2026 Texas Real Estate Changes: What Every Agent and Buyer Must Know

If you're buying or selling a home in Texas, 2026 brought major real estate rule changes.

Senate Bill 1968 took effect on January 1, 2026. It changed how agents work with buyers, handle contracts, and manage showings.

Whether you're a new agent or experienced, these updates are important.

Official Texas Real Estate Rule Updates (TREC Overview)

TREC updated its rules to improve transparency and modernize licensing.

These changes come from Senate Bill 1968 and started on January 1, 2026.

TREC also updated the IABS form (IABS 1-2) and related contract forms.

For the latest rules, agents should check the TREC website regularly.

What SB 1968 Means

  • Written buyer agreements are required before residential showings
  • Subagency is no longer allowed
  • IABS 1-2 is required starting Jan 1, 2026
  • Non-representation status is now allowed for showings

What Changed in Texas Real Estate Laws in 2026

Before 2026 After 2026
Subagency allowed Subagency eliminated
Verbal showing agreements allowed Written agreement required before showing
IABS 1-1 used IABS 1-2 required
No non-representation option Non-representation allowed

Big Change 1: Written Buyer Agreements Required

Under SB 1968, agents must have a written agreement before showing residential property.

If no showing happens, the agreement must be signed before submitting an offer.

Agreement Types

Full Buyer Representation

  • Full service
  • Property search and negotiations

Showing-Only Agreement

  • Only for showings
  • Non-exclusive
  • Max 14 days

Must include:

  • Services provided
  • End date
  • Exclusive or not
  • Buyer representation status
  • Compensation details
  • Notice that compensation is negotiable

Source: Texas REALTORS® Legal Briefs; TREC update

Big Change 2: Subagency Eliminated

Subagency is no longer allowed in Texas real estate.

This applies to residential, commercial, land, and farm transactions.

This change removes confusion about who represents the buyer.

Agents must clearly define representation in writing.

Source: Texas REALTORS® Agency Law Explainer

Big Change 3: IABS Form Updated (IABS 1-2)

IABS 1-2 is required starting January 1, 2026.

It was updated due to SB 1968.

Key updates:

  • Adds written agreement requirements
  • Explains non-representation showings
  • Removes subagency language
  • Updates contact information section

⚠️ Important: Do not use IABS 1-1 after Dec 31, 2025.

Source: TREC official update

Showing Without Representation

Agents may show property without representing a buyer if:

  • No agreement exists
  • No agency relationship exists
  • No advice or opinions are given
  • Only factual information is shared
  • IABS is provided before showing

Source: Texas REALTORS® Agency Law Explainer

Open House Rules

If your brokerage does not represent the listing, you must have a written agreement before anyone enters.

A simple showing-only agreement or sign-in form is allowed.

Source: Texas REALTORS®

Key Texas Real Estate Terms

Subagency Removed in 2026. Buyers are no longer represented by seller agents.

IABS Required disclosure form. IABS 1-2 is now active.

Non-representation status Agent shows property without representing buyer.

Showing-only agreement Short-term agreement (max 14 days) for showings only.

Why These Changes Matter

These updates improve transparency and clarity in real estate transactions.

For agents:

  • Written agreements are now required
  • New forms must be used
  • Representation must be clearly explained

Key takeaway: You cannot show residential property without a signed agreement.

How to Stay Compliant

1. Use correct forms

  • IABS 1-2
  • TXR 1508 (unrepresented showings)
  • TXR 1501 (buyer representation agreement)

2. Get agreements before showings

  • No agreement = no showing
  • Showing-only max 14 days

3. Update open house process

Use sign-in or showing forms

  • All visitors must sign

4. Stay updated

  • Check TREC website
  • Complete CE courses

What This Means for New Agents

These rules are now part of the Texas license exam.

Key terms:

  • SB 1968
  • IABS 1-2
  • Non-representation status
  • TRELA
  • TXR 1508

Frequently Asked Questions

Do I need a written agreement before every showing?

Yes. A signed agreement is required before residential showings.

What if I show only one property?

Use a showing-only agreement. It must be non-exclusive and max 14 days.

Does this apply to commercial real estate?

Subagency rules apply to all transactions. Written agreement rule applies to residential.

What form should I use?

Use TXR 1508 for unrepresented showings.

Is IABS 1-2 required?

Yes. IABS 1-2 is required starting Jan 1, 2026.

Can I host an open house without agreements?

No. Visitors must sign a showing agreement.

Final Advice

These changes are significant but manageable.

Update your forms, follow the rules, and keep written agreements as standard practice.

Many agents are now taking CE courses focused on compliance and legal updates.

Staying current helps you stay compliant and build client trust.

About Time2Renew

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