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 actually treated as a subagent of the seller’s broker rather than as the buyer’s representative.

Think about what that meant in practice. A buyer might tour several homes with an attentive real estate professional, share their budget, talk through priorities, and never realize that the person opening each door did not legally represent their interests at all. The license holder’s duties ran to the seller, not to the buyer sitting beside them in the car.

That gap made the old framework particularly risky. Friendliness and helpfulness during a showing did not create buyer representation, and buyers who assumed otherwise sometimes made themselves vulnerable before a negotiation ever started.

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 new 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 replace the old default with a more direct framework. A license holder may represent the buyer under a written representation agreement. Alternatively, the license holder may conduct a limited showing without representing the buyer, provided all legal requirements are satisfied.

Written agreements must now explain the relationship, services, duration, exclusivity, and compensation before the buyer receives significant brokerage services. No more discovering the arrangement after the fact.

Was Subagency Completely Eliminated in Texas?

You will hear people say Texas “eliminated subagency” on January 1, 2026. That statement is directionally correct for ordinary residential practice, but it benefits from one legal qualification.

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

TREC has cautioned, however, that subagency was not necessarily eliminated as a legal concept in every possible context. The circumstances in which it could still arise are limited, and TREC 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 they were receiving professional advice as a client or simply getting access to a property.

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. Instead of relying on unclear default relationships, the new framework puts the important terms in writing before anything significant happens.

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 subagency default with 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 identifies the services being provided and the terms governing the relationship.

A represented buyer may receive services that include property-search assistance, advice regarding price and strategy, offer preparation and negotiation help, and guidance through inspections, financing, and closing. The exact scope depends on the written agreement, so buyers should read it carefully before signing.

One detail worth noting: 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. Ask questions before you sign.

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, provided the statutory requirements are met.

A non-representation showing arrangement is intentionally limited. Under that framework, 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, listed price, and offered terms. That is where the service ends. The license holder cannot function as the buyer’s strategist or negotiator 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.

That agreement may be a buyer representation agreement or a qualifying non-representation agreement. So it is more accurate to say that Texas generally requires a written agreement before a residential showing rather than saying every buyer must commit to full representation before stepping inside a home.

The written agreement must address:

• 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. What the buyer should not do is assume the listing agent represents them.

The listing broker represents the seller unless a different legally permitted relationship is established. That agent’s loyalty runs to the seller. Before you discuss your maximum budget or how urgently you need to move, ask one direct question:

“Who do you represent in this transaction?”

Texas may permit intermediary relationships in certain transactions when the legal requirements are satisfied and the parties provide written consent. Intermediary is a separate concept from the former subagency framework, not a substitute for it.

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 at a busy weekend open house. Buyers should ask whether the 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, and explains the roles brokers and sales agents may have in a transaction.

The IABS notice is a disclosure. Receiving it does not mean you are represented. It does not appoint the broker as your agent. If you want representation, that requires a separate written agreement.

What Texas Buyers Should Do Now

The most important lesson from the 2026 changes is this: do not rely on assumptions about agency relationships. Here is a short checklist for any buyer entering the Texas market this year.

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. Confirm the scope of services. Will the broker only open doors, or will the broker also advise, prepare offers, negotiate, 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

Removing subagency references from the statute does not mean buyers automatically receive representation. It means the relationship should be established more clearly and in writing before meaningful brokerage services begin.

A non-represented buyer may be able to view a property under a limited written agreement. What that buyer cannot do is ask the showing license holder to evaluate the price, recommend an offer strategy, or flag risks in the contract. Those services require representation.

When you hire a buyer’s broker, the goal is not simply to gain access to listings. You are engaging someone whose job is to evaluate your choices, protect confidential information, structure an offer that fits your situation, and negotiate toward your objectives. Access to listings is a starting point, not the service itself.

How Robbie English, REALTOR 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 started.

Before we show you a property, we explain who we represent, which services are included in the agreement, whether the agreement is exclusive, how compensation works, and how long it lasts. We also walk through what you can expect at each stage of the transaction so you are not sorting through paperwork under deadline pressure.

Clear expectations up front create better working relationships and protect the confidential information you share with us. That is the point of the 2026 changes, and it reflects how we have operated all along.

Frequently Asked Questions About Subagency in Texas