Final answer:
An agency disclosure form is signed alongside a listing agreement to confirm the agency relationship between a real estate agent and their client. It legally outlines the agent's duties and the nature of the representation, ensuring clear understanding and agreement by all parties involved.
Step-by-step explanation:
When a real estate listing agreement is signed, which is a contract between a seller and a real estate agent outlining terms for advertising and selling a property, an agency disclosure form is typically signed at the same time. This document is important as it clarifies the relationship between the agent and the client, ensuring that the seller understands whether the agent is acting as their representative exclusively, or if they are acting as a dual agent representing both buyer and seller. It is a key document that reinforces the agent's duties to the principal, confirming the agency relationship as per legal requirements.
These forms are designed to be legally binding and are normally signed and certified to show that all parties understand the terms and agree to them. As illustrated in the reference text, contracts such as these are carefully drafted and require explicit consent from the involved parties, often following a thorough explanation by legal representatives or the agents themselves.