What must a real estate licensee provide to clients at the start of a transaction?

In a real estate transaction, it is essential for a licensee to establish a clear understanding of the agency relationship with their clients from the very beginning. This is why providing a disclosure of agency relationship is a necessary step. It informs clients about the role the licensee will play in the transaction, including whether they represent the buyer, the seller, or both. This disclosure helps set proper expectations and builds trust, ensuring that clients are fully informed about the nature of their relationship with the real estate professional.

Other documents, such as a loan estimate or a home inspection report, are important in their own right, but they are not required at the start of the transaction. A closing disclosure, which outlines the final terms of a mortgage loan and all closing costs, is typically provided later in the process, shortly before the closing date. Each of these documents serves a specific purpose, but when it comes to crucial initial communication, the disclosure of agency relationship is paramount.