What Is the IABS?

"What is the IABS?" is a question we get asked more than almost any other piece of paperwork we put in front of clients. Sometimes the question comes politely — "what exactly is this?" Sometimes it comes after the client has already signed three of them at other showings with other agents and finally wants someone to slow down and actually explain it. Either way, we love the question. So let's answer it together.

We're Laura and Jade Segarra — mother and daughter, business partners, the two faces of the HEAT Team at Homevets Realty. Between us we represent more than three decades of Central Texas real estate experience and over a thousand transactions, but the IABS is the same one-page document we hand to every new client we meet, whether they're buying a first home in Killeen or selling a multi-generational property in Harker Heights. Required by the Texas Real Estate Commission. Required by section 1101.558 of the Texas Occupations Code. Required by us, every single time, before we get serious about working together.

Here is what it actually says, what it actually means, and why we genuinely think you should read it carefully before you sign anything with any agent — including with us.

What Is the IABS form, actually?

The official title is "Information About Brokerage Services" — usually shortened to IABS. The version we hand to every client right now is dated 11-03-2025. It carries the official TREC seal and the Equal Housing Opportunity logo. One page. The same form whether you're buying a $200,000 starter home in Killeen, a $2 million estate in Houston, or a multi-family investment in Belton. The numbers change. The disclosure does not.

The form does three things, and we'll walk through each one with you:

• It tells you the difference between a broker and a sales agent — which matters more than most people realize, because it affects who is ultimately responsible for the work being done on your behalf.
• It tells you the four legal duties every Texas broker owes to their client, no matter what.
• It explains the three ways a license holder can represent you in a transaction — and the important fourth scenario in which they do not represent you at all.

At the bottom of the form, you'll find a section that lists the actual people involved in your transaction: the sponsoring broker, the designated broker, the supervising agent (if there is one), and the sales agent. Each name comes with a license number, an email address, and a phone number. We'll show you exactly what ours looks like further down this page. Think of that section as a transparency tool — it tells you, at a glance, who is in the chain of responsibility for the work being done for you. You can verify every license number we list at the TREC website. We'd actually encourage you to do exactly that with any agent you're considering working with, including us.

The two types of license holders.

Texas recognizes two categories of real estate license holders, and the IABS form is very clear about the difference. We'll explain it using ourselves as the example, because it's the easiest way to make it concrete.

The Broker

A broker is responsible for all brokerage activities, including acts performed by the sales agents they sponsor. Brokers have completed additional education and experience requirements set by TREC, and they ultimately answer for everything done under their license. At Homevets Realty, our designated broker is Jose Segarra — Laura's husband and Jade's dad — License #434790-B. He has been in Texas real estate for 31 years. Every transaction either of us handles is ultimately his responsibility, and he reviews them accordingly.

The Sales Agent

A sales agent must be sponsored by a broker and works with clients on behalf of that broker. Sales agents are fully licensed to represent you, negotiate offers, walk you through contracts, and guide you through closing — but the broker is the one legally accountable. That's both of us. Laura holds License #520602-SA. Jade holds License #775100-SA. We are sponsored by Homevets Realty under Jose's broker license.

We want you to understand this structure because it matters more than the marketing usually suggests. When you work with us, you are not just hiring two individuals. You are engaging the full responsibility of a licensed Texas brokerage with three decades of operating history, family-owned and family-accountable. If something ever goes sideways — and in our experience it almost never does, but if — you have a real chain of accountability, not a name on a business card.

The four duties every Texas broker owes their client.

The IABS notice lays out the minimum duties required by law. When we represent you, we must:

• Put your interests above all others, including our own.
• Inform you of any material information about the property or transaction received by us.
• Answer your questions, and present any offer to you or counter-offer from you promptly.
• Treat all parties to a real estate transaction honestly and fairly.

The three ways an agent can represent you.

This is the most consequential part of the IABS form, and honestly the part most of our buyers and sellers don't fully understand on day one. We'll walk you through all three before you sign anything with us. A license holder in Texas can represent a party in a real estate transaction in one of three ways:

The fourth scenario: when the agent does NOT represent you.

This is the part most buyers miss entirely, and we want to slow down on it because it might be the single most important thing you take away from this article. A Texas license holder can legally show you a property without representing you at all. The IABS form spells out the conditions:

• The broker has not agreed with you, either orally or in writing, to represent you.
• The broker is not otherwise acting as your agent at the time of showing the property.
• The broker does not provide you with opinions or advice regarding the property or real estate transactions generally.
• The broker does not perform any other act of real estate brokerage for you.

Practically speaking, this is the "I'm just showing you the house" scenario. It comes up all the time at open houses or when a buyer calls the listing agent directly from a yard sign. In those moments, the agent showing you the property typically represents the seller, not you. Anything you say to them — how much you really love the home, what you'd be willing to pay above asking, your timeline urgency, that your lease is up in six weeks and you're getting desperate — can and should be communicated back to their seller-client, because that's who they actually work for.

The new written agreement requirement.

As of August 2024, Texas law (and a parallel federal settlement) now requires that before a license holder shows you any residential property as a buyer, you must enter into a written agreement with that broker. This is a significant change from how Texas real estate operated for decades, and we want to be honest with you: it changed how we work too. The IABS form references this requirement directly.

The written agreement must contain specific information required by section 1101.563 of the Texas Occupations Code, and it must clearly establish two things: (1) the broker's duties and responsibilities to you, and your obligations under the agreement, and (2) the amount or rate of compensation the broker will receive, and how that amount is determined.

Here's the honest version: if any license holder hands you the IABS form and starts showing you homes without ever asking you to sign a representation agreement, that is a red flag. They are either operating outside current Texas law — which can cost them their license — or they are flat-out not representing you, in which case you have no protections, no fiduciary duty owed to you, and no one in the transaction whose primary job is to protect your interests. We won't show you a home until we've signed one with you. It protects you, and frankly, it protects us too.

The intermediary confidentiality rules.

When a broker acts as an intermediary — representing both buyer and seller in the same transaction — the IABS form imposes strict confidentiality rules. Unless the party gives specific written authorization, the intermediary must not disclose:

• That the owner will accept a price less than the written asking price.
• That the buyer or tenant will pay a price greater than the price submitted in a written offer.
• Any confidential information, or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

Intermediary representation is legal in Texas and common in some transactions — particularly when a brokerage has both the listing and a buyer interested in the same property. It is also the most demanding form of representation, because the broker is structurally obligated to be neutral between two clients with opposing interests. Some of our buyers and sellers prefer it for the efficiency it offers. Others prefer single-agency representation for the clarity of having someone exclusively on their side. We're happy to do either; what we won't do is enter into an intermediary arrangement without making sure both parties understand it completely first.

Why "what is the IABS?" matters to you, practically.

Every IABS form you sign creates a record. It documents that you were informed of your representation status, the duties owed to you, and the structure of the brokerage you are dealing with. If something ever goes wrong in your transaction — and to be clear, in our combined 30+ years we've seen this only a handful of times, but if — the IABS form is part of the evidence that establishes what should have happened.

It also gives you a tool you can use right away: the license numbers of every license holder involved in your transaction. With those numbers, you can verify any Texas agent or broker at trec.texas.gov. You can see the broker's complete licensing history, any disciplinary actions, the date they were originally licensed, and their current status. It is the single most powerful transparency tool in Texas real estate, and we'd encourage you to use it on us. We have nothing to hide and our records are clean.

Our IABS, in full detail.

Below is the licensing information that appears on every IABS form we hand you. It's required by law, but we share it gladly — this is the structure of accountability behind every transaction we handle. Verify any of these license numbers at trec.texas.gov. We hope you do.

The questions you should actually ask.

Here are the questions we'd encourage you to ask any Texas license holder who hands you an IABS form — including us. The way an agent answers these questions tells you a great deal about whether they're the right fit for you:

• Who do you currently represent in this transaction? The honest answer should be immediate and unambiguous — "I represent the seller," or "I represent you as the buyer," or "I'm not representing either side at this moment."
• Do you have a written representation agreement with me? If not, why not, and when will we sign one if I want you to be my agent?
• What are your fees, and who pays them? The IABS form notes that fees are fully negotiable. Get the answer in writing.
• Will you ever represent both sides of a transaction I'm in? If yes, what does that look like, and how would you protect my interests?
• What is your broker's name, and how can I reach them if I have a concern? The IABS form lists this information — make sure you keep your copy.

Any license holder who answers these questions clearly and without hesitation is doing exactly what TREC envisioned when they created the IABS requirement. Any license holder who becomes defensive or evasive is telling you something important about how they intend to work with you. We'd rather you ask the hard questions early than discover the answers later under pressure.

One final note from us.

The IABS form is information — not a contract. Signing it (or initialing it) does not commit you to working with any particular agent or brokerage. It simply acknowledges that you received the form. You are free to take it home, read it carefully, ask questions, and choose your representation thoughtfully. We tell every client this on day one.

At our family team, we believe the IABS form is one of the best consumer-protection tools in Texas real estate. We want you to read it. We want you to ask hard questions. And we want you to choose us because of how we answer those questions — not because of how quickly we got you to sign something. The relationships we are proudest of in our careers are the ones where the client understood exactly what they were signing, exactly who was working for them, and exactly why they made the choice they made. That is the standard we hold ourselves to, transaction after transaction, year after year.

If you have read this far, thank you. It tells us you are the kind of buyer or seller we'd love to work with — someone who reads the fine print, asks the careful questions, and wants the work done right. Now you know exactly what is the IABS, what it means for you, and what it requires of us. Reach out whenever you're ready. We are easy to find.

Laura · Jade

The HEAT Team at Homevets Realty