How does a broker disclose material facts to clients?

A broker is obligated to disclose material facts to clients in writing and as soon as they become aware of such facts. This responsibility is crucial because material facts pertain to significant information that could impact a buyer's or seller's decision in a real estate transaction. By providing this information in writing, brokers ensure that the disclosure is documented and can be referenced later, promoting transparency and trust in the client-broker relationship.

Material facts can include items such as issues with the property’s title, environmental concerns, or any other information that would affect the value or desirability of the property. Prompt written disclosure allows clients to make informed decisions and helps protect the broker from potential legal disputes arising from non-disclosure.

Other options do not meet the standards for effective disclosure. For instance, verbal disclosures alone may lead to misunderstandings or disputes about what was actually communicated, while waiting until the closing process limits the ability of clients to make informed decisions prior to finalizing a deal. Public announcements lack the personalized context and detail necessary for clients to fully understand the implications of material facts regarding their specific transaction.