To disclose their representation of a party upon the first contact with a party or licensee representing another party. The Representation Disclosure (TXR 1417) can be used for this purpose. Effective January 1, 2026, a license holder may also show property to a prospective buyer or tenant without representation and to do so, they must disclose if they represent the owner or provide the Information about Brokerage Services (TXR 2501, IABS 1-1).

Section 1101.561 of the Real Estate License Act provides that if the broker will represent both the buyer and the seller in the transaction, the broker must act as an intermediary. One may not agree to act as a dual agent and comply with the Real Estate License Act.

The disclosure may be verbal or in writing. The license holder should clarify which party he represents and make that representation clear to all parties. The license holder may use the Representation Disclosure (TXR 1417) for this purpose. Additionally, license holders must provide the parties with the Information About Brokerage Services (TXR 2501, TREC IABS 1-1) at their first substantive communication.

This information simply defines several types of agency relationships. The Information About Brokerage Services form encourages the consumer to enter into a written agreement with a broker if the consumer wants to be represented. Also, the new MLS policy requires the license holder working with a buyer who is touring a home to enter into a written buyer agreement. Effective January 1, 2026, the Real Estate License Act also requires that a license holder who performs any act of real estate brokerage for a prospective buyer of residential real property to enter into a written agreement with the prospective buyer before showing any residential real property to the prospective buyer or if no residential real property will be shown, presenting an offer to purchase residential real property on behalf of the prospective buyer. Either the Residential Buyer/Tenant Representation Agreement - Long Form (TXR 1501), or Residential Buyer-Tenant Representation Agreement - Short Form (TXR 1507) can be used for this purpose.