When must a real estate licensee disclose their agency status?

A real estate licensee must disclose their agency status at the first substantive contact with a prospective client to ensure transparency and build trust. This requirement is fundamental in real estate transactions as it informs the client of the licensee’s role, whether they represent the buyer, seller, or are acting as a dual agent. By providing this information early in the interaction, clients can make informed decisions about their next steps and understand who is representing their interests.

The other options lack the necessary timing to facilitate proper disclosure. Closing a transaction or conducting a final property inspection would typically be too late for the initial disclosure, as the client should be aware of the agency relationship much earlier in the process. Relying solely on requests for this information from the client can lead to misunderstandings and potential disputes, as clients may not know to ask about agency status. Therefore, timing the disclosure at the first substantial interaction is both a legal requirement and a best practice for ethical conduct in real estate.