What is the IABS (Information About Brokerage Services)?

Understanding Brokerage Services in Real Estate: A Guide for Buyers, Sellers, and Renters

As a dedicated real estate professional, I know that navigating the complexities of buying, selling, or renting property can be overwhelming. That's why it's crucial to understand the information about brokerage services (IABS) that all real estate agents and brokers in Texas are required to provide. Let’s break down the key points so you can make informed decisions with confidence. This document is required to be given to a potential client at the first substantive discussion about real estate selling or buying.

Types of Real Estate License Holders

In Texas, there are two primary types of real estate license holders: brokers and sales agents. A broker is responsible for all brokerage activities, including the actions of sales agents they sponsor. Sales agents work on behalf of the broker and must operate under their supervision.

Broker’s Duties

By law, brokers have several essential duties they must fulfill. These include:

- Putting their client’s interests above all others, including their own.
- Informing clients of any material information about the property or transaction.
- Answering clients’ questions and presenting any offers or counter-offers.
- Treating all parties to a real estate transaction honestly and fairly.

Roles in Transactions

A broker can represent a party in a real estate transaction in several ways:

As an Agent for the Owner (Seller/Landlord):** The broker becomes the property owner's agent through a written agreement, such as a listing to sell or property management agreement. The broker must provide all material information about the property or transaction to the owner.

As an Agent for the Buyer/Tenant:** The broker represents the buyer or tenant through a written representation agreement. The broker must inform the buyer of any material information about the property or transaction.

As an Intermediary:** When representing both parties, the broker must first obtain written consent from each party. This written agreement should clearly state who will pay the broker and outline the broker's obligations. As an intermediary, the broker must treat all parties impartially and fairly.

As a Subagent:** A license holder acts as a subagent when assisting a buyer without an agreement to represent them. In this role, the subagent helps the buyer but prioritizes the owner's interests.

 Avoiding Disputes

To ensure clarity and avoid disputes, it’s essential that all agreements between you and your broker are in writing. These agreements should clearly establish:

- The broker’s duties and responsibilities to you.
- Your obligations under the representation agreement.
- Details about who will pay the broker, when payment will be made, and how the payment will be calculated.

Contact Information

The IABS document also provides contact information for the broker, designated supervisor, and sales agents. This transparency ensures you know exactly who to reach out to with any questions or concerns. 

Receiving this notice doesn’t obligate you to use our services, but it’s a vital part of making an informed decision. Understanding these points ensures a smooth and transparent real estate experience.

For more information, please visit the Texas Real Estate Commission website at www.trec.texas.gov.

If you have any questions or need further clarification, don't hesitate to reach out. I’m here to help you every step of the way on your real estate journey. 

-Jessica Salinas, LPT Realty

512-762-8324

Jessicasellshillcountry@gmail.com

www.livinginlakehills.com