Key Takeaways
- DC requires written agency disclosure at the earliest practical time, but no later than when specific real estate assistance is first provided
- Licensees must disclose in writing the identity of the party they represent to any party they do NOT represent
- Dual representation requires written consent from ALL clients to the transaction
- Disclosure must be conspicuous: bold lettering, all capitals, underlined, or in a separate box
- The common law of agency inconsistent with DC statutory requirements is expressly abrogated
DC Agency Disclosure Requirements
The District of Columbia has specific requirements for disclosing brokerage relationships to consumers in real estate transactions, governed by D.C. Code § 42-1703 and § 47-2853.196.
Key Point: DC requires written disclosure of brokerage relationships to protect all parties in real estate transactions.
When to Provide Agency Disclosure
Agency disclosure must be provided:
- "At the earliest practical time"
- Before any specific real estate assistance is provided
Timing Requirements
| Situation | When to Disclose |
|---|---|
| First substantive contact | Before discussing specific properties |
| Working with buyer | Before showing properties |
| Listing presentation | At first meeting with seller |
| Tenant/landlord | In lease application or lease (whichever is first) |
What Must Be Disclosed
To Non-Represented Parties
Prior to providing specific real estate assistance, licensees must disclose in writing:
- Identity of the party the licensee represents in the transaction
- The brokerage relationship the licensee has with another party
Important: A licensee must tell any party they do NOT represent who they DO represent.
Disclosure Format Requirements
The disclosure must be conspicuous:
| Format Option | Example |
|---|---|
| Bold lettering | DISCLOSURE OF BROKERAGE RELATIONSHIP |
| All capitals | DISCLOSURE OF BROKERAGE RELATIONSHIP |
| Underlined | <u>Disclosure of Brokerage Relationship</u> |
| Separate box | Boxed section set apart from other text |
Exam Tip: If disclosure is combined with other information, it must still be conspicuous and stand out.
Landlord-Tenant Transactions
Special disclosure rules apply to rental transactions:
When to Disclose
A licensee must disclose to a landlord or tenant who is NOT the licensee's client:
| Document | When |
|---|---|
| Lease application | Include disclosure in application |
| Lease | Include disclosure in lease document |
| Whichever occurs first | Must be in writing |
If Lease Has No Disclosure Provision
If the terms of the lease do not provide for disclosure:
- Disclosure must be made in writing
- No later than the signing of the lease
Legal Framework
Abrogation of Common Law
DC law expressly provides:
"The common law of agency relative to brokerage relationships in real estate transactions to the extent inconsistent with this section shall be expressly abrogated."
This means DC statutory requirements override traditional common law agency principles where they conflict.
Consumer Rights Preserved
The law does NOT affect:
- A person's right to rescind a real estate transaction
- Liability of a client for misrepresentation, negligence, or intentional acts
- Liability of a licensee for misrepresentation, negligence, or intentional acts
Confidentiality After Termination
After the brokerage relationship ends:
| Duty | Status |
|---|---|
| Account for money/property | Continues |
| Keep personal/financial info confidential | Continues |
| Other duties | Terminate unless agreed otherwise |
Key Point: Confidentiality obligations survive the end of the brokerage relationship.
When must a DC licensee provide agency disclosure to a party they do not represent?
How must agency disclosure be formatted under DC law?