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Do you have to provide the IABS form to commercial clients?

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01/16/2015 | Author: Editorial Staff

If a prospective client approaches me about purchasing a commercial property, do I have to give them the Information about Brokerage Services form?

Yes. The Real Estate License Act requires licensees to provide a specific written statement about agency relationships to a party to a real estate transaction at the time you have the first substantive dialogue with that party. The Information about Brokerage Services form (TAR 2501, TREC OP-K) contains the statement you are required to provide.

This requirement applies to all real estate transactions except:

  • A residential lease of less than one year with no sale considered as part of the transaction or 
  • When a licensee meets a party who is represented by another licensee.

“Substantive dialogue” means a meeting or written communication involving a substantive discussion relating to specific real property but doesn’t apply to a meeting that occurs at an open house or a meeting or written communication that occurs after the parties have signed a contract or lease.

Read more legal FAQs on texasrealestate.com

Categories: Ethics, Forms, Legal
Tags: forms, real estate license act, legal, legal faq

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Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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