What document describes the agency relationship and authorizes agency in Kentucky?

The document that describes the agency relationship and authorizes agency in Kentucky is the Agency Disclosure Statement. This statement is a crucial part of real estate transactions as it outlines the responsibilities and obligations of the agent to the client. It serves to inform consumers of their rights and the nature of the agency relationship, whether the agent represents the buyer, the seller, or both.

In Kentucky, it is required for real estate agents to provide this disclosure to ensure transparency and to help clients understand how the agent will be representing their interests throughout the transaction. It also addresses the potential for dual agency situations, where one agent may represent both parties. This disclosure is vital in fostering trust and clarity between all parties involved.

The other documents referenced do not serve this specific purpose. For instance, a property deed is a legal document that transfers ownership of real estate but does not describe an agency relationship. A sales agreement outlines the terms and conditions of a sale, while an affidavit of agency is typically used to confirm the existence of an agency relationship but does not provide the same detailed disclosures about the nature of the relationship and the duties owed by the agent.