In what scenario is a licensee required to provide full disclosure to all parties?

A licensee is required to provide full disclosure to all parties when acting as dual agents because dual agency involves representing both the seller and the buyer in the same transaction. In this role, the licensee has a fiduciary duty to provide honesty and transparency to both parties involved, ensuring that all relevant information is shared. This is crucial to maintaining trust and compliance with regulations, as dual agency can create potential conflicts of interest. Full disclosure helps to mitigate misunderstandings and potential disputes by making both parties aware of any circumstances that could affect their decisions.

In contrast, the other scenarios do not necessitate the same level of obligatory disclosure. When they are only asked by a party, for example, the licensee has discretion on what to share, which may not align with the comprehensive requirement of full disclosure in a dual agency situation. Similarly, disclosure at the time of closing or while showing properties may not cover ongoing obligations to inform all parties throughout the process. Thus, understanding the complexities of dual agency clarifies why complete transparency is essential in that context.