What does "informed consent" mean in real estate transactions?

Informed consent in real estate transactions refers to the understanding and agreement of all parties involved regarding the terms, conditions, and implications of the transaction. This concept ensures that all parties have a clear understanding of what they are agreeing to, which is crucial for maintaining transparency and protecting the interests of everyone involved.

When parties provide informed consent, they are not only aware of the terms of the contract but also comprehend the consequences of those terms, including any potential risks associated with the transaction. This is an essential aspect of the fiduciary duty that real estate professionals owe their clients, as it fosters trust and enables informed decision-making.

While ability to negotiate contract terms, verbal agreements, and acknowledgment of agency commission fees may be relevant in real estate transactions, they do not encompass the broader concept of informed consent. Informed consent specifically highlights the necessity for parties to fully understand and mutually agree to all facets of the transaction, ensuring that they are acting in an informed and voluntary manner.