Brokerage & Agency

First Substantive Communication

The moment the IABS notice becomes due: the first substantive communication with a party about a specific property.

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.

On the exam

The trigger is a substantive conversation about a specific property, not a greeting and not a general market chat.

Exam trap

Assuming the notice is always required. Memorize the three exceptions in Sec. 1101.558(c).

Tested in

Texas Agency & Intermediary (9% of the exam)

From definition to recall

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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.