The Wrong Form Can Cost You $1,000 or Your License
Since January 1, 2026, Texas law requires a written buyer representation agreement before you show any property. That mandate comes from TRELA Section 1101.563, enacted through SB 1968. TREC fines start at $1,000 per violation, and repeated offenses can trigger license suspension. Choosing between TXR 1501 and TXR 1508 isn't a preference — it's a compliance decision with real consequences.
The three main Texas Real Estate Commission buyer agreement forms — TXR 1501, TXR 1507, and TXR 1508 — serve fundamentally different purposes. Using the wrong one exposes you to enforcement risk, compensation disputes, and potential fiduciary liability. This guide gives you a clear framework for choosing the right form every time.
TXR 1501: Full Representation Agreement
TXR 1501 is the Exclusive Buyer Representation Agreement. It establishes a full fiduciary relationship between you and your buyer client. This is the form you use when a buyer is serious, engaged, and ready for you to represent their interests through the entire transaction.
Key Characteristics of TXR 1501
- Exclusive relationship: The buyer works only with you during the agreement term.
- Full fiduciary duty: You owe the buyer loyalty, confidentiality, disclosure, and obedience.
- No maximum term limit: Unlike TXR 1508, there is no statutory cap on duration.
- Compensation must be stated: The exact amount or rate must appear in the agreement.
- Negotiability disclosure required: Conspicuous text must state that compensation is negotiable.
Under the NAR settlement rules effective August 17, 2024, TXR 1501 must include all four mandatory clauses: the exact compensation amount, source neutrality language, a conspicuous negotiability disclosure, and a list of specific services you will provide. These requirements apply regardless of form type, but they carry particular weight in TXR 1501 because you are committing to full representation.
When to Use TXR 1501
Use TXR 1501 when a buyer is ready to commit to working with you exclusively. This is the appropriate form when the buyer wants your advice on pricing, negotiations, inspections, and contract strategy. If you plan to write offers, negotiate repairs, or advocate for the buyer in any capacity, TXR 1501 is the correct choice.
It is also the right form when you expect the relationship to extend beyond 14 days. Since TXR 1508 is capped at 14 days by SB 1968, Section 1101.562, any longer engagement requires either TXR 1501 or TXR 1507.
TXR 1508: Showing Only Agreement
TXR 1508 is the Showing Only Agreement. It does not create a representation relationship. You are not the buyer's agent under this form. You owe no fiduciary duties, you do not provide advice, and you do not negotiate on the buyer's behalf.
Key Characteristics of TXR 1508
- Non-exclusive: The buyer can work with other agents simultaneously.
- No representation or advice: You open doors and provide access — nothing more.
- 14-day maximum term: Mandated by TRELA Section 1101.562 under SB 1968.
- Limited scope: You cannot write offers, negotiate terms, or recommend pricing.
- Still requires compensation disclosure: NAR settlement clauses still apply.
The 14-day cap is not a suggestion. An agreement that exceeds this term violates state law. Do not attempt to extend a TXR 1508 by simply executing a new one back-to-back with the intent to avoid full representation — TREC could view this as a circumvention of the statute's purpose.
When to Use TXR 1508
Use TXR 1508 when a prospective buyer wants to see a property but is not ready to commit to a representation relationship. This happens frequently at open houses, initial consultations, or when a buyer contacts you about a single listing they found online. The form satisfies the TRELA Section 1101.563 requirement to have a written agreement in place before showing property — without locking either party into a full fiduciary relationship.
TXR 1508 is also useful as a conversion tool. Show the buyer a property under TXR 1508, demonstrate your expertise, and then transition to TXR 1501 when they are ready for full representation. Just make sure you do not provide advice or advocacy while operating under the showing-only form.
TXR 1507: The Middle Ground
Don't overlook TXR 1507, the One Property/One Day Agreement. It is limited to a single specific property or a single calendar day — whichever applies. Unlike TXR 1508, TXR 1507 can include representation for that limited scope. Unlike TXR 1501, it expires automatically without requiring a termination conversation.
Use TXR 1507 when a buyer wants to see one property and potentially receive your guidance on that specific home, but is not yet ready for an exclusive relationship. It bridges the gap between showing-only access and full representation.
The Biggest Risk: Providing Advice Under TXR 1508
This is where Texas agents get into trouble. You sign a TXR 1508 because the buyer seems casual. Then, while standing in the kitchen, the buyer asks: "What do you think this house is worth?" You answer. You have just provided advice outside the scope of your agreement.
Under TXR 1508, you have no authorization to advise, and the buyer has no expectation of fiduciary duty. If you provide substantive guidance anyway, you create an implied representation relationship that contradicts your written agreement. TREC can view this as a violation of TRELA Section 1101.806, which requires all real estate agreements to be in writing to be enforceable. You are now operating without a valid written agreement that matches your actual conduct.
The fix is simple: if you find yourself wanting to give advice, stop the showing and convert to TXR 1501 or TXR 1507 before continuing. Document the transition. Get a signature before you say another word about price, condition, or strategy.
Side-by-Side Comparison
Scope of Relationship
TXR 1501: Full exclusive representation with fiduciary duties. TXR 1507: Representation limited to one property or one day. TXR 1508: No representation — showing access only.
Maximum Agreement Term
TXR 1501: No statutory maximum. TXR 1507: One property or one calendar day. TXR 1508: 14 days maximum per TRELA Section 1101.562.
Can You Provide Advice?
TXR 1501: Yes — full advisory and advocacy role. TXR 1507: Yes — but limited to the scope defined in the agreement. TXR 1508: No — providing advice exceeds the agreement's scope and creates compliance risk.
NAR Settlement Compliance Across All Three Forms
Regardless of which form you choose, the NAR settlement effective August 17, 2024 requires four mandatory clauses in every written buyer agreement. The exact compensation amount must be stated — no open-ended ranges. Source neutrality language must make clear that compensation can come from any party. A conspicuous negotiability disclosure must be included. And the specific services you will provide must be listed.
All three TXR forms have been updated to accommodate these requirements, but you must verify that every agreement you execute includes all four elements. A missing clause doesn't just violate NAR rules — it could render the agreement unenforceable under TRELA Section 1101.806, the Texas Statute of Frauds provision requiring written real estate agreements.
Your Decision Framework
Ask yourself three questions before selecting a form. First: does this buyer want my advice? If no, use TXR 1508. If yes for one property, use TXR 1507. If yes for an ongoing search, use TXR 1501.
Second: how long will this engagement last? If more than 14 days, TXR 1508 is off the table. If more than one day or one property, TXR 1507 is off the table. TXR 1501 is the only form with no statutory term cap.
Third: am I prepared to limit myself to opening doors and nothing more? If that sounds impossible — and for most experienced agents, it does — skip TXR 1508 and go straight to TXR 1501 or TXR 1507. The compliance risk of accidentally exceeding your showing-only scope is not worth the perceived flexibility.
Bottom Line
The right form protects both you and your buyer. TXR 1501 is your default for serious buyer relationships. TXR 1508 is a narrow-use tool for property access without representation. TXR 1507 fills the gap for one-off situations. Choose deliberately, document the transition when scope changes, and never provide advice that exceeds the form you signed.