When must a broker disclose their agency relationship to all parties involved in a transaction?

A broker must disclose their agency relationship to all parties involved in a transaction at the first substantive contact. This requirement ensures that all parties have a clear understanding of who represents whom in the transaction, which is crucial for transparency and trust.

The first substantive contact refers to the initial meaningful interaction where specific details about the property or transaction are discussed. By providing this disclosure at that point, the broker is fulfilling legal obligations and promoting ethical standards within real estate practice. This disclosure is vital as it allows all parties to make informed decisions based on their understanding of the broker's role and potential conflicts of interest.

Establishing this understanding early on helps protect all parties, as they are aware of their rights and obligations from the outset. Waiting until the transaction has commenced or until the closing would be too late, as parties would not have adequate information to participate effectively in the negotiation process. Similarly, disclosure only upon request may not be proactive enough to ensure that all parties are informed early in the process.