Information About Brokerage Services (IABS) Disclosure

Texas law requires that a license holder disclose representation to prospective buyers, sellers, landlords, or tenants. The vehicle for this disclosure is the Information About Brokerage Services (IABS) form, a mandatory, standardized written statement.

Why This Rule Exists

Historically, consumers often shared confidential details with real estate agents, mistakenly believing the agent represented them, when the agent actually represented the opposing party. The IABS form clearly outlines the fiduciary duties of a Seller’s Agent, Buyer’s Agent, and Intermediary, protecting consumers from accidental disclosures.

The Exam Trap

Students often fail to recognize what does NOT trigger the IABS requirement. You do not have to provide the IABS form if:

1. The transaction is a lease for one year or less and no sale is being considered.
2. The meeting occurs at an open house, provided the talk is merely conversational and does not involve specific terms or personal financial situations.

Worked Texas Example

Scenario: Agent Miguel meets a buyer at a local coffee shop in Dallas. The buyer begins explaining their strict budget, pre-approval status, and exact interest in a specific listing Miguel has. Outcome: This constitutes a “substantive dialogue.” Miguel is legally obligated to immediately hand the buyer the printed and completed IABS form before discussing any specifics of the property further. Failing to do so is a direct violation of TRELA statutory law.