What must a licensee do once an agency relationship is established?

Once an agency relationship is established, the licensee is obligated to notify all involved parties as soon as practical about the nature of the agency relationship. This requirement is crucial for maintaining transparency and trust in the real estate transaction process. By informing all parties, the licensee ensures that everyone understands who is representing whom and the responsibilities associated with that representation.

This prompt communication fosters a clear understanding among all involved parties, which can help prevent misunderstandings or disputes later on. It's a key aspect of professional conduct in real estate, emphasizing the importance of clarity and integrity in business dealings.

The other options do not address the necessary and immediate communication required after an agency relationship has been formed. For instance, simply informing the public or updating personal records does not fulfill the duty to directly notify clients or other parties in the transaction. Additionally, waiting for a specified time, such as 72 hours, is not in line with the expectation of prompt disclosure in the context of agency agreements.