First Substantive Communication
The moment the IABS notice becomes due: the first substantive communication with a party about a specific property.
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What does First Substantive Communication mean on the Texas real estate exam?
Answer: The moment the IABS notice becomes due: the first substantive communication with a party about a specific property.
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First Substantive Communication definition
Under TRELA Sec. 1101.558(b-1), at the time of a license holder's first substantive communication with a party relating to a proposed transaction regarding specific real property, the license holder must provide written notice in at least 10-point font describing how a broker can represent a party, the duties owed, and the license holder's contact details.
Sec. 1101.558(c) lists three exceptions: a residential lease of less than one year where no sale is being considered; a meeting with a party the license holder knows is represented by another license holder; and a communication at a property held open, concerning that property.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Texas Agency & Intermediary (11 of 40 Texas State Law)
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