Texas Real Estate Agent Commission: What the Law Says and Your Options
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Last updated November 14, 2026. Citations come from the Texas statutes and official agency pages linked in Sources. Where we could not confirm something on an official page, we say so.
Texas law does not set real estate commission rates. The Texas Real Estate Commission (TREC) says on its consumer page that it does not regulate fees paid to any license holder, and that all fees are set by your agreement with each professional.
The TREC resale contract says the same about brokerage compensation. We found no official page that sets a rate, so this guide does not state a typical percentage.
What TREC says about fees
TREC’s consumer article on buying and selling a home says TREC does not regulate the fees paid to any real estate license holder, including buyer’s agents, seller’s agents, brokers, inspectors or appraisers, and that you should carefully review the fees in any representation or service agreement before you sign.
TREC Form 20-19, paragraph 12B, says brokerage compensation is not set by law and is fully negotiable, and lets a seller or buyer contribute at closing a dollar amount or percentage toward the other side’s broker compensation.
Who gets paid
A TREC committee article about the then-pending National Association of Realtors settlement says TREC takes direction from the Legislature, which gave it narrow authority over license holder compensation, specifically that a broker is the one who gets paid.
The same article describes ideas for a statement that fees to brokers are paid under separate agreements between parties and their brokers, or between brokers. The article is undated and described the settlement as not yet court-approved, so we do not state what changed afterward. We did not find a final TREC position on the settlement.
The Real Estate License Act, Occupations Code Chapter 1101, defines a broker as a person who acts in exchange for a commission or other valuable consideration, or expecting one. The intermediary provisions require that the parties’ written consent state the source of any expected compensation to the broker.
Rebates
TREC’s FAQ says it is not a violation of the license act or TREC rules for a license holder to rebate part of their commission to a party to a transaction. If the rebate goes to a party the license holder does not represent, the license holder must first get the consent of the party they represent. TREC cites Rule 535.147(d).
What to compare
- The compensation terms in any listing or buyer representation agreement before you sign.
- What you net after commission, repairs, closing costs and any seller concessions. See Texas closing costs.
- Whether you want to list at all. A direct cash sale has no agent commission and no showings. See for sale by owner in Texas for the duties of selling without an agent.
How to sell a house in Texas when you want to avoid paying a commission
- List your costs in each scenario: listing with an agent, selling yourself or taking a direct offer.
- Get a payoff for any mortgage and the amount of any unpaid property tax. Both are paid from the sale proceeds at closing.
- Compare offers on what you net after repairs, commissions and closing costs, not on the headline price.
- If you want a fast, simple closing, ask for a written cash offer. We buy houses as-is, with no repairs and no agent commission. See how we buy houses in Texas.
Texas real estate commission FAQ
Is real estate commission set by law in Texas?
No. TREC says it does not regulate fees paid to license holders and that all fees are set by agreement, and Form 20-19 paragraph 12B says compensation is fully negotiable.
What is the typical commission in Texas?
We found no official source that states one, so we do not give a percentage.
Can an agent rebate part of a commission?
TREC's FAQ says it is not a violation. Rebates to a party the agent does not represent need the represented party's consent.
Do your offers include a commission?
No. Our cash offers carry no agent commission, fees or closing costs to you.
Sources
- TREC: Buying and Selling a Home in Texas
- TREC FAQ: Can a license holder rebate a portion of the commission?
- TREC: BLC discusses pending NAR settlement and whether it affects TREC forms
- TREC Form 20-19
- Texas Occupations Code, Chapter 1101 (The Real Estate License Act)
This guide is general information, not legal or tax advice. Laws, forms and fees change, so confirm details with the official office or a Texas attorney or tax professional.