What two entities require disclosure of representative capacity when representing a buyer or seller in an agency relationship?

The correct answer highlights the importance of transparency in real estate transactions, particularly regarding the agency relationship. In New Brunswick, as in many other jurisdictions, the legislation surrounding agency law mandates that agents disclose their representative capacity to the parties involved – namely, whether they are representing a buyer, seller, or both in a dual agency scenario. This requirement ensures that all parties are aware of who is acting on their behalf and under what terms, ultimately promoting trust and clarity in the transaction process.

Furthermore, the REALTOR code of ethics further reinforces these principles by establishing professional standards and responsibilities that real estate agents must adhere to, including full disclosure of their role and responsibilities to their clients. By aligning with both the legal framework and ethical considerations, agents can help protect consumers and maintain the integrity of the real estate profession.

Other options, while they may touch on aspects of agency relationships, do not fulfill the requirement of addressing the specific entities that mandate such disclosures in a comprehensive manner. These include organizations and processes that may not directly relate to the standards of practice required in agency relationships, thereby rendering them less relevant to the question.