Which requirement ensures clients understand their representation in a transaction?

The requirement that ensures clients understand their representation in a transaction is rooted in Arizona state law. This legal framework mandates that real estate professionals provide clear disclosures regarding their role and the nature of their representation in real estate transactions. State laws, such as those governing agency relationships, stipulate that clients must be informed of whom the agent is representing—whether it’s the buyer, the seller, or both—in order to establish transparency and trust in the relationship. This includes providing necessary documentation, such as the Agency Disclosure form, that outlines the responsibilities and obligations of the agent, thereby ensuring clients have a full understanding of their representation.

Other sources, such as the Realtor® code of ethics, incorporate ethical expectations but are not a legal requirement. Good real estate practices and policies from brokerages also promote clarity and understanding but do not hold the force of law like state regulations do. Therefore, it is Arizona state law that primarily plays a crucial role in ensuring clients are aware of their representation during real estate transactions.