When do you not have to provide the IABS form?

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Smiling man shakes hands with real estate agent while man's wife looks on.

10/28/2016 | Author: Editorial Staff

Are there any exceptions for providing the Information About Brokerage Services form?

Yes. A license holder is not required to provide the notice if any of these situations applies:

  • The proposed transaction is for a residential lease of less than one year and a sale is not being considered
  • The license holder meets with a party who the license holder knows is represented by another license holder
  • The communication occurs during an open house for any prospective buyer or tenant and the communication concerns that specific property.

For answers to more questions about disclosing agency and providing information about brokerage services, check out the September/October Texas REALTOR® magazine.

Categories: Legal
Tags: legal faq, legal, forms, iabs, information about brokerage services, agency


Comments

Rick DeVoss on 11/04/2016

Here is a question that many newer agents may have:

If I have already sold a house to a person, and have given them the IABS information, do I have to have that piece of paper (IABS form) in his file when I start to sell him a second house…?

The answer from TREC would be “no”, because you have already complied with the requirement for that particular person.

But the answer from your Broker may be different, because he/she may want you document in every file that you have complied with the IABS requirements.  ~It’s called covering your basis or bases, or just plain ‘butt’.

Rick DeVoss on 11/04/2016

The answers above may lead someone to thinking there is another way I can get around using the IABS form.  Try this scenario for example:

What if you are meeting a buyer at a house he says he wants to see, and it is your first face-to-face meeting….  (You have had not email conversations; just an appointment to meet at a house that is for sale.)  You walk into the house with the buyer, and start talking about the features of the house, the asking price, and how much money it would take to buy it.  (All those substantive things that an unlicensed hostess can’t do.)  ~In a normal scenario, you are required to give the customer the information contained in the IABS form first.

But what if you are walking into an “Open House” according to the sign out front?

According to the answer given above, you don’t have to give the IABS info at an open house.  Once again, I think that “answer” was overly simplified, and does not cover all basises / bases.

Maybe the host of the Open House doesn’t have to give out the information, but the rest of us do!

Rick DeVoss on 11/04/2016

We seem to be always looking for exceptions…..
Let’s remember the intent of the required TREC form:  It is to discuss with your customer their options in interacting with a licensed person.    ...During that discussion, your customer may have questions that you can answer.  If they fully understand the concept, then you can proceed to talk about buying or selling houses.  Giving them that specific information is what TREC wants you to do every time you start a serious conversation with someone new.  They did not say that you have to “hand out the form”, because if they had, you would have to have a signature to prove that you gave them a piece of paper.  TREC says a signature is not required, but giving them the information IS required!
I don’t buy this stuff about providing a “link” on a website or in an email.  We are charged with giving the information, not giving a link to a page.  If you are going to start talking about Real Estate with someone you have not met in person, then your first email should be about brokerage services.  Once they understand that topic, then you can go on to talk about houses.
During the discussion about brokerage services, the customer may have questions.  Once you’ve answered them, the customer may decide to become your client.  But maybe they will want to postpone that decision.  The whole point is they now know they have options, and they understand what is happening when they talk to a licensed person.
It’s like a cop reading his rights to a person he is about to interrogate.  Only you won’t read about cases where the Realtor shot the buyer first.  ....That comes later.

Robert Bragg on 11/03/2016

Wish I could edit my past post.  Meant to say…“When IN Doubt, Hand it out!”

Robert Bragg on 11/03/2016

“WHEN IT DOUBT, HAND IT OUT.”

David Davis on 11/03/2016

Ann Kearney,
Please folks, call it what it is.  Information About Brokerage Services or IABS.  It must go out at the first substantive conversation unless the first substantive conversation falls into one of the tree categories described above.  That first substantive conversation could include an email.  Please note that a link to the form is acceptable, but the link cannot be in the signature portion of the email.  It must be in the body of the email.

Tom Allen,
I like the idea of putting it on the back of an open house flier, but the back of the buyer representation agreement has potential dangers in it.  For one thing, the document you speak of is not TREC promulgated, and it in and of itself 4+ pages long.  The IABS is a sing page document.  This could cause confusion, and that is the last thing you want to have happen with this document.  TREC takes this document pretty seriously, and I wouldn’t advise taking any changes with it.

Ann Kearney on 11/03/2016

Does the IBS need to be on websites and emails that got out ? I guess really a link to get to it ,

Tom Allen on 11/03/2016

I like the idea of printing the IABS on back of an open house flyer.  I also print it on the back of our buyer representation agreement.

David Davis on 10/29/2016

Some of this is beginning to get a little sloppy.  We use abbreviations and acronyms all day long in our industry among ourselves, but there needs to be some degree of uniformity here.
What exactly is “IRB”?  You then go on to say “The deed is done and I have covered my basis.”  Should it not have been: “The deed is done and I have covered my bases.”  Maybe try using a thesaurus or dictionary before composing our posts.

Debbie Russell on 10/29/2016

Another fantastic mini refresher course.  I print the IRB on the back of every open house flyer.  Rather than asking the buyer to provide name, rank and serial number upon entry, I ask “who their REALTOR® is” if they spout out a name I just hand them the flyer.  If they say they don’t have an agent I flip the flyer over and present the IRB form.  Even though it’s not required (unless we discuss something else other than the open house).  The deed is done and I have covered my basis.

David Davis on 10/28/2016

Leonard, Referring to the IABS, yes!

Leonard Schwartz on 10/28/2016

so then all 12 month lease tenant prospects must be given an IBS?

David Davis on 10/28/2016

Correct.


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