TXR-1501 (06-15-26)

Buyer/Tenant Representation Agreement — Long Form — Plain English

The agreement where a buyer or tenant hires a Broker to exclusively represent them in acquiring property in a defined Market Area — every section across all 6 pages, translated into plain English.

The Big Idea Behind This Agreement

WHO represents me → WHERE they represent me → HOW LONG → WHAT I may owe the Broker → WHETHER intermediary is allowed → WHAT happens if I buy something after the agreement ends. This is the agreement where a buyer or tenant (the "Client") hires a Broker to exclusively represent them when purchasing or leasing property in the defined Market Area.

3C Market Area — "SHOULD NOT BE LEFT BLANK"This defines where the exclusive representation applies. Exclusivity, Client obligations, Broker compensation, and the Protection Period are all tied to acquiring property in this Market Area — it is not a minor description field.
7D Earned vs. Payable"Earned" and "actually due for payment" can happen at different times. Compensation is Earned when Client enters a contract to buy/lease or breaches the agreement; it becomes Payable at events like Closing or certain breaches.
7B Retainer — WILL vs WILL NOT applyWILL apply = the retainer is credited toward the Paragraph 7A fee. WILL NOT apply = the retainer is an additional fee, not credited. Either way, the retainer is non-refundable and fully earned when paid.
9A Intermediary Authorized vs. 9B No Intermediary9A lets Client still pursue the brokerage’s own listings, with Broker acting as intermediary. 9B means Client does not wish to be shown or acquire any of Broker’s listings — a more significant choice than simply disliking dual agency.

The Biggest Blanks and Boxes to Watch

Why each key section matters:

3C Market AreaDetermines where the exclusive representation applies
§4 TermDetermines how long the agreement lasts
7A Purchase/Lease FeeEstablishes Client’s Broker-compensation obligation
7B RetainerEstablishes upfront non-refundable amount and whether it credits toward other fees
7E Other CompensationMust be objectively ascertainable — not "TBD"
7F Protection PeriodCan affect compensation after agreement expires
9A / 9B IntermediaryDetermines whether Client can pursue Broker’s own listings
§16 AddendaDetermines what additional documents are incorporated
§17 Special ProvisionsCustom changes should be handled carefully

Easiest memory trick: 1. WHO represents me? 2. WHERE do they represent me? 3. HOW LONG? 4. WHAT do I owe them? 5. WHAT if Seller pays some of it? 6. WHAT happens after the agreement expires? 7. CAN I buy one of my Broker’s listings? 8. WHAT additional documents/terms apply? The three areas to slow down on the most: Market Area + Broker Compensation + Intermediary.

Page 1

Parties, Market Area & Term

§1 Parties

  • Client: enter the full legal name(s) of the buyer or tenant hiring the Broker (called "Client" in this form). Then complete Client’s Address, City/State/ZIP, Phone(s), Email(s).
  • Broker: enter the brokerage firm, not merely the individual sales agent. Then enter Broker’s Address, City/State/ZIP, Phone(s), Email(s).
Who is hiring whom? The Client hires the Broker to represent the Client.

§2 Appointment (no blanks)

  • Client gives Broker the exclusive right to act as Client’s real estate agent for acquiring property in the Market Area.
Within the area covered by this agreement, this is the brokerage the Client agrees to work through. This exclusivity matters later in Paragraph 6.

§3A-B Definitions — Acquire & Closing (no blanks)

  • "Acquire" means purchase OR lease — so this form covers both buyers and tenants.
  • "Closing": for a purchase, when legal title transfers to Buyer. For a lease, when Landlord and Tenant enter a binding lease.

§3C Market Area — one of the most important blanks

  • The form says: THIS SECTION SHOULD NOT BE LEFT BLANK. Enter the geographic area where Broker will exclusively represent Client — property address, subdivision, city, county, ZIP code, or another geographic description.
  • Narrow example: Bridgeland subdivision, Cypress, Texas. Broader example: Harris County, Texas, or ZIP Codes 77044, 77346, and 77396.
Exclusivity, Client obligations, Broker compensation, and the Protection Period are all tied to acquiring property in the Market Area — this is not an unimportant description field.

§3D-E Property & Related Party (no blanks)

  • Property is broadly defined — MLS properties, properties listed elsewhere, For Sale By Owner properties, and builder properties are all included.
  • A Related Party can include family members, a spouse/domestic partner, assignees, connected companies/entities, and certain trusts.
Client generally cannot avoid a Protection Period obligation simply by having a related person/entity acquire the property instead.

§4 Term

  • "Begins on" — the date Broker’s exclusive representation begins.
  • "Ends at 11:59 p.m. on" — the expiration date. Example: Begins October 1, 2026; Ends December 31, 2026 at 11:59 p.m.
"How long am I exclusively hiring this brokerage?"
Page 2

Client's Obligations & Broker Compensation

§6 Client's Obligations (no blanks, but critical)

  • Client agrees to work exclusively through Broker when acquiring property in the Market Area, and to tell other agents/sellers/landlords that Client already has a representation agreement, referring them back to Broker.
Open-house exception: attending an open house/showing with another agent doesn’t violate the agreement if that agent provides no advice, opinions, negotiations, or substantive brokerage services — but Client must disclose "I already have a representation agreement with another Broker."

§7 Broker Compensation — the most important financial section

  • Broker compensation is not set by law and is fully negotiable. The total compensation Broker receives from all sources may not exceed the amount stated in this agreement.

§7A(1) Purchase Compensation

  • Complete: ___% of Sales Price OR flat fee of $___.
"If Client buys a property, what fee has Client agreed Broker is entitled to receive?" Example only: 2.5% of sales price, or $8,000 flat fee — illustrations, not recommended rates.

§7A(2) Lease Compensation

  • Three possible structures: ___% of one month’s rent, OR ___% of all rents over the lease term, OR flat fee of $___.

§7C Source of Compensation — Client may still be responsible

  • Client may try to have the Seller or Landlord contribute toward Broker’s fee, and Broker will assist in negotiating that.
Client remains responsible for the fee stated in 7A, reduced only by whatever amount the Seller/Landlord actually contributes. Example: agreed fee $8,000, Seller contributes $6,000 — Client’s remaining responsibility is conceptually $2,000.

§7B Retainer (optional)

  • Fill in: "Client will pay Broker a non-refundable retainer of $___." Then choose WILL apply the retainer toward other fees, or WILL NOT apply it.
WILL apply: the retainer is credited toward the 7A fee. WILL NOT apply: it’s an additional fee, not credited. The retainer is non-refundable and fully earned when paid. Example: 7A fee $8,000, retainer $1,000 — if WILL apply, $1,000 credits toward the $8,000; if WILL NOT apply, $1,000 is additional.

§7D When Compensation is Earned and Payable (no blanks)

  • Earned generally when Client enters a contract to buy/lease in the Market Area, or Client breaches the agreement.
  • Payable upon events described in the form, such as Closing or certain breaches.
"Earned" and "actually due for payment" can happen at different times.
Page 3

Additional Compensation & Protection Period

§7E(1) Construction

  • If Broker helps Client obtain or negotiate construction improvements to property Client owns or may acquire, Broker receives a fee equal to the amount entered here.
"If Broker assists with a construction arrangement, is there a separate agreed fee?" If this doesn’t apply, don’t fill it with made-up terms.

§7E(3) Other Compensation

  • Only insert compensation amounts or rates that are objectively ascertainable and actually known when the agreement is signed. Do not insert "TBD" or a range of compensation.

Notice Regarding Bonuses (no checkbox)

  • A seller, landlord, or their agent might later offer Broker a bonus. Broker must disclose the specific amount to Client and may not receive it without Client’s written authorization (TXR-1505 may be used to amend the agreement for that authorization).

§7F Protection Period — very important

  • Fill in the number of days. The Protection Period starts the day after the agreement ends and continues for that many days. Example: 60 days.
  • Not later than 10 days after the agreement ends, Broker may send Client written notice identifying properties called to Client’s attention during the agreement. If Client or a Related Party acquires one of those properties during the Protection Period, Client may owe Broker the compensation Broker would have received had the agreement still been active.
Exception: the Protection Period does not apply if Client is represented by another Texas REALTORS® broker during the Protection Period who is paid for negotiating the acquisition.

§7H County

  • Enter the county in which amounts payable to Broker are contractually payable.

§8D Employer / Relocation Company

  • Fill in if Client has an employer, relocation company, or other organization providing benefits to Client when acquiring property. If none applies, do not invent one.
Page 4

Intermediary & Competing Clients

§9 Check A or B Only

  • A. Intermediary Authorized — Client desires to see Broker’s listings and authorizes Broker to act as intermediary if Client wants to pursue one. The form describes different servicing arrangements, including appointing different associates or making no appointments.
  • B. No Intermediary — Client does not wish to be shown or acquire any of Broker’s listings.
This is a more significant choice than simply disliking dual agency — checking B means Client is opting out of Broker’s own listings entirely. Example: ABC Realty represents Buyer and also lists 123 Main Street — with 9A, Buyer may still pursue it under the intermediary procedure; with 9B, Client does not wish to be shown or acquire it.

Important Intermediary Limitations

  • When acting as intermediary, Broker/associates cannot disclose that Seller/Landlord will accept less than asking price, or that Buyer would pay more, without separate written authorization from the relevant party.
  • Brokers must treat all parties honestly and comply with the Real Estate License Act.

§10 Competing Clients (no blank)

  • Client acknowledges Broker may represent other buyers/tenants interested in the same properties.
Hiring a buyer’s agent does not prohibit the brokerage from also representing another buyer who wants the same property.
Page 5

Addenda & Special Provisions

§16 Addenda — check all applicable

  • Information About Brokerage Services (IABS notice)
  • Protect Your Family from Lead in Your Home (federal lead-information pamphlet)
  • Mold Remediation Consumer Protection
  • Information about Special Flood Hazard Areas
  • Information Concerning Property Insurance
  • For Your Protection: Get a Home Inspection
  • General Information and Notice to Consumers
  • Wire Fraud Warning
  • Blank lines for other applicable documents
Only check documents actually being included.

§17 Special Provisions

  • Blank for additional negotiated terms.
This is a legally binding representation agreement — not a good place to casually invent complex legal provisions (e.g. modifying exclusive representation, compensation triggers, termination rights, or liability). Complex changes may require legal interpretation; consult your broker, legal counsel, or TREC.

§18B Additional Notices — Broker Is Not a Specialist

  • Broker is not acting as a property inspector, pest inspector, appraiser, surveyor, engineer, environmental assessor, or compliance inspector.
Client should hire the appropriate professionals for those jobs.
Page 6

Additional Notices & Signatures

§18G Texas Property Ownership/Lease Restrictions (no checkbox or blank)

  • Texas Property Code Chapter 5, Subchapter H restricts certain individuals/entities connected to certain countries from purchasing, acquiring, or leasing certain real property for one year or longer. The form recommends legal counsel if Client thinks the restriction may apply.
This is informational — it is not asking the agent to determine Client’s eligibility.

Signature Section

  • Broker’s Printed Name, License No. — then choose Broker’s Signature OR Broker’s Associate’s Signature (if an associate signs, enter their printed name and license number).
  • Client’s Printed Name, Client Signature, Date — a second Client signature/date line is available for multiple Clients.
Each page also has spaces for Broker/Associate and Client initials, helping identify that the parties reviewed/received the pages.

Want the original PDF handy?

Open the actual TREC form alongside this plain-English guide.

base44
Edit with Base44