What must a licensee disclose regarding brokerage relationships?

A licensee is required to disclose the types of brokerage relationships available in writing to ensure that all parties involved are fully informed of their options and rights within the real estate transaction. This disclosure serves to establish transparency and protect the interests of clients. By providing a clear understanding of the different relationships—such as whether the broker is acting as an agent for the buyer, the seller, or both—the licensee helps clients make informed decisions regarding their representation in the transaction.

Clear communication about brokerage relationships is fundamental in real estate practice, as it ensures that clients understand the nature of the services provided and the fiduciary responsibilities of the licensee. This clarity fosters trust and helps prevent potential disputes or misunderstandings down the line.

Other options, like only disclosing fees or discussing experience and financial capabilities, do not encompass the essential information regarding the nature of the agency relationship, which is why they do not satisfy the requirement set forth by legislation in real estate practice.