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Volume 31, Number 3, 2009

Agency Disclosure in the Real Estate Transaction and the Impact of Related State Policies

Jonathan A. Wiley
Clemson University
Clemson, SC 29634
U.S.A.
Email: wileyj@clemson.edu

Leonard V. Zumpano
University of Alabama
Tuscaloosa, AL, 35487-0224
U.S.A.
Email: lzumpano@cba.ua.edu

Abstract:

Although agency disclosure is required by every state, recent national surveys of home buyers and sellers indicate that disclosure varies significantly across the United States. This study seeks to determine the causes of these disparities by examining states’ educational standards, disclosure forms, regulatory environments, and buyer characteristics. The results identify several variables that have a deterministic impact on the probability of disclosure and suggest corrective actions and policies that states can implement to improve the effectiveness of agency disclosure in the real estate transaction.


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