Ed Neuhaus 
The Information About Brokerage Services form. Every Texas agent knows it. Most present it. Few actually explain it well. And now there’s a new version you need to be using.
Effective January 1, 2026, TREC released an updated IABS form (TREC IABS 1-2) that reflects the changes from SB 1968. If you’re still using the old version, you’re out of compliance.
A quick note: I’m not your broker (yet), and this isn’t legal advice. Always verify with your sponsoring broker and TREC directly before making changes to your practice. That said, if your broker isn’t walking you through this stuff, you might want to ask yourself why.
Lets walk through what changed, why it matters, and the three mistakes I see agents making every week.
What the IABS Is (And What It’s Not)
The IABS is a disclosure document. It explains to consumers the types of agency relationships available in Texas real estate transactions. It’s required by TREC before conducting substantive discussions about real estate transactions.
What it’s NOT is a contract. The IABS doesn’t create any relationship. It doesn’t obligate anyone to anything. It’s purely informational. You present it, explain it, and then move on to whatever agreement actually creates the relationship.
Think of it as the disclosure that sets up the real conversation about representation.
What Changed in the 2026 IABS
The new IABS (effective January 1, 2026) reflects the changes in SB 1968. Here are the key updates.
Subagency Language Removed
The old IABS explained subagency as an option. A buyer could work with an agent who was technically a subagent of the listing broker. That’s gone now.
SB 1968 repealed all references to subagency in Texas law. The new IABS removes this language entirely. No more explaining a concept that no longer exists.
This simplifies the form. It also eliminates a major source of confusion for consumers who never understood subagency anyway.
Written Agreement Requirements Clarified
The new IABS makes clear that a written agreement is required before an agent can represent a buyer or provide brokerage services beyond showing property.
It explicitly states that representation is not required for a property showing, but a written agreement still is. This refers to the non-representation agreement option.
Non-Representation Status Explained
The updated form explains the new non-representation option. An agent can show property without representing the buyer if certain conditions are met. The form outlines this as an alternative to representation.
Clearer Language Overall
TREC took the opportunity to clean up some language and make the form easier for consumers to understand. The goal is that someone with no real estate background can read this form and understand their options.
When to Present the IABS
TREC requires the IABS to be provided “at the first substantive dialogue” about a specific real estate transaction. But what does that mean practically?
First Meeting With a Potential Client
If you’re having an initial consultation with a potential buyer or seller, present the IABS. Even if you’re just gathering information about their needs, that conversation is substantive.
Before Any Showing
Before showing residential property, the IABS should be presented. This applies whether you’re planning to represent the buyer or use a non-representation agreement.
Open Houses
At open houses, you should have IABS forms available for visitors who aren’t represented. If someone starts asking substantive questions about buying, you need to provide the IABS.
When in Doubt, Present It
There’s no penalty for presenting the IABS too early. There can be penalties for presenting it too late. When in doubt, present it.
The Three Mistakes I See Every Week
I review transaction files regularly. Here’s what I catch agents doing wrong with the IABS.
Mistake 1: Presenting It Too Late
The most common mistake. An agent has multiple conversations with a buyer, shows them several properties, and then remembers the IABS when it’s time to write an offer.
That’s backwards. The IABS should come first. Before the substantive conversations. Before the showings. At the beginning of the relationship, not as an afterthought.
Mistake 2: Not Explaining It
“Sign here.” That’s not an explanation.
Too many agents treat the IABS as a formality. Shove a tablet in front of the client, get a signature, move on. The client has no idea what they just signed.
The IABS is your opportunity to have a real conversation about agency. Who represents whom. What their options are. Why it matters. Take the time to explain it.
Mistake 3: Confusing It With the Buyer Rep Agreement
I’ve seen agents think the IABS creates representation. It doesn’t. The IABS discloses options. The buyer representation agreement creates the actual relationship.
These are two separate documents with two separate purposes. Present the IABS first, then have the representation conversation, then execute the actual agreement.
How the IABS Connects to Buyer Representation
Think of the IABS as step one in a two-step process.
Step one: Present the IABS. Explain the types of agency relationships available. Answer questions. Make sure the consumer understands their options.
Step two: Based on what the consumer wants, execute the appropriate agreement. If they want representation, use the buyer representation agreement. If they just want you to show a property without representation, use the non-representation agreement.
The IABS sets up the conversation. The agreement is the outcome.
Using the Correct Form
Make sure you’re using the January 2026 version of the IABS. The form numbers are:
- TREC IABS 1-2 (the TREC version)
- TXR 2501 (the Texas REALTORS version)
If you’re using old forms, you’re not compliant. Check with your broker or transaction coordinator to make sure your systems have been updated.
For a complete rundown of all TREC form changes for 2026, see my detailed guide.
Documentation Best Practices
Having the client sign the IABS isn’t strictly required, but it’s smart practice. A signature provides documentation that you presented and explained the form.
Keep a copy in your transaction file. Date it. Note the circumstances. If there’s ever a question about whether you properly disclosed agency options, you want documentation.
At Neuhaus Realty Group, we require IABS presentation and acknowledgment to be documented in our transaction management system before any substantive activity with a client.
Ed’s Take
The IABS has always been important. Most agents just didn’t treat it that way. It was a box to check, not a real conversation.
That mindset is a problem. Because the IABS conversation is actually your first opportunity to demonstrate professionalism. To show that you understand the rules. To differentiate yourself from agents who just shove a form in front of people.
Use the IABS as a teaching moment. Explain agency like you’re talking to someone smart who just doesn’t know real estate. Answer their questions. Make it a conversation, not a formality.
The agents who do this well build trust from minute one. The agents who don’t wonder why their clients seem skeptical.
Questions?
The IABS might seem like a simple form, but getting it right matters. It’s the foundation for everything that comes after.
Questions about the new IABS or how to present it effectively? Reach out to me. I’m happy to share what’s working for our team, even if you’re not one of my agents. Yet.
