When must a broker disclose their agency status to clients?

A broker must disclose their agency status to clients at the first substantial contact because this is the point at which a broker can begin to develop a relationship that may include representation. Early disclosure is crucial as it establishes trust and transparency, allowing the client to understand who the broker is representing and any implications that come with that relationship.

This requirement ensures that clients are fully aware of the broker's role in the transaction before significant discussions or negotiations commence. Failing to disclose at this stage could lead to misunderstandings about the broker's obligations and loyalties, which could ultimately harm the client’s interests or the professional relationship.

The other options might imply disclosure at moments when a client is already engaged or committed in ways that might limit their understanding or choice regarding representation. For instance, waiting until the signing of a contract would be too late to provide the necessary information for an informed decision. Similarly, disclosing after negotiating terms does not provide the client the benefit of knowing the broker’s position throughout those negotiations, which could be critical in maintaining an ethical and fair process. Advertising the property also does not necessitate agency disclosure, as the communication dynamics are different in that context.