What is the purpose of agency disclosure forms?

The purpose of agency disclosure forms is to clarify the agency relationship and the obligations that exist between the agent and the client. This documentation is essential as it helps both parties understand their respective roles and responsibilities. By clearly stating whether the agent represents the buyer, the seller, or both (as in the case of dual agency), the form ensures that clients are aware of who the agent is working for and what fiduciary duties are owed to them, such as loyalty, disclosure, and confidentiality. This transparency fosters trust and helps to prevent conflicts of interest, ensuring that all parties are on the same page regarding the nature of their professional relationship.

The other options relate to different aspects of real estate transactions but do not directly address the core function of agency disclosure forms.