When must a real estate broker provide an agency disclosure form?

The correct answer is that a real estate broker must provide an agency disclosure form at the first substantive contact with a prospective client. This requirement is crucial as it ensures that the client is fully informed about the nature of the relationship with the broker and the implications of that relationship in the real estate transaction.

By presenting the agency disclosure form at this initial point of contact, the broker allows the client to understand who the broker represents, the duties owed to them, and how the broker is compensated, all of which are essential elements in establishing transparency and trust. This practice helps to avoid misunderstandings and conflicts of interest later in the process.

Providing this form at the closing, after a sale, or before listing the property does not align with the intent of the law, which emphasizes the importance of informing clients early in the relationship. Early disclosure allows clients to make informed decisions and fosters a professional environment where rights and responsibilities are clearly defined from the outset.