What constitutes a violation of agency disclosure requirements?

A violation of agency disclosure requirements occurs when an agent fails to inform the client about the nature of agency relationships. This is critical in real estate because understanding whether an agent represents the buyer, the seller, or both is essential for clients to make informed decisions. Proper disclosure ensures that clients are aware of whom the agent is legally obligated to represent, which fosters transparency and trust in the transaction process.

Without this information, clients could be misled about the agent's loyalty and the scope of their representation, which could lead to conflicts of interest and legal complications. It is a fundamental requirement designed to protect the interests of all parties involved in a real estate transaction. Thus, any failure to communicate this essential information constitutes a violation of the agency disclosure requirements.