When must a licensee disclose their representation status to all parties involved in a transaction?

• A. Only after a formal agreement is signed.
• B. Never; representation status need not be disclosed.
• C. At closing, after all terms are agreed.
• D. At first substantial contact, or before providing substantive brokerage services, using a written representation disclosure.

Answer: (D)

The key idea is that a licensee must be transparent about who they represent from the very start of the real estate process. As soon as there is first substantial contact or before providing substantive brokerage services, the licensee must disclose their representation status to all parties, and this disclosure must be in writing. This ensures everyone knows who the licensee represents, helps prevent conflicts of interest, and provides a clear, auditable record for all sides involved.

Waiting until an agreement is signed or until closing would deprive parties of essential information and could lead to confusion or disputes about representation. Disclosing only after deep into negotiations or never at all would undermine trust and ethical duties. Therefore, the moment you begin offering substantive brokerage services or upon first meaningful contact, you must provide a written representation disclosure to all parties.