New laws that go into effect January 1, 2026
Several important real estate-related laws take effect on January 1, 2026, and they will change how agents work with buyers, host open houses and handle certain property management tasks. Here’s a quick, REALTOR®-friendly overview of what’s coming.
Subagency is Going Away (SB 1968)
Starting January 1, subagency will no longer be permitted in any type of transaction—residential, commercial, land, ranch, or otherwise.
For years, subagency created confusion because many buyers didn’t realize a “subagent” actually represented the seller. According to Texas REALTORS®, eliminating subagency gives consumers clearer guidance on who represents them and helps prevent misunderstandings.
What You Can Still Do Without Representation
You may show property to a prospective buyer without representing them as long as:
- You haven’t agreed—verbally or in writing—to represent them
- You aren’t acting as their agent during the showing
- You don’t offer opinions or advice
- You perform no other brokerage activity beyond access
- You provide all required disclosures, including the IABS, before the showing
- You may confirm factual details such as the price, size, and basic terms of the property.
Written Buyer Agreements Will Be Required
Another major change: You must have a written agreement with any prospective residential buyer before you show them a property.
If there’s no showing, the agreement must be signed before submitting an offer.
This agreement can be:
- A full buyer representation agreement, or
- A non-exclusive showing-only agreement if access is the only service you’re providing
Every buyer agreement must include:
- What services you’re providing
- The agreement’s termination date
- Whether it’s exclusive or non-exclusive
- Whether you represent the buyer as their agent
- How broker compensation works and how it’s determined
- A clear statement that compensation is negotiable and not set by law
Showing-Only Agreements
- Cannot be exclusive
- Cannot last more than 14 days
- Must be replaced with a representation agreement if the buyer wants additional brokerage services
Open Houses for Other Brokerages’ Listings
If you’re hosting an open house for a listing that your brokerage does not represent, you must have a written agreement with anyone who enters the property.
A simple, non-exclusive sign-in form with showing-only language at the door is sufficient.
Eviction Procedures Updated (SB 38)
Property managers take note: A new law streamlines the eviction timeline and allows eviction notices to be delivered by email or other electronic means, helping reduce delays.
What This Means for Your Business
These changes are designed to bring more transparency to the buying process and ensure consumers clearly understand who represents them. REALTORS® will need to update their workflows, forms and open-house procedures before January 1.
If you have any questions about these new laws, contact the HAR Governmental Affairs and Advocacy team at govtaffairs@har.com.
