2026 Texas Real Estate: Key Regulatory Changes Every Agent Must Know

If you are a Texas real estate agent, 2026 is a year of significant change. TREC, Texas REALTORS®, and the Texas Legislature have all made updates that affect how you work, what forms you use, and how you advise clients.

Some changes took effect January 1, 2026. Others become mandatory on July 1, 2026. Many agents are still catching up.

This guide covers the most important 2026 regulatory changes every Texas real estate agent needs to know.

Quick Summary: 2026 Real Estate Changes at a Glance

• Water rights disclosure — New TREC 61-0 form mandatory July 1, 2026
  
• Broker compensation — Revised Paragraph 12 across all contracts
  
• Buyer representation agreements — Written agreements now required before showing
  
• Subagency eliminated — No longer allowed in any transaction
  IABS 1-2 — Required since January 1, 2026
  
• Broker Responsibility Course — Required for all brokers renewing on or after January 1, 2026
  
• SB 17 foreign ownership restrictions — Rules effective April 26, 2026

Water Rights Disclosure: TREC 61-0 (Mandatory July 1, 2026)

Water is one of the most critical issues in Texas real estate. Yet water rights have often been overlooked in most transactions.

That changes in 2026. TREC added a water notice to all contracts. The revised forms are mandatory starting July 1, 2026.

What changed:

TREC added a water notice paragraph to its contracts. It includes a general water rights disclosure. It also gives three options for buyers receiving the TREC 61-0 form.

The form is three pages. It starts with definitions, then covers groundwater, wells, and surface water. Sellers only need to state what they know. If they don't know, they can say so.

What agents need to know: Unless you are an attorney or engineer, you cannot interpret water laws. But under TREC rules, you must make clients aware of the disclosure and recommend they seek expert advice when needed.

Mandatory date: July 1, 2026

Contract Form Updates (Mandatory July 1, 2026)

TREC has released updated versions of several contracts and addenda. Many changes apply across all major forms.

Forms with mandatory updates:

Changes across all major contracts:

• Generators added to Paragraph 2B
  
• Legal Holiday defined in Paragraph 5A(2)
  
• Option fee, earnest money, and contract now in lowercase
  
• Water rights paragraph added (Paragraph 7I)

Forms affected: Unimproved Property, One to Four Family Residential, New Home (Incomplete and Completed), Farm & Ranch, and Residential Condominium contracts.

Mandatory date: July 1, 2026

Buyer Representation: Written Agreements Now Required

Legislation passed during the 89th Texas Legislative Session changed TRELA to require written agreements for buyer representation.

What changed:

• You must have a written agreement with residential buyers before showing a property
• The agreement must be signed before showing a property
• If no showing occurs, the agreement must be signed before presenting an offer

Agents can now show property without representing the buyer, but they must disclose this and provide IABS.

Effective date: January 1, 2026

Subagency Eliminated

Subagency is no longer allowed in any Texas real estate transaction — residential, commercial, land, farm, or ranch.

What changed:

• Subagency removed from TRELA
  
• IABS form updated to remove subagency language
  
• All agents must clearly state their role in writing

Effective date: January 1, 2026

IABS Form Updated (IABS 1-2)

The IABS form has been updated.

What changed in IABS 1-2:

• Adds a non-representation status
  
• Adds written agreement requirements
  
• Removes subagency language
  
• Updates contact information terms

Important: IABS 1-1 should not be used after December 31, 2025.

Effective date: January 1, 2026

Broker Responsibility Course: New Requirement

Starting January 1, 2026, all renewing brokers must take the Broker Responsibility Course — even if they don't sponsor agents.

Who must take it:

• All new broker applicants
  
• All brokers renewing on or after January 1, 2026

Effective date: January 1, 2026

SB 17: Foreign Ownership Restrictions

Texas Senate Bill 17, effective September 1, 2025, restricts property purchases by certain individuals and entities from adversarial nations.

Who is affected:

• Individuals from China, Russia, Iran, and North Korea
  
• Entities headquartered in or controlled by these nations

What it means for agents: Licensed real estate professionals must report suspected violations to the Office of the Attorney General.

Rule effective date: April 26, 2026

What This Means for Agents

1. Update your forms. Forms with a July 1, 2026 mandatory date are coming soon. Download the latest versions from TREC or your association before using them.
   
2. Get written agreements signed. Buyer representation agreements are now required before showings. No exceptions.
   
3. Use IABS 1-2. The old form is no longer valid.
   
4. Check your broker status. If you are a broker, confirm you have completed or are scheduled to complete the Broker Responsibility Course.
   
5. Know the water rights rules. Starting July 1, you must be able to explain the new water disclosure requirements to clients.
   
6. Be aware of SB 17. Know the reporting requirements for foreign ownership transactions.

Staying Compliant in 2026

2026 is one of the most significant years for regulatory change in Texas real estate in recent memory. New laws, new forms, and new requirements affect how you work every day.

Staying current on these changes protects your clients and your career. The best way to stay informed is through continuing education that covers the latest TREC rules, contract form updates, and legislative changes.

Time2Renew offers TREC-approved continuing education courses covering the 2026-2027 cycle — including Legal Updates I and II, contract courses, and electives. All online and self-paced.

👉 Start your Texas real estate CE with Time2Renew

About Time2Renew: We help Texas real estate professionals complete CE requirements quickly and without stress. TREC-approved. Online, self-paced, and built for busy agents. Start today.