The Information About Brokerage Services (IABS) form now clarifies to the consumer that any brokerage fees are not set by law and are negotiable. The new form is available for voluntary use until April 1, 2025, when its use becomes mandatory. 

What is the Information About Brokerage Services Form?

Brokers and sales agents are required by law 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 by using the Information About Brokerage Services form (IABS).

The IABS form is a document that outlines the role of brokers and sales agents in a real estate transaction. It is divided into five sections covering

• Real estate license holder types

• Brokers’ legally required duties

• Representation

• Written agreements and commissions

• Contact information for brokers and sales agents.

Two Ways You Must Provide the IABS Form On Your Business Website

License holders must post a completed IABS form on the homepage of their business website, in a readily noticeable place. A business website is a website controlled by the license holder, accessible to the public, and that contains information about a license holder’s real estate brokerage services. 

The text for the hyperlink must be either:

• Texas Real Estate Commission Information About Brokerage Services in at least 10-point font

• TREC Information About Brokerage Services in at least 12-point font

If your social media pages are being used as a business website, those pages must also comply. You can post a link to the IABS in your bio or about section or insert a link to your compliant homepage where your IABS is properly displayed.

Deliver to a Party

When it comes time to provide the IABS to a party, a license holder could do so in several different ways, including by

• Printing a copy of the completed IABS document and handing it directly to the consumer.

• Attaching the completed IABS document to an email and mentioning in the body of the email you have attached the form.

• Inserting a hyperlink to the completed IABS document in the body of the email above the signature line and mentioning that you have included the link.

The Texas Real Estate Commission met February 10 and adopted changes to the Information About Brokerage Services (TXR 2501, TREC IABS 1-0) form and Notice of Buyer’s Termination of Contract (TXR 1902, TREC 38-7). The updated forms will be available on the TREC website for voluntary use soon. The mandatory effective date of the updated forms is April 1. 

Summary of Changes

• The updated IABS form clarifies to consumers that any brokerage fees are not set by law and are negotiable.

• There is a clarifying change in Paragraph 2 of the Notice of Buyer’s Termination of Contract to ensure that the buyer has delivered the lender’s written statement to the seller in accordance with recent changes to Paragraph 2A, Buyer Approval, of the Third Party Financing Addendum.

Read more here.