Texas requires mediation before litigation when:

Texas does not require mediation for all real estate disputes as a matter of law — there is no Texas statute that universally mandates pre-litigation mediation in real estate transactions; the obligation arises only from a contractual agreement between the specific parties to a specific transaction, making 'always' an overbroad and legally inaccurate statement.

Texas law does not establish a $50,000 threshold or any dollar-amount trigger for mandatory mediation in real estate disputes; this type of dollar threshold might be confused with small claims court jurisdictional limits or arbitration thresholds in other contexts, but it has no basis in Texas real estate contract law.

The TREC mediation clause applies to residential real estate transactions, not exclusively commercial ones — in fact, TREC's jurisdiction and promulgated forms are primarily focused on residential transactions, and commercial real estate contracts are often custom-drafted and may or may not include mediation clauses depending on the parties' negotiation.