In which types of transactions is agency disclosure required?

Agency disclosure is a fundamental aspect of real estate transactions designed to ensure that all parties involved are aware of the relationships, roles, and responsibilities of the agents. The correct response highlights that agency disclosure is required in both residential and commercial transactions.

This requirement stems from the need for transparency and to protect the interests of all parties involved, whether they are buying, selling, or leasing property. In residential transactions, it is crucial for buyers and sellers to understand who the agent represents, which helps prevent conflicts of interest and ensures that all parties can make informed decisions. Similarly, in commercial transactions, the complexity and higher stakes involved necessitate clear agency relationships to foster trust and facilitate successful negotiations.

The law mandates this disclosure in various contexts to uphold ethical standards within the real estate industry, enhancing professionalism and accountability. Therefore, understanding that agency disclosure applies to both residential and commercial transactions is essential for real estate practitioners to operate effectively within legal and ethical guidelines.