Who must salesperson Katie disclose her agency relationship to in the transaction with seller Suzie and buyers Bob and Janine?

In a real estate transaction, a salesperson must disclose their agency relationship to all parties involved in the transaction to ensure transparency and to avoid conflicts of interest. In this scenario, Katie, as the salesperson, is representing the seller, Suzie, and there are also buyers, Bob and Janine.

The correct course of action is for Katie to disclose her agency relationship to both parties in the transaction—this means she should inform Suzie that she is acting on her behalf in the sale, and she must also disclose this relationship to Bob and Janine, who are the potential buyers. By doing this, all parties understand who Katie represents and can make informed decisions.

Disclosing to only Bob and Janine would leave Suzie uninformed about who is representing her interests, which is not in compliance with ethical and legal standards in real estate transactions. Likewise, informing just Suzie or any one party alone does not cover the obligation to inform all parties involved, which is essential for maintaining clarity and transparency throughout the process. Therefore, the requirement is that Katie discloses her agency relationship to all parties engaged in the transaction, making it necessary to inform both the seller and the buyers.