What is the purpose of having a broker disclosure?

The purpose of having a broker disclosure is to clarify the agent's duty to clients. This document outlines the relationship between the agent (or broker) and their clients, detailing the obligations the agent has to act in the best interests of the clients, maintain confidentiality, and provide full disclosure of any relevant information pertaining to the transaction. This ensures that clients are aware of the nature of their relationship with the agent, including the agent's fiduciary responsibilities.

This understanding is crucial in real estate transactions, as it helps to build trust and sets clear expectations from the outset. While knowing the agent's background and commission rates can be important for clients, the primary significance of broker disclosure lies in defining the professional duties involved in the agent-client relationship. It also does not cover the laws governing property ownership, which are distinct and separate from the professional obligations outlined in the broker disclosure.