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Committee hears bill to update real estate agency rules; Texas Realtors support written buyer agreements
Summary
Senate Bill 1968 would update the Real Estate License Act to remove subagency, require written buyer-representation agreements for showings and offers, and align education language with the Texas Real Estate Commission; the committee heard resource testimony from Texas Realtors and left the bill pending.
Senate Bill 1968, introduced by Senator Swartner, would update the Real Estate License Act to reflect modern home-purchase practices by clarifying relationships between brokers and buyers, eliminating ‘subagency,’ and increasing requirements for written representation agreements.
Senator Swartner told the committee the measure would remove subagency — “a confusing and outdated practice in which an agent represents a seller, but assists a buyer without formally representing them,” he said — and would “encourage written representation agreements between agents and buyers aligning with current best practices.” The bill would require a written agreement signed by both parties before touring homes that sets out services and any compensation, and it would require a buyer-representation agreement be signed at a minimum before an agent submits an offer on a buyer’s behalf. The bill also contains technical revisions to align education and liability language with the Texas Real Estate Commission.
David Jones, chief operating officer of Texas Realtors, testified in favor. Jones said SB 1968 “modernizes several provisions in the Real Estate License Act to increase consumer clarity, choice, and transparency regarding real estate agency,” and he emphasized that the bill would repeal an antiquated concept of subagency. Jones added that the proposed written agreements would disclose whether an agreement is exclusive and would list the services and compensation terms so buyers know what they are agreeing to.
Senator Swartner and witnesses noted a committee substitute corrected drafting errors and that a resource witness from the Texas Real Estate Commission could address further technical questions. The committee allowed public testimony, heard from the Texas Realtors’ witness and others, had no further questions of the author at that time, and left the bill pending for later consideration.
Because the committee received testimony from the industry trade association and invited the commission as a resource, further hearings or technical amendments are possible as the Legislature refines regulatory language.
