Understanding the IABS — Homevets Realty

Texas Real Estate Commission · TXR 2501 · IABS 1-2

Information About Brokerage Services The disclosure every Texan receives — and what it actually means.

Before you sign anything, before you tour anything, before you list anything in Texas, you'll be handed a one-page form called the Information About Brokerage Services — IABS for short. Most consumers initial it without reading. Here is what is on the Information About Brokerage Services form, why it exists, and what your representation really looks like.

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Form Reference

TXR 2501 / IABS 1-2

Last Revised

November 3, 2025

Statutory Basis

Tex. Occ. Code §§ 1101.558, 1101.563

Watch · Listen · Read

Take it in any way you prefer.

A short video walkthrough, a 21-minute audio explainer, or the full written guide below — three ways to understand the Information About Brokerage Services form before your next real estate transaction.

Watch · Video Walkthrough Decoding the IABS

Listen · Podcast Episode

What the Texas IABS Form Reveals

A 21-minute audio breakdown of the Information About Brokerage Services form — what it actually says, what it doesn't, and what every Texan should know before signing.

View Full Form → Download PDF

The Information About Brokerage Services form Texas brokers must provide. TXR 2501 · IABS 1-2 · Revised 11-03-2025

01

Start Here

The Information About Brokerage Services form is a disclosure, not a contract.

The Information About Brokerage Services form does one thing: it puts the rules of representation in writing before money or commitments change hands. It explains what a broker can do for you, what duties they owe you, and the boundaries that protect every party at the table.

What the IABS is

The Information About Brokerage Services form is a required, plain-language explanation.

Required by Texas law at the first substantive communication about a property
Identifies the sponsoring broker, designated broker, supervisor, and sales agent on the transaction
Explains the four legal duties a broker owes a client
Describes the three roles a license holder can play in a transaction
Provides the license numbers needed to verify status with TREC

What the IABS is not

It does not hire anyone, commit you to anything, or create rights.

Not a representation agreement — your initials acknowledge receipt only
Not a contract to buy, sell, or lease any property
Not a commission agreement or compensation contract
Not optional — license holders who skip it face TREC discipline
Not a substitute for the written agreements representation actually requires

02

The Four Minimum Duties

What a broker owes a client.

When a broker represents you, four duties apply by law. A "client" is the person or party the broker represents — not every consumer the broker speaks with. These four duties are the floor, not the ceiling.

i.

Put your interests above all others.

Including the broker's own interests. This is the fiduciary heart of representation — the standard a client is entitled to expect from start to close.

ii.

Disclose all material information.

Anything received about the property or transaction that a reasonable person would consider important in making a decision must be communicated to the client.

iii.

Answer questions and present every offer.

No filtering. No withholding. Every offer and every counter-offer reaches the client, and every question gets a real answer.

iv.

Treat all parties honestly and fairly.

Even parties the broker does not represent. Representation is not authorization to deceive — honesty and fair dealing extend across the table.

§1101.563

The Written Agreement Rule

Before any residential showing, the agreement must be in writing.

Under Section 1101.563 of the Texas Occupations Code, a license holder performing brokerage activity for a prospective buyer of residential property must enter into a written agreement before showing any residential property. If no property will be shown, the agreement must be in place before an offer is presented on the buyer's behalf.

The agreement must spell out the broker's duties and responsibilities, the buyer's obligations, and the compensation owed and how it is calculated. At Homevets Realty, our policy is firm-wide: a fully executed Long Form Buyer Representation Agreement is required before any residential showing. The only exception is an open house. There are no short-form workarounds and no "let's just go look first" arrangements.

03

Three Roles

Three ways a license holder can represent a party.

The IABS describes exactly three structures of representation. Knowing which one applies to your transaction tells you whose interests the agent is bound to advance, and what they cannot disclose without your written consent.

Role 01

Agent for the Owner

Seller / Landlord representation

Through a written listing or property management agreement, the broker becomes the property owner's agent. The broker owes the four minimum duties to the owner and must disclose material information learned in the transaction — including from the buyer or buyer's agent.

An owner's agent's fees are not set by law and are fully negotiable.

Role 02

Agent for the Buyer

Buyer / Tenant representation

Through a written representation agreement, the broker becomes the buyer's or tenant's agent. The four minimum duties apply, and the agent must disclose material information learned about the property — including from the seller or seller's agent.

A buyer's or tenant's agent's fees are not set by law and are fully negotiable.

Role 03

Intermediary

Agent for both parties, with consent

To represent both sides, the broker must obtain written consent from each party. The intermediary must treat all parties impartially. They cannot disclose that an owner will accept less, or a buyer will pay more, or any confidential information without specific written authorization.

Different license holders may be appointed to each party with written consent.

14Day Maximum

Showing Without Representation

Even unrepresented showings require a written agreement.

A license holder may show property without representing the buyer — but only if no representation has been agreed to (orally or in writing), no opinions or advice are given, and no other brokerage acts are performed for the buyer.

Before showing residential property to an unrepresented buyer, Texas law still requires a written agreement under Section 1101.563. That agreement cannot be exclusive and is limited to no more than 14 days.

At Homevets Realty, the only setting where we use non-representation showings is at open houses. Every other showing is governed by a Long Form Buyer Representation Agreement.

04

Anatomy of the Form

Reading the bottom of the Information About Brokerage Services form.

The lower portion of the Information About Brokerage Services form is where it becomes specific to your transaction. Four lines identify the people and entities responsible for your representation — and the license numbers you can use to verify each one with TREC.

The hierarchy of accountability.

Sponsoring Broker — the brokerage firm legally responsible for all activity. On a Homevets Realty IABS, this is Homevets Realty LLC, License No. 519202.

Designated Broker of the Business Entity — when the firm is an LLC or corporation, TREC requires a licensed individual broker to be designated as legally accountable. For Homevets, that is Jose L. Segarra, License No. 434790.

Licensed Supervisor of the Sales Agent — if the agent is supervised by another licensed broker or a licensed sales agent acting under a delegation of authority, that person is identified here.

Sales Agent / Associate — the individual you are working with directly, acting on behalf of the sponsoring broker named above.

A Higher Standard of Representation

Work with a brokerage that does it right from the first conversation.

Veteran-owned. 31+ years of experience. More than 1,000 closed transactions. Headquartered in Killeen, serving the Fort Hood community and Central Texas — with a sister brokerage in Houston. The Information About Brokerage Services form is the opening chapter of every relationship we build, because the way we begin determines the standard for everything that follows.

Call (888) 953-VETS → [email protected]

Verify any Texas license at trec.texas.gov

Homevets Realty LLC

Veteran-Owned · Killeen, TX

Office: 2000 E Central Texas Expwy, Killeen, TX 76541
Phone: (888) 953-VETS (8387) · Email: [email protected]
Designated Broker: Jose L. Segarra · TREC #434790 · Brokerage: TREC #519202

This page is provided for general informational purposes and is not legal advice. The Information About Brokerage Services form, the Texas Occupations Code, and TREC rules govern in all cases. Consumers with specific questions about their representation should consult their license holder, the Texas Real Estate Commission, or a licensed Texas attorney.