Minnesota State Real Estate Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

A real estate licensee is required to disclose their agency relationship at the first substantial contact with a prospective buyer or seller. This is important because it establishes clarity and transparency in the relationship between the agent and their client or potential client right from the onset.

By providing this information early in the interaction, the licensee ensures that the buyer or seller understands who the agent represents and what the nature of that relationship entails. This disclosure not only adheres to legal and ethical obligations but also builds trust and helps avoid potential conflicts of interest down the line.

Waiting until after the sale is completed, during an open house, or only disclosing the relationship if specifically asked does not fulfill the requirement to inform clients upfront about the agency relationship, which is critical for informed decision-making and maintaining ethical standards in real estate transactions.