To whom must brokers explain agency responsibilities?

Brokers must explain agency responsibilities to agents, clients, and customers because each group plays a distinct role in the real estate transaction process.

Agents need to understand their relationship with the broker, the fiduciary duties they owe to their clients, and the ethical standards expected in their conduct. This ensures that agents are fully informed about their responsibilities and can perform their roles effectively.

Clients, who engage the services of brokers, must be educated on what to expect from their relationship. This includes understanding the nature of the agency, the duties of loyalty and disclosure, and how the broker will represent their interests. Clear communication helps build trust and ensures that clients can make informed decisions.

Customers, who may not be entering a formal agency relationship but are instead engaging in a transaction with the broker, also need a clear understanding of agency responsibilities. This is vital for transparency and to clarify how the agent's responsibilities may differ when representing clients versus customers. By providing this information, brokers help all parties involved understand their rights and obligations, preventing potential misunderstandings and legal issues during the transaction process.