Agency Disclosure Laws
by Carol Van Wagner - Bristow
Most state real estate associations require all real estate licensees to provide their buyers and sellers with a written disclosure of agency, or declaration of whom they are representing in a real estate transaction. There are revised contracts to meet these disclosure requirements.
Most agents who are licensed to sell real estate agree that such disclosure requirements are good for the buyer, seller - and the agent. A Federal Trade Commission poll a few years ago found that 72% of buyers did not realize that “their” agent, in fact, represented the seller. The disclosure requirement clarifies the real estate agent’s role, especially for buyers.
The regulations require that the agency disclosure be made at the “first substantial contact” between an agent and the consumer. An agent who is representing a buyer or seller must have a written agency agreement that includes a termination date, a fair housing statement, and an exact description of the agency relationship.
