So Texas now requires a written agreement before you can represent a buyer. But what if a buyer just wants to see a property without committing to representation? That’s where the non-representation agreement comes in.
Section 1101.562 created a new option. You can show property to a buyer without representing them, as long as you follow specific rules. Some agents see this as a loophole. It’s not. It’s a tool with very specific limitations.
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.
Lets break down when non-representation makes sense, when it doesn’t, and how to do it correctly.
What Section 1101.562 Actually Allows
Under the new law, a license holder may show property to a buyer or tenant without representing them if certain requirements are met. This applies to residential, farm and ranch, and commercial properties.
But “showing” is the operative word. You’re providing access. That’s it. The moment you step outside that narrow lane, you need a representation agreement.
For the full picture on SB 1968 and how this fits into the broader changes, see my overview.
The Requirements for Non-Representation
You can’t just decide not to represent someone and call it good. There are specific requirements you must meet.
No Prior Agreement to Represent
You must not have agreed to represent the buyer or tenant, either orally or in writing. You also may not otherwise be acting as their agent at the time of the showing.
If you’ve already established a relationship, even informally, non-representation isn’t an option. You’re already in.
No Opinions or Advice
This is the big one. You cannot provide opinions or advice regarding the property or real estate transactions in general. None. Zero.
Buyer asks “what do you think of the kitchen?” You can’t answer. Buyer asks “is this a good price?” You can’t answer. Buyer asks “what should I offer?” Definitely can’t answer.
You’re a door opener. Nothing more.
No Other Brokerage Services
You cannot perform any other brokerage services for the buyer or tenant. No market analysis. No comparable research. No negotiation strategy. No contract preparation. Nothing.
Disclosure Requirements
If you represent the property owner, you must disclose that. If you don’t represent the owner, you must provide the Information About Brokerage Services (IABS) form to the buyer.
The TXR 1508 Form
Texas REALTORS created a specific form for this situation: TXR 1508, the Unrepresented Customer Showing Form.
This form does one very specific thing. It allows a broker or agent to legally show property without representing the buyer when the only service being provided is access to the property.
Important: TXR 1508 does NOT create representation. That’s the whole point. If the buyer wants advice, negotiation, or any actual representation, you need a separate buyer representation agreement.
The 14-Day Limit
Non-representation agreements have a maximum term of 14 days. That’s not a suggestion. It’s the law.
After 14 days, the agreement expires. If the buyer still isn’t ready to commit to representation, you’d need a new non-representation agreement. But at that point, you should probably be asking yourself what’s really going on.
14 days is enough time for a buyer to see some properties and decide if they want to work with you. It’s not meant to be a long-term relationship structure.
Must Be Non-Exclusive
Non-representation agreements must be non-exclusive. The buyer is free to work with other agents, get representation elsewhere, or do whatever they want. You have no exclusivity claim on their business.
This makes sense. You’re not representing them. Why would you have any exclusive rights?
When Non-Representation Makes Sense
There are legitimate situations where non-representation is the right tool.
Open Houses
You’re hosting an open house for your listing. Unrepresented buyers walk in. You can show them the property under non-representation without establishing a relationship.
Covering for Another Agent
Another agent in your office has a buyer relationship, but they’re unavailable. You’re covering the showing. You don’t have a relationship with this buyer, and you’re just providing access.
Buyer Isn’t Ready to Commit
A buyer wants to see one specific property before deciding whether to work with an agent at all. Non-representation lets you show the property without forcing a relationship they’re not ready for.
For Sale By Owner Situations
A buyer asks you to show them a FSBO property. You might use non-representation for initial access while you figure out the relationship dynamics.
When Non-Representation Does NOT Make Sense
Here’s my honest take. Some agents are going to try to use non-representation as a way to avoid the buyer agreement conversation. That’s a mistake.
As a Default Strategy
If you’re using non-representation for every buyer interaction, you’re doing it wrong. You’re also not providing value. Why would a buyer choose you over the next agent if all you do is open doors?
When You’re Actually Advising
If you’re walking through a house and the buyer asks questions and you’re answering them with your professional judgment, you’ve already exceeded non-representation. The form doesn’t protect you if you’re not actually limiting yourself to its terms.
To Avoid Hard Conversations
Yes, the representation conversation can be uncomfortable. But it’s where you demonstrate value. It’s where you build trust. Avoiding it with non-representation is just kicking the can down the road.
When the Buyer Actually Wants Help
Most buyers want help. They want expertise. They want someone in their corner. Non-representation gives them none of that. If a buyer wants your help, give it to them. Under a representation agreement.
Transitioning to Full Representation
What happens when a non-representation buyer decides they want your help?
You execute a buyer representation agreement. That’s it. The non-representation agreement doesn’t prevent a future representation relationship. It just means you weren’t representing them during the non-representation period.
Ideally, you have this conversation before they need advice. “I showed you this property under non-representation, which means I can’t advise you on it. If you want my help evaluating this property or any others, we should talk about representation.”
The Risk of Getting It Wrong
Using non-representation incorrectly exposes you to risk.
If you sign a non-representation agreement but then provide advice anyway, you’ve violated the terms. The buyer might claim you were supposed to be representing them. TREC might see it as trying to circumvent the buyer agreement requirement.
The form doesn’t protect you if your actions don’t match. You have to actually limit yourself to showing only. No opinions. No advice. Period.
Ed’s Take
Here’s how I think about non-representation. It’s a tool, not a strategy.
The strategy should be to have excellent buyer consultations that result in representation agreements. That’s where the value is. For you and for the buyer.
Non-representation exists for edge cases. Open houses. Covering for colleagues. The occasional buyer who genuinely just needs access before deciding anything.
If you find yourself using non-representation frequently, ask yourself why. Is it because these situations genuinely call for it? Or is it because you’re uncomfortable with the representation conversation?
If it’s the latter, fix the conversation. Don’t avoid it with forms.
At Neuhaus Realty Group, we train our agents to be confident having the representation discussion. We use non-representation rarely, and only when it’s genuinely appropriate.
Questions?
Non-representation is one of those things that seems simple but has real complexity in application. Understanding when to use it and when not to is part of being a professional.
Have questions about how to handle specific scenarios? Reach out to me. I’m happy to talk through the nuances, even if you’re not one of my agents. Yet.