New Laws That Matter to You and Your Clients

The Texas Legislature was busy in 2025, considering more than 9,800 filed bills, with 1,360 that passed during the regular session and multiple special sessions.

As always, Texas REALTORS® was actively engaged to protect the interests of property owners, real estate professionals, and small businesses. Results for the association were among the most positive of any session in recent memory, with every Texas REALTORS® priority bill passing and none of the 150-plus bills the association opposed making it to the governor’s desk.

Here are highlights of some of the changes you and your clients need to know. Find additional details at texasrealestate.com/legalupdates.

Laws that went into effect September 1, 2025

Property owners have more authority to evict squatters (SB 1333)

An owner of residential property or the owner’s agent can request that a sheriff or constable immediately remove a person who unlawfully entered and is occupying a dwelling on the property without the owner’s consent if all the following conditions are met:

1. The property was not open to the public when the person entered the property and is not the subject of pending litigation between the owner and the person.
2. The owner or the owner’s agent has directed the person to leave the property, and the person has not done so.
3. The person is not a current or former tenant of the owner under an oral or written lease or an immediate family member of the owner.

An owner or owner’s agent may request removal of the person by filing a complaint (see statute for written form for the complaint), made under oath or made as an unsworn declaration, to the sheriff or constable of the county in which the property is located if the conditions referenced above are met. After the sheriff or constable verifies ownership of the property, that law enforcement officer must, without delay, serve notice on the person to immediately vacate the dwelling and put the owner in possession of the dwelling.

The new law also allows criminal charges for fraudulent squatters.

Some leases are exempt from floodplain notice requirements (SB 2349)

For the following types of leases, the landlord is no longer required to provide written notice to prospective tenants about whether the landlord is aware that the dwelling is in a 100-year floodplain or has flooded during the past five years:

• Leases with terms of less than 30 days
• Temporary residential tenancies created by a contract for sale (leasebacks) of not greater than 90 days.

When floodplain notice is required, there are new options

As an alternative to a separate written document as required under the previous law, the notices may now be given to a tenant at or before execution of an applicable lease in a paragraph of the lease or as an addendum to the lease. The landlord and tenant must sign the document containing the required notice.

Some foreign property acquisition is now prohibited (SB 17)

This law restricts the acquisition of real property interests in Texas by certain individuals, entities, and governments associated with countries designated by the U.S. director of national intelligence as a national security threat. The Texas governor may also expand the application of the law to additional countries or entities. As of press time, the countries currently on that list are China, Iran, North Korea, and Russia.

The law applies to purchases, acquisitions, and leases of one year or more of a broad range of real property interests, including minerals, timber, groundwater, and water rights. However, purchases and leases entered into prior to September 1, 2025, are not affected.

Exceptions include U.S. citizens, lawful permanent residents, and entities they own or control—unless such entities are owned or controlled by prohibited parties. Real estate professionals are not responsible for applying or enforcing this new law. The Texas attorney general is charged with implementing procedures enforcing this law. Nothing in this new law changes your obligation to comply with the federal Fair Housing Act. Additionally, the REALTOR® Code of Ethics obligates REALTORS® to provide equal professional services to all consumers.

Do-not-call rules now include text messages (SB 140)

The basics of do-not-call rules remain unchanged. However, the rules now apply to text messages, graphic/image messages, and other types of electronic communications. In addition, breaking these rules is now automatically considered “false, misleading, or deceptive,” which can lead to costlier penalties for violations.

The law does not change the requirement for parties who must register under the Texas Business Commercial Code (Sec. 302.101).

Small businesses now have a safe harbor for cybersecurity breaches (SB 2610)

Small businesses—defined as having fewer than 250 employees—that hold sensitive personal information are now protected from additional punitive damages for a data breach if the company had a cybersecurity protection program in place at the time of the breach. The requirements for a cybersecurity program vary depending on the size of the small business.

Laws prohibiting bandit signs get updated (HB 3611)

Texas law already prohibited placing signs on the right of way of a public road unless otherwise authorized by law. Now, prior to pursuing civil penalties for a first offense, a municipality must notify the owner in writing and allow an opportunity for the owner to remove the sign. No civil penalty can be assessed if the owner removes the sign within the allotted time. The specific time for removing the sign is at the discretion of the municipality issuing the notice.

Allowable civil penalties are increased to amounts not to exceed $1,000 for a first offense, $2,500 for a second offense, and $5,000 for a third offense.

Security deposit notices and intent to repair (HB 2037)

This law establishes that a managing agent, leasing agent, or resident manager is an agent for the landlord for purposes of receiving notice and allows for notices to be sent by email if the tenant and landlord or landlord’s agent have previously communicated by email.

The law allows repairs completed pursuant to a tenant’s notice to be made by an independent company, contractor, or repairman. However, if the rental unit is in a municipality that requires a company, contractor, or repairman to be licensed, whoever performs the repair must be licensed pursuant to those requirements.

Right to vacate following certain sex offenses or stalking (HB 47)

The law has been updated to remove the requirement that the offense has to occur on the rental premises in order for a tenant to terminate a lease under Section 92.0161(c) of the Property Code.

Laws that go into effect January 1, 2026

Subagency will no longer be allowed (SB 1968)

The practice of subagency confused many real estate consumers. Buyers often did not realize when they were working with a subagent of the seller’s agent.

This change gives consumers greater clarity regarding their relationship with agents. It also makes agent-client responsibilities more transparent.

Subagency will not be allowed in any type of real estate transaction (residential, commercial, land, ranch, etc.).

You can show property to any party without representation, if the broker…

1. Has not agreed, either orally or in writing, to represent the prospective buyer.
2. Is not otherwise acting as the prospective buyer’s agent at the time of the showing.
3. Does not provide opinions or advice regarding the property or real estate transactions in general.
4. Does not perform any other act of real estate brokerage activity.
5. Complies with current requirements of disclosing representation and providing the IABS prior to the showing.

If you engage in showings without representation, you may confirm information regarding the size, price, and terms of the property.

You need a written agreement with prospective buyers of residential property

The agreement must be signed prior to showing the real property, or if there is no showing, before presenting a purchase offer. It can be a full representation agreement or a showing-only agreement without representation if that is the only service being provided. All written buyer agreements must include:

1. The services to be provided
2. The termination date of the agreement
3. Whether the agreement is exclusive or non-exclusive
4. Whether the license holder represents the buyer as the buyer’s agent or does not represent the buyer as the buyer’s agent if showing real property is the only brokerage act being performed
5. The amount or rate of compensation the broker will receive and how the amount is determined
6. Conspicuous language that broker compensation is not set by law and is fully negotiable.

For a showing-only agreement without representation, the agreement may not be exclusive and may not include a termination date more than 14 days from the date the agreement is entered into.

If a showing-only agreement is entered into and the prospective buyer wants the license holder to provide any other acts of real estate brokerage, the license holder must enter into a separate representation agreement with the buyer.

If you host an open house for a home not listed by your brokerage, you must have a written agreement with anyone who views the property. The written agreement could be as simple as a non-exclusive showing agreement that attendees sign at the entry of the property.

The evictions process has been streamlined (SB 38)

A new law clarifies the time period required for an eviction process. It also allows the option of delivery of an eviction notice via email or electronic means.