Starting September 1, 2025, a new law will take effect in Texas that every real estate professional needs to understand. Texas Senate Bill 140 (SB 140) introduces major changes to how agents and brokers can communicate with prospects. If you rely on texting, calling, or other forms of outreach to generate leads, this law directly affects your business.
Lets break down what this new legislation means, what risks it creates, and how agents can continue generating leads safely and effectively.
What SB 140 Changes
SB 140 significantly expands the scope of what Texas law considers a “telephone solicitation.” Under the new rules, it now includes text messages, picture messages, video messages, and any other type of electronic transmission that encourages someone to buy, sell, or lease property.
This change closes a loophole that allowed real estate agents and other professionals to use mass texting or automated messages without facing the same restrictions as telemarketing calls.
Here’s what you need to know:
- Text messages now count as telemarketing. That means any text sent to someone you do not have an existing relationship with, or clear consent from, could be a violation.
- Private lawsuits are now allowed. Consumers can sue under the Texas Deceptive Trade Practices Act (DTPA) for violations. Penalties can include compensation for mental anguish, attorney’s fees, and up to three times the damages if the act was intentional.
- Registration may be required. Agents who engage in outbound marketing calls or texts may need to register with the Texas Secretary of State, pay a filing fee, and post a surety bond.
- Multiple recoveries are possible. Consumers can file more than one claim for separate violations, even against the same business.
In short, the law gives consumers new power to take action against unsolicited outreach, and it increases the legal and financial risks for agents who rely on cold calling or texting to find leads.
Why This Matters for Realtors
Many agents use text messaging and cold calling to reach new clients, especially FSBOs, expired listings, or past online leads. Under SB 140, those activities could now expose you to hefty penalties unless the person you’re contacting has clearly opted in or has a prior relationship with you.
Even a single unsolicited text message sent to a homeowner could result in a lawsuit or fine. That’s why it’s crucial to understand how to adapt before the law takes effect.
How to Generate Leads Safely Under SB 140
The good news is that lead generation doesn’t have to stop, it just needs to evolve. Here are a few smart ways to keep building your pipeline while staying compliant:
- Focus on warm and inbound leads. Build a strong online presence through content marketing, social media engagement, and referral programs. Let prospects come to you.
- Work with people who know you. Communicate with your past clients, sphere of influence, and anyone who has given explicit permission to be contacted.
- Audit your contact lists. Review and remove contacts who haven’t opted in to receive messages or who you can’t verify. Keep records of all consent.
- Stop mass texting and cold-calling strangers. These methods now carry high legal risk under the new rules.
- Train your team. Make sure your assistants, marketing staff, and partners understand the new regulations.
- Consult your broker or compliance department. If you’re unsure whether your outreach strategy meets the new standard, ask before you act.
The Takeaway
SB 140 doesn’t stop you from growing your business, it simply raises the bar for how outreach must be done. Agents who focus on relationships, value-based marketing, and brand visibility will thrive in this new environment.
This is the perfect time to pivot toward trust-building, organic lead generation, and authentic engagement with your community. By making these changes now, you’ll protect your business and stand out as a professional who puts compliance and integrity first.
