If you're buying or selling a home in Houston, you've probably heard that real estate commissions "changed" in the last couple of years. They did, but not in the way a lot of headlines suggest. There's no new standard rate and no law that sets one. What changed is how commissions get agreed to, where they can be advertised, and what has to be in writing before an agent starts working for you. This guide walks through how real estate commissions work in Houston now, for buyers and for sellers, based on the national practice changes from August 2024, the Houston MLS rules that followed, and the Texas law that took effect January 1, 2026. Everything below was checked on October 27, 2026.
TL;DR
- No law sets a real estate commission in Texas. Texas law, TREC's resale contract and the Houston MLS all say compensation is negotiable.
- Since January 1, 2026, Texas Occupations Code Section 1101.563 requires an agent working with a residential buyer to sign a written agreement with that buyer before showing a home, or before presenting an offer if no home is shown. The agreement has to state the agent's compensation and say conspicuously that it is not set by law and is fully negotiable.
- Since August 17, 2024, offers of compensation to buyer's agents can't appear on REALTOR-owned MLSs. The HAR MLS removed every compensation field on August 16, 2024.
- Sellers can still help pay a buyer's agent, but it's negotiated off the MLS and written into the sales contract. TREC's resale contract has a separate paragraph (12B) for exactly that.
- An agent can show a Houston home without representing you, but only under a showing-only agreement that is non-exclusive and lasts no more than 14 days.
What a commission actually is now
A real estate commission is the fee a brokerage earns for its services in a sale. Historically, many listings were set up so the seller agreed to one total fee with the listing broker, and the listing broker offered part of it to whichever broker brought the buyer. That offer used to be posted right on the MLS, the shared database agents use to list and search homes.
That arrangement is what the national class action lawsuits over broker commissions targeted. Under the settlement the National Association of REALTORS (NAR) reached with home seller plaintiffs, NAR agreed to pay $418 million over about four years and to change two practices, according to its settlement FAQ. Those changes took effect on August 17, 2024:
- Offers of compensation are prohibited on MLSs. They can still be made off the MLS, through negotiation.
- An agent working with a buyer must have a written agreement with the buyer before the buyer tours a home, in person or by live virtual tour.
NAR's explainer for home buyers and sellers is clear that compensation "continues to be fully negotiable." The settlement didn't create a new rate. It changed where and how the conversation happens.
How Houston's MLS handled the change
Most homes for sale in the Houston area are listed on the HAR MLS, run by the Houston Association of REALTORS. HAR's settlement fact sheet explains that HAR's MLS is wholly REALTOR-owned and is therefore covered by the settlement. It also says plainly that there is not an NAR-set standard commission of 6%, as some media outlets reported.
According to HAR's MLS changes page, all compensation fields were removed from the HAR MLS on August 16, 2024. Any offer of compensation to a buyer's agent has to be communicated outside the MLS. HAR's answers to agents' questions add that compensation can't be slipped into agent remarks, attachments or comments either. A violation means a $500 fine and the language is removed from the listing.
HAR did add one new field: "Seller May Contribute to Buyer Expenses Up To." It lets a seller signal they're open to helping with a buyer's costs, such as closing costs. HAR says that contribution may not be conditioned on paying broker fees, and it's up to the buyer to decide how it is applied.
For a Houston buyer browsing listings, this means you won't see what, if anything, a seller is offering a buyer's agent. You and your agent settle that between you, then negotiate with the seller if you want the seller to chip in.
What Texas law requires for buyers since January 1, 2026
Texas went further than the national settlement. Senate Bill 1968 from the 89th Legislature, which took effect January 1, 2026, added two sections to the Texas Real Estate License Act. The Texas Real Estate Commission (TREC) explains them in What Changes in 2026 About Buyer/Tenant Representation in Texas.
Section 1101.563 of the Occupations Code says a license holder who performs any act of real estate brokerage for a prospective buyer of residential real property must sign a written agreement with the buyer before showing any residential property, or before presenting an offer if nothing will be shown. "Residential real property" here means a single-family house, a duplex, triplex or fourplex, or a condo or co-op unit. The agreement must state:
- the services the agent will provide
- the termination date of the agreement
- whether it's exclusive or non-exclusive
- whether the agent represents you as your buyer's agent, or doesn't represent you because the only service is showing property
- the amount or rate of compensation the broker will receive, and how that amount will be determined
It also has to say, in conspicuous language, that broker compensation is not set by law and is fully negotiable. TREC notes the requirement doesn't apply to commercial purchasers or to tenants.
The showing-only option
The same law allows an agent to show you a home without representing you, under Section 1101.562. In that case the agent can't give you opinions or advice about the property or real estate in general and can't do any other brokerage work for you, though they can confirm the size, price and terms. For residential buyers, that showing-only agreement must be non-exclusive and can't run more than 14 days. If you then want the agent to help with an offer, you sign a separate agreement.
Open houses
TREC's guidance also covers open houses. If the host agent works for the listing brokerage, they just disclose that they represent the seller. If the host is from another brokerage and doesn't represent the seller, they must give you the Information About Brokerage Services notice and sign a written agreement with you before you view the home, even if you already have an agent. If you won't sign, TREC says that agent can't show you the property.
How it works if you're buying
In practice, the first real conversation with a Houston buyer's agent now includes money. Before they show you homes, expect a written buyer representation agreement that spells out what they'll do and what they'll be paid. The compensation might be a flat fee, a percentage of the price or another objective amount. NAR's Written Buyer Agreements 101 says it can't be open-ended, like "whatever the seller offers," and that the agent can't receive more from any source than the amount you agreed to.
Questions worth asking before you sign:
- What services are included, and which aren't?
- When does the agreement end, and can you cancel early?
- Is it exclusive? If you buy a home you found yourself, do you still owe the fee?
- If the seller contributes toward your agent's fee, how does that reduce what you owe?
That last question matters because seller help is common but never guaranteed. You can ask for it in your offer, and the seller can accept, counter or decline. If your loan program has rules about what a seller may pay, ask your lender early. Our guide to whether buyers need an agent in Houston covers the decision itself, and buyer closing costs in Houston covers the rest of the cash you'll need.
How it works if you're selling
As a seller, you negotiate your listing broker's fee in your listing agreement. You also decide whether to offer anything toward a buyer's agent and whether to advertise a willingness to contribute toward buyer expenses through HAR's field. None of that can be posted on the MLS as an offer of compensation, but your agent can still share it off the MLS.
Then, when an offer comes in, look at what the buyer is asking for. TREC's current One to Four Family Residential Contract (Resale), form 20-19, keeps the two kinds of money separate:
- Paragraph 12A(1)(b) is a dollar amount the seller pays toward the buyer's expenses other than brokerage compensation, such as closing costs.
- Paragraph 12B, titled Brokerage Compensation, opens with "Brokerage compensation is not set by law and is fully negotiable." It says each party pays their own broker under their separate written agreements, then lets the seller agree to pay a set dollar amount or percentage of the sales price toward what the buyer owes the buyer's broker. It works the other way too: the buyer can agree to pay toward what the seller owes the seller's broker.
Reading both lines tells you the real cost of an offer. A higher price with a large 12B contribution can net you less than a slightly lower price with none. Our guides to seller closing costs in Houston and whether sellers need an agent go deeper on that math. When you're ready to talk pricing and fees, our selling page is the place to start.
FAQ
Is there a standard real estate commission in Houston?
No. Texas law, TREC's resale contract and HAR all say compensation is negotiable, and HAR states there is no NAR-set standard commission of 6%. Ask each agent for their fee in writing and compare services.
Do I have to sign something before a Houston agent shows me a house?
Yes, for residential purchases since January 1, 2026. Texas Occupations Code Section 1101.563 requires a written agreement before the agent shows you a home, or before presenting an offer if you don't tour.
Can the seller still pay my buyer's agent?
Yes. It's negotiated outside the MLS and written into the sales contract. On TREC's resale form, Paragraph 12B lets the seller pay a dollar amount or percentage toward the compensation you owe your broker.
Why can't I see the buyer's agent commission on HAR listings anymore?
HAR removed all compensation fields from its MLS on August 16, 2024, under the NAR settlement. Offers of compensation can't appear anywhere in the MLS, including remarks and attachments.
Do renters need a written agreement with an agent in Texas?
Not under the new statute. TREC says the Section 1101.563 requirement doesn't apply to residential or commercial tenants, though an agent may still ask you to sign one.
What is a showing-only agreement?
It lets an agent show you a home without representing you. It must be non-exclusive, last no more than 14 days, and the agent can't advise you about the property or the deal.
Can I negotiate the fee in my buyer agreement?
Yes. The agreement itself must say conspicuously that broker compensation is not set by law and is fully negotiable. Negotiate the amount, the term and what happens if you buy a home on your own.
One last thing
Commissions in Houston aren't fixed, and they aren't hidden on the MLS anymore. They're in two places you'll sign: your agreement with your own agent, and Paragraph 12 of your sales contract. Read both before you commit. If you'd like to walk through what that would look like for your purchase or sale, contact us.