New Updates to Buyer Representation Agreement & Amendment

Stay up-to-date with the latest changes to your real estate forms.

Texas REALTORS® has updated the Residential Buyer/Tenant Representation Agreement and the Amendment to Buyer/Tenant Representation Agreement. These new changes, which focus on provisions related to bonuses and other compensation, are now available on texasrealestate.com .

Why the Change? After consulting with NAR legal staff, Texas REALTORS® identified that existing provisions for bonuses and other compensation didn’t meet the “objectively ascertainable” requirement of the NAR settlement. To ensure clarity and compliance, here’s what has changed:

Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501)

What’s Gone:

• Paragraphs 7E(3) (bonuses) and 7E(4) (other compensation) have been deleted.

What’s New:

• Brokers must now disclose the exact amount of any bonus.
• Clients need to authorize this bonus after knowing the exact amount.
• Authorization can be done by amending the agreement.

Previously, blank lines were used to insert bonus and compensation amounts, which didn’t meet new standards. Now, any compensation must be a specific number or a calculable rate (like a percentage of the sales price). This change ensures adherence to the NAR requirement.

Brokers should discuss potential bonuses with their clients when signing the agreement. If a bonus or other compensation is tied to a property receiving an offer, brokers must use the amendment to get their client’s approval once they know the exact amount.

Amendment to Buyer/Tenant Representation Agreement (TXR 1505)

What’s Added:

• A new Paragraph E allows brokers and their clients to amend the agreement to authorize a bonus.
• There’s also a line to include the address where the bonus applies, as it’s for a specific property.

Stay informed and compliant with these essential updates. For more details, click here .