Which of the following must be disclosed to clients prior to entering a listing agreement?

The requirement to disclose the agency relationship to clients prior to entering a listing agreement is rooted in the principles of transparent and ethical business practices in real estate. This disclosure is critical because it establishes the nature of the relationship between the broker and the client, which can significantly impact their rights and responsibilities.

When clients understand the agency relationship—whether the broker represents them as the seller (a fiduciary relationship) or if the broker is merely facilitating the transaction without an allegiance to the seller—it allows them to make informed decisions. Clarity in this relationship helps to set expectations regarding loyalty, confidentiality, and the broker's obligations.

The other choices may involve relevant information in the broader context of a real estate transaction, but they do not hold the same foundational importance as the agency relationship. For instance, while understanding the commission structure is critical for clients, it usually comes into play after the agency disclosure. The broker's history and the property tax information, while beneficial for clients to know, do not establish the legal framework and responsibilities that come from the agency relationship. Thus, disclosing the agency relationship is essential for legal compliance and for building trust with clients.