New York Real Estate Salesperson Exam 2025 - Complete Practice Guide

The Agency disclosure form should be presented to a client at the first substantive contact. This is important because it establishes the nature of the relationship between the licensee and the client right from the beginning. The purpose of the form is to ensure that clients are informed about the types of agency relationships that may exist and the duties that come with them. By providing the form early in the process, clients can make informed decisions regarding representation and understand the responsibilities of their real estate agent or broker.

Presenting the form during the first substantive contact allows for transparency and builds trust between the agent and the client, aligning with ethical practices in real estate transactions. It is also a requirement under New York law, emphasizing the importance of clear communication at the initial stages of the client-agent relationship. This proactive approach helps prevent misunderstandings and potential legal issues later in the process.

Other options, such as presenting the form after the property is sold or during final negotiations, do not comply with legal requirements and can lead to confusion for clients about their representation. Waiting until advertising the property may also result in a lack of clarity about the agency relationship that clients should be informed of from the earliest point of engagement.