Show | Last updated: February 22, 2016Industry News The new IABS and Consumer Protection Notice are statutorily required forms for consumer information to help ensure that consumers of Real Estate Services better understand how a broker or agent can represent them and where to find help if they need it. Information about Brokerage Services (IABS) Facts:
Consumer Protection Notice Facts:
To see the form or print a copy in it's original form, click here. Written and Published by: VanEd You are here: Home / Real Estate / Information About Brokerage Services We’ve talked about Information About Brokerage Services in the past on this site, but The Texas Real Estate Commission has launched a new version of the form, that is already in use and will be required use by all Texas real estate agents on February 1, 2016. This form is informational in nature and is not a contract between agent and client. It serves to inform the public about how real estate agency works in the state of Texas, so that buyers and sellers (as well as landlords and tenants) can fully understand how the agents can represent them in a real estate transaction. The new Information About Brokerage Services form should help clear up some of the issues found in the past iterations of the form and also now provides a clear and concise set of contacts for consumers should an issue arise. Let’s take a look at the new form, shall we? (You can download the form (PDF file) if you’d like to follow along.) The first section covers Types of Real Estate License Holders – either a broker or a sales agent. All real estate agents in Texas must be sponsored by a broker and all transactions are actually done through the broker, with the agent acting as their representative. It’s important to know that when you sign a Buyer Representation Agreement or a Listing Agreement, you might be sitting with an agent and talking to them, but you are actually signing a contract between you and the broker. The second section covers a Broker’s Minimum Duties Required by Law. There are four duties that all brokers (and by extension their agents) must always adhere to: putting the interests of the client above all other interests (including their own), informing the client of any material information about the property or transaction that the broker has received, answer the client’s questions and present any offers or counter offers from the client, and treat all parties in a real estate transaction honestly and fairly. It should be noted that a client is defined as a person or party that the broker represents (typically through a written agreement such as the Buyer Representation Agreement or Listing Agreement). The third and largest section of the Information About Brokerage Services covers how a real estate agent can represent a party in a transaction. This is the heart of the form and the reason the form exists. Let’s separate each part out and cover them separately:
The fourth section is a basic warning to the consumer to always enter into any agreements in writing. This helps avoid disputes and also establishes the broker’s duties and responsibilities to you, your obligations under such an agreement, who will pay the broker for services, when payment will be made, and how that payment will be calculated. The final section of the Information About Brokerage Services form contains the name, license number, and contact information (email and phone) for the brokerage, the broker of the real estate company, the supervisor of the agent, and the agent themselves. This gives the consumer a clear set of contacts for the company and their representatives should the need arise. It also clearly states their license numbers, which you can look up on the Texas Real Estate Commission website and will give you quite a bit of information about the agent or broker (including information about their continuing education and license status). Remember, the Information About Brokerage Services is an informational form. The real estate agent will ask you to initial and date it, but it does not create any sort of contractual relationship or representation between the agent and you. The agent will ask for the initials/date for documentation purposes – to show that they did present you with the information (it’s required by law for an agent to provide you with this information). Reader InteractionsDoes an IABS have to be signed in Texas?Here's an example of an email signature that correctly links to the IABS form. Texas law requires all license holders to provide the Information About Brokerage Services form to prospective clients. 1234 Main St.
What is IABS in Texas real estate?What is the IABS? Texas law requires all brokers and sales agents to provide written notice regarding information about brokerage services at the first substantive communication with prospective buyers, tenants, sellers, and landlords concerning specific real property.
What does substantive dialogue mean quizlet?What is meant by substantive dialogue? substantive dialogue means a meeting or written communication that involves a substantive discussion relating to specific real property."
Which of the following best describes when a broker might act as an intermediary in Texas?An intermediary is a broker who negotiates a real estate transaction between two parties. An intermediary relationship can occur when a broker, or a sales agent sponsored by the Broker, has obtained written consent from the parties to represent both the buyer and the seller.
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