Real Estate Salesperson · Texas: Agency and brokerage · 8 min read
Representation disclosure, the IABS notice and intermediary practice
- Identify the exact timing, methods, and statutory exceptions for disclosing representation and delivering the Information About Brokerage Services (IABS) notice under Texas law.
- Explain the requirements for business website notices, social media links, email delivery rules, and personal interest disclosures.
- Describe the legal framework, statutory definitions, consent mandates, and appointment procedures governing intermediary practice in Texas.
Disclosing Existing Representation
When you represent a client in a proposed Texas real estate transaction, Texas law imposes an immediate duty of representation disclosure. You must disclose that you represent your client at the very moment of your first contact with another party to the transaction (Tex. Occ. Code §1101.558(b)(1)). For example, if you represent a prospective buyer named Maria and you speak with an unrepresented seller named James, you must inform James right away that you represent Maria.
Texas law also requires you to make this disclosure to other professionals. You must disclose your representation of a client at the time of your first contact with another license holder who represents another party to the transaction (Tex. Occ. Code §1101.558(b)(2)). If you call David, who is the listing sales agent for a home, you must state immediately on that initial phone call that you represent Maria as a buyer.
This disclosure of representation at first contact does not need to be on a specialized state form. Under Texas law, representation disclosure at first contact may be made orally or in writing (Tex. Occ. Code §1101.558(b)). Whether you state it over the telephone, write it in an introductory text message, or present it in an email, the critical legal factor is that you provide it immediately upon that initial contact.
Common mistakes
- Assuming an email signature link satisfies the delivery requirement for the IABS notice at first substantive communication; Texas rules explicitly forbid placing the link in a footnote or signature block (22 TAC §531.20(d)).
- Believing representation disclosure must be delivered in writing on a state form; Texas law allows representation disclosure at first contact to be either oral or written (Tex. Occ. Code §1101.558(b)).
- An intermediary broker must act fairly and impartially; Section 1101.560(c) permits a properly appointed associated license holder to provide opinions and advice during negotiations to the party to whom that license holder is appointed.
- Failing to disclose personal license status when purchasing property through a family trust or entity; written license disclosure is mandatory if you own more than 10% of the entity, act as trustee, or if you, your spouse, parent, or child is a beneficiary (22 TAC §535.144(a)-(b)).
Key points
- A license holder representing a party must disclose that representation orally or in writing at first contact with another party or with another license holder representing a party (Tex. Occ. Code §1101.558(b)).
- The written Information About Brokerage Services (IABS) notice must be provided at the first substantive communication regarding specific real property, in at least 10-point font, using TREC No. IABS 1-2 (Tex. Occ. Code §1101.558(b-1); 22 TAC §531.20(a)).
- IABS delivery is exempt during open houses for that specific property, for residential leases under one year with no sale considered, or when meeting a party known to be represented by another license holder (Tex. Occ. Code §1101.558(c)).
- Homepage website links to the IABS notice must be readily noticeable and in at least 10-point font if labeled 'Texas Real Estate Commission Information About Brokerage Services', or at least 12-point font if labeled 'TREC Information About Brokerage Services' (22 TAC §531.20(b)(1)).
- Email delivery of the IABS notice cannot be accomplished through a link placed inside a footnote or email signature block (22 TAC §531.20(d)).
- When a license holder acts personally or in a capacity covered by §535.144(a), the license holder must disclose their license status and capacity in the contract of sale or rental agreement, or in another writing given before entering into that contract or agreement.
- A broker who agrees to represent both sides in a transaction must act as an intermediary, obtain each party’s written consent stating the source of any expected compensation, and may appoint separate associated license holders to advise their appointed parties if the parties’ written consent authorizes appointments and the broker gives all parties written notice of them.
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Original lesson written for Real Estate Salesperson practice · updated October 30, 2026. Exam names are trademarks of their owners; tests.global is not affiliated with them.