What Is an Agency Disclosure in Real Estate?
An agency disclosure is a legal document that explains who a real estate agent or broker represents in a transaction. It ensures that buyers and sellers understand whether the agent works for them, the other party, or both through dual agency. Buyers typically sign a buyer’s agency agreement before representation begins.
Purpose of Agency Disclosure
The primary purpose of agency disclosure is transparency. Real estate agents are legally required to inform consumers who they represent before giving confidential advice or negotiating terms. This protects both sides and helps prevent conflicts of interest.
- Clarifies whether the agent represents the buyer, the seller, or both.
- Ensures informed consent before proceeding with an offer.
- Outlines duties such as loyalty, confidentiality, and disclosure of material facts.
- Must be provided at the first substantial contact or before confidential discussions.
Types of Agency Relationships Explained
Every disclosure form outlines the possible agency relationships in a real estate transaction:
- Seller’s Agency: The agent works exclusively for the seller’s best interest.
- Buyer’s Agency: The agent represents only the buyer’s side of the deal.
- Dual Agency: One agent represents both parties with full consent — learn more in dual agency.
- Designated Agency: Two agents from the same brokerage each represent one party independently — see designated agency.
Understanding these relationships helps consumers make informed choices about representation and confidentiality.
When an Agency Disclosure Is Required
Most states require agents to present the agency disclosure form at the first substantial contact — often before discussing pricing, motivation, or submitting offers. This ensures all parties know the agent’s role before any confidential information is exchanged.
The disclosure must be acknowledged in writing by both parties and kept on file as part of the transaction record. Failing to disclose representation can lead to disciplinary action or contract disputes.
Why FSBO Sellers Should Understand Agency Disclosure
When you list your property through a Flat Fee MLS service like Brokerless, you act as your own agent — meaning you control disclosure and communication with any buyer agents directly. Understanding how agency disclosure works helps you navigate offers confidently and maintain transparency throughout the sale.
View Flat Fee MLS Packages | Learn About Buyer’s Agency Agreements
🏡 Explore Agency Relationships in Real Estate
Buyer’s Agency Agreement • Dual Agency • Designated Agency • Flat Fee MLS