.
   Confirm whether the broker will only show property or will also advise, negotiate, prepare offers, and assist through closing.
4. Review exclusivity and duration.
   Understand whether you may work with another broker and when the agreement ends.
5. Understand compensation.
   Broker compensation is negotiable and should be clearly described in the agreement.
6. Keep copies.
   Retain the agreement and any related disclosures for your records.

Why Representation Still Matters Even Though Subagency Was Removed

Eliminating subagency references does not mean buyers automatically receive representation. It means the relationship should be established more clearly.

A non-represented buyer may be able to view a property under a limited written agreement, but the showing license holder cannot provide the same advice, advocacy, or negotiation services that a buyer’s representative may provide.

When you hire a buyer’s broker, the goal is not merely to gain access to listings. It is to engage a professional who can help you evaluate choices, protect confidential information, structure an offer, manage risk, and negotiate in pursuit of your objectives.

How Uncommon Realty Approaches Buyer Representation

At Uncommon Realty, we believe buyers should understand the agency relationship before touring homes—not discover it after a negotiation has already begun.

We explain:

• Who the broker represents
• Which services are included
• Whether the agreement is exclusive
• How compensation works
• How long the agreement lasts
• What the buyer may expect throughout the transaction

Clear expectations create better working relationships and allow buyers to make informed decisions before sharing confidential information or committing to a property.

Frequently Asked Questions About Subagency in Texas