March 01, 2026

My income has increased after moving away from broker-to-broker compensation. If you know your value and can communicate it to your clients, not only will your business remain strong, it will grow. Steve Stovall, Abilene

This approach aids consumer transparency, decreases confusion, and eliminates the broker as a middleman, ultimately reducing risk for all parties. Kandi Luensmann, Gatesville

Buyers can negotiate agreements to pay a part of a buyer’s broker’s compensation in any offer, with the seller having complete understanding of the entire transaction—and how much they expect to receive—at the time they make a decision. Joanne Justice, DFW

Transparency is paramount, especially in the exchange of funds. A buyer including a request for the seller to cover the buyer’s broker’s compensation as part of the offer affords more transparency and the ability to negotiate all terms at that time. Steven Edwards, Austin

Current practices have become problematic. I firmly believe that this negotiation should occur within the contract between the buyer and seller, not outside of it between the two agents. Ginger Gill, Dallas

The removal of broker compensation from MLSs set in motion big changes—and some confusion—in the way buyers and sellers pay for real estate services. To reduce future problems, Texas REALTORS® plans to eliminate broker-to-broker compensation from its residential listing agreements.

Here’s how this change will benefit REALTORS® and their clients, with comments from members of the Texas REALTORS® Forms Task Force working on this change.

It aligns pay with value

You provide a service, and your buyer agrees to pay you what you’re worth. If the buyer wants the seller to cover all or part of that fee, Texas contracts already allow for it in Paragraph 12. There’s no reason for payment to flow through the listing broker.

It simplifies transactions and reduces confusion

Currently, compensation can come from the listing broker, the seller, the buyer, or combinations of all three.

Not only is this confusing, but it also can create extra work and add uncertainty and risk if anything is miscommunicated or misunderstood. Removing broker-to-broker compensation from residential listing agreements keeps payment directly between the buyer and seller, making transactions clear, predictable, and less risky. This clarity reduces your risk of facing angry clients, lawsuits, and commission disputes.

It strengthens your business

Some worry this change will reduce income. Agents who understand their value and communicate it clearly don’t lose business—they gain it. Transparency builds trust, trust builds loyalty, and loyalty builds a stronger, more sustainable business.

Broker-to-broker compensation won’t be illegal

It just won’t be an option in the Texas REALTORS® residential listing agreements. Brokers and their clients who want to continue this practice have the ability to do so.

Proposed TREC changes align with this shift

The Texas Real Estate Commission has proposed revisions to Paragraph 12 of the sales contract to clearly address brokerage compensation in a new section and to expand options for payment.

The bottom line

Removing broker-to-broker compensation simplifies transactions, reduces liability, and reinforces that your compensation should reflect the value you provide. Agents who adapt will thrive.

What comes next?

The Texas REALTORS® Forms Task Force will finalize the listing agreement language and consider other related forms changes, then put those changes out for member input. Expect final changes to be adopted in summer 2026.