When must a Realtor reveal their dual agency in a transaction?

A Realtor must reveal their dual agency at the beginning of the transaction because this disclosure is essential to maintaining transparency and trust in the relationship between the Realtor and all parties involved. In California, dual agency occurs when a single agent represents both the buyer and seller in a real estate transaction. This situation creates a potential conflict of interest, as the agent must balance the interests of both parties.

Revealing the dual agency at the outset allows all parties to make informed decisions, understand the implications of the arrangement, and consent to the agent's representation. It helps ensure that the agent fulfills their fiduciary duty to both parties while navigating the complexities of representing competing interests. Furthermore, failure to disclose dual agency appropriately may lead to legal repercussions or claims of misrepresentation.

While there are other approaches to handling disclosures, such as responding to inquiries from the parties, proactive disclosure at the beginning of the transaction is the best practice in order to uphold ethical standards and regulatory requirements in real estate transactions.