What are real estate licensees required to disclose early in a transaction?

Real estate licensees are required to disclose the nature of their agency relationship to each party early in a transaction because this establishes transparency and trust. By informing clients and customers whether they represent the buyer, the seller, or are acting as a dual agent, licensees clarify their role in the transaction, which helps to manage expectations and protects the interests of all parties involved. This disclosure is mandated by law in many jurisdictions to ensure that clients understand whom the licensee is working for and whose interests they are advocating.

The other options, while relevant to certain aspects of real estate practice, do not carry the same legal necessity for early disclosure. The commission rate offered by the seller, for instance, typically pertains to later stages of the transaction and may not be disclosed unless directly relevant to negotiations. Possible future uses for the purchase after it is sold and the name of the firm's principal may also be important in various contexts, but they do not have the same critical requirement for timely disclosure as the agency relationship, which is foundational to the ethical practice of real estate.