What is the critical moment at which agency disclosure typically occurs?

Agency disclosure most commonly occurs at the point of first substantive contact. This is the moment when the relationship between the agent and the client becomes more defined, typically involving discussion that goes beyond casual conversation to address specific real estate needs or interests. It is essential for the agent to disclose their agency relationship early on to ensure that the client understands who the agent represents and what their fiduciary duties entail.

By disclosing agency at this critical point, the agent helps establish trust and transparency, which are vital in real estate transactions. This initial disclosure enables the client to make informed decisions about their relationship with the agent and any potential conflicts of interest that may arise.

For instance, if the agency disclosure were made solely at the property listing or the first showing, it could leave clients without vital information when they first engage in substantive discussions. Furthermore, making this disclosure at the point of sale would be too late, as the client would have already formed expectations and may not understand the agent's responsibilities to them. Therefore, timely and clear agency disclosure is crucial for fostering open communication and protecting the interests of all parties involved in a transaction.