What should be included in all real estate contracts prepared by licensed real estate professionals?

In real estate contracts prepared by licensed professionals, it is essential to include the agency relationship and full disclosures of all parties involved. This requirement is crucial because it establishes transparency between the agents and clients, ensuring that everyone understands their roles, responsibilities, and potential conflicts of interest.

Including the agency relationship helps clarify whether the agent is representing the buyer, the seller, or both, thereby defining the duties owed to each party. Full disclosures also involve revealing any material facts about the property or transaction that could affect the decision-making process of the parties involved. This obligation not only protects the clients but also upholds the integrity of the real estate profession, fostering trust and preventing disputes.

While details like terms of payment, the license status of the broker, and the commission structure can be significant in a transaction, they are not as foundational as outlining the agency relationship and ensuring full disclosure, which have direct implications for compliance with real estate laws and ethical standards.