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