When is the IABS Notice required to be given according to Texas law?

The IABS (Information About Brokerage Services) Notice is required to be given at the first substantive communication with prospective buyers or sellers according to Texas law. This requirement is critical as it ensures that clients are informed about the nature of the agency relationship before any discussions occur that could significantly influence their decision-making.

Providing this notice at the first substantive communication helps establish transparency in the brokerage process, allowing consumers to understand their rights and the services offered by the brokerage. This communication could take various forms, such as a meeting or a detailed conversation about the client's needs or the details of a property.

Delivering the notice at a later stage, such as at the final closing or once an offer is made, would not align with the intent of the law, which focuses on early disclosure and understanding to protect consumers. Furthermore, failing to provide the notice prior to listing a property or at an appropriate early stage could result in compliance issues for the agent or brokerage involved.