What is the broker's duty to keep the principal informed of all relevant facts in a transaction called?

The broker's duty to keep the principal informed of all relevant facts in a transaction is referred to as disclosure. This responsibility is fundamental in real estate transactions and underscores the importance of transparency between the broker and the principal. When a broker provides full disclosure, it ensures that the principal is aware of critical information that could impact their decisions, such as material defects in a property, market conditions, or any legal issues that may arise.

Effective disclosure fosters trust and informed decision-making within the broker-client relationship. It allows the principal to navigate the transaction with all necessary information at hand, enhancing their ability to make choices that align with their interests. This obligation reinforces the fiduciary duty of the broker to act in the best interests of the principal throughout the duration of the transaction.