When must an agent provide an agency disclosure to a client?

The requirement for an agent to provide an agency disclosure at the time of the first substantive contact is rooted in the principles of transparency and informed consent in real estate transactions. This timing ensures that the client is aware of the nature of the relationship they are entering into right from the outset. Substantive contact typically refers to discussions that go beyond mere casual conversation and involve significant information about the property or the transaction, indicating the potential for a professional relationship.

Delivering the agency disclosure at this point allows the client to understand the agent's role, whether as a buyer's agent, seller's agent, or dual agent, and the implications of that relationship. This proactive approach in communication fosters trust and helps clients make informed decisions about their representation in the transaction.

In contrast, providing the disclosure at the closing meeting, after the contract is signed, or during the property inspection fails to give clients necessary information when they need it most. By fulfilling the disclosure obligation early in the relationship, agents comply with legal requirements while enhancing the client's confidence and protection throughout the real estate process.