Yes. As of January 1, 2026, Texas law (SB 1968) requires real estate agents to have a written agreement with you before showing you a property, giving you advice, or negotiating on your behalf. You have two options: a short-term showing-only agreement that runs a maximum of 14 days with no representation or advice included, or a full buyer representation agreement that spells out your agent's duties, the term length, exclusivity, and compensation. Every dollar amount in that agreement is negotiable — Texas law now requires it to say so, in plain language.
By Brandon Travelstead | September 25, 2026
If you're relocating to Dallas or starting a home search anywhere in the $1M–$4M range, you've probably heard something changed with how buyer's agents work — and you're not wrong. It's one of the most common questions I'm fielding right now from buyers looking at homes in Preston Hollow, Prestonwood, Bent Tree, and Northwood Hills: "Wait, I have to sign something before you'll even show me a house?"
Yes. And here's exactly what that means, why it exists, and how to make sure the agreement you sign actually works for you.
What Changed on January 1, 2026
Texas Senate Bill 1968 put a new requirement in place: before a licensed agent can show you a property, offer advice about it, or negotiate for you, you have to have a written agreement in place. This isn't a Dallas-specific rule or a brokerage policy — it applies statewide, to every agent and every buyer.
Before this law, a lot of buyers toured homes for weeks or months without any written commitment to their agent at all. That created real ambiguity about who the agent actually worked for, especially when the agent showing you the home was also the listing agent representing the seller. The new law closes that gap.
You have two paths, depending on where you are in your search:
- A non-representation showing agreement. This lets an agent show you a specific property or properties without providing advice, guidance, or negotiation help. It's capped at 14 days and can't be exclusive — think of it as a short-term "just let me see the house" arrangement. You'll also receive an updated Information About Brokerage Services (IABS) form, which discloses who represents whom.
- A buyer representation agreement. This is the real agreement — the one that makes an agent your advocate throughout the search, negotiation, and closing. It has to spell out the services provided, a termination date, whether it's exclusive, and the broker's compensation, along with a clear statement that compensation is not set by law and is fully negotiable.
Open houses work a little differently. If you're touring a home during an open house hosted by the listing agent's own office, no agreement is required for that visit. But once an agent outside that office wants to show you the home privately, or you want ongoing help with your search, one of the two agreements above comes into play.
Why This Matters More in the $1M–$4M Range
At lower price points, some buyers treat this as paperwork to get through before the fun part starts. At $1M and up — especially in neighborhoods like Preston Hollow and Prestonwood, where inventory is limited and homes often move on custom timelines — the terms of this agreement actually affect your search.
A few reasons this deserves real attention rather than a quick signature:
- Exclusivity determines your flexibility. If you sign an exclusive buyer representation agreement, you're committing to work with that agent and brokerage for the term of the agreement — even if a different agent has a pocket listing or a relationship with a builder you want access to. Make sure the term length and geographic scope actually match your search.
- Compensation is a real negotiation now, not a formality. The agreement has to disclose the broker's compensation as a specific number or percentage, with plain-language confirmation that it's negotiable. On a $2.5 million home, the difference between compensation structures can be a meaningful number — worth a direct conversation before you sign anything.
- New construction and custom builds add complexity. If part of your search includes infill new construction or a custom build — common in this price range across North Dallas — your agreement should account for builder relationships and how compensation works when a builder's sales office is involved. If you're weighing a custom build against buying resale, it's worth reading through what a Preston Hollow teardown-rebuild actually costs in 2026 (https://travelsteadrealestate.com/blog/preston-hollow-teardown-rebuild-still-worth-it-in-2026) before you lock in a search strategy.
- Relocation timelines raise the stakes. If you're moving from out of state and touring homes on a compressed trip, you don't want to discover mid-search that your agreement doesn't cover a neighborhood you decide you want to add, or that it locks you in past your relocation deadline.
What to Actually Look For Before You Sign
I walk every buyer through the same checklist before they sign anything, whether they're touring three homes or thirty:
1. Read the termination date. Buyer representation agreements typically run three to six months, but shorter terms exist. Match the term to your actual timeline — don't sign a six-month exclusive agreement for a search you expect to close on in six weeks.
2. Confirm what "exclusive" actually covers. Exclusive to a brokerage, a specific agent, a geographic area, or a property type? Get specific, especially if your search spans multiple neighborhoods or property types.
3. Ask what happens if it's not working. Most brokerages, mine included, will let you terminate an agreement early if the relationship isn't the right fit. Confirm that in writing before you sign, not after you're unhappy.
4. Understand the compensation structure in writing. Ask your agent to walk you through exactly what they're paid, how it's calculated, and how that number gets negotiated if the seller is or isn't offering buyer-side compensation on a given listing.
5. Know the difference between the two agreement types. If you just want to see one specific house this weekend without committing to anything longer, the 14-day non-representation option exists for exactly that. Don't feel pressured into a full representation agreement if you're not ready.
None of this is designed to slow you down. It's designed to make sure you understand exactly who's working for you, and on what terms, before you start making decisions worth seven figures.
What This Doesn't Change
A few things worth being clear on:
- This law doesn't create new costs. It doesn't mean buyers suddenly pay commission out of pocket where they didn't before — how compensation gets structured between buyer, seller, and their respective agents is still a case-by-case negotiation, and your agent should walk you through your specific scenario.
- It doesn't apply to commercial purchases or to residential tenants — the requirement is specific to residential buyers.
- It doesn't change your right to work with whichever agent you choose. If a relationship isn't working, the agreement should include a path to end it.
Frequently Asked Questions
Do I have to pay my buyer's agent directly now because of this law?
Not necessarily. The new law requires the agreement to disclose compensation clearly and confirm it's negotiable, but how that compensation gets paid — by you directly, credited from the seller, or built into the transaction — still depends on your specific agreement and the listing you're buying. Your agent should walk you through exactly how it works before you make an offer.
Can I tour a house without signing anything first?
If it's an open house hosted by the listing office, yes — no agreement is required for that visit. If you want an agent outside that office to show you a home privately or help you with an offer, you'll need either a short 14-day non-representation agreement or a buyer representation agreement first.
What if I'm relocating to Dallas and only have a few days to tour homes?
A non-representation showing agreement can cover a short trip if you're just looking without committing to a single agent yet. Once you've decided who you want representing you through the offer and closing process, moving to a buyer representation agreement with a clear timeline makes more sense.
Can I negotiate the compensation in a buyer representation agreement?
Yes. Texas law now requires the agreement to state, conspicuously, that broker compensation is not set by law and is fully negotiable. Don't treat the number on the form as fixed — ask questions and negotiate terms that make sense for your situation.
Does this law apply if I'm buying new construction directly from a builder?
It applies to how your buyer's agent represents you, even in a new construction purchase. If you're working with an agent to help you navigate a builder's sales process, that relationship should still be covered by a written agreement, and your agent should clarify how their compensation works when a builder is involved.
If you're relocating to Dallas or starting a search within the city, walking into your first showing with a clear understanding of what you're signing — and why — puts you in a much stronger position than figuring it out on the fly. Reach out for a private, no-pressure buyer consultation (mailto:[email protected]?subject=Confidential%20Consultation%20Request) and let's talk through your search, your timeline, and exactly what representation should look like for you.
About Brandon Travelstead
Brandon Travelstead is a top 2% producing Compass agent with 16 years of experience in the Dallas market, specializing in North Dallas neighborhoods like Preston Hollow, Prestonwood, and Northwood Hills, as well as Lakewood and Lake Highlands. He works with sellers preparing to list and buyers relocating to or within Dallas, with a particular focus on infill new construction and custom-built homes. Brandon's business runs almost entirely on referrals — a track record built on getting high-stakes transactions right.
Brandon Travelstead is a real estate agent affiliated with Compass Real Estate.
