Agency disclosure: Before assisting or representing any person in a real estate transaction, the licensee must disclose to that person which of the following?

• A. The nature of the representation
• B. Whether the licensee will be acting on behalf of any person
• C. Whether the licensee will be accepting money from any other person
• D. All of the above

Answer: (D)

Agency disclosure centers on being transparent about who your client is, who you represent, and where your compensation is coming from before you assist in a real estate transaction. You must disclose the nature of representation so the client knows whether you’re acting for them, for another party, or in a dual or designated arrangement. You also need to reveal whether you’ll be acting on behalf of any other person in the same transaction, which signals potential conflicts of interest and helps the client understand the agency setup. Finally, you must disclose if you’ll be receiving money from any other person, such as a different party or a referral arrangement, so the client understands all sources of compensation and potential influences. Because each of these elements informs the client’s consent and the integrity of the representation, all of these disclosures must be made.