What is the purpose of an agency disclosure form in real estate?

The agency disclosure form in real estate serves the critical purpose of clarifying the relationship between clients and agents. This form provides transparency regarding the type of agency relationship established, whether it be as a seller’s agent, buyer’s agent, or dual agent. By outlining this relationship, the agency disclosure helps ensure that clients understand their rights, the obligations of the agent, and how the agent will represent their interests throughout the transaction.

This clarity is vital in building trust and ensuring that all parties are aware of their roles. It also helps to prevent potential conflicts of interest and misunderstandings about the level of service and representation clients can expect. The agency disclosure is a foundational element in maintaining ethical standards in real estate transactions, as it formalizes the responsibilities and expectations between the agent and the client.

In contrast, outlining the commission structure, detailing the closing process, and providing property history focus on different aspects of the real estate transaction but do not specifically address the nature of the relationship between the agent and the client.