Buyer Representation Agreements in Texas: What Dallas Buyers Should Know

A buyer representation agreement is the written contract that makes an agent your agent: it sets out the services you receive, how long the relationship runs, what area and property types it covers, how your agent is compensated and how the agreement can be ended. Written agreements before touring became standard practice nationwide in August 2024, and in Texas a written agreement is required before an agent shows you property. This page explains what the agreement covers, how compensation actually works, and what to review before signing.

Why written buyer agreements became standard

Following industry-wide practice changes that took effect in August 2024, agents who belong to a REALTOR® association are generally required to have a written agreement with a buyer before touring homes. What had been optional in many markets became the first step of the buying process. The purpose is transparency: the agreement puts in writing, before any showings, what services you will receive and how your agent is paid.

What the agreement covers

A Texas buyer representation agreement typically addresses the same core terms:

The term, meaning how long the agreement runs.
The geographic area and the property types it covers.
The broker's duties to you as a client.
How the broker's compensation is determined and who is expected to pay it.
How and when the agreement can be terminated.

Once signed, your broker owes you the duties of a client under Texas agency law, including loyalty, disclosure and confidentiality. A listing agent or a builder's on-site sales representative owes those duties to their own principal, not to you.

Is it a TREC form?

No. The Texas Real Estate Commission promulgates the purchase contracts, but the buyer representation agreement most brokerages use is a Texas REALTORS® form, and brokerages can modify it. Two buyers on the same street can therefore have signed materially different terms. Read the version in front of you rather than a summary of the standard form.

How compensation actually works

This is the part most worth understanding before you sign.

The agreement states the compensation your broker will earn for representing you, and you are the party agreeing to it. Separately, a seller or a builder may offer compensation to the buyer's broker as part of the transaction, and in many Dallas-area transactions they do. Where that offer covers the amount in your agreement, it is satisfied through the transaction. Where the offer is lower than the agreed amount, or where none is offered, the difference is your responsibility unless it is negotiated another way, such as asking the seller to cover it as a term of your offer.

Practically, that means two things. First, ask your agent early how compensation will be handled in the price range and property types you are considering. Second, expect the conversation to happen before you tour or write an offer on a listing that offers less than your agreement provides, not at closing. An agent who explains this clearly at the start is showing you how they will handle the rest of the transaction.

Questions worth asking before you sign

How long is the term?

Agreements can run from a single showing to many months. A reasonable term matches your actual search timeline, and many agents will agree to a shorter initial term while you get comfortable working together.

What area and property types does it cover?

The scope can be tailored, for example to one county or a defined set of neighbourhoods, rather than automatically covering everything.

How can the agreement be ended?

Read the termination provisions before signing, including whether either party can end the relationship early, what notice is required, and whether any obligation survives termination for properties you were introduced to during the term.

What services are included?

Contract review, negotiation, inspection coordination and, for new construction, construction-phase involvement should be spelled out or clearly understood rather than assumed. The guide to choosing a buyer's agent covers what to ask about each.

New construction: two documents, two directions

In a builder's sales office, the on-site representative is employed by the builder and represents the builder, and Texas law requires that relationship to be disclosed to buyers. Your buyer representation agreement does the opposite job: it establishes who works for you.

Timing matters as well. Most builders operate registration policies that tie recognition of your agent to your first visit to that community, so signing with your own agent before visiting model homes keeps your representation intact from the first visit. The model home representation guide covers who represents whom in a builder sales office, and the DFW new construction guide covers the rest of the process.

Common questions

Do I have to sign a buyer representation agreement in Texas?

If you want an agent to show you property, yes. A written agreement is required before showings. You do not have to sign the first version put in front of you, and the term, scope and services are all open to discussion before signing.

Can I work with more than one agent?

That depends on the agreement's terms. An exclusive agreement commits you to one broker for the area, property types and term it covers. Ask what the agreement says about this rather than assuming.

What happens if I want to stop working with my agent?

Read the termination provisions, and raise the issue directly. Many brokerages will release a buyer who is not a good fit. What matters is whether any obligation survives for properties you were shown during the term.

Have questions about buyer representation?

Nitin Gupta walks every buyer through the representation agreement in plain language before signing, including how compensation will work in the price range and property types you are considering. Call 469-269-6541 or get in touch. Learn more on the Dallas buyer's agent page or see buyer representation services.