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.