When did the Agency Relationship Disclosure Law become effective?

The Agency Relationship Disclosure Law became effective in 1988. This law was significant in California real estate as it established requirements for real estate agents to disclose their agency relationship with clients. The purpose of the law is to ensure that all parties are aware of whom the agent represents in a transaction, thereby promoting transparency and protecting the interests of buyers and sellers in the real estate market.

The law mandates that real estate brokers and agents provide a written disclosure to their clients, outlining the nature of their relationship, whether they are acting as a buyer's agent, seller's agent, dual agent, or in another capacity. This ensures that clients are informed about their relationship with the agent, which can influence their decisions throughout the transaction process.

Understanding this law is essential for anyone involved in California real estate, as it not only sets forth the legal requirements but also fosters ethical practices in real estate transactions.