Broker Disclosure

What is Broker Disclosure?

Broker disclosure is the legal obligation of a real estate or mortgage broker to fully inform clients of key details about fees, relationships, and potential conflicts of interest.

Why Broker Disclosure Matters in Real Estate

In Canadian real estate, licensed brokers must disclose their role in a transaction, any compensation they receive, and whether they represent the buyer, seller, or both.

Disclosure may include:
Commission rates or broker fees
Dual agency situations
Referrals to affiliated services

Mortgage brokers must also disclose any fees paid by the lender or borrower in writing before finalizing financing. Provincial regulators enforce these rules to ensure transparency.

Understanding broker disclosure protects clients from hidden costs and ensures fair dealings in all real estate transactions.

Example of Broker Disclosure

The broker informs the buyer that they will receive a commission from the lender and provides a written broker disclosure form before proceeding.

Key Takeaways

• Required in real estate and mortgage deals.
• Includes fee, role, and relationship transparency.
• Regulated by provincial licensing bodies.
• Helps clients make informed decisions.
• Must be presented in writing.

Related Terms

• Mortgage Broker Fee
• Origination Fee
• Co-Signer
• Lender Guidelines
• Mortgage Application