Final answer:
Brown Cow Agency must disclose the different commission split with Pine Cone Realty to their clients within the listing agreement or other contractual documents to provide transparency and avoid conflict of interest. This allows clients to understand potential biases in agency cooperation.
Step-by-step explanation:
The commission splits between Brown Cow Agency and other real estate agencies, particularly the arrangement with Pine Cone Realty, must be disclosed to Brown Cow's clients to ensure transparency. The appropriate place for this disclosure is typically in the agency's listing agreement or any other contractual documents that outline the terms of the relationship with the client.
Moreover, real estate commissions and their splits are part of the fiduciary duties spelled out by law or real estate board regulations. It is expected that these disclosures are made upfront and clearly so as to not cause any conflict of interest, by either being written into a contract or displayed in some form of official agency representation documentation provided to the client at the beginning of their relationship. This allows clients to be fully informed of potential biases or disincentives that may affect the cooperation between real estate agencies.