Texas real estate laws this year are bringing monumental shifts to the market. The most notable change is Senate Bill 1968, which officially mandates written representation agreements before an agent can show any residential property and eliminates subagency. Buyers and renters must also navigate new streamlined eviction reforms and updated state contracts.
Navigating the Big Shakeup: What Texas Real Estate Law Changes Mean for You
If you are buying, selling, or investing in the Lone Star State, staying ahead of the regulatory curve is more important than ever. The Texas Legislature’s sweeping updates to the Real Estate License Act (TRELA) and the Texas Real Estate Commission (TREC) contracts are completely revamping how consumers and agents interact.
Here is exactly what you need to know about the biggest real estate law changes in Texas.
- The Written Agreement Mandate (SB 1968)
Gone are the days of browsing homes on a whim without official paperwork. Under SB 1968, real estate agents and brokers are legally required to enter into a written agreement with a prospective buyer before showing any residential real property.
- What it means for buyers: You must sign a Buyer Representation Agreement outlining the services and compensation before your agent can unlock a single door for you.
- The “Silent Showing” Alternative: If you just want to view a property without committing to a specific agent’s services, agents can now utilize a new non-representation status. This permits them to show you the home, but they cannot provide you with any professional opinions, advice, or negotiations.
- The End of Subagency
Along with the new representation rules, the outdated practice of “subagency” has been officially eliminated in Texas. Previously, subagency allowed an agent representing the seller to also represent the buyer under certain conditions, frequently confusing consumers about who was actually looking out for their best interests. Now, lines are drawn clearly: an agent represents either the buyer, the seller, or no one at all.
- Revised TREC Contracts and Forms
To align with these legislative shifts, TREC has introduced major form updates.
- Clearer Broker Compensation: Paragraph 12 of the standard sales contract has been updated to explicitly clarify broker compensation language.
- New Water Rights Disclosures: Because of recommendations from the Sunset Advisory Commission, buyers will now see a new Water Disclosure form covering both groundwater and surface water rights.
- Permanently Installed Generators: Permanently installed and built-in home generators are now specifically included under property “Improvements”.
- Significant Eviction and Rental Reforms (SB 38)
For landlords, property managers, and tenants, sweeping eviction changes took effect under Senate Bill 38.
- Summary Judgment Process: Landlords can now request a court ruling without a full trial if there are no legitimate factual disputes, essentially speeding up the eviction timeline.
- Notice to Pay or Vacate: Rental forms, like the widely used TXR 2232 Notice to Pay or Vacate, have been updated to reflect new legislative requirements for certain scenarios.
- Stricter Appeals: Tenants now have four days to respond to landlord claims and five days to appeal, which must be sworn under penalty of perjury so that appeals aren’t used merely as delay tactics.
The Bottom Line
Whether you are touring entry-level starter homes in suburbs of Houston or managing multifamily properties in Austin, these legal updates were built to increase consumer clarity and streamline transactions.
Before you make your next move, be sure to consult official state resources like the Texas Real Estate Commission (TREC) or the Texas REALTORS® Association to find the latest forms and disclosures. Partnering with a trusted, local real estate professional will ensure your next transaction remains smooth and legally compliant.