Real Estate · State Agency and Disclosure Requirements

When must agency relationship disclosures generally be made to a consumer?

Correct answer

Early in the relationship — typically at first substantive contact or before confidential information is shared — so the consumer understands whom the agent represents

  1. A Only after closing
  2. B Early in the relationship — typically at first substantive contact or before confidential information is shared — so the consumer understands whom the agent represents
  3. C Never, agency is assumed
  4. D Only if the consumer asks

Why this is the answer

Most states require that agents disclose the nature of their agency relationship to consumers early — commonly at the first substantive contact about a specific property or before the consumer shares confidential information — so the consumer knows whether the agent represents the seller, the buyer, both, or neither. Timely disclosure prevents a consumer from mistakenly treating an agent as their advocate when the agent actually represents the other side. The exact timing, the form used, and whether written acknowledgment is required vary by state, but the principle that agency must be disclosed promptly and clearly is universal. The state portion tests the timing and purpose of agency disclosure.
Source: Real Estate State Portion, Agency Disclosure Timing

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