US Real Estate Law Explorer
Educational information only. Not legal advice. Not affiliated with any state agency or real estate union.

Texas Real Estate Law

Regulator: Texas Real Estate Commission (TREC)

Agency Relationships

  • Every agent must present the 'Information About Brokerage Services' form at first substantive contact.
  • Texas allows 'intermediary' practice: one broker can represent both buyer and seller with written consent, appointing different agents to each party.
  • A sub-agent of the seller owes the seller fiduciary duties but must still be honest with the buyer.

Property Disclosures

  • Sellers complete the state-mandated Seller's Disclosure Notice (Texas Property Code §5.008).
  • Coastal properties near the Gulf require disclosure of windstorm insurance availability and the Open Beaches Act.
  • Properties in a Municipal Utility District (MUD) or PID require specific notices before closing.

Contract Nuances

  • Texas uses state-promulgated contract forms that licensees are required to use in most residential transactions.
  • The standard contract includes an 'option period' — a short paid window during which the buyer can cancel for any reason.
  • Attorney involvement is optional; closings are handled by title companies.

Closing & Costs

  • Closings are handled by title companies. Texas does not require an attorney.
  • Local custom: the seller almost always pays for the owner's title policy in Texas, which is state-regulated and identical across companies.
  • Texas has no state real estate transfer tax — only nominal recording fees.
  • Texas has no state income tax, but property taxes are among the highest in the country and are billed in arrears, so prorations at closing matter.
  • Texas's homestead exemption is one of the strongest in the US — apply with the county appraisal district as soon as you close on your primary residence.

Buyer-Agent Compensation (post-2024)

  • Since August 17, 2024, multiple-listing services (MLS) can no longer publish offers of buyer-agent compensation. Sellers may still choose to pay a buyer's agent, but it is now negotiated separately and disclosed off-MLS.
  • Buyers must sign a written representation agreement with their agent before touring a home. The agreement must state how the agent is paid and how much. Read it carefully — the fee is between you and your agent now, not automatically covered by the seller.
  • If you are buying, ask whether the seller is offering to pay your agent's commission, who else might pay it, and exactly what services are included.
  • If you are selling, you are no longer required to offer a buyer's agent commission. Your listing agent should explain the trade-offs of doing so anyway.

Tenant & Landlord Rights

  • Security deposits are regulated; landlords must return them within a set number of days after move-out.
  • Evictions require proper written notice and, in most cases, a court order.
  • Retaliation against tenants who exercise legal rights is prohibited.

Educational information only. Not legal advice. Laws change; verify with the official sources above or consult a licensed attorney.