When must a real estate professional provide a disclosure statement to the client?

The requirement for a real estate professional to provide a disclosure statement before signing the listing or representation agreement is rooted in ensuring transparency and establishing trust between the professional and the client. This proactive measure allows clients to be fully informed about the professional's roles, duties, and any potential conflicts of interest prior to entering into a contractual relationship.

Providing the disclosure statement at this point allows the client to make an informed decision about whether to proceed with the professional's services. This aligns with the ethical standards and legal requirements in real estate transactions, which emphasize the importance of disclosure to protect the interests of clients and foster a fair and honest transaction environment. Thus, delivering this vital information before signing helps both parties understand their rights and responsibilities from the outset.

In contrast, providing it after negotiating a sale, at the closing of the transaction, or only when requested by the client fails to uphold the principle of transparency and might lead to situations where the client is not adequately informed to make the best decisions for their circumstances.