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 signed written representation agreement before touring a residential property or submitting an offer for a prospective buyer or tenant. This article is educational Texas real estate exam prep, not legal, brokerage, agency, compliance, or professional advice.
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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.
Table Of Contents
- Who owes the duties
- The four minimum duties
- Scope of services vs minimum duties
- Limited service agreements
- Duties to a party you do not represent
- The 2026 buyer representation rule
- Broker responsibility and supervision
- Common exam traps
- FAQ
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 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. Texas Occupations Code 1101.557 states that a broker who represents a party must, at a minimum, answer that party's questions and present any offer to or from the party. So "answer questions and present offers" is not a soft expectation. It is a floor 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.
Scope Of Services Versus Minimum Duties
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.
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
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 |
TREC Rule 535.2 (Broker Responsibility) requires the broker to define the scope of authorized services and to remain responsible for the brokerage's activities. A limited service arrangement does not switch off that responsibility. The broker still supervises associated license holders and still owes the statutory duties to the client.
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.
Duties To A Party You Do Not Represent
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 Representation Agreement Rule
This is the current change candidates need to know. Effective January 1, 2026, Texas law requires a license holder working with a prospective buyer or tenant to have a signed written representation agreement before touring a residential property or submitting an offer.
The change came from Senate Bill 1968, which revised TRELA's buyer representation and agency disclosure requirements.
| Requirement | Detail |
|---|---|
| When the agreement is needed | Before touring a residential property or submitting an offer for the prospective buyer or tenant. |
| What it must include | Specific compensation terms (not "to be determined"), a termination date, and whether it is exclusive or non-exclusive. |
| Timing | Signed before the showing, not after. |
| Scope | Residential real property, meaning single-family homes, duplexes, triplexes, quadplexes, and condominium units. It does not apply to land-only or commercial transactions. |
| 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. |
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 the relationship exists. The 2026 rule governs when the relationship has to be in writing before showings begin.
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 signed written representation agreement is required before showing residential property |
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.
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 signed written representation agreement before touring a residential property or submitting an offer for a prospective buyer or tenant. The agreement must state specific compensation, a termination date, and whether it is exclusive or non-exclusive. The change came from Senate Bill 1968. 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 (June 19, 2026): This article was checked against the TREC Information About Brokerage Services (IABS) notice and its "minimum duties required by law," Texas Occupations Code 1101.557 and 1101.558, TREC Rule 535.2 (Broker Responsibility), 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.
Sources & 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.
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