Licensee Amy in Dover, Delaware meets prospective seller Mr. Chen at a neighborhood event. Mr. Chen mentions he is thinking of selling his home and asks Amy general questions about the local market. Amy begins describing comparable sales and suggests a likely listing price range for Mr. Chen's property. Under Delaware's Agency Relationships Act, which of the following best describes Amy's obligation at this point?
Correct Answer
A) Amy must disclose her agency status to Mr. Chen at this first substantive contact
Under 24 Del. C. § 2973, Delaware requires agency disclosure at the time of 'first substantive contact.' Discussing comparable sales and suggesting a listing price range for Mr. Chen's specific property constitutes substantive real estate consultation — this is first substantive contact, triggering Amy's obligation to disclose her agency status immediately, even in an informal setting like a neighborhood event.
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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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