What types of disclosures are agents required to make to clients?

Agents are required to make all material facts, conflicts of interest, and agency relationships known to their clients. This requirement is rooted in the fiduciary duty that agents owe to their clients, which includes honesty, loyalty, and full disclosure.

When an agent discloses material facts, they are revealing any information that could affect the client’s decisions regarding the real estate transaction. This includes both positive and negative aspects of the property, such as defects or legal issues. Moreover, conflicts of interest must be disclosed to ensure that the client is aware of any personal or financial stake the agent may have in the transaction that could influence their advice or actions. Finally, clarifying agency relationships is essential, as it establishes who the agent represents and ensures that clients understand how their interests will be protected throughout the process.

By requiring these comprehensive disclosures, the law protects clients and promotes transparency, allowing them to make informed decisions. The other options focus on narrow aspects of disclosure and do not encompass the full scope of an agent's responsibilities, which is to ensure clients have access to all relevant information that can impact their transaction.