What is the purpose of a Consumer Information Statement?

The purpose of a Consumer Information Statement is to disclose agency relationships and duties. This document serves a crucial role in real estate transactions by ensuring that consumers are informed about the nature of the relationships they have with agents or brokers. It clarifies whether the agent represents a buyer, a seller, or both, which is fundamental for establishing trust and transparency in the transaction.

By presenting this information upfront, the Consumer Information Statement helps consumers understand their rights and the responsibilities of their agents. It addresses key issues such as confidentiality, loyalty, and full disclosure, which are essential components of agency relationships in the real estate industry. This transparency is not only important for maintaining ethical standards but also for fostering informed decision-making by clients throughout the buying or selling process.

While marketing information, financial advice, and summaries of property laws are important aspects of real estate practice, they do not specifically fulfill the role of the Consumer Information Statement in providing clarity on agency relationships.