New Contract Forms + Buyer Agent Commission

The recent changes to the TREC forms have significant implications for how commissions are addressed in contracts. Below is a detailed guide for both buyer and listing agents on how to navigate these changes, with an emphasis on the use of paragraph 12.

Buyer Side: Writing Offers  (Updated July 1 2026)

Compensation between brokers is no longer handled through TXR 2402 (the Broker-to-Broker Compensation Agreement which has been retired). That negotiation now happens directly in the contract through Paragraph 12B, in all residential contracts. Make sure you're comfortable locating and completing this paragraph.

1. Using Paragraph 12.B.1
   • When drafting an offer, include buyer agent commission in paragraph 12.B.1.

2. Best Practices
   • Consult the ASM team and/or colleagues during any transition period. (support@brampar.com)
   • Be mindful of not confusing it with box 2 which would indicate the buyer is paying for the commission.

• The Residential Listing Agreement (TXR 1101) has been updated to reflect your listing side commission only not the buyers agent commission, that conversation happens separately - in the contract, through Paragraph 12B.

• A significant update to the listing agreement is the removal of broker-to-broker compensation from Paragraph 5. This change aligns with recent updates to the TREC contracts, simplifies transactions, provides clarity to clients, reduces the risk of misunderstandings, and better aligns with the industry shift that began when cooperative compensation was removed from the MLSs and updates were made to Texas agency laws.

Like all terms in the contract commissions are negotiable. You can advise your seller on current market conditions with commission structures.

Important Notes

• Old Commission Addenda
  • While both ABOR/Unlock and TXR commission addenda are still valid, they are no longer necessary under the new guidelines. Simplify by using the updated 1-4 Family Contract.
• Check Your Work
  • Mistakes with commission clauses are high consequence and can lead to major issues for sellers and agents.
  • During this transition to new forms, always get a second set of eyes from your ASM or a colleague if needed.
• Avoiding Double Commission 
  • It’s important to make sure that contracts only contain the appropriate commission commitment for sellers. 

Summary of Changes

• Seller / Listing Broker commission is handled in the listing agreement
• Buyers agent commission is handled in the contract in Paragraph 12.

Summary of Changes to TREC & Texas Realtor Contract Forms (Effective July 1 2026 )

You can find all of the July 1 contract form changes here

These revisions are intended to enhance clarity, maintain compliance with recent legislative changes, and improve the transaction process. For detailed information and access to the updated forms, please visit TREC's website.