In what situation is IABS disclosure unnecessary?

The correct situation in which the Information About Brokerage Services (IABS) disclosure is unnecessary occurs during an open house. This context typically involves a scenario where the real estate agent is not actively representing a single buyer or seller but is instead facilitating a general viewing of a property. The purpose of an open house is to allow multiple prospective buyers to explore the property without an established broker-client relationship.

In this scenario, the IABS disclosure—which is designed to inform clients about the nature of the agency relationship—is not essential because the interaction is more informal and does not imply a brokerage relationship between the agent and individual attendees. Instead, agents are there to showcase the property, answer questions, and encourage potential buyers to make an offer, often for properties they might not be currently representing.

In contrast, the other scenarios typically involve situations where an agent is more directly engaging with a buyer or seller regarding specific properties or transactions, necessitating the disclosure to clarify roles, obligations, and the nature of the representation involved.