ExactCircle

Texas SB 1968: what you need signed before a showing

6 min read

The 89th Texas Legislature passed Senate Bill 1968, which amended the Real Estate License Act and took effect on January 1, 2026. It changed the order of operations for every Texas agent working with a buyer: paperwork first, then the showing.

What the law requires

A license holder performing any act of real estate brokerage has to enter into a written agreement with the buyer before showing any residential property. If no property is going to be shown, the agreement has to be in place before you make an offer to purchase on the buyer's behalf.

The part most summaries get wrong

The agreement SB 1968 requires is not necessarily a buyer representation agreement. It can be, if the broker and the client want that. But a non-representation showing agreement also satisfies the law, as long as showing the property is the only brokerage service being performed and the agent gives no advice or opinions along the way.

That distinction matters in practice. An agent opening a door for someone they met an hour ago needs a different piece of paper from the one they need for a buyer they are going to advise, negotiate for, and take to closing. Texas REALTORS publishes separate forms for each. We walk through which is which in the guide to TXR 1501 and TXR 1508.

What happens if you skip it

Showing a property without the required written agreement is grounds for discipline under Section 1101.652 of the Occupations Code. That section runs up to suspension or revocation of a license. It is not a parking ticket.

The termination date is the part that bites later

Compensation and exclusivity get attention because they are negotiated. The termination date usually does not, because it is a box someone fills in and forgets. That is the field that quietly decides whether you are still the buyer's agent in March.

An agreement that has run out does not announce itself. The buyer keeps texting you, you keep sending listings, and the document that connects your work to your commission expired weeks ago. If the buyer writes an offer in that window, you are relying on goodwill instead of a contract.

  • Record the termination date the day the agreement is signed, not the week you need it.
  • Set a reminder well before it lands, so there is room to renew rather than scramble.
  • Keep the signed copy somewhere you can produce it, because your broker will eventually ask for it.

That is the job ExactCircle does, and it is the only job it does. See the Texas page for how it handles the state's forms.

This is a plain-language summary, not legal advice. Rules change and local association forms vary. Check with your broker or attorney before you rely on any of it.

Sources

Common questions

Does SB 1968 mean every Texas buyer has to sign a representation agreement?
No. The law requires a written agreement before you show a residential property, but that agreement does not have to be a representation agreement. A showing-only, non-representation agreement satisfies the requirement as long as showing the property is the only brokerage service you provide.
When exactly does the agreement have to be signed?
Before you show any residential property. If you are not showing anything and are writing an offer on the buyer's behalf, it has to be signed before you make that offer.
Can compensation say 'to be determined'?
No. The agreement has to state specific compensation terms. It also has to carry a termination date and say whether the arrangement is exclusive or non-exclusive.
What happens if an agent shows a house without one?
It is grounds for discipline under Section 1101.652 of the Texas Occupations Code, which runs up to suspension or revocation of a license.
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