QUICK ANSWER

In Texas, a broker who represents you owes four minimum duties required by law, listed on the Information About Brokerage Services (IABS) notice: put the client's interests above all others, including the broker's own; inform the client of material information about the property or transaction; answer the client's questions and present any offer or counteroffer; and treat all parties honestly and fairly. A representation agreement can limit the scope of services a broker provides, but it cannot waive those minimum duties. As of January 1, 2026, a license holder must also have a written agreement with a prospective buyer of residential real property before showing a home or submitting an offer on the buyer's behalf. That requirement applies to residential buyers, not to tenants, commercial purchasers, or land-only deals. This article is educational Texas real estate exam prep, not legal, brokerage, agency, compliance, or professional advice.

EXAM PREP ONLY

This guide explains how this topic appears on the Texas real estate sales agent exam. It is not legal, tax, lending, brokerage, or licensing advice. Verify current rules with TREC, the Texas Real Estate License Act (Occupations Code Chapter 1101), and the Pearson VUE candidate handbook before acting on a real transaction or application.

4
minimum duties required by law
2026
written buyer agreement rule
0
minimum duties you can waive

Start Here

Texas duty questions trip people up because they sound like opinion when they are actually law.

The exam does not ask whether an agent "should" look out for a client. It asks what an agent is required to do, what a client can and cannot give up, and what changes when the agent does not represent a party at all.

Use this anchor:

A Texas broker can limit the services they provide. A Texas broker cannot limit the minimum duties they owe a client.

That single distinction is the spine of this topic.

The phrase "minimum services" gets used loosely, often borrowed from other states. In Texas the precise idea is two-sided: the scope of services is negotiable in the representation agreement, but a short list of statutory duties is not. Mix those two up on the exam and you will pick a wrong answer that sounds reasonable.

This guide separates them cleanly.

Who Owes The Duties In Texas

In Texas, the duties run from the broker to the client, and the sales agent carries them out under the broker's supervision.

This is a Texas wording point worth fixing early. A sales agent is licensed and sponsored by a broker, and the broker is the party with the legal relationship to the client. When the IABS notice and the statute describe what is owed to a client, they describe the broker's obligations. The sales agent acts for the broker, so the same duties shape what the sales agent does day to day.

Texas Occupations Code Chapter 1101, the Texas Real Estate License Act (TRELA), is the source of these obligations, and TREC rules build on it. The exam expects you to know that the duty framework is statutory, not just professional courtesy.

If you want the full statutory backbone, pair this with the TRELA Chapter 1101 guide.

The Four Minimum Duties Required By Law

A broker who represents a client owes four minimum duties required by law and listed on the IABS notice: put the client's interests above all others including the broker's own, inform the client of material information about the property or transaction, answer the client's questions and present any offer or counteroffer, and treat all parties honestly and fairly.

A broker who represents you owes four minimum duties required by law. These appear on the IABS notice that TREC requires license holders to provide.

Minimum duty What it means in practice
Put the client's interests above all others The broker must place the client ahead of everyone, including the broker's own interests.
Inform the client of material information The broker must pass along material information about the property or transaction received by the broker.
Answer questions and present offers The broker must answer the client's questions and present any offer to or counteroffer from the client.
Treat all parties honestly and fairly Honesty and fair treatment extend to everyone in the transaction, not only the client.

Two of these connect directly to statute, and Section 1101.557(b) supplies both. Under 1101.557(b)(2) a broker who represents a party must inform the party if the broker receives material information related to the transaction, including the receipt of an offer. Under 1101.557(b)(3) the broker shall, at a minimum, answer the party's questions and present any offer to or from the party.

So neither "inform of material information" nor "answer questions and present offers" is a soft expectation. Both are floors written into the License Act.

Notice the fourth duty. Honest and fair treatment of all parties is owed even to people the broker does not represent. That is the bridge to the rest of this topic.

For how these duties get disclosed at first contact, see the IABS form guide.

The canons behind the duties

Direct answer: Before the IABS list, TREC states the underlying obligations as canons in 22 TAC Chapter 531. Rule 531.2 (Fidelity) is the one that maps onto this topic most directly, and it phrases the client-versus-other-parties balance in a single sentence.

Rule 531.2 provides that a license holder acting as an agent for another is a fiduciary, and that this imposes special obligations. It demands three things:

  1. that the primary duty of the license holder is to represent the interests of the client, and that the license holder's position should be clear to all parties, but that the license holder shall treat other parties to a transaction fairly;
  2. that the license holder be faithful and observant to the trust placed in them, and be scrupulous and meticulous in performing their functions; and
  3. that the license holder place no personal interest above that of the client.

Two more canons sit alongside it. Rule 531.3 (Integrity) requires the license holder to exercise integrity, including prudence and caution to avoid misrepresentation by acts of commission or omission. Rule 531.4 (Competency) requires the license holder to be knowledgeable and competent, including being informed on local market conditions in the geographic area where they serve clients.

Rule 535.156 states the same balance in operational terms: the license holder must put the principal's interest above their own, and must deal honestly and fairly with all parties, however the license holder represents only the principal and owes a duty of fidelity to that principal.

Two more pieces of Rule 535.156 are worth carrying, because they set the shape of the duty to convey information. The rule requires the license holder to convey to the principal all known information that would affect the principal's decision on whether to make, accept, or reject offers. It then supplies the one exception: where the principal has agreed in writing that offers are not to be submitted after the principal has entered into a contract, the license holder has no duty to submit offers once the principal has accepted one. Both conditions have to hold, and a question that supplies only one is testing whether you know there are two.

The response clock: two calendar days

A separate rule puts a deadline on all of this. 22 TAC Section 535.157 requires a broker or sales agent to respond within two calendar days. Calendar days, not business days.

Read who is on that list, because it is wider than instinct suggests. The duty runs to the license holder's own principal, to a broker or sales agent representing another party to the transaction, and to an unrepresented party. So an email from the other side's agent starts the same clock as one from your own client.

That is one of the places Texas extends an obligation across the transaction rather than confining it to the representation relationship, and it pairs with the minimum duty to treat all parties honestly and fairly.

Read those together and the IABS list stops looking like a slogan. Duty 1 is the no-personal-interest canon. Duty 4 is the treat-other-parties-fairly clause. The exam tests the seam between them.

Scope Of Services Versus Minimum Duties

Scope of services is what the broker agrees to do and is negotiable in the representation agreement. The minimum duties required by law are what the broker must do no matter what the agreement says, so the scope can narrow while the minimum duties stay intact.

Here is the distinction the exam loves to test. Scope of services is what the broker agrees to do. Minimum duties are what the broker must do no matter what the agreement says.

Concept Negotiable? Example
Scope of services Yes A buyer representation agreement could limit the agent to showing properties only.
Minimum duties required by law No The broker still must put the client first, share material information, answer questions, present offers, and treat everyone honestly.

A client can agree to a narrow package of services. A client cannot sign away the broker's statutory duties, and a broker cannot ask them to.

Why that holds, stated precisely. Chapter 1101 contains no clause reading "these duties may not be waived." The reason they cannot be waived is structural, and it is worth understanding rather than memorizing. Section 1101.557(b) is written in mandatory terms: the broker "must" inform, and "shall, at a minimum," answer questions and present offers. Rule 535.156(b) requires the license holder to put the principal's interest above their own and to deal honestly and fairly with all parties. Breach of those is a matter between the license holder and the Commission, and a client's signature does not release the license holder from a disciplinary obligation owed to the state.

So when a question describes an agreement that "limits services," do not assume the duties shrink too. The correct Texas answer is that the scope can narrow while the minimum duties stay intact.

Limited Service Agreements In Texas

Texas allows a limited service agreement that narrows the specific services a broker performs, but the broker cannot waive the minimum duties owed to the client or skip the broker's supervision obligations under TREC Rule 535.2.

A limited service or limited representation agreement is one where the broker agrees to provide fewer than the full range of typical brokerage services.

Texas allows this, with a firm boundary.

Allowed Not allowed
Limiting the specific services the broker performs Waiving the minimum duties owed to the client
Defining the scope of work in writing Skipping the broker's supervision obligations
Charging differently for a narrower service set Avoiding honest and fair treatment of the parties

Be precise about what Rule 535.2 does and does not scope. Rule 535.2(a) requires the broker to notify each sponsored sales agent in writing of the scope of that agent's authorized activities. That is an internal supervision rule, not a rule about how many services the brokerage offers a client. A limited service agreement narrows what the brokerage does for the client; Rule 535.2(a) narrows what an individual agent is authorized to do inside the brokerage. Do not confuse them.

What Rule 535.2 does add here is that the broker remains responsible either way. Under 535.2(a) the broker is responsible for the agent's authorized acts, and for out-of-scope acts the broker permits. Under 535.2(b) the broker owes the principal the highest fiduciary obligation and must convey all information known to the agent that may affect the principal's decision. A limited service arrangement does not switch either of those off.

This is a frequent exam scenario: a discount or limited service brokerage that "only lists the property." The trap answer says the broker therefore owes no real duties. The correct answer is that a limited scope does not erase the minimum duties or the broker's responsibility.

DUTY QUESTIONS ARE RECOGNITION QUESTIONS

The exam hides the rule inside a scenario about a limited service deal or a party the agent does not represent.

The Texas real estate exam prep app is built for Texas sales agent candidates: original Texas-focused practice questions, agency and disclosure scenarios, state-law review, math drills, flashcards, and weak-area feedback. Use it to drill the duty traps until you can spot the rule the question is testing. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Drill Texas agency questions in the app

Duties To A Party You Do Not Represent

Even when a license holder does not represent someone, Texas still requires honest and fair treatment plus the disclosures required by law, but not advocacy. An unrepresented party should not assume the agent is working for them.

Even when a license holder does not represent someone, Texas still requires honest and fair treatment.

The IABS notice spells out the gap. A broker who represents a client owes that client the full set of minimum duties. A broker who does not represent a party owes that party honesty and fair dealing, but not advocacy. The unrepresented party should not assume the agent is working for them.

Relationship What is owed
Broker represents the party (as agent) All four minimum duties, including putting that party's interests first.
Broker does not represent the party Honest and fair treatment, and the disclosures required by law.

Texas Occupations Code 1101.558 requires a license holder who represents a party to disclose that representation at the time of first contact, and it drives the IABS notice that describes a broker's basic obligations to a party the broker does not represent.

This is why a buyer at an open house can be talking to the listing agent, who represents the seller, and still be owed honesty even though the agent is not advocating for the buyer. The exam tests whether you know the difference between honest treatment and representation. For how this plays out when one broker is asked to work both sides, read the intermediary practice guide.

The 2026 Written Buyer Agreement Rule

Effective January 1, 2026, a license holder working with a prospective buyer of residential real property must have a written agreement before showing a home or submitting an offer on the buyer's behalf. The agreement must state compensation, a termination date, whether it is exclusive or non-exclusive, and whether the license holder represents the buyer. The change came from Senate Bill 1968. It applies to residential buyers, not tenants or commercial transactions.

This is the current change candidates need to know. Effective January 1, 2026, Texas law requires a license holder working with a prospective buyer of residential real property to have a written agreement before showing a home or, if no home is shown, before submitting an offer to purchase on the buyer's behalf.

The change came from Senate Bill 1968, which added Texas Occupations Code 1101.563 and revised TRELA's buyer representation and agency disclosure requirements.

Requirement Detail
Who it covers A prospective buyer of residential real property. It does not apply to tenants, commercial purchasers, or land-only transactions.
When the agreement is needed Before showing residential real property to the buyer, or before submitting an offer to purchase on the buyer's behalf if no property is shown.
What it must include Six things. See the breakdown below.
Timing In writing before the showing, not after.
Residential real property Defined in 1101.563(a) as a single-family house; a duplex, triplex, or quadraplex; or a unit in a multiunit residential structure where title to the individual unit transfers under a condominium or cooperative system. The list is the whole definition, which is why bare land falls outside it.
Consequence A license holder can face disciplinary action for failing to enter into the required written agreement, and an agent cannot show the property if the buyer will not sign.

The six things the agreement must contain

Direct answer: Section 1101.563(c) lists five items the agreement must state plus one disclosure it must make. Candidates typically remember three and lose the item on the other three.

# Required content Provision
1 The services to be provided by the license holder 1101.563(c)(1)(A)
2 The termination date of the agreement 1101.563(c)(1)(B)
3 Whether the agreement is exclusive or non-exclusive 1101.563(c)(1)(C)
4 As applicable, that the license holder either represents the buyer as the buyer's agent, or does not represent the buyer where the only brokerage act is showing property under Section 1101.562 1101.563(c)(1)(D)
5 The amount or rate of compensation the broker will receive and how it will be determined 1101.563(c)(1)(E)
6 A disclosure, in conspicuous language, that broker compensation is not set by law and is fully negotiable 1101.563(c)(2)

Items 4 and 6 are the ones most often missed. Item 4 is where the showing-only agreement and the representation agreement diverge on the page. Item 6 is a conspicuousness requirement, which is the same kind of drafting rule as the bold-or-underlined print required for intermediary consent under Section 1101.559(b).

Two limits specific to showing-only agreements

A written agreement entered into for the sole purpose of showing property under Section 1101.562 carries two restrictions the exam likes, both in Section 1101.563(e). It may not be exclusive, and it may not state a termination date more than fourteen days from the date it is entered into.

Section 1101.563(d) adds the follow-on rule: if the license holder is going to perform additional acts of brokerage after the showing, they must enter into a separate agreement. A showing-only agreement does not quietly expand into a representation agreement.

This rule does not replace the minimum duties. It adds a documentation requirement on top of them. The duties still govern how the agent behaves once a client relationship exists. Agency may arise through an oral agreement or conduct, but Section 1101.563 separately requires the specified residential-buyer relationship to be documented in writing before the showing or offer activity begins.

Because this is recent law, confirm the current details with TREC before relying on them in practice.

Broker Responsibility And Supervision

The duties to clients sit inside a larger broker responsibility framework. The broker is accountable for the brokerage's real estate activities and for supervising sponsored sales agents.

TREC Rule 535.2 places broker responsibility at the center. A broker cannot delegate away accountability for compliance, and limited service arrangements do not change that. Even when a sales agent does the day-to-day work, the broker remains responsible for the duties owed to the client and for the conduct of associated license holders.

Layer Who is responsible
The duty to the client The broker, carried out through the sponsored sales agent.
Supervision of the sales agent The broker.
Defining the scope of services The broker, in writing.
Honest and fair dealing with all parties Every license holder in the transaction.

For the supervision side of this relationship, pair this with the broker and sales agent supervision guide and the standards of conduct and discipline guide.

Common Texas Duty Exam Traps

These are the patterns that catch prepared candidates.

Trap Why it is wrong The Texas rule
A limited service agreement removes the broker's duties It confuses scope with duty Scope can shrink, minimum duties cannot be waived
The listing agent owes a buyer nothing It ignores honest and fair treatment An unrepresented party is still owed honesty and fair dealing
A client can waive the minimum duties for a lower fee It treats statutory duties as optional The minimum duties required by law cannot be waived
The sales agent, not the broker, owes the duty It misreads the Texas structure The broker owes the duty and supervises the sales agent
A buyer can tour homes in 2026 with only a verbal arrangement It ignores the new written agreement rule A written agreement is required before a license holder shows residential property to a prospective buyer

Read each duty question twice. First decide whether the scenario is about scope, about a duty, or about disclosure. Then answer the question that was actually asked.

Quick Practice Questions

Try these original questions before checking the key. They mirror how the exam hides a duty, a scope limit, or a disclosure rule inside a scenario.

Question 1. Limited service listing

A seller signs a limited service listing in which the broker agrees only to enter the property in the MLS. Which statement is correct?

A. The broker no longer owes the seller the minimum duties. B. The broker may ignore material information because the service is limited. C. The broker still owes the minimum duties and remains responsible for the brokerage's activities. D. The seller waived honest and fair treatment by choosing limited service.

Answer: C. Scope of services can shrink, but the minimum duties cannot be waived, and TREC Rule 535.2 keeps the broker responsible for the brokerage's activities. A narrow service package does not switch off the duties.

Question 2. Open house conversation

A buyer at an open house talks with the listing agent, who represents the seller. What does the agent owe that buyer?

A. The full set of minimum duties, including putting the buyer's interests first. B. Honest and fair treatment and the disclosures required by law, but not advocacy. C. Nothing, because the agent represents the seller. D. A signed buyer representation agreement before answering any question.

Answer: B. A broker who does not represent a party still owes honest and fair treatment and the disclosures required by law, but not advocacy. The listing agent works for the seller.

Question 3. IABS minimum duties

Which of the following is not one of the four minimum duties listed on the IABS notice?

A. Put the client's interests above all others, including the broker's own. B. Inform the client of material information about the property or transaction. C. Guarantee the client the lowest price or the best terms available in the market. D. Treat all parties to the transaction honestly and fairly.

Answer: C. There is no duty to guarantee price or terms. The four minimum duties are interests above all others, inform of material information, answer questions and present offers, and treat all parties honestly and fairly.

Question 4. The 2026 written agreement rule

Under the rule effective January 1, 2026, when must a license holder have a written agreement with a prospective buyer of residential real property?

A. Within three days after the first showing. B. Before showing residential real property, or before submitting an offer to purchase on the buyer's behalf if no property is shown. C. Only at the closing table. D. Never; a verbal understanding is enough for residential buyers.

Answer: B. Texas Occupations Code 1101.563 requires the written agreement before showing residential real property, or before presenting an offer to purchase if no property is shown. The requirement applies to residential buyers, not tenants or commercial transactions.

Question 5. Who owes the duty

Which statement is correct?

A. The sales agent, not the broker, holds the legal relationship with the client and owes the duties. B. The 2026 written agreement requirement applies equally to residential tenants and commercial buyers. C. The broker owes the duties and supervises the sponsored sales agent, and the 2026 written agreement requirement applies to prospective buyers of residential real property. D. A client can waive the minimum duties in exchange for a reduced commission.

Answer: C. The broker holds the legal relationship with the client and owes the duties, carried out through the supervised sales agent. The 2026 written agreement requirement under 1101.563 covers prospective buyers of residential real property only.

What To Pair With This

Resource When to use it
IABS form guide Use it to see how representation and minimum duties are disclosed.
Intermediary practice guide Use it when one broker is asked to work both sides.
Broker and sales agent supervision Use it for the supervision side of broker responsibility.
Standards of conduct and discipline Use it to connect duties to TREC enforcement.
TRELA Chapter 1101 guide Use it for the statutory backbone.

Frequently Asked Questions

What are a Texas broker's minimum duties to a client?

A broker who represents a client must put the client's interests above all others including the broker's own, inform the client of material information about the property or transaction, answer the client's questions and present any offer or counteroffer, and treat all parties honestly and fairly. These four minimum duties appear on the IABS notice and are required by law.

Can a client waive the minimum duties in Texas?

No. A representation agreement can limit the scope of services the broker provides, but it cannot waive the minimum duties owed to the client. The duties are required by TREC rules and Texas law and stay in place even under a limited service agreement.

Does Texas have a minimum services law?

Texas does not let a client sign away the broker's statutory duties, which functions as a minimum duty floor. At the same time, the specific services a broker performs are negotiable and defined in the representation agreement. The exam tests both halves: scope is flexible, minimum duties are not.

What does a Texas agent owe a party they do not represent?

Honest and fair treatment, plus the disclosures required by law. A license holder who does not represent a party does not advocate for that party, but still cannot treat them dishonestly or unfairly. Texas Occupations Code 1101.558 also requires a license holder who represents a party to disclose that representation at first contact.

What changed about buyer representation in Texas for 2026?

Effective January 1, 2026, a license holder must have a written agreement with a prospective buyer of residential real property before showing a home or submitting an offer on the buyer's behalf. The agreement must state the required services, termination, exclusivity, representation, compensation, and negotiability terms. The requirement (Texas Occupations Code 1101.563, from Senate Bill 1968) applies to residential buyers, not tenants or commercial transactions. Agency can arise orally or by conduct in other contexts, so do not confuse agency formation with this separate documentation rule. Verify current details with TREC.

Is the broker or the sales agent responsible for the duties?

The broker holds the legal relationship with the client and owes the duties, and the sponsored sales agent carries them out under the broker's supervision. TREC Rule 535.2 keeps broker responsibility and supervision with the broker even when a sales agent does the day-to-day work.

Do minimum duties apply to a limited service or discount brokerage?

Yes. A limited service brokerage can narrow the services it performs, but it still owes the minimum duties to the client and the broker still supervises associated license holders. A narrow scope does not erase the duties or the broker's responsibility.

Primary-source verification (July 29, 2026): This article was checked against the TREC Information About Brokerage Services notice (TREC No. IABS 1-2) and its "minimum duties required by law," Texas Occupations Code 1101.557(b), 1101.558 and 1101.563 in full, TREC Rules 531.2 (Fidelity), 531.3 (Integrity), 531.4 (Competency), 535.2 (Broker Responsibility) and 535.156, and TREC guidance on the 2026 buyer and tenant representation changes from Senate Bill 1968. Statutes, rules, and forms can change. Verify current requirements with TREC and the Texas Occupations Code before relying on them in practice.

CHECK YOURSELF

Can you tell a scope limit from a duty waiver?

That single distinction decides a cluster of Texas agency questions. Try a free Texas exam question to see how the duty traps are written, then drill the full set in the app. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Try a free Texas exam question

Sources and Methodology

This guide is written for Texas real estate sales agent candidates studying agency duties. It separates two ideas the exam blurs on purpose: the negotiable scope of services and the non-waivable minimum duties required by law. It prioritizes TREC and the Texas Occupations Code, then translates the rules into exam-style recognition.

Use this article for study purposes only. It is not legal, brokerage, agency, compliance, or professional advice. For current official requirements, verify with TREC, the Texas Occupations Code, your sponsoring broker, or a qualified professional before making real-world decisions.

This post is educational exam preparation content for Texas real estate sales agent candidates. It is not legal, tax, financial, brokerage, agency, compliance, insurance, title, closing, or professional advice. For real-world decisions, verify current requirements with the official source or consult a qualified licensed Texas professional.