Connecticut salesperson Dana is holding an open house for a seller client. A visitor, Mark, tours the home and tells Dana he is not working with any agent. Mark then begins sharing details about his financial situation and urgency to purchase. Dana has not yet provided the agency disclosure form. Under CGS § 20-325c, which of the following most accurately describes Dana's legal exposure and required action?
Correct Answer
B) Dana must provide the written agency disclosure form to Mark immediately, as the conversation has become substantive contact
CGS § 20-325c requires the written agency disclosure form to be provided at first substantive contact. Mark's disclosure of his financial situation and urgency to purchase constitutes substantive contact—it goes beyond casual conversation about the property and involves information relevant to a potential transaction. Dana must provide the disclosure form immediately at this point, before the conversation continues further. Failure to do so exposes Dana and her broker to license law violations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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