Ed Neuhaus 
If you got your license in the last decade or so, you might not even know what subagency was. For those of us who’ve been around longer, we remember the confusion it caused. And now it’s officially gone.
SB 1968 repealed all references to subagency in Texas real estate law. This is one of those changes that sounds technical but actually matters for how you practice every day.
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 talk about what subagency was, why it was a problem, and what this change means for your daily practice.
What Subagency Actually Was
To understand why eliminating subagency matters, you need to understand what it was.
In the old system, when a listing agent listed a property, they represented the seller. When another agent from a different brokerage showed that property to a buyer, that agent could operate as a “subagent” of the listing broker.
What did that mean practically? The agent showing the property to the buyer was technically representing the seller, not the buyer. Even though they were walking around with the buyer, answering the buyer’s questions, seemingly working for the buyer.
The duty of loyalty ran to the seller. The agent was supposed to promote the seller’s interests, not the buyer’s. Information the buyer shared with “their” agent could technically be used to benefit the seller.
Why Consumers Never Understood It
Can you blame them? Put yourself in a buyer’s shoes.
You find an agent. You tell them what you’re looking for. They show you houses. They seem to be helping you. You assume they’re working for you.
Then you find out they were technically working for the seller the whole time? And any information you shared, like how much you were willing to pay, could have been used against you?
That’s confusing at best and felt deceptive at worst. Even when agents disclosed subagency properly (which many didn’t), consumers rarely understood what they were agreeing to.
Why It Was a Problem for Agents Too
Subagency wasn’t just confusing for consumers. It created real liability issues for agents.
You’re showing a buyer around, building rapport, helping them find their dream home. But technically you owe duties to the seller. What happens when those interests conflict? What happens when the buyer tells you their maximum price and you’re legally obligated to the seller?
The answer was a mess of disclosures, awkward conversations, and constant risk that you’d end up on the wrong side of a complaint.
Most agents avoided subagency by getting buyer representation agreements signed. But the option existing at all created confusion.
What SB 1968 Changed
SB 1968 repealed all references to subagency in the Texas Real Estate License Act. Completely removed. It’s no longer an option.
The new IABS form doesn’t mention subagency. The listing agreement forms had subagency language removed from the cooperation paragraphs. It’s like it never existed.
Now your options are simple. You either represent the buyer, or you don’t. If you represent them, you have a buyer representation agreement. If you don’t, you might have a non-representation agreement for showing purposes.
Clean. Clear. No more confusion.
How This Affects Listing Agents Showing Their Own Listings
Here’s a scenario that comes up. You’re the listing agent. A buyer wants to see your listing but doesn’t have an agent. What do you do?
Under the old system, you could show them as a subagent (representing the seller) or as an intermediary (representing both). The subagency option is gone now.
Your options now:
- Intermediary representation: If your brokerage allows it and both parties consent, you can represent both the seller and the buyer with limitations on advice to either party.
- Non-representation for the buyer: You represent the seller only. You can show the property to the buyer under a non-representation agreement, but you can’t advise them.
- Refer the buyer: Send them to another agent who can represent them properly.
The cleanest approach is often to refer unrepresented buyers to another agent. That way everyone has clear representation without the complexity of intermediary status.
The Non-Representation Option as a Replacement
The non-representation agreement partially fills the gap subagency left. You can interact with a buyer without representing them, but only for the narrow purpose of showing property.
The key difference: with non-representation, there’s no pretense of working for the buyer. You explicitly state that you don’t represent them. You can’t advise them. You’re just providing access.
That’s more honest than the old subagency model where agents looked like they were working for the buyer while technically owing duties to the seller.
What This Means for Your Practice
If you were already getting buyer representation agreements signed before working with buyers, not much changes. You were already avoiding subagency anyway.
If you were relying on subagency in any situations, you need new workflows:
- Open houses: Have non-representation agreements available for unrepresented visitors, or be prepared to explain intermediary status if they want to write offers on your listing.
- Buyer inquiries on your listings: Either refer them out, set up intermediary representation, or use non-representation for initial showings.
- Covering showings for other agents: Make sure you understand the representation status before you show up.
Why This Is Good for Our Industry
Here’s my honest take. Subagency should have been eliminated years ago.
It was a holdover from an era when real estate transactions worked differently. Buyers showed up at open houses, the listing agent handled everything, and buyer representation was unusual.
That’s not how the market works anymore. Buyers expect to have their own agent. They expect that agent to advocate for them. Subagency created a false impression that undercut that expectation.
Eliminating it forces clarity. Either you represent the buyer and owe them fiduciary duties, or you don’t and you’re upfront about that. No more muddy middle ground.
Professional agents benefit from this clarity. It differentiates real representation from the confusing alternative. It makes the value of having a dedicated buyer’s agent more obvious.
Updating Your Understanding
If you learned about subagency in your pre-license education or continuing education courses, that information is now outdated. Texas law no longer recognizes subagency as an option.
Make sure your mental model of agency relationships is current:
- Seller representation: Agent represents seller’s interests
- Buyer representation: Agent represents buyer’s interests
- Intermediary: Agent facilitates transaction between both parties with limitations
- Non-representation: Agent provides limited services (showing only) without representing either party
Subagency is not on that list. It no longer exists in Texas.
Ed’s Take
When I started in this business, subagency was common. I saw the confusion it caused. Buyers didn’t understand. Agents got uncomfortable. Complaints happened.
Watching it get repealed feels like common sense finally winning. The old model didn’t serve consumers well, and it put agents in awkward positions.
The new framework is cleaner. You represent someone or you don’t. If you represent a buyer, you work for them. If you don’t, you’re clear about that from the start.
At Neuhaus Realty Group, we’ve always emphasized clear agency relationships. We trained our agents to get buyer representation agreements signed early, to explain agency clearly, to avoid the ambiguity subagency created. Now the law matches what good practice always was.
Questions?
Understanding agency relationships is fundamental to practicing competently. If your broker hasn’t updated you on the elimination of subagency and what it means for your practice, that’s a gap in your training.
Have questions about how to handle specific scenarios without subagency? Reach out to me. I’m happy to talk through the options, even if you’re not one of my agents. Yet.
