What is the purpose of the agency disclosure form?

The agency disclosure form serves a crucial role in real estate transactions by ensuring that all parties are aware of the relationship between the agent and the client. This form clarifies the nature of the agency relationship, whether the agent is representing the buyer, the seller, or acting as a dual agent, which is vital for managing expectations and responsibilities.

When clients and customers understand the agency relationship, they can make informed decisions about the transaction. For instance, if an agent represents the seller, their duty is to act in the seller's best interest, which would affect how information is shared and how negotiations are handled. Therefore, the form addresses questions about property in the context of who is responsible for providing information and how it should be interpreted based on that relationship.

This is why the agency disclosure form is essential for maintaining transparency and trust in real estate dealings. The other choices focus on different aspects of real estate transactions that do not pertain to defining the agent's role or responsibilities, which further reinforces why understanding the agency disclosure is critical.