When should a licensee disclose that buyers are required to pay closing fees?

Disclosing that buyers are required to pay closing fees at or before the time an offer is written or presented is essential for transparency and informed decision-making in a real estate transaction. This disclosure ensures that buyers are aware of all financial obligations before they commit to an offer. Providing this information early in the process allows buyers to evaluate their financial situation and prepare accordingly, making it an integral part of the ethical duties of a licensee.

Timely disclosure is crucial because it helps prevent misunderstandings and potential disputes later in the transaction. If buyers learn about these fees only at the closing meeting, it could lead to frustration and disappointment, as they might not have had the opportunity to negotiate these costs or reconsider their offer based on the total financial commitment.

Being forthcoming with this information also aligns with the principles of honesty and integrity that are fundamental to maintaining trust within real estate transactions. By ensuring that buyers are fully informed from the onset, the licensee provides a higher standard of service, which is beneficial for both parties involved.