What are the two exceptions to the requirement to provide a written IABS notice?

What are the two exceptions to the requirement to provide a written IABS notice?

• A. Residential lease less than one year
• B. Meeting with a party already represented by a license holder
• C. Residential lease less than one year and meeting with a party already represented by a license holder
• D. Neither A nor B

Answer: (C)

The IABS disclosure is intended to inform parties about agency relationships in real estate matters, and you generally need to provide it at the first substantial discussion. Two situations, however, don’t require that written notice: if the transaction is a residential lease for less than one year, the IABS isn’t triggered because very short-term leases aren’t treated the same as longer real estate transactions; and if you’re meeting with a party who is already represented by another license holder, you’re not forming a new agency relationship with that person, so the IABS isn’t required in that moment. When either of these conditions applies, there’s an exception to the usual disclosure rule.

The IABS disclosure is intended to inform parties about agency relationships in real estate matters, and you generally need to provide it at the first substantial discussion. Two situations, however, don’t require that written notice: if the transaction is a residential lease for less than one year, the IABS isn’t triggered because very short-term leases aren’t treated the same as longer real estate transactions; and if you’re meeting with a party who is already represented by another license holder, you’re not forming a new agency relationship with that person, so the IABS isn’t required in that moment. When either of these conditions applies, there’s an exception to the usual disclosure rule.