Sarah is a licensed Arkansas real estate agent working for Pinnacle Realty. She meets a potential seller, Mr. Davis, at an open house and begins discussing the market value of his home and a potential listing strategy. Under Arkansas agency disclosure requirements, what must Sarah do at this point?
Correct Answer
B) Disclose the agency relationship to Mr. Davis immediately, as this qualifies as first substantive contact
Under AREC Rule 10, discussing market value and listing strategy with a potential seller constitutes 'first substantive contact.' Arkansas law requires the licensee to disclose the agency relationship at this moment. Sarah must inform Mr. Davis of her representational role before the conversation proceeds further.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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