At the broker level, why is a written brokerage policy on agency relationships important?

Because the broker is accountable for the firm's agency practices, a written policy on how agency relationships are created, disclosed, and managed — including how in-house transactions and dual or designated agency are handled — promotes consistent, lawful conduct across all the firm's licensees. The policy guides agents on when and how to disclose whom they represent, how to obtain required consents, and how to protect confidential information. Disclosure timing and the permissibility of dual or designated agency vary by state, so the broker's policy must reflect state law. The state broker portion emphasizes the broker's role in establishing and supervising compliant agency practices.