Has anyone ever heard of this? Also wondering if it's legal but can't find much online.

My wife is trying to help a client who is in the market to buy an investment property (2-plex/4-plex etc) in Austin. They came across a listing agent of a property that was listed at a surprisingly low price but they were told that he would not show the home or respond to any inquiries unless there was an executed contract.

Most of all, I am trying to find out the rationale behind such an approach. Any input would be much appreciated. Thanks

Well I guess if he will sign a contract with a no cost inspection period you could say no harm-no foul and cancel after inspection or counter with an offer you want.

Otherwise it seems pretty stupid

Absolute waste of time, but to each their own.

I've seen it on occupied investment properties or even being able to show one but not all units without a contract. I don't love it but don't see if being an issue on a high demand property. Outside of that I don't really get it.

I've seen it before. Would stay far away.

They want people to feel "committed" before seeing it. Silly and a red flag.

When we were shopping for a house over the summer, I reached out to listing agents directly. Every listing agent willingly met us to walk through the house except one. He would only show us the house if we signed an agreement. I refused as I didn't want representation in buying a house. We closed on a house in the same neighborhood at the beginning of July. That house is still on the market. I thought about reaching out to the sellers to let them know their agent screwed them of potential buyers.

As a result of the national lawsuits in 2024, NAR (and some impact from new Texas law going into effect 1/1/26) require realtors to a complete Buyers Representation Agreement to tour homes with potential buyers.

The ones bringing up the agreement are following the rules if they are with NAR, TAR and many local mls boards and brokerages require also

.

incorrect

Ok Digs, what is correct?

I don't know what's correct, but I tried to tell the listing agent that wouldn't show us the house that it's no different than an open house. Just be there to open the door so we can tour it. In my opinion, the listing agent should be able to open the door for any buyer, but if a buyer wants to see it with any other agent, they could then require an agreement.

The only issue with the listing agent side is if buyers want to see it and they're really not qualified so just showing it to people for no real reason. But it's a buyers market big time. Do what you need to sell it and earn that huge commission.

There are now different rules for realtors showing listed homes to individual buyers and at open houses.

But you are correct on open houses, you can visit and see the home while it's hosted by an agent without a buyers rep agreement.

We (the agents) don't make the rules, this is governed to us by NAR, TAR, for me REMAX and our local LERA mls board in the San Antonio area.

The new Texas law does not require the BRA signing though until the agent is offering advice or performing contract duties.

NAR info: https://www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements

A listing agent can show their own listings without signing a buyers rep agreement with every potential buyer.

These rule changes have obviously been confusing and not communicated well. NAR has been a disaster but agents need to be aware of the actual rules and many of them seem to be pretty ignorant.

" but agents need to be aware of the actual rules and many of them seem to be pretty ignorant."

Shocking.