What does real estate agent disclosure mean?

[Account Closed]

If your an investors and own couple properties and then decide to get you real estate license to have access to the MLS, what does it mean that as an agent you would need to disclose to any buyer and seller that your an agent when selling or purchasing a property for investing purpose? The reason I'm confuse about this subject because I done business with wholesalers and they basically work as agent and I always ask them why don't you get your agent license and they reply because they would need to disclose everything. They weren't bother by the high fees and annually fee to maintain the license but more fear of disclosure. I'm sure a seller doesn't care if your an agent or not buying his property because he wants to get paid, so why is disclosure is consider negative?

[Rich Hupper]

Agency is a relationship. Seller or buyer ( principal ) contracts with broker ( agent ) usually via broker's sub agent ( sales person ).

A salesperson licensee needs to remember, they are general agents of their broker and their broker is assuming all liability for their actions. The relationship between a broker and the principal is usually construed as a special agent ( sell my house or find me a house ). When a salesperson licensee and a consumer sign an agency agreement the salesperson needs to remember, they are not entering into a contract with the consumer, it is their broker and the consumer entering into a contract.

When it comes to agency disclosure, this is designed to protect a consumer, usually a buyer. The disclosure is there to inform the consumer about different types of agency. Buyer, Seller, ( non agent ) Facilitator, dual, designated, or single. I think the agency disclosure was originally designed to protect buyers. For a long time there were no buyer agents. There were only seller agents. Buyers would feel like they were being looked out for by the sellers agent but in fact that seller agent was gather valuable intelligence for their client ( the seller ), regarding the buyer. 

Now it is mandatory ( at least in my state ) that I disclose my relationship with the consumer at the first personal meeting. This means ( non agent ) facilitator. After that they can either agree to a buyer or seller agency agreement. In my state seller agency usually involves a listing agreement contract, whereas buyer agency is usually verbal or assumed. It is tough to get buyers to sign a 6 month buyer agency agreement unless they really like you.