Who is responsible for managing disclosures of agency relationships?

The responsibility for managing disclosures of agency relationships lies with both the seller and buyer's agents. This is crucial because both parties have distinct obligations to their clients regarding transparency and the nature of their agency relationship.

In a real estate transaction, the seller's agent must clearly disclose their role in representing the seller's interests, including any fiduciary duties and the scope of the agency agreement. Similarly, the buyer's agent has the responsibility to clarify their role and allegiance to the buyer, ensuring that the buyer understands any limitations or duties involved in the representation.

The joint responsibility arises from the need to ensure that both buyers and sellers are fully informed about who is representing them in the transaction. This is in accordance with state regulations, which often emphasize the importance of clear communication about agency relationships to promote ethical practices in real estate transactions. By requiring both agents to manage these disclosures, the law helps protect clients and facilitate a more transparent transaction process.