Texas Buyer Representation Agreement: Do You Pay If You Don’t Buy? (2026)

Jun 11

Quick answer: Since the 2024 NAR settlement, Texas buyers must sign a written Buyer/Tenant Representation Agreement before their agent shows homes. Whether you owe your agent if you do not buy depends on what that agreement says — most are structured so your agent is paid from the transaction, not your pocket. Here is how it works and what to check before you sign.

What is a buyer representation agreement?

It is a written contract (commonly the Texas REALTORS® TXR-1501 form) that defines the relationship between you and your buyer’s agent: the term, the area, the services, and — critically — how the agent gets paid. As of 2024–2025, signing one before touring is required practice across Texas.

Do you have to pay if you do not buy a home?

Generally, no — if you do not purchase anything, there is usually no commission earned. A broker cannot collect a commission without a signed written agreement, and most agreements tie payment to a completed purchase. Two things to watch:

Protection period. If you buy a home your agent showed you, shortly after the agreement ends, you may still owe the fee. This prevents buyers from dodging the agent on a home the agent introduced.
Shortfall clause. Your agent first seeks payment from the seller. If the seller pays less than your agreed fee, you may owe the difference — which is exactly why the fee number in the agreement matters.

How buyer-agent pay actually works in Texas (2026)

In most Texas transactions the seller still offers to cover the buyer’s agent, so buyers pay little or nothing directly. But it is negotiated per deal now, not guaranteed. With a flat fee buyer agent like KAT Realty, your fee is a fixed $4,999 — and when the seller’s offered compensation exceeds that, eligible buyers may apply the difference toward closing costs as a rebate, subject to lender approval.

What to check before you sign

Term length. Shorter is more flexible; you can often request 30–90 days.
The fee number. This is what you could owe if the seller’s offer falls short. A flat fee makes it predictable.
Protection period length. Know how long it runs after the agreement ends.
How to exit. Ask how to terminate if the relationship is not working.

FAQs

Can I cancel a buyer representation agreement in Texas?

Often yes — many agents will release you, and the agreement may specify termination terms. Discuss exit options before signing.

Do I owe my agent if I decide not to buy at all?

Typically no, as long as you do not purchase a protected property. Commission is generally earned on a completed transaction.

Why do I have to sign before touring now?

The 2024 NAR settlement changed industry practice so buyer-agent compensation is transparent and agreed up front, rather than assumed through the MLS.

KAT Realty Group operates under Texas Ally, a licensed Texas real estate brokerage. This article is general information, not legal, tax, or lending advice. Company names are referenced for comparison only.

Weiting Yu