TXR Forms

NEW FORM - Amendment to Rep Agreement (TXR 2701) [Temporary form]

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This form is a simple change to an agreement between a client and their real estate agent. It explains that the agent's fees are not set by any group and can be negotiated. The form also changes some details about how the agent and other agents get paid.

• Amendment used with listing and buyer/tenant rep agreements to allow brokers under a current representation agreement to meet the requirements of the NAR settlement

• Includes disclosures and authorizations required beginning August 17

• It's a temporary form that will be pulled down when no longer needed for this purpose

IF UNDER CONTRACT: If you entered into a client-representation contract with a pre-June 24 version of a representation agreement, and that client has entered into a sales contract to purchase or sell a home prior to August 17, you do not need to update your representation agreement. 

IF NOT UNDER CONTRACT: However, if you entered into an agreement with a pre-June 24 version of this form, and that client has not entered into a sales contract to purchase or sell a home prior to August 17, you either need a new agreement or you can use this amendment.

⚠️ Compensation Agreement Btwn Brokers (TXR 2402) ⚠️

- NOT FOR USE IN EXP REALTY TRANSACTIONS!!!! EXP DOES NOT PAY OR ACCEPT BAC %

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• NOTE: EXP REALTY AND OTHER BROKERAGES ARE NOT PAYING CO-OP OR BROKER-TO-BROKER COMMISSIONS.

This form is an agreement between two real estate brokers about how they will share the money earned when a property is sold or leased. It describes the property involved, how much each broker will be paid, and when they will get paid. The agreement also explains what happens if a related person to the client buys or leases the property.

• Updated June 30, 2024 - Updated the name to reflect that the form deals with compensation.

• Updated June 30, 2024 - Allows one broker to compensate a cooperating broker.

• Updated Aug 23, 2024 - Adds a third blank line to the compensation paragraph to provide flexibility on how brokers structure their compensation arrangements. For example, this line can be used for a listing broker to agree to pay the cooperating broker a bonus.

💰 Residential 1-4 Family Contract - Paragraph 12 💰

UPDATED 12-2024

• Paragraphs 12A(1)(a) and 12A(2) add that each party pays the brokerage fees that they each have agreed to pay. 

• Paragraph 12A(1)(b) is amended to allow for a specific seller contribution to the buyer's brokerage fees. 

• A new Paragraph 12A(1)(c) has been added to address other seller contributions separately (that was previously in Paragraph 12A(1)(b) and the prior language that specified the order in which any contribution was to be paid, as well as a limitation on the type of fee that could be paid, is removed. 

• Conforming changes are also made in the Amendment to Contract.

Compensation Agreement Between Broker and Owner (TXR 2401)

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This agreement is between a property owner and a broker, where the broker is authorized to register potential buyers or tenants for the property. It outlines the terms under which the broker will earn a fee if the property is sold or leased to a registered prospect during the agreement's term. The agreement also includes details on how the broker's fee is calculated and when it becomes payable.

• The broker earns a fee if the property is sold or leased to a registered prospect during the agreement’s term.

• The fee amount is negotiable and depends on whether the property is sold or leased.

• The agreement includes provisions for additional fees if the lease is renewed, extended, or if the tenant later purchases the property.

• This form also includes language to clarify the broker’s fee if the owner leases the property to the broker’s prospect.

General Information and Notice to Buyers and Sellers (TXR 1506)

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This form gives important information to buyers and sellers about things to watch out for when buying or selling a property. It covers topics like property inspections, environmental issues, and legal requirements. The form also advises buyers and sellers to be aware of risks like wire fraud and the need for proper insurance.

Notice the compensation paragraph that explains compensation and provides the disclosure that broker compensation is not set by law and is fully negotiable as well as additional disclosure regarding broker compensation.

Notice from Buyer’s Agent to Seller (TXR 1504)

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This form is a notice from a buyer's real estate agent to the seller. It informs the seller that the agent is representing the buyer and that the seller should contact their own broker or attorney for advice. The form also explains that the buyer's agent cannot help the seller with things like evaluating offers or finding other service providers. This also includes a required disclosure regarding broker compensation. 

Referral Agreement Between Brokers (TXR 2405) 

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This form is an agreement between two real estate brokers about sharing a referral fee when one broker refers a client to the other. It details how much and when the referring broker will be paid if the client buys, sells, or leases a property. The form also explains that the fee will be paid only if the receiving broker earns a fee from the transaction.

This form specifies the length of the agreement and whether the agreement is for one transaction or multiple transactions.

Buyer/Tenant Rep Agreement – Long Form (TXR 1501)

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The Residential Buyer/Tenant Representation Agreement provided to Texas REALTORS® defines the relationship between a broker and buyer. It covers the exclusivity of the representation, the market area in question, the term of the relationship, each party’s obligations, and information about fees, mediation, and limitations on liability. The agreement also includes a section clarifying that another broker does not already represent the client for the same market area and whether an employer or relocation company is providing a benefit to the client. The agreement can be changed by mutual consent using Amendment to Buyer/Tenant Representation Agreement (1505) or ended by mutual consent using Termination of Buyer/Tenant Representation Agreement (1503).

A buyer representation agreement is between a buyer and a broker—not between a buyer and a sales agent. If you’re a sales agent and switch brokers, the clients who’ve signed agreements with your current broker don’t transfer to your new broker unless your current broker agrees to release the buyers from their buyer representation agreements.  

Notice the required disclosure that broker compensation is not set by law and is entirely negotiable, as well as the limitation that the broker is prohibited from receiving compensation for brokerage services from any source that exceeds the amounts stated in the agreement.

Broker compensation is at the top of page 2 and the language allows for authorization of the broker to receive additional compensation in compliance with MLS rules. There is also a paragraph to allow the buyer to authorize the buyer's broker to receive Additional Compensation. Any compensation included in this paragraph must be objectively ascertainable, and the specific amount or rate of compensation must be known when the agreement is executed. Additionally, there is a paragraph regarding bonus payments.

NEW FORM - Buyer/Tenant Rep Agreement – Short Form (TXR 1507)

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This form is an agreement where a person (the client) hires a real estate broker to help them buy or rent a property. It explains what the broker will do, how long the agreement lasts, and how the broker will be paid. The form also details the responsibilities of both the client and the broker during this time.

• One-page version of the Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501) - essentially two forms in one 

• Used for full representation of a buyer/tenant from showing properties all the way through closing OR used to provide showing services only 

• Complies with recent NAR policy changes and offers flexibility for buyers/tenants who are not ready to commit to a long-term, exclusive relationship with an agent. 

• The duration of the agreement can be as short as one day, and the market area can be as limited as one property. 

• Present this with the IABS

• What are "Showing Services"? -  Minimum duties required under section 1101.557 of the Texas Occupations Code for license holders are:

  • • Answer the party’s questions 

    • present any offer to or from the party (This simply means the agent is required to give the offer to the intended party. This does not require the agent to write the offer or negotiate the terms for the buyer or seller. If the seller sends an offer to an agent, the agent cannot hold onto the offer but must forward the offer to the buyer. If a buyer has an offer to send to the seller, the agent must forward the offer to the seller. )

    • This requirement is intended to prevent agents from withholding information from their clients. 

    • Keep in mind that the agency relationship exists only for the term of the agreement. If the showing services agreement is for one day or a weekend, many buyers will not provide an agent with an offer during that short period of time. 

    • Fiduciary duty underlies every other duty of the agent. So, when an agent is determining how to answer questions or present offers, the agent should do so in a manner that puts the client’s best interests first. 

Amendment to Buyer/Tenant Rep Agreement (TXR 1505) 

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This form is used to make changes to an existing agreement between a buyer or tenant and their real estate broker. It allows them to update details like the area they are looking in, the end date of the agreement, or the broker's fees. The form also provides options to adjust other parts of the agreement as needed.

The form includes a paragraph to amend the broker obligation paragraph in the Residential Buyer/Tenant Representation Agreement – Short Form (TXR 1507) and to amend broker’s fees or other compensation paragraphs in the Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501) and the Residential Buyer/Tenant Representation Agreement – Short Form (TXR 1507).

It clarifies amendments relating to compensation and allows a change in broker compensation to apply to a specific property. For example, when a specific property offers more compensation than what’s agreed to in the agreement, and the buyer/tenant agrees to increase broker compensation only for that specific property. 

There is an additional paragraph that specifically addresses bonus payments.

Intermediary Relationship Notice (TXR 1409)

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This form notifies the seller/landlord and the buyer/tenant that the same real estate broker represents both parties. It explains that the broker will act as an intermediary, meaning they will help both sides in the deal but won’t favor one over the other. The form also allows the broker to assign different associates to help each party with communication and negotiations.

The new language addresses required disclosure regarding broker compensation and adds an explanatory notice that this form does not satisfy the written consent requirement to act as an intermediary under Texas law. This form is intended to notify the parties that the broker will act as an intermediary and whether the broker will appoint associates to communicate with either party.

NEW FORM - Representation Disclosure (TXR 1417) 

- AKA THE "I REPRESENT THE OTHER PARTY AND NOT YOU" FORM

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This form is used to let everyone involved in a transaction know who the real estate broker is representing. It explains that the broker must tell others, either by talking or in writing, who they are working for—either the buyer, seller, tenant, or landlord. The form also emphasizes that the broker's main duty is to their client, but they must still be honest and fair to everyone involved. There is also a required disclosure regarding broker compensation.

• May be used in two separate ways:

  • By a listing broker or the broker’s agent to disclose to a consumer that the listing broker represents the seller of the residential property to be shown.

  • By a broker or the broker’s agent to inform another party to a transaction—or another license holder who represents another party to a transaction—who the broker represents.

Residential Listing Agreement, Exclusive Right to SELL (TXR 1101)
Residential Listing Agreement, Exclusive Right to LEASE (TXR 1102)
Farm & Ranch Listing Agreement, Exclusive Right to Sell (TXR 1201)

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This form is an agreement between a homeowner (the seller) and a real estate broker, giving the broker the exclusive right to sell the property. It outlines the responsibilities of both the seller and the broker, including how the property will be marketed, the broker's fees, and the terms under which the property will be sold. The agreement also includes important details about the property, the selling price, and any special conditions or exclusions.

In June 2024, it was updated to remove references to broker fees in relation to MLS participation and added notice the required disclosure that broker compensation is not set by law and is fully negotiable. It also allows the seller to specify if the seller is offering concessions.

For eXp listings, we will only use Residential 1-4 Family - Paragraph 12 to address compensation only for the listing agent. We do not pay compensate the other broker. That is handled with the contract negotiations using for the seller to pay the buyer's agent directly. Put N/A in all of the blanks in Paragraph 5A that addresses payments made to other brokers (BAC). 

In Paragraph 5, the seller can authorize the listing broker to disclose that the seller will consider contributions toward the buyer’s expenses. This authorization is for the broker to disclose potential concessions paid by the seller.  We recommend always checking yes. Everything is negotiable, and it's all about the net from the individual offer.

Seller’s Authorization to Disclose and Advertise Certain Information (TXR 1412)

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This form gives the seller's permission to their real estate broker to share specific information about the property with potential buyers and other brokers. It allows the broker to disclose that the seller might help pay some of the buyer’s expenses and to advertise additional details about the property, like special terms or reasons for selling. The seller has the final say on how much they will contribute and what information the broker can share.

Designed to be used as written authorization from the seller that the agent may disclose and/or advertise certain information. For example, the seller can include a specific dollar amount that the seller would consider contributing towards the buyer’s expenses that can be advertised to buyers and their agents on an MLS and elsewhere.

NEW FORM - Named Exclusions Addendum to Listing (TXR 1402)

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This form is an addendum to a listing agreement that allows a property owner to exclude certain named individuals from the agreement. This means the owner can sell or lease the property to these individuals without having to pay the broker's full fees. The addendum outlines specific conditions under which these exclusions apply.

• The owner must sell or lease to the named individuals within a set time to avoid paying the broker’s full fees.

• If a named individual makes an offer through another broker, the exclusion no longer applies, and the owner must pay the broker's fees.

• The owner is required to inform the broker immediately if they receive or accept an offer from a named exclusion.

Amendment to Listing (TXR 1404)

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This form is used to make changes to an existing real estate listing agreement between a property owner and their broker. It allows them to update key details like the listing price, the end date of the listing, or the broker’s fee. The form ensures that the listing remains in effect, even with these amendments, unless stated otherwise.

This includes the required disclosure that broker compensation is not set by law and is fully negotiable and provides specific provisions to amend the broker’s fees paragraphs in Residential Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1101) and Farm and Ranch Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1201).

Exclusive Agency Addendum to Listing (TXR 1403)

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This form is an addendum to a listing agreement that allows the property owner to sell or lease their property to a specific buyer or tenant they find on their own without having to pay the full broker’s fees. The owner must notify the broker about these "Excluded Prospects" in writing, and the broker or any other broker should not have shown the property to these prospects beforehand. If the property is sold or leased to one of these excluded prospects, the broker's involvement ends, and they may receive a reduced fee or no fee at all.

Don’t Overlook These Forms Changes to Leases

Of the forms revised or created to comply with new rules from the NAR compensation lawsuit settlement, several are commonly used in leasing transactions and property management. See the article on page 18 for more information about the following forms:

Revised forms

• Residential Real Estate Listing Agreement, Exclusive Right to Lease (TXR 1102)

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

• Residential Leasing and Property Management Agreement (TXR 2201)

• Compensation Agreement Between Broker and Owner (updated name) (TXR 2401)

• Compensation Agreement Between Brokers (updated name) (TXR 2402)

• Referral Agreement Between Brokers (TXR 2405)

New form

• Residential Buyer/Tenant Representation Agreement – Short Form (TXR 1507)