IABS and written buyer agreements in Texas: the 2026 rules

Agency and brokerage is the biggest section of the Texas state portion (11 of 40 scored questions), and in TREC's most recent exam topic report it was one of the two areas where first-time candidates scored lowest. It's also where Texas law changed the most in 2026. Senate Bill 1968 took effect January 1, 2026, and study material written before then can be wrong on three things: the IABS form, buyer agreements and subagency. Here's the current law, from the Texas Occupations Code (chapter 1101, the Real Estate License Act) and TREC's rules.

The IABS: what it is and when you give it

The Information About Brokerage Services notice (the IABS) is a written notice TREC prescribes. A license holder has to give it to a party at the first substantive communication about a proposed transaction regarding specific real property. It must be in at least 10-point type.

The IABS has to describe:

• the ways a broker can represent a party, including as an intermediary
• the basic duties a broker owes a party the broker represents
• new from January 1, 2026: the basic obligations a broker has to a party the broker does not represent
• the name, license number and contact information of the license holder, and of the license holder's supervisor and broker if there are any

There are three exceptions where the IABS isn't required:

• a residential lease of less than one year, when no sale is being considered
• meeting with a party you know is represented by another license holder
• a conversation at an open house about that property

The IABS is also generally not required when a license holder is acting only as a principal. It isn't just for home sales, though: it applies to commercial, new home, farm and ranch and other transactions unless an exception applies.

Don't mix up the IABS with the separate duty to disclose representation. A license holder who represents a party has to tell the other side who they represent, orally or in writing, at the first contact with that other party or their license holder. Those are two different duties with two different triggers.

Delivering it

The IABS can be handed over in person, mailed first class or by overnight carrier, put in the body of an email, or sent as an email attachment or link as long as the body of the email specifically refers to it. A link in an email footer or signature block doesn't count. Every business website's homepage also needs a readily noticeable link labeled "Texas Real Estate Commission Information About Brokerage Services" (at least 10-point) or "TREC Information About Brokerage Services" (at least 12-point).

The current form is IABS 1-2

The form in use now is TREC No. IABS 1-2, dated November 3, 2025 and mandatory from January 1, 2026. It replaced IABS 1-1. The update carries out SB 1968: it adds the non-representation status, adds the written buyer agreement requirement and removes subagency. If your study guide shows IABS 1-0 or 1-1, it's out of date.

Written buyer agreements before showings

This is the biggest practical change. Since January 1, 2026, a license holder who performs any brokerage act for a prospective buyer of residential real property must have a written agreement with that buyer before showing any residential property. If no property is shown, the agreement has to be signed before presenting an offer for the buyer.

"Residential real property" here means a single-family house; a duplex, triplex or quadraplex; or a condominium or cooperative unit.

The agreement must state:

• the services the license holder will provide
• the termination date
• whether it is exclusive or non-exclusive
• whether the license holder represents the buyer as the buyer's agent, or does not represent the buyer because the only brokerage act is showing property without representation
• the amount or rate of the broker's compensation and how it will be determined
• in conspicuous language, that broker compensation is not set by law and is fully negotiable

Failing to enter into the required agreement is now its own ground for discipline (Occupations Code 1101.652(b)(34)), for conduct on or after January 1, 2026.

The 14-day showing agreement

SB 1968 also created a way to show property to a buyer without representing them. A broker can do it if the broker hasn't agreed to represent the buyer, isn't otherwise acting as the buyer's agent, gives no opinions or advice about the property or transactions in general, and performs no other brokerage act for the buyer. The broker may still confirm the size, price and terms of the property.

Before that kind of showing, the broker makes the representation disclosure if the broker represents the owner, or provides the IABS if the broker doesn't.

The written agreement for a showing-only relationship has two hard limits: it may not be exclusive, and its termination date can't be more than 14 days after it's signed. If the license holder will do more for the buyer after the showing, they need a separate agreement.

Subagency is gone

Before 2026, Texas law defined a "subagent" and had a rule (Occupations Code 1101.805(f)) that shielded a party or license holder from a subagent's misrepresentation unless they knew about it and failed to disclose it. SB 1968 repealed both, effective January 1, 2026.

A cooperating broker now does one of two things: represents a party, or shows property without representation under the new rules above. Older exam prep that describes a cooperating broker as the seller's subagent reflects the old law.

A quick way to hold it together

• First substantive communication about specific property: give the IABS (IABS 1-2), unless an exception applies.
• First contact with the other side: disclose who you represent.
• Before showing a residential buyer any property: have a signed written agreement.
• Showing without representing: non-exclusive, 14 days at most.
• Cooperating brokers: represent a party or show without representation. No subagency.

The rest of the state portion is covered in what's on the Texas real estate exam, and the other big 2026 change is the new resale contract: what changed in TREC 20-19. Encodr's free Texas real estate course gives agency and brokerage its own unit, including the IABS, intermediary practice, minimum duties and the 2026 buyer agreement rules. If you want a quick check on your margins, the exam pass score calculator shows how many of the 40 state questions you can miss.