When is agency disclosure required at the earliest?

Agency disclosure is an important aspect of real estate transactions, as it ensures that all parties are aware of the nature of the relationship between the agent and the client. The correct timing for this disclosure is prior to preparing the contract. This is crucial because agency disclosure serves to clarify the role of the agent, whether they represent the buyer, seller, or another party, and helps prevent misunderstandings and potential conflicts of interest down the line.

Acknowledging the agency relationship early in the process fosters transparency and trust, allowing clients to make informed decisions before any contractual obligations are established. This timing helps ensure that all parties are aligned and can engage in the transaction with a clear understanding of their rights and responsibilities.

Other options do not align with the regulatory standards for agency disclosure. For instance, disclosing at any time after a deposit receipt is executed may not provide adequate information to the client before they make critical decisions. Similarly, waiting until closing or at the time of first substantial contact can lead to confusion and may not meet the legal requirements for timely disclosure in a real estate transaction.