Ed Neuhaus 
I’ve been through three major regulatory shifts in my career as a Texas broker. The savings and loan crisis aftermath in the early 90s. The 2008 crash and everything that followed. And now 2026.
Here’s the thing. This one is different. Not because the market is crashing or interest rates are doing something crazy. This time the rules of how we actually practice are changing. The way you interact with buyers. The forms you use. The agreements you need. All of it.
A quick note: I’m not your broker (yet), and this isn’t legal advice. Always verify with your sponsoring broker and TREC directly before making changes to your practice. That said, if your broker isn’t walking you through this stuff, you might want to ask yourself why.
So lets break down everything that’s changing in 2026 and what you need to do about it.
Why 2026 Is a Watershed Year for Texas Real Estate
January 1, 2026 brought more changes to Texas real estate practice than we’ve seen in over a decade. The Texas Legislature passed Senate Bill 1968 in 2024, and it took effect at the start of this year. Add in SB 38 and SB 1333 for landlord protections, a brand new licensing portal from TREC, updated forms, and doubled broker requirements, and you’ve got a lot to keep track of.
The theme running through all of it? Clarity. TREC and the legislature want consumers to understand exactly who represents them and what that means. They want cleaner agency relationships. And honestly, that’s good for professional agents who were already doing things the right way.
But it does mean you need to update your workflows. Your scripts. Your understanding of when you need what agreement signed. Lets walk through each piece.
SB 1968: The Main Legislative Driver
If you only learn about one thing from this article, make it Senate Bill 1968. This is the big one. It amends the Texas Real Estate License Act (TRELA) and fundamentally changes how buyer representation works.
The major changes include:
- Written buyer representation agreements are now required before substantive brokerage activity
- A new “non-representation” status lets you show property without representing the buyer
- All references to subagency have been removed from Texas law
- Broker licensing requirements have increased significantly
- TREC can now notify brokers when complaints are filed against their agents
I go deep on the legislative intent and what TREC was really trying to fix in my full breakdown of SB 1968.
Buyer Representation Agreements: The New Requirement
Under Section 1101.563, you now need a written agreement before performing “any act of real estate brokerage” for a prospective buyer of residential property.
What does that mean practically? You can unlock a door. That’s about it. The moment you start giving advice, sharing opinions about a property, or negotiating anything, you need that agreement signed.
The agreement must include specific compensation terms, a termination date, and whether it’s exclusive or non-exclusive. No more vague “we’ll figure it out” conversations. I cover exactly what needs to be in these agreements and how to have the conversation without being awkward in my guide to Texas buyer representation agreements in 2026.
The Non-Representation Option
Here’s where it gets interesting. SB 1968 created a new option under Section 1101.562 that lets you show property to a buyer without representing them. This is the non-representation agreement.
But before you think this is a loophole to avoid buyer agreements, pump the brakes. You still need a written agreement. It just doesn’t create a representation relationship. And there are strict limits:
- Maximum 14-day term
- Must be non-exclusive
- You cannot give advice, opinions, or negotiate
- You can only show property
The TXR 1508 form (Unrepresented Customer Showing Form) is what you’ll use here. It has a very specific purpose and isn’t a way to avoid having real conversations about representation.
Updated IABS Form
The Information About Brokerage Services form got a significant update effective January 1, 2026. The new version (TREC IABS 1-2) removes all subagency language and clarifies the new written agreement requirements.
I see agents making three common mistakes with the new IABS every week. Presenting it too late. Not explaining what it actually means. And confusing it with the buyer representation agreement. My guide to the new IABS form breaks down exactly what changed and how to use it correctly.
Subagency Is Gone
For newer agents, you might not even know what subagency was. For those of us who’ve been around a while, good riddance.
Subagency created endless confusion. A buyer would work with an agent thinking that agent represented them, but legally that agent was a subagent of the listing broker, owing duties to the seller. Consumers never understood it. Honestly, a lot of agents didn’t either.
SB 1968 repealed all references to subagency in Texas real estate law. Now it’s simple. You either represent the buyer, or you don’t. I explain the history and what this means for your practice in my article on why subagency is dead.
Form Changes Across the Board
Beyond the IABS, multiple TREC and TXR forms were updated for January 2026. The Seller’s Temporary Residential Lease (TREC 15-7) became mandatory on January 5, 2026. Paragraph 29 in contracts now allows email notice delivery if parties agree in writing. Fax has been removed as a communication option. Finally.
Listing agreements got updates too. Paragraph 5 (Broker Compensation) was revised, and Paragraph 15 (Cooperation With Other Brokers) had subagency references removed.
My complete 2026 TREC form update guide covers every change you need to know about.
Email Notice Delivery Under SB 38
Speaking of notice delivery, SB 38 modernized how notices can be sent in Texas real estate transactions. Email is now permitted if the parties agree to it in writing. This applies to contract notices, and it’s also relevant to the new eviction procedures.
But email notice comes with documentation requirements. You need to be smart about how you use it. I cover the best practices and what our team does at Neuhaus Realty Group in my article on email notice delivery under SB 38.
Listing Agreement Updates
The compensation conversation with sellers has changed. With MLS offers of buyer agent compensation gone (thanks to the NAR settlement), you need to explain the new landscape to your sellers. How will the buyer’s agent get paid? What are the options?
The listing agreement updates for 2026 go beyond form changes. This is about how you position your listings and advise your sellers.
Texas Squatter and Eviction Laws
If you work with investors or landlord clients, you need to know about SB 38 and SB 1333. Governor Abbott signed these laws to address what he called a “squatting crisis” in Texas.
SB 1333 (effective September 2025) created a fast-track removal process for unauthorized occupants. SB 38 (effective January 2026) streamlined evictions to a 21-day “rocket docket” timeline. There are also new criminal penalties for fraudulent leases.
I break down what real estate agents need to know about these laws in my guide to Texas squatter and eviction law changes.
Broker License Requirements Doubled
Planning to get your broker license? The requirements just got tougher. Experience points required increased from 360 to 720. Education credit from a bachelor’s degree is now capped at 300 hours. And the Broker Responsibility Course is required for all brokers at every renewal, regardless of whether you sponsor agents.
If you’re on the path to becoming a broker, read my guide to the new broker license requirements to understand your timeline.
Delegated Supervisor Changes
Team leaders, this one’s for you. If you supervise, lead, or direct a team for more than three consecutive months, you need to be designated as a delegated supervisor with TREC. The notification window changed from six months to three months.
The experience point calculation for delegated supervision also changed. It’s now 3 points per transaction instead of 12 points per month. And yes, you need the Broker Responsibility Course too.
My delegated supervisor guide explains what team leaders and brokers need to do.
The New REALM Portal
TREC launched the REALM Portal on December 15, 2025. This is the new system for managing your license online. Applications, renewals, document uploads, complaint filing, all in one place, available 24/7.
The transition wasn’t perfectly smooth. December renewals got a grace period. Some agents accidentally started amendments they didn’t need. If you’re having issues or just want to understand the system, check out my complete guide to the TREC REALM Portal.
What You Should Do Now
If you’ve read this far, you’re already ahead of most agents. Here’s my checklist for getting compliant:
- Update your buyer consultation process to include the representation agreement conversation upfront
- Get familiar with the TXR 1508 non-representation form and when it’s appropriate
- Make sure you’re using the January 2026 versions of all TREC and TXR forms
- Update your listing presentation to explain the new compensation landscape
- Check your REALM Portal account and make sure your information is correct
- If you’re a team leader, verify your delegated supervisor status with TREC
At Neuhaus Realty Group, we’ve been training on these changes for months. Our agents had updated scripts and workflows ready before January 1. That’s what broker support should look like.
Questions?
I wrote these guides because too many agents are out there trying to figure this stuff out on their own. Your broker should be walking you through every one of these changes. If that’s not happening, maybe it’s time to ask why.
Have questions about any of these 2026 changes? Reach out to me directly. I’m happy to point you in the right direction, even if you’re not one of my agents. Yet.
