2.1 Agency Consent and Disclosure

West Virginia requires real estate licensees to make a clear, written disclosure of whom they represent before a consumer commits to anything. The vehicle is the Notice of Agency Relationship, a form promulgated (officially issued) by the West Virginia Real Estate Commission. Licensees use the Commission’s form — they do not draft their own substitute.

What Must Be Disclosed

Every licensee must disclose in writing which one of these relationships applies:

• represents the seller only
• represents the buyer only
• represents both seller and buyer (dual agency, by consent)
• represents the landlord only
• represents the tenant only
• represents both landlord and tenant (dual agency in a lease)

Key point: The Notice tells the consumer the nature of the relationship. It is an informational disclosure, not the representation contract itself — the listing agreement or buyer-agency agreement creates the agency; the Notice simply discloses it.

Timing — The Most-Tested Rule

The statute fixes the deadline as “prior to any person signing any contract for representation.” In practice that means the disclosure happens before:

• the consumer signs a listing agreement or buyer-agency agreement;
• any confidential information (motivation, price flexibility, finances) is exchanged; and
• substantive negotiation begins.

A useful operational standard is first substantive contact — the first conversation that goes beyond casual greeting into the consumer’s real estate needs.

Trap: Disclosing “at closing” or “after the purchase agreement is signed” is too late. The whole purpose is to inform the consumer before they rely on the licensee or reveal negotiating information.

Completing the Form Correctly

The Commission expects the licensee to:

1. Complete the Notice accurately for the specific relationship;
2. Sign and date it;
3. Provide a copy to the consumer; and
4. Retain documentation in the transaction file.

A consumer’s signature only acknowledges receipt of the disclosure — it is not consent to anything and does not, by itself, create dual agency. If a consumer declines to sign, the licensee still satisfies the duty by delivering the Notice and noting the refusal in the file.

Why the Disclosure Exists

Agency disclosure protects consumers and licensees alike:

Brokerage Agency Policy

Beyond the individual Notice, a brokerage should maintain a written office agency policy describing the agency relationships it offers (single agency, dual agency, etc.), train every affiliated licensee on the disclosure timing rule, and keep records of disclosures made. The broker is responsible for supervising compliance; a salesperson’s repeated disclosure failures can expose the supervising broker to discipline as well.

Relationship Types Disclosed on the Notice

Exam note: Memorize the trigger phrase — disclosure must occur “prior to any person signing any contract for representation.” That exact timing standard is a high-frequency state-portion item.

Disclosure vs. the Representation Contract

Students often confuse two distinct documents:

The Notice is informational; the listing or buyer-agency agreement is the binding employment contract between the consumer and the broker. A consumer can receive the Notice, understand the relationship, and then choose to sign — or not sign — the representation agreement. Delivering the Notice does not obligate the consumer to hire the licensee.

When the Relationship Changes

If the nature of representation changes during a transaction — most commonly when a single agent is about to become a dual agent because their buyer wants to see the firm’s own listing — a new or updated disclosure and the required written consent must be obtained before the change takes effect. A licensee cannot quietly slide from single agency into dual agency; the consumer must be re-informed and must consent in writing first. Re-disclosure also applies if a buyer who was a customer becomes a client, or vice versa.

Documentation Discipline

Because agency-disclosure failures are a common discipline trigger, the practical habit is simple: deliver the Notice early, sign and date it, get the consumer’s acknowledgment if possible, give them a copy, and file the original. If the Commission later asks whether disclosure was timely, the signed-and-dated form in the file answers the question. A missing or undated form is hard to defend in an audit or complaint.