As of December 16, 2024, the Addendum Regarding Brokers’ Fees (TXR 2406) and the Amendment to Representation Agreement (TXR 2701) will no longer be available for use on the Texas REALTORS® website or through approved form vendors. These forms filled gaps during the transition to the new NAR MLS rules regarding broker compensation.

No, you do not need a written agreement if you are hosting the open house or otherwise providing access to the property only on behalf of the seller. If your broker has a listing on that property, you, as an agent associated with that broker, can show that home on behalf of the seller and will owe a fiduciary duty to the seller of the home. If an unrepresented buyer walks in and asks to see the property you are holding open for the seller, you are showing that buyer the home while representing the seller’s interest.

Note: If that buyer expresses an interest in having you work for the buyer to view other homes or submit an offer, you would be required to obtain a buyer representation agreement with that buyer. If an offer is made on your brokerage’s listing, you will need authorization from both the seller and the buyer to act as an intermediary.

No. NAR’s MLS policy mandates use of written agreements prior to showing one-to-four family residential properties. However, MLSs have discretion to adopt additional policies. Check your local MLS rules for specific requirements that may apply to other types of properties.

Yes. Under the NAR policy, a written buyer agreement must be signed prior to showing a home. A “home” means a one-to-four family residential dwelling. The policy does not include exceptions for the property's size or intended use. If the property contains a home, regardless of acreage, a signed agreement with a buyer would be required to show the property. Note: This requirement does not affect MLS property type or the sales contract. Continue to select the applicable property type in the MLS and use the Farm and Ranch Contract when appropriate.

NAR’s MLS rules require that the amount of broker compensation stated in a buyer representation agreement must be objectively ascertainable. This requires that compensation be a definite or specific amount or rate. NAR has provided a few examples of what type of compensation is not considered objectively ascertainable. The amount or rate of compensation cannot be stated as a range, for example from X% to X%. The amount or rate cannot vary depending on the source of payment, for example a different amount if the listing broker pays the fee versus if the buyer pays the fee.

Yes, they can earn those bonuses if the broker discloses the specific amount of compensation offered to the broker and receives authorization from the buyer. The broker can use the Amendment to Buyer/Tenant Representation Agreement (TXR 1505) to specify the amount of the bonus the broker will receive and obtain the buyer’s authorization. TXR 1505 requires the bonus to be specific to a particular property. Since the bonus is being paid by the seller or the seller’s agent, the buyer is not obligated to pay the bonus.

Yes. The representation agreement can be amended between the parties to the agreement at any time. For example, a builder may offer broker bonuses that may not have been included in the original representation agreement. If the buyer agrees, the parties may amend the representation agreement to include the bonus amount. Keep in mind that NAR has stated that there needs to be a legal basis for amending the buyer/tenant representation to increase the amount you are paid such as additional work completed for the buyer. It cannot simply be to match the compensation being offered by the seller or listing broker.

Yes, but only if the buyer representation agreement is amended. Per MLS Policy Statement 8.13, buyer’s brokers cannot accept compensation above the amount listed in the buyer representation agreement. If the buyer agrees, you can use Amendment to Buyer/Tenant Representation Agreement (TXR 1505) to amend the amount allowed under the buyer/tenant representation agreement. In addition, NAR has stated that a buyer representation agreement cannot be amended simply to match the compensation being offered, but there must be a legal basis for the amendment such as increased services being offered or additional work being done for the buyer.

No. The buyer/tenant representation agreement is a confidential document between buyer and that buyer's broker. Under NAR policies, a buyer’s broker is not required to disclose to the seller or listing broker the amount of compensation the buyer is paying. Just as the listing broker is not required to disclose the terms in that broker's listing agreement.

It is inappropriate for brokers to demand to see another brokers' confidential agreements. They are essentially demanding that brokers violate their fiduciary duty to their clients. If the listing broker and seller have agreed to compensate a buyer’s broker in a listing agreement, the listing broker should execute a broker-to-broker compensation agreement with a buyer’s broker for the amount agreed to in the listing agreement. The brokers can use the Compensation Agreement Between Brokers (TXR 2402). If the compensation the seller or listing broker is paying the buyer’s broker is more than what is stated in the buyer representation agreement, the buyer and buyer’s broker can amend their agreement, provided there is a legal basis for such amendment or make other arrangements on how to account for any differential.

If the listing broker or seller refuses to sign either the compensation agreement or sales contract without being provided the buyer’s representation agreement due to the seller's requirement that it be provided, buyer’s agents should discuss the situation with their buyers. The buyers have several options. The buyers may not want to submit an offer on that property; they may want to submit an offer without providing a copy of the buyer representation agreement to begin negotiations; or the buyers can give permission to disclose the terms of the buyer’s representation agreement to submit an offer.

TXR 1507 is a representation agreement. It allows brokers to limit the scope of their representation, as permitted by Texas law. While brokers who have agreed to provide showing services are not providing comprehensive brokerage services, they have agreed to provide some brokerage services, making

the potential buyer a client and not a customer. Brokers must still meet their legal and ethical duties while performing the limited services they’ve agreed to in their representation agreements. Section 1101.557 of the Texas Occupations Code requires license holders to, at minimum, answer the party’s questions and present any offer to or from the party.

Section 1101.557 of the Texas Occupations Code requires license holders to, at minimum, answer the party’s questions and present any offer to or from the party. This simply means the agent is required to give the offer to the intended party. This requirement is intended to prevent agents from withholding information from their clients. If the seller sends an offer to an agent, the agent cannot hold on to the offer but must forward the offer to the buyer. Likewise, if a buyer has an offer to send to the seller, the agent will have to forward the offer to the seller. This does not require the agent to write the offer or negotiate the terms for the buyer or seller if the agent hasn’t agreed to provide those services.

If a buyer gives the buyer’s agent an offer under a showing services agreement, the agent will have to forward the offer to the seller. It is not anticipated that this would happen very often. Also keep in mind that the agency relationship exists only for the term of the agreement. If the showing services agreement is for one day or a weekend, it is unlikely that a buyer will provide an agent with an offer during that short period of time.

Brokers are permitted under the law to agree on which services the broker will provide to their clients. For example, there are limited services listing brokers and there are referral agents that have agreed to provide only certain services to their clients. These brokers can perform the limited services they’ve agreed to and still meet their legal and ethical duties.

No. Texas REALTORS® offers two buyer representation agreements that can be used to comply with the requirement to have a written agreement signed before showing a home. Members can choose between the traditional Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501) or the new Residential Buyer/Tenant Representation Agreement - Short Form (TXR 1507).

No. Brokers are not required to accept a certain type of payment. Brokers can set their own policies and procedures to determine what types of payment they will accept.

Yes. The broker and buyer can agree on any amount. Keep in mind that per MLS Policy Statement 8.4, brokers and agents must not represent that their brokerage services to a client or customer are free or available at no cost to clients, unless the broker or agent will receive no financial compensation from any source for those services.

No. TXR 1507 can be used for multiple showings at different properties. Paragraph 3 allows the broker and the client to specify the market area, which could be one property, a subdivision, a city, county, or zip code, etc.

Under the showing services option, brokers have only agreed to provide clients with access to properties in the defined market area. Any additional services desired by clients, including activities like drafting offers, advising on terms of offers, or negotiating with sellers on the client’s behalf, must be agreed to by the client. There are a couple of options the broker and client can consider to add full services. The broker and client can amend the Residential Buyer/ Tenant Representation Agreement – Short Form (TXR 1507) to full services using Amendment to Buyer/Tenant Representation Agreement (TXR 1505) if the original agreement for showing services is still in place. Alternatively, the parties can choose to execute a new Residential Buyer/Tenant Representation Agreement –Short Form (TXR 1507) or Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501) to provide a full range of services. The parties should also determine if intermediary authorization is needed and what the broker’s fee should be.