Buyer Agreements in Texas, What Changed, What You’re Signing, and the Questions to Ask Before You Tour

Buyer Agreements in Texas, What Changed, What You’re Signing, and the Questions to Ask Before You Tour

If you’re buying in Austin, you’re going to hear about buyer agreements. Some people will make it sound dramatic. It’s not.

It’s a document that clarifies representation, services, and compensation, so everyone understands the relationship.

The national shift

The National Association of Realtors has a consumer guide explaining that written buyer agreements outline services and how the agent is paid, and that buyers can negotiate terms like compensation and length. (National Association of REALTORS®)

The Texas specific change

Texas passed legislation, commonly referenced as SB 1968, requiring a written agreement before a license holder shows residential property to a prospective buyer, or before presenting an offer if no property is shown, and the bill text outlines required elements like services and a termination date. (Texas Legislature Online)

Texas REALTORS also published an explainer on modernizing agency law and how buyer representation forms fit into the new requirements. (Texas Real Estate)

What you are actually agreeing to

A strong buyer agreement should clearly state:

• what your agent will do for you

• the term length, and how to terminate

• whether it’s exclusive or not

• how compensation works, and when it’s owed

• what types of properties are included

• what happens if you buy a home you saw during the agreement period

This is not a “sign it or else” moment. It’s a “read it like a business person” moment.

The questions I want every buyer to ask before signing

1. What exactly is included in your service, beyond opening doors

2. What is the term length, and what is the cancellation process

3. How does compensation work if the seller offers a co op commission, and what happens if they don’t

4. Can we limit the agreement to a specific area, price range, or property type

5. How will you help me win, and protect me, in negotiation and inspection

My opinion

This is a good change when handled professionally. Clear expectations protect buyers, protect agents, and reduce the confusion that used to surface at the worst possible time, during an offer.

If you want, I can send you a simple “buyer agreement red flag checklist” you can use before you sign anything.

With Love from ATX,

Khani Zulu Group