Champions Law of Agency Practice Test 2025 – Complete Exam Prep

The correct answer highlights a specific situation where an exemption to using the Information About Brokerage Services (IABS) form is applicable. A lease for not more than one year does not require the use of this form because it falls under a short-term rental agreement. The IABS form is typically mandated for situations involving longer-term leases, sales of property, and transactions that necessitate a detailed disclosure about brokerage services.

In the context of real estate regulations, short-term leases are often treated differently from longer-term transactions, which is why this exemption exists. This can provide less complexity in transactions that are temporary and typically do not involve extensive brokerage services or representation.

Conversely, sales of residential property, commercial property leases, and properties listed with brokerage firms all involve situations where the IABS form is necessary. These transactions usually require more comprehensive disclosures to ensure that clients are well-informed about the brokerage services available to them.