What should brokers do regarding representation and disclosures in commercial transactions?

In commercial transactions, brokers have a responsibility to ensure transparency and clarity in their dealings, which is why providing written disclosures to all parties involved is essential. Written disclosures serve as a formal record of important information, such as the terms of representation, conflicts of interest, and potential risks related to the transaction. This helps to protect both the broker and the parties from misunderstandings and legal issues in the future.

Using written documentation is particularly important in commercial real estate, where transactions can be complex and involve significant financial commitments. Written disclosures allow all parties to have a clear understanding of their rights and obligations, fostering trust and reducing the potential for disputes. The requirement for written disclosures also aligns with best practices in the industry, ensuring that everyone involved is well-informed.

While oral disclosures can communicate some information, they may lack the formality and permanence that written records provide. Limiting disclosures to clients only can create an imbalance in knowledge and potentially lead to ethical concerns. Not providing any disclosures at all would violate fundamental principles of transparency and could lead to serious legal ramifications. Thus, ensuring that all parties are well-informed with written disclosures is the best practice in commercial real estate transactions.