Key Takeaways
- Written listing agreements and buyer representation agreements are required to earn a commission in Texas
- Texas uses specific agreement types: Exclusive Right to Sell, Exclusive Agency, and Open Listing
- Buyer representation agreements establish the broker's duties and compensation terms
- Protection periods (safety clauses) allow brokers to claim commission after expiration for procured clients
- All representation agreements must include the intermediary consent language if that option will be available
Last updated: January 2026
Representation Agreements
In Texas, written agreements are required to establish agency relationships and earn commissions.
Types of Listing Agreements
1. Exclusive Right to Sell
| Feature | Description |
|---|---|
| Commission earned | If property sells by ANY source |
| Broker exclusivity | Only one broker |
| Owner can sell | Yes, but still pays commission |
| Most common | Yes, preferred by brokers |
2. Exclusive Agency
| Feature | Description |
|---|---|
| Commission earned | If property sells through agent |
| Broker exclusivity | Only one broker |
| Owner can sell | Yes, without paying commission |
| Common | Less common than Exclusive Right |
3. Open Listing
| Feature | Description |
|---|---|
| Commission earned | Only if that broker procures buyer |
| Broker exclusivity | None—multiple brokers possible |
| Owner can sell | Yes, without paying commission |
| Common | Least common, least favorable |
Required Listing Agreement Elements
Texas listing agreements must include:
| Element | Requirement |
|---|---|
| Property description | Legal description or address |
| Listing price | Seller's asking price |
| Commission terms | Amount or percentage |
| Expiration date | Definite termination date |
| Broker information | Name, license number |
| Signatures | Seller and broker |
| Intermediary consent | If applicable |
Buyer Representation Agreements
Purpose
A Buyer Representation Agreement establishes:
- Agency relationship with buyer
- Broker's duties to buyer
- Compensation terms
- Duration of representation
Types of Buyer Agreements
| Type | Description |
|---|---|
| Exclusive Buyer | Buyer works only with this broker |
| Non-Exclusive Buyer | Buyer may work with multiple brokers |
Required Elements
| Element | Purpose |
|---|---|
| Scope of representation | Types of property sought |
| Geographic area | Where buyer wants to purchase |
| Compensation | How broker will be paid |
| Duration | Start and end dates |
| Intermediary consent | If applicable |
Protection Periods (Safety Clauses)
What is a Protection Period?
A protection period (also called a safety clause or extender clause) protects the broker's commission after the agreement expires.
| If This Happens | Broker Earns Commission |
|---|---|
| Agreement expires | No, unless... |
| Client buys/sells within protection period | Yes, if broker procured client |
| Client listed with another broker | Usually no (override clause) |
Standard Protection Period
- Typically 90 days after expiration
- Applies to clients broker introduced during term
- Broker must provide written list of prospects
Termination of Agreements
How Agreements End
| Method | Description |
|---|---|
| Expiration | End date reached |
| Completion | Transaction closes |
| Mutual consent | Both parties agree to terminate |
| Breach | Material violation by either party |
Key Point: A seller can withdraw a listing, but may still owe commission depending on agreement terms.
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Test Your Knowledge
Under which type of listing agreement does the broker earn a commission regardless of who sells the property?
A
B
C
D
Test Your Knowledge
What is the purpose of a protection period in a listing agreement?
A
B
C
D