What Is a Listing Agreement in Texas?

Before your home ever appears on the MLS, you sign a contract with your real estate agent. That contract is called a listing agreement — and understanding what you are agreeing to before you sign is one of the most important things a Texas seller can do.

What Is a Listing Agreement?

A listing agreement is a written contract between a Texas home seller and a licensed real estate broker that authorizes the broker to market and sell the property on the seller's behalf. In Texas, listing agreements are governed by TREC rules and must be in writing to be enforceable. The Texas Association of Realtors (TAR) produces the standard residential listing agreement forms most commonly used in Texas, though the specific form and terms are negotiable between the seller and the broker.

What a Listing Agreement Covers

• Listing price: The price at which the home will be listed on the market. This is set by the seller with guidance from the agent's comparative market analysis.
• Listing period: The duration of the agreement — typically 90 to 180 days for most Texas residential listings. The seller and agent agree to this term upfront.
• Commission structure: Following the 2024 NAR settlement, commission structures are now explicitly documented and disclosed in the listing agreement rather than assumed. The listing agent commission and any offer of buyer agent compensation are addressed as negotiated line items.
• Broker duties: What the broker is committing to do — MLS entry, marketing activities, showing coordination, offer presentation, negotiation support, and transaction management through closing.
• Seller duties: What the seller commits to — maintaining the property in showable condition, cooperating with showings, providing required disclosures, and responding to offers in a timely manner.
• Exclusions: Any specific buyers or parties the seller wants to exclude from the agreement (for example, a neighbor who has already expressed interest directly).
• Termination provisions: Under what circumstances either party can terminate the agreement early and what obligations survive termination.

What Sellers Should Ask Before Signing

Before signing any listing agreement in Texas, sellers should understand and ask about: the specific marketing activities the agent will perform (beyond basic MLS entry); how showings will be coordinated and communicated; how quickly the agent responds to offers and inquiries; what happens if the home does not sell within the listing period; and what the process is if the seller wants to terminate the agreement before the expiration date. A trustworthy agent will walk through every section of the agreement and answer every question before asking for a signature.

The Listing Agreement and Commission Post-NAR Settlement

The 2024 NAR settlement fundamentally changed how buyer agent compensation is structured and disclosed. In Texas, sellers should understand that offering buyer agent compensation is now a negotiated and explicitly documented decision rather than an assumed MLS convention. Sellers in today's Boerne market who understand this dynamic can make informed decisions about how to structure compensation in a way that attracts buyer traffic without unnecessarily reducing net proceeds. Your listing agent should be able to explain exactly how this works in the current market and what the data shows about buyer behavior and compensation expectations.

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