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In Texas, when must the IABS form be provided?

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Question & Answer

Review the question and all answer choices

A

At closing

Providing the IABS at closing is too late in the transaction. By this point, the broker-client relationship has already been established, and confidential information has likely been exchanged, potentially creating confusion about agency representation.

B

At first substantive dialogue

Correct Answer
C

After the contract is signed

The IABS must be provided before contract signing, not after. Waiting until after the contract is signed misses the critical window where prospective clients need to understand their agency options before making significant decisions.

D

Only if requested

The IABS is a mandatory disclosure in Texas, not optional. It must be provided regardless of whether the client specifically requests it, as it establishes important legal rights and responsibilities.

Why is this correct?

Texas law requires the IABS form to be provided at the first substantive dialogue about a specific property. This timing ensures clients understand their agency options before sharing confidential information, protecting both parties and establishing the broker's legal obligations from the outset of the relationship.

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