When must real estate agents disclose their agency relationship?

Real estate agents are required to disclose their agency relationship before showing a property or at the first substantive contact with a potential client or customer. This requirement is in place to ensure transparency and to protect all parties involved in the transaction. By clarifying their agency relationship early on, agents provide buyers and sellers with a clear understanding of who they represent, which is essential for building trust and setting the stage for effective communication.

The rationale behind this requirement is grounded in ethical practices and legal mandates within the real estate profession. When agents provide this disclosure upfront, it allows clients to make informed decisions regarding their engagement with the agent and helps prevent any misunderstandings about the nature of the relationship. This practice is part of fostering an accountable environment for both clients and agents.

In other options, disclosing after closing the deal or only during negotiations would not provide the necessary clarity upfront, potentially leading to conflicts of interest or misunderstandings. Additionally, waiting for a client to request this information undermines the agent's responsibility to proactively communicate their role.