Sarah is a licensed Iowa real estate salesperson working for Hawkeye Realty. A buyer named Marcus contacts Hawkeye Realty and asks to be shown several properties. Before discussing any property details or Marcus's financial situation, Sarah must provide Marcus with a written agency disclosure. Under Iowa law, when must this disclosure be delivered?
Correct Answer
B) At the first substantive contact with Marcus
Iowa law requires licensees to provide a written agency disclosure at the first substantive contact with a potential buyer or seller. 'Substantive contact' means any discussion of real property needs, financial qualifications, motivation, or property-specific information. Iowa Administrative Code 193E specifies the timing and form requirements for this disclosure, and waiting until a purchase agreement is signed or a formal representation agreement is executed would be too late.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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