When must a real estate agent disclose their agency relationship to the client?

A real estate agent must disclose their agency relationship at the first substantive contact with a client. This requirement is crucial because it establishes transparency and trust in the professional relationship. Substantive contact refers to interactions where a significant exchange of information occurs, such as discussing specific properties, client needs, or real estate strategies. By disclosing their agency relationship at this stage, agents ensure that clients are aware of who is representing their interests, which is essential for informed decision-making.

This early disclosure aligns with the principles of agency law, which aim to protect clients and clarify the responsibilities and obligations of the agent. It helps to prevent potential misunderstandings about the nature of the agent's role and the services they are providing.

Other options listed, such as disclosing the agency relationship at the time of property appraisal, upon signing the purchase agreement, or before the first open house, do not meet this transparency requirement as effectively and could lead to situations where the client is not fully informed about their representation until later stages in the transaction process.