FAQ: Can I still offer broker-to-broker compensation now that the new TXR 1101 is available?Yes. Broker-to-broker compensation is not illegal. If you would like to offer broker-to-broker compensation, you may add a provision to the Texas REALTORS® form or create your own listing agreement that includes language providing for broker-to-broker compensation, since you, the broker are a principal to the listing agreement.
Consult with the brokerage’s private attorney to draft a provision to add to the Texas REALTORS® form or to draft a separate listing agreement that includes this provision to ensure the added provision or separate agreement is valid and enforceable under Texas law.
Note that the Compensation Agreement between Brokers (TXR 2402) will eventually be retired as well, so you will also need to have an agreement prepared for use between you and the buyer’s broker to evidence your agreement to share compensation.