What document must licensees provide to each party in a transaction?

The relationship disclosure form is a crucial document that licensees must provide to each party involved in a real estate transaction. This form serves to clarify the nature of the relationship between the licensee and the parties, ensuring that all involved are aware of the rights and obligations that come with that relationship. It establishes whether the licensee is representing the buyer, the seller, or both, and helps to maintain transparency throughout the transaction process.

By providing this form, the licensee ensures that all parties understand the level of fiduciary responsibility the licensee has towards them. This is vital for building trust and ensuring ethical compliance in real estate practices. It also protects the licensee by documenting the provided disclosures, which can help mitigate potential disputes later in the transaction.

The other documents listed, while important in real estate dealings, do not carry the same requirement for disclosure to all parties in a transaction. For instance, a contract for sale is specific to the terms of the agreement related to the sale itself, a property appraisal is an assessment of the value of the property, and a financing agreement pertains specifically to the terms under which the buyer will be obtaining funds to purchase the property. None of these documents fulfill the critical role of outlining the relationship between the parties and the license