During a transaction, who is required to be informed about compensation disclosures?

In real estate transactions, all parties involved must be informed about compensation disclosures to ensure transparency and compliance with legal obligations. This encompasses both the buyers and sellers, as well as any agents or brokers involved in the transaction. By informing everyone about how agents are compensated, including commissions, it helps to avoid conflicts of interest and builds trust among all parties.

In many jurisdictions, including Arizona, there are laws and regulations that require this disclosure to protect consumers and promote fairness in real estate dealings. Failing to adequately inform all transaction parties could lead to misunderstandings or disputes later on. Thus, full disclosure to all involved not only adheres to legal standards but also fosters an ethical approach to real estate transactions.