Final answer:
The agency disclosure form is a document used in real estate transactions to clarify the nature of the relationship between the real estate agent and the client. It is legally required in most states to be provided at the beginning of a real estate transaction to ensure transparency and understanding of the agent's duties.
Step-by-step explanation:
The agency disclosure form should be used at the beginning of a real estate transaction. This form is an important document that serves to inform parties in a real estate transaction about the nature of the agency relationship between them and the real estate agent or broker. It informs clients of their rights and what they should expect from their agent, including the agent's legal duties. In most states, this disclosure is a legal requirement and must be made before the agent begins representing a client.
It helps to ensure transparency in real estate transactions, clarifying whether the agent is working as a buyer's agent, seller's agent, dual agent, or in some other capacity. Early disclosure is critical as it helps avoid conflicts of interest and ensures that all parties understand the scope of the agent's responsibilities and loyalties.