When must a licensee present the Information About Brokerage Services form?

The Information About Brokerage Services (IABS) form must be presented at the first substantive discussion of a possible transaction because this moment marks a critical point in the process where the relationship between the licensee and the party (either the buyer or seller) begins to take shape. It is during these discussions that the nature of brokerage services, including agency relationships and duties, becomes relevant. Providing this form at this stage ensures that the client is informed about their rights and the obligations of the broker, allowing for transparency and informed decision-making.

Presenting the form at this time also complies with regulatory requirements designed to protect consumers by ensuring they understand the services being offered and the broker’s role in the transaction. This approach firmly establishes the groundwork for trust and professionalism in the real estate process, avoiding potential misunderstandings later on.

Discussions occurring before this point, such as initial meetings, might not include sufficient substantive information about a transaction, and waiting until a closing meeting would be too late to ensure that the client is adequately informed ahead of making significant decisions.