What is meant by 'full disclosure' in a brokerage relationship?

'Full disclosure' in a brokerage relationship refers to the obligation of the broker to share all relevant information that could impact the client's decision-making process. This means that the broker must inform the principal about any facts, circumstances, or issues that may influence their choices regarding the transaction. This is essential in fostering trust and ensuring that the client is fully informed, which aids them in making educated decisions.

While transparency about commission structures and sharing financial matters can be important aspects of a brokerage relationship, they are not the comprehensive definition of 'full disclosure.' Instead, the primary focus of 'full disclosure' is on the material facts regarding the property and the transaction itself that could affect the principal's interests or outcomes. Therefore, the accuracy of relaying crucial information takes precedence to ensure that the client is not left in the dark about any factors that could influence their real estate decisions.