EstatePass
AgencyAgencyMEDIUM

A Louisiana sponsoring broker reviews a conversation reaches the point where confidential information is solicited or received. Which answer follows Louisiana law?

Correct Answer

C) That point is substantive contact

La. R.S. 9:3891 defines substantive contact as the point in conversation where confidential information is solicited or received, including specific financial qualifications or motives/objectives that could harm bargaining position. Source basis: Louisiana Legislature official La. R.S. 9:3891, 9:3893, 9:3894, 9:3895, 9:3896, 9:3897, 9:3898, plus La. R.S. 37:1467; checked 2026-04-30.

Answer Options
A
The licensee may disclose confidential information whenever it helps close the transaction.
B
A generic national agency rule replaces the Louisiana Law of Agency.
C
That point is substantive contact
D
The label used by the salesperson alone determines the agency relationship.

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Agency Question

Sign up free to unlock full analysis

Background Knowledge for Agency

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Agency

Sign up free to unlock full analysis

Common Mistakes to Avoid on Agency Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Related Topics:

la.Vagency

Key Terms:

louisianala.Vagencysubstantive-contact
Was this explanation helpful?

More Agency Questions

People Also Study

Agency Questions

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing