A Connecticut buyer's agent, Lisa, is about to meet her new client, first-time homebuyer James, for the first time at a coffee shop to discuss his home search. James wants to buy a home in the $350,000 to $450,000 range in Fairfield County. Which action must Lisa take at this meeting to comply with Connecticut agency disclosure law?
Correct Answer
A) Provide James with the state-approved Connecticut agency disclosure form and explain the nature of the agency relationship she is offering
CGS § 20-325c requires Connecticut licensees to provide the state-approved written agency disclosure form at first substantive contact. This initial meeting where James discusses his specific home-buying needs and budget clearly constitutes first substantive contact. Lisa must provide the specific state-approved form, not just a verbal explanation, and must clarify the nature of the agency relationship she is offering.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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