In North Carolina, the Working with Real Estate Agents disclosure must be provided:
Audio Lesson
Duration: 3:00
Question & Answer
Review the question and all answer choices
At closing
A is incorrect because providing the disclosure at closing would be too late to serve its purpose of informing consumers about agency relationships early in the process. By then, the consumer may have already shared confidential information without understanding the agent's fiduciary duties.
At first substantial contact
Only if requested
C is incorrect because the disclosure is mandatory in North Carolina and must be provided at first substantial contact, regardless of whether the consumer specifically requests it. This requirement protects consumers by ensuring they receive this information proactively.
After contract signing
D is incorrect because the disclosure must be provided before any contract is signed. Waiting until after contract signing would violate the timing requirement and deprive consumers of important information during the initial stages of property consideration.
Why is this correct?
The correct answer is B because North Carolina law specifically requires the Working with Real Estate Agents disclosure to be provided at first substantial contact with a prospective buyer or seller. This timing ensures consumers understand agency relationships before providing any confidential information or entering into negotiations.
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests your knowledge of a critical regulatory requirement in North Carolina real estate practice. The timing of agency disclosures is fundamental to consumer protection and ethical real estate practice. Understanding when to provide the Working with Real Estate Agents disclosure demonstrates your knowledge of state-specific regulations that govern agent-consumer relationships from the very beginning of potential business relationships. The question focuses on timing, which is a common exam pattern. By analyzing each option, we can see why 'first substantial contact' is the legally mandated timing in North Carolina. This concept matters because failure to provide disclosures at the proper time can lead to legal consequences, loss of commission, and potential license sanctions. This question also connects to broader concepts of agency relationships, disclosure requirements, and consumer protection laws that form the foundation of real estate practice across the country.
Knowledge Background
Essential context and foundational knowledge
The Working with Real Estate Agents disclosure requirement in North Carolina stems from the state's commitment to consumer protection and transparent real estate transactions. This regulation ensures that potential clients understand the nature of agency relationships before sharing personal or financial information. The concept of 'first substantial contact' generally occurs when a real estate agent and prospective buyer or seller have substantive conversation about real estate services, property requirements, or financial details. This timing requirement helps establish clear expectations and prevents misunderstandings about fiduciary duties that agents owe to their clients.
First substantial contact, don't delay, Agency disclosure starts the right way.
Remember this rhyme when encountering questions about disclosure timing. The first substantial contact is when the agency disclosure must be given in North Carolina.
For timing questions about disclosures, look for the phrase 'first substantial contact' as it often indicates the earliest permissible time for required agency disclosures in many states, including North Carolina.
Real World Application
How this concept applies in actual real estate practice
Imagine a buyer walks into an open house on Sunday morning. The listing agent engages in conversation about the property, asks about the buyer's housing needs, and discusses the buyer's budget range. This constitutes first substantial contact. The agent must immediately provide the Working with Real Estate Agents disclosure, explaining their role as the seller's agent and the buyer's options for representation. If the agent waits until closing or only provides the disclosure when the buyer makes an offer, they would be violating North Carolina regulations and potentially jeopardizing the transaction.
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