When must a broker or salesperson provide an agency disclosure form to their client?

The requirement for brokers or salespersons to provide an agency disclosure form at the first substantive contact is rooted in the principle of transparency within real estate transactions. This initial disclosure enables clients to understand the nature of the agency relationship, including the obligations and duties that the broker or salesperson has toward them.

Providing the agency disclosure form at the first substantive contact helps establish trust and clarity between the parties involved. It ensures that clients are fully informed about who represents their interests and how the broker or salesperson will act in relation to them. This is essential for making informed decisions as the relationship progresses.

While it is important for disclosures to be made before negotiations, the law specifically emphasizes the first substantive contact as the critical moment for disclosure. This helps solidify the foundation of the real estate transaction, addressing potential misunderstandings early in the process. Finalizing the contract or closing are too late in the process for such disclosures to be effective, as clients would need this information much earlier to make informed choices about their representation and the transaction itself.