Sarah is a Delaware licensee who has just met a prospective buyer, Marcus, at an open house. During their conversation, Marcus begins asking Sarah detailed questions about his financing options and what price he could afford. Under Delaware law, at what point must Sarah disclose her agency status to Marcus?
Correct Answer
B) At the first substantive contact with Marcus
Under 24 Del. C. § 2973, Delaware requires agency disclosure at the time of 'first substantive contact.' The conversation at the open house where Marcus discusses financing and affordability constitutes substantive contact, triggering the disclosure requirement immediately — not at a later stage such as showing properties or signing a contract.
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Related Topics & Key Terms
Key Terms:
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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