What do Agency Disclosure requirements entail?

Agency Disclosure requirements primarily focus on ensuring that all parties involved in a real estate transaction understand whom the licensee represents. This is crucial because it establishes transparency and helps to manage expectations. Disclosing which party the licensee represents before a purchase offer is signed allows clients to make informed decisions and fosters trust between the agent and clients. This principle is foundational in real estate practice, as it clarifies the fiduciary responsibilities the licensee has toward their client and the level of loyalty and confidentiality the client can expect.

The other options pertain to different aspects of real estate transactions but do not directly address the core of Agency Disclosure. Market fluctuations, for instance, are important for clients to know, but they do not relate to the representation of parties in the transaction. Similarly, informing clients about closing costs and revealing past disputes on a property are important elements in a real estate deal but do not pertain to the obligation of the licensee to disclose their agency role before a purchase agreement is finalized.