When should disclosure of agency occur in a real estate transaction?

Disclosure of agency should occur very early in the transaction to ensure that all parties involved understand the nature of the relationship between the agent and the client. This early disclosure helps to establish trust and clarity, allowing the buyer and seller to make informed decisions. It is crucial for agents to explain their role and the duties they owe to their clients, as well as the implications of the agency relationship on the transaction.

Waiting until after a contract is signed or during closing could lead to misunderstandings and disputes about the agent's role and responsibilities. Additionally, disclosing agency only upon request could cause confusion for clients who may not know to ask, thereby failing to meet the legal requirements for transparency in real estate transactions. Early disclosure is a best practice and often required by law, reinforcing the importance of clear communication from the outset.