New York requires disclosure of agency relationship:
Audio Lesson
Duration: 2:47
Question & Answer
Review the question and all answer choices
Only at closing
Closing is too late for agency disclosure. By this point, the consumer may have already provided confidential information or made decisions based on misunderstanding their relationship with the agent, potentially leading to legal issues and invalidating the transaction.
At first substantive contact
Only if the client asks
Agency disclosure cannot be optional or based solely on client request. NY law mandates disclosure regardless of whether the consumer asks about agency relationships, ensuring informed consent and protecting consumers who may not understand real estate agency concepts.
Within 10 days of showing property
Within 10 days of showing property is too late for initial disclosure. NY requires disclosure at first substantive contact, which typically occurs before any property viewings, allowing consumers to understand their agency relationship before making significant decisions.
Why is this correct?
NY law requires agency disclosure at first substantive contact about a specific property. This timing ensures transparency before any substantive discussions about a particular property, protecting consumers and establishing the agency relationship early in the transaction process.
Deep Analysis
AI-powered in-depth explanation of this concept
Agency disclosure is fundamental to real estate practice as it establishes the legal relationship between agent and client, protecting both parties' interests and ensuring informed consent. This question tests understanding of New York's specific timing requirements for agency disclosure. The correct answer is 'At first substantive contact' because NY law mandates disclosure early in the relationship, specifically when discussing a particular property with a consumer. This timing prevents misunderstandings later in the transaction. The question is challenging because it requires knowing not just that disclosure is required, but precisely when it must occur. Many students might confuse NY's requirement with other states' rules or with general disclosure principles. Understanding this concept connects to broader knowledge of agency relationships, fiduciary duties, and consumer protection laws in real estate transactions.
Knowledge Background
Essential context and foundational knowledge
Agency disclosure requirements exist in all states to protect consumers by ensuring they understand their relationship with the real estate professional. New York specifically requires disclosure at first substantive contact with a consumer about a particular property. This regulation stems from consumer protection laws designed to prevent misunderstandings that could lead to legal disputes. The requirement establishes transparency early in the relationship, allowing consumers to make informed decisions about how they want to be represented in a transaction.
FSC - First Substantive Contact
Remember NY's disclosure timing requirement with the acronym FSC. Think of it as 'Full Speed Contact' - meaning disclosure must happen immediately when you start discussing a specific property with a consumer.
For agency disclosure questions, look for 'first substantive contact' as the correct answer for NY. Other states may have different requirements, but NY is specific about this timing.
Real World Application
How this concept applies in actual real estate practice
Imagine a buyer meets with an agent to discuss their needs and preferences. The agent shows them listings online and they have a substantive conversation about a particular property's features and price. Under NY law, the agent must disclose their agency relationship at this point, before they proceed to schedule a showing. If disclosure doesn't happen until after showing the property, the buyer might have unknowingly shared confidential information that could impact their negotiating position, potentially leading to legal complications.
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