You could use the Compensation Agreement Between Broker and Owner (TXR 2401), available exclusively to Texas REALTORS®. This form allows you to register your buyer to cover the purchase of the owner's property during an agreed time period. It also contains language to provide that the owner will pay your negotiated fee should your buyer purchase the property. The agreement doesn't allow you to list the property for sale or require the owner to pay you a fee should the owner sell the property to someone else. This form could be used in situations where the broker is representing a buyer interested in farm & ranch or commercial property that is for sale by owner. It is not intended to take the place of a buyer's representation agreement between a broker and his buyer client. In the alternative, the buyer’s broker could secure compensation from seller directly by using Paragraph 12A(1)(b) of the sales contract. If the buyer’s broker includes his compensation in Paragraph 12A(1)(b), the Compensation Agreement Between Broker and Owner is not needed. Similarly, if the Compensation Agreement Between Broker and Owner is used to secure compensation, the buyer’s broker does not need to complete Paragraph 12A(1)(b).
Securing Your Fee
Last Updated August 25, 2025
No, you only need to sign that if your landlord and you have agreed to compensate the cooperating broker. The Agreement Between Brokers for Residential Leases (TXR 2002) is beneficial to prove the agreement for compensation between the two brokers. It also specifies a time frame for payment and covers compensation for lease renewals and sales.
Last Updated June 10, 2026
When using the Texas REALTORS Residential Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1101), both brokers will be paid compensation in accordance with the representation agreements signed by the clients. The Listing Broker will be paid by the seller in accordance with TXR 1101. The Buyer’s Broker will be paid in accordance with either the Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501) or the Residential Buyer-Tenant Representation Agreement- Short Form (TXR 1507), whichever one has been executed.
A seller can offer to pay some or all of the buyer’s broker’s compensation, if desired, by agreeing to make a contribution using paragraph 12B(1) on the One to Four Family Contract. The buyer also has the option to offer to pay some or all of the Listing broker’s compensation, if desired, by using paragraph 12(B)(2). See figure.
Last Updated June 10, 2026
In the buyer’s representation agreement, which is required before showing the property or presenting an offer to the seller without showing the property, the buyer agrees to pay your compensation. The agreement states that the broker will assist the buyer in obtaining a contribution from seller but buyer remains responsible for paying the compensation.
If the seller agrees to contribute to pay your compensation, use paragraph 12B(1) on the One to Four Family Residential Contract (Resale) (TXR 1601, TREC 20-19).
It is important to remember that you must disclose, orally or in writing, that you represent the buyer at the first contact with the seller. You may use the Representation Disclosure (TXR 1417 ) to satisfy this requirement. Additionally, you must provide the Information About Brokerage Services (TXR 2501, IABS 1-2) at the first substantial communication with the seller.
Last Updated June 10, 2026
Paragraph 12 of the One to Four Family Contract was updated for July 1, 2026. The changes clarify the language related to seller’s contributions towards payment of buyer’s broker fees and move that language to a new paragraph. The new language regarding seller contributions to broker fees moved from 12A(1)(b) to paragraph 12B(1). Additionally, a new option was added in 12B(2) which allows a buyer to contribute funds to the seller to allow the seller to pay the listing broker.
Last Updated June 10, 2026
Yes. Broker-to-broker compensation is not illegal. If you would like to offer broker-to-broker compensation, you may add a provision to the Texas REALTORS® form or create your own listing agreement that includes language providing for broker-to-broker compensation, since you, the broker are a principal to the listing agreement.
Consult with the brokerage’s private attorney to draft a provision to add to the Texas REALTORS® form or to draft a separate listing agreement that includes this provision to ensure the added provision or separate agreement is valid and enforceable under Texas law.
Note that the Compensation Agreement between Brokers (TXR 2402) will eventually be retired as well, so you will also need to have an agreement prepared for use between you and the buyer’s broker to evidence your agreement to share compensation.
Last Updated June 01, 2026
The new Amendment to Residential Listing Exclusive Right to Sell (TXR 1404) can be used to amend both the old and new versions of the Residential Real Estate Listing Agreement Exclusive Right to Sell (TXR 1101). The parties can use Paragraph C or E of the new amendment form to amend Paragraph 5 of the old residential listing agreement. The parties should use the paragraph of the new amendment form that best fits their situation and ensure the amendment accurately reflects the change to the correct paragraph number(s) of the listing agreement.
Last Updated June 01, 2026
No. Broker-to-broker compensation is not illegal. Texas REALTORS® removed broker-to-broker compensation from TXR 1101 to simplify transactions and remove confusion. If your current listing agreement provides for broker-to-broker compensation, you are allowed to continue with that current listing agreement and pay according to the terms of the listing agreement.
Note that the Compensation Agreement Between Brokers (TXR 2402) will eventually be retired but will remain available after the new forms are available to allow brokers to share compensation.
Last Updated June 01, 2026
