In the state of Texas, subagency, where an agent represents the seller but assists the buyer, is being phased out through Senate Bill 1968. This bill aims to clarify broker-buyer relationships by requiring written agreements before showing residential property or making offers on behalf of the buyer.
Here’s a more detailed breakdown:
- Subagency is being eliminated: Senate Bill 1968 is designed to remove the concept of subagency, where an agent would work as a subagent for the seller while also assisting the buyer in a transaction without formally representing them.
- Emphasis on written agreements: The bill encourages agents to establish written representation agreements with buyers, ensuring both parties understand their roles.
- Clarified broker-buyer relationships: Senate Bill 1968 provides clarity on the relationship between brokers and buyers before a buyer-representation agreement is created, and it clarifies the requirements for disclosing the agent’s representation of the seller.
- Transparency and protection: The goal is to increase transparency by clarifying broker-buyer relationships, protecting both consumers and agents.
- Written agreements required: A license holder who performs any real estate brokerage act (including showing property or making an offer) must enter into a written agreement with the buyer before taking those actions.