When is a real estate licensee required to disclose their agency relationship to a client?

A real estate licensee is required to disclose their agency relationship to a client before entering into a written agreement. This requirement is rooted in the principle of transparency and trust that underpins agency relationships in real estate transactions. Proper disclosure ensures that clients understand who their agent represents in the transaction, which helps to prevent conflicts of interest and promotes ethical conduct.

The disclosure before a written agreement aligns with the expectations of informed consent, whereby clients should be aware of the nature of their relationship with their agent prior to making binding commitments. This establishes a foundation for the fiduciary responsibilities that the licensee will uphold throughout the transaction. By clarifying agency relationships early on, clients can make informed decisions and have a clear understanding of whom their agent’s loyalty lies with.

The other scenarios presented in the question do not meet the legal and ethical standards established by real estate laws, which mandate timely and clear communication regarding agency relationships. For instance, disclosing the agency relationship only during the closing process would be too late, as clients need to know this information well in advance to make educated choices about their representation. Similarly, waiting until after receiving a written offer would undermine the clients' ability to fully understand their situation before the negotiation phase begins. Lastly, the statement that there is no