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AgencyDisclosure_requirementsHARD

Connecticut salesperson Olivia works for Metro Realty and has been showing buyer client Greg properties for three weeks. Greg has signed a buyer representation agreement with Metro Realty, but Olivia never provided the agency disclosure form at first substantive contact as required by CGS § 20-325c. Greg now wants to purchase a property listed by Metro Realty, creating a potential dual agency situation. Which statement best describes the legal landscape Olivia faces?

Correct Answer

B) Olivia faces a compounded violation: an existing failure to disclose at first substantive contact and a new obligation to obtain written dual agency consent before proceeding with the in-house listing

Olivia has two distinct legal problems. First, she failed to provide the agency disclosure form at first substantive contact three weeks ago, which is an existing violation of CGS § 20-325c subject to disciplinary action by the CREC. Second, the in-house listing creates a new dual agency situation that requires fresh written informed consent from both Greg and the seller before proceeding. The buyer representation agreement does not cure the original disclosure violation; these are separate legal obligations.

Answer Options
A
The signed buyer representation agreement retroactively satisfies the CGS § 20-325c disclosure requirement, so no violation exists
B
Olivia faces a compounded violation: an existing failure to disclose at first substantive contact and a new obligation to obtain written dual agency consent before proceeding with the in-house listing
C
Because Greg already signed a buyer representation agreement, Olivia only needs to disclose the dual agency situation and no prior violation applies
D
Olivia must withdraw from representing Greg before showing him any in-house listing, because the prior disclosure failure bars dual agency consent

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Related Topics & Key Terms

Key Terms:

agency_disclosuredual_agencycompounded_violationCGS_20-325cbuyer_representation_agreement

Related Concepts

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

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