Final answer:
A mortgage broker who is also a real estate broker must disclose this dual status as soon as the relationship is established, typically in writing, to maintain transparency and follow legal requirements.
Step-by-step explanation:
In a real estate transaction, when an individual is acting as both the mortgage broker and the real estate broker, it is essential to disclose this dual relationship to all parties involved. The disclosure should be made as soon as the dual relationship is established, preferably at the beginning of the transaction process. This is critical for maintaining transparency and adhering to ethical guidelines in the real estate and banking industries. The exact timing and method of this disclosure can vary by state due to different regulations and laws. However, as a general practice, this information should be provided in writing, ensuring that all clients are fully aware of the potential for a conflict of interest and can provide informed consent. Such disclosure is not just a good business practice, but is also a legal requirement in many jurisdictions, as it helps prevent misunderstandings or perceived impropriety associated with the real estate professional's roles.