What is the act of explicitly informing all parties about whom an agent is representing?

The act of explicitly informing all parties about whom an agent is representing is referred to as the disclosure of representation. This is a critical component of the agency relationship, as it ensures transparency and allows all parties involved to understand the nature of their relationship. The agent has an obligation to disclose their representation to mitigate any potential conflicts of interest and to build trust within the transaction.

This practice is essential because it provides clarity regarding the agent’s loyalties and the expectations of both the principal and third parties. In real estate transactions, for instance, it helps buyers and sellers understand whether the agent is representing their interests or acting as a dual agent.

Other concepts, such as communication of responsibilities, may refer to the duties the agent owes to their client but do not specifically address the requirement to inform others about whom the agent represents. Agency disclosure could be interpreted broadly but lacks the precision of the term "disclosure of representation" regarding informing all parties. Lastly, an information statement is a general phrasing that does not specifically capture the legal duty of representation disclosure. Hence, the disclosure of representation is the most appropriate term in this context.