When should the company policy on agency relationships be disclosed?

The correct choice is that the company policy on agency relationships should be disclosed at the initiation of the agency relationship. This is critical because it ensures that all parties involved understand the nature of their relationship from the very beginning. It establishes transparency and builds trust, allowing both buyers and sellers to make informed decisions based on their understanding of how their interests will be represented.

Disclosing the policy at the onset of the relationship is aligned with best practices in real estate, reinforcing the importance of clarity in agency agreements. This early disclosure helps avoid potential conflicts and miscommunications later in the transaction process. Therefore, when the agency relationship begins, it is essential to inform clients about how agency works, which will guide their expectations and interactions throughout the transaction.