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A
No disclosure required
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B
Written disclosure (timing varies — often at first substantive contact, before completing a contract, or both) that explains the agency relationship between the licensee and the consumer (buyer's agent, seller's agent, dual agent, transaction broker, etc.) and what duties are owed
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C
Only verbal disclosure
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D
Disclosure only at closing
Why this is the answer
Agency disclosure is one of the most state-variable areas of real estate practice. Common state approaches: (1) WHEN DISCLOSED: (a) at FIRST SUBSTANTIVE CONTACT (initial meeting where confidential information might be shared); (b) before COMPLETING A CONTRACT; (c) at the time of LISTING or BUYER REPRESENTATION agreement signing; (d) some states require ongoing disclosure if relationship changes; (2) WHAT'S DISCLOSED: (a) which party the licensee REPRESENTS (the seller, the buyer, both as dual agent, or as transaction broker/facilitator); (b) what FIDUCIARY DUTIES are owed and to whom; (c) explanation of OTHER possible relationships available; (d) CONSEQUENCES of dual agency (informed consent required); (3) WRITTEN vs VERBAL: most states require WRITTEN disclosure, with the consumer signing acknowledgment; verbal alone is generally insufficient. STATE-SPECIFIC AGENCY RELATIONSHIPS: (1) TRADITIONAL AGENCY — single agent owes full fiduciary duties to client; (2) DUAL AGENCY — agent represents both parties; requires informed consent; permitted in most states but with restrictions; some states (e.g., Colorado, Kansas, Oklahoma) have abolished traditional dual agency in favor of TRANSACTION BROKERAGE; (3) TRANSACTION BROKER (TB) / FACILITATOR — neutral position helping both parties without representing either as fiduciary; obligations are limited but defined (honesty, accounting, disclosure of material facts); (4) DESIGNATED AGENCY — different agents within the same brokerage represent different parties; firm-level dual agency but agent-level single agency; rules vary. EXAM PREP: know YOUR state's specific agency disclosure form, when to give it, what to say if asked about it, and what duties differ between each relationship type.
Source: Real Estate State Portion, Agency Disclosure