When a broker disclosed to a tenant that he represents the owner orally, what should have been done?

When a broker orally discloses to a tenant that he represents the owner, it is important to remember that agency relationships must be clearly understood by all parties involved. In most jurisdictions, including Arkansas, agency disclosures are required to be in writing to ensure transparency and protect the interests of both the landlord and the tenant. This written disclosure should happen before the signing of any lease agreement.

By providing the agency disclosure in writing before the lease signing, the broker ensures that the tenant fully understands who is representing whom. This clarity is essential as it affects the rights and responsibilities of both parties in the transaction. It helps to establish an informed relationship, reducing the potential for misunderstandings or disputes in the future.

The importance of having a written agency disclosure stems from the legal obligations brokers have to their clients and the necessity of informing all parties in a real estate transaction about whom they are dealing with. This practice is recognized in real estate regulations as a best practice for professional ethics and compliance with license laws.