Texas Realtors endorse SB 1968 to enhance clarity and transparency in real estate

In a recent meeting of the Texas Senate Committee on Business and Commerce, significant discussions centered around two key pieces of legislation aimed at modernizing real estate practices and updating business laws in the state. The meeting, held on April 1, 2025, featured public testimony and expert insights that highlighted the implications of these bills for consumers and businesses alike.

The first major topic was Senate Bill 1968, which seeks to modernize the Real Estate License Act. David Jones, COO of the Texas Association of Realtors, testified in favor of the bill, emphasizing its potential to enhance consumer clarity and choice in real estate transactions. A notable change proposed in the bill is the repeal of the outdated concept of subagency, which historically allowed agents to represent sellers while working with buyers. This shift aims to ensure that buyers have their own representation, reflecting changes in consumer behavior driven by technology.

Jones explained that the bill would allow agents to show properties without establishing an agency relationship upfront, which is particularly relevant as many buyers now begin their home search online. This flexibility is expected to empower consumers, allowing them to engage with agents on their own terms. Additionally, the bill mandates written agreements between agents and prospective buyers, enhancing transparency regarding the nature of their relationship and any associated compensation.

The committee also discussed Senate Bill 2411, a routine update to the Texas Business Organizations Code. Senator Schwartner introduced the bill, which is designed to keep the code current through minor amendments and corrections based on recommendations from the Business Organization's Code Drafting Committee. Daryl Robertson and Travis Wofford, representatives from the Texas Business Law Foundation, testified in support of the bill, highlighting its importance in refining and improving foundational business laws in Texas.

Both bills are left pending as the committee considers the implications of these changes. The discussions reflect a broader commitment to enhancing consumer protection and ensuring that Texas's business laws remain relevant in a rapidly evolving economic landscape. As these bills progress, stakeholders will be watching closely to see how they will impact real estate practices and business operations across the state.