Texas Real Estate Sales Agent ExamAgencyMedium
A real estate sales agent is preparing to meet with a prospective buyer for the first time to discuss their housing needs. Before the discussion begins, what specific form is the agent legally required to present to the buyer in Texas?
- ASeller's Disclosure Notice
- BInformation About Brokerage Services (IABS) Form
- CLead-Based Paint Disclosure
- DBuyer Representation Agreement
Show answer & explanationAnswer & explanation
Correct answer: B. Information About Brokerage Services (IABS) Form
In Texas, a licensee must provide the Information About Brokerage Services (IABS) Form at the first substantive dialogue with a prospective client. This form explains the types of agency relationships available and the duties of a broker.
Why the other options are wrong
- A. The Seller's Disclosure Notice is provided by the seller to the buyer, not by the agent at the initial meeting.
- C. Lead-Based Paint Disclosure is required for properties built before 1978, but not at the initial meeting with a prospective buyer before a specific property is identified.
- D. A Buyer Representation Agreement is a contract to establish agency, not a mandatory initial disclosure form.
Information About Brokerage Services (IABS) Form
A mandatory form in Texas that real estate licensees must provide to prospective clients at the first substantive dialogue, explaining agency relationships and the duties of a broker.
- Explains how an agent can represent parties.
- Must be provided at the 'first substantive dialogue'.
- Not a contract, but a disclosure document.
Memory trick: IABS: Inform About Brokerage Services, first and foremost.