The Texas IABS Notice (Information About Brokerage Services): When It Is Required

Short answer: under Texas Occupations Code §1101.558, a license holder must give a party a written notice about brokerage services, in at least 10-point font, at the first substantive communication about specific real property. TREC sets the notice's wording, which is the form known as Information About Brokerage Services (IABS). Separately, a license holder who represents a party must disclose that representation at the first contact with another party or that party's agent.

Two separate duties

Exam questions often mix up two duties in §1101.558:

• Disclosing who you represent. A license holder who represents a party must disclose that representation, orally or in writing, at the time of the first contact with another party to the transaction or with another license holder who represents a party.
• Giving the written notice. At the first substantive communication with a party about specific real property, the license holder must give that party the written notice.

The first duty can be met orally. The second must be in writing.

What the notice must contain

The statute requires the notice to:

• describe the ways a broker can represent a party, including as an intermediary;
• describe the basic duties a broker owes to the party they represent;
• describe the basic obligations a broker has to a party the broker does not represent; and
• give the name, license number and contact information of the license holder, and of their supervisor and broker, if any.

TREC prescribes the notice's text by rule and sets how it may be delivered, which is why the IABS form is a TREC form rather than something each brokerage writes. The current version, IABS 1-2, has been required since January 1, 2026. It now also covers written buyer agreements and showing property without representation. Under 22 TAC §531.20, every license holder must also link to a completed IABS in a readily noticeable place on the homepage of each business website, labeled "Texas Real Estate Commission Information About Brokerage Services" (at least 10-point) or "TREC Information About Brokerage Services" (at least 12-point).

When the notice is not required

Section 1101.558 lists three exceptions:

1. a proposed residential lease for less than one year, when no sale is being considered;
2. a meeting with a party whom the license holder knows is represented by another license holder; and
3. a communication at an open house about that property.

Common exam traps

• "First contact" vs. "first substantive communication". Disclosing representation happens at first contact. The written notice is due at the first substantive communication about specific property.
• Open houses. Talking about the open-house property at the open house does not trigger the notice. A substantive conversation about a different property can.
• Short leases. A residential lease under one year with no sale in view is exempt. A longer lease is not.
• Represented parties. A party you know already has their own license holder does not need the notice from you.

Practise it

The IABS notice sits in the State portion's Agency/Brokerage and Standards of Conduct areas, which carry 20 of the 40 scored questions between them. Our free Agency & Brokerage lesson and TREC Rules & Standards lesson cover both areas, and our intermediary guide explains the representation types the notice describes. For timed State-portion mock exams, see pricing.

State RE PREP™ is an independent practice platform. It is not affiliated with, endorsed by, or operated by the Texas Real Estate Commission (TREC) or Pearson VUE, which administer the actual exam. Exam rules change; confirm current details in the Pearson VUE candidate handbook before you book.