Texas New Law: Can’t tour properties until an agreement is signed

Buying & Selling Real Estate
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Texas New Law: Can’t tour properties until an agreement is signed

Keeya WangJones
WA · Member since 2016 · 99 posts · 44 votes

Hi BP community,

I’m looking to invest in Texas and there’s a new law that the buyer must sign agreement with one realtor company or agent for the potential property. 

The buyer can not tour the property until they sign the agreement. 

They are also not allowed to see other properties unless it is the same real estate agent listings.

Is this true? We are literally block from viewing two properties due to this law. I don’t mind signing multiple agreements so we can view the properties and work directly with the seller’s agent. 

Please advise… we are so block from moving forward. 

Cheers,,

Keeya

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David M.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
2y

@Keeya WangJones Probably effect of the lawsuit that NAR lost. TX being TX may have already passed a law....

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    The only time I’ve heard such a thing is new builds. They’ll often make your agent “register” in the office before you walk any of their models. Otherwise they won’t pay any commissions and you could get soaked out of pocket reimbursing your agent. 

    1Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    2y

    @Keeya WangJones Probably effect of the lawsuit that NAR lost. TX being TX may have already passed a law....

    1Reply
  • Keeya WangJones
    OP
    WA · Member since 2016 · 99 posts · 44 votes
    2y

    Thank you @Bill B. and @David M.. I read about NAR commission changes. I understand the adjustments and concerns. I will continue to be transparent with the agents and go through the process according to the law update.

    We are working on all the backend processes, 2023 taxes, you know the flow.. and hope timing works in our favor. Shopping part is always the fun part, and the admin side takes longer. 

    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I haven't shopped in Texas this calendar year, but I have not heard of this law. Do you mind referencing where this is?

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    2y

    @Keeya WangJones comes to mind:  try calling the listing agents to try get a showing.  See what they have to say.  Especially if you are just starting to shop, you might be able to use these agents as your buyer's agent in the future.

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @Keeya WangJones:

    Hi BP community,

    I’m looking to invest in Texas and there’s a new law that the buyer must sign agreement with one realtor company or agent for the potential property. 

    The buyer can not tour the property until they sign the agreement. 

    They are also not allowed to see other properties unless it is the same real estate agent listings.

    Is this true? We are literally block from viewing two properties due to this law. I don’t mind signing multiple agreements so we can view the properties and work directly with the seller’s agent. 

    Please advise… we are so block from moving forward. 

    Cheers,,

    Keeya


    Are you sure about this/ Or are you just being told this? I 'googled it' a couple different ways and found nothing of the sort......? Can you post a copy of what you're being asked to sign?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y

    It's not just Texas. It will be nation wide as soon as the Department of Justice approves the settlement.

    Don't like it? Neither do agents. But complain to the DOJ, agents have no say in it.

    [email protected]301-893-4635Podcast Guest on Show #192
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y
    Quote from @Account Closed:
    Quote from @Russell Brazil:

    It's not just Texas. It will be nation wide as soon as the Department of Justice approves the settlement.

    Don't like it? Neither do agents. But complain to the DOJ, agents have no say in it.

    Seeking clarification here:

    Is it that someone who wants to buy a house in TX HAS to sign an agreement before they are even allowed to be shown a property? I presume that means the property is being listed by a NAR member?

    And then you can't see other listing from other agents? 
     

    "They are also not allowed to see other properties unless it is the same real estate agent listings."

    Any property that is listed on a Realtor owned MLS, regardless if the agent is a Realtor themselves, will have to sign a buyer agency agreement if they want to be shown a property in the MLS.

    The DOJ is likely to also impose this rule on non-Realtor MLS systems as well, but we arnt quite there yet. I expect in the next 60 days the DOJ will state this.

    So if someone wants to see a property and doesn't want to sign an agency agreement they will have to go to an open house. No open houses scheduled, then they can't see the house.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y
    Quote from @Russell Brazil:
    Quote from @Account Closed:
    Quote from @Russell Brazil:

    It's not just Texas. It will be nation wide as soon as the Department of Justice approves the settlement.

    Don't like it? Neither do agents. But complain to the DOJ, agents have no say in it.

    Seeking clarification here:

    Is it that someone who wants to buy a house in TX HAS to sign an agreement before they are even allowed to be shown a property? I presume that means the property is being listed by a NAR member?

    And then you can't see other listing from other agents? 
     

    "They are also not allowed to see other properties unless it is the same real estate agent listings."

    Any property that is listed on a Realtor owned MLS, regardless if the agent is a Realtor themselves, will have to sign a buyer agency agreement if they want to be shown a property in the MLS.

    The DOJ is likely to also impose this rule on non-Realtor MLS systems as well, but we arnt quite there yet. I expect in the next 60 days the DOJ will state this.

    So if someone wants to see a property and doesn't want to sign an agency agreement they will have to go to an open house. No open houses scheduled, then they can't see the house.


     But do they have to sign the agreement with the listing agent and if so, then they must be able to sign multiple agreements otherwise there is no way it would work for buyers (or sellers).  To only be able to view homes listed by one agent is too limiting.

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    2y

    @Theresa Harris the ruling require exclusivity to the listing agent’s listings… one just becomes a client of the agent, who you happen to meet at one of their listings.  Then you go off and see whatever property on the mls or elsewhere.  
    remember, agents go be bother listing and buyers agents here

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    2y

    Depends on what the agreement says.. I’ve known some where you sign for a day… that was before the settlement

    So this is part of the turmoil.. why else would an agent work with a buyer without promise of compensation? 
    sort of guess they can dissolve anytime but procuring cause would apply or something, albeit potentially difficult to track

    Part why I think upfront payment will not work well, nor the fee-based where it’s more like attorneys.  What buyer can afford to be nickel and dimed…. A fixed commission instead of percentage commission… but with limitations on work, such as no more than 100 showings… idk

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y
    Quote from @David M.:

    @Theresa Harris the ruling require exclusivity to the listing agent’s listings… one just becomes a client of the agent, who you happen to meet at one of their listings.  Then you go off and see whatever property on the mls or elsewhere.  
    remember, agents go be bother listing and buyers agents here


     That's how it normally works, but the OP said "They are also not allowed to see other properties unless it is the same real estate agent listings." which seems very odd.

    0Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    2y

    Ughh. Another hurdle for the buyer to go through. What a hassle this is becoming. Maybe AI can take over this industry to save everyone time and $ for buying and selling a house which isn't that complicated of a process. I've bought several FSBO and it was such a breeze. The sellers got the price they wanted and I got a great deals since we cut out the middleman and all the hassle.

    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I asked my  awful Texas agents. They said they are not aware of this rule at all right now, and I asked them what they can expect.

    They told me they do expect a buyer's agency agreement, but it'd be within a house, or a set amount of houses for a fixed fee. Or a lesser fee for them to be the our exclusive buyer's agent.

    In my head, I wanted to tell her she's about to lose her job. No one's going to pay her for her expertise, or lack thereof. I'll pay the lowest fee for a single house to not be committed in areas where I just can't identify a really, truly quality agent.

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    2y

    @Theresa Harris Oh right.  The OP's statement is odd, but i just figure that's what the agents wanted.  I was just going after using the listings to shop for an agent to use for buying..

    1Reply
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