Sarah is a licensed sales associate in Kentucky working under Principal Broker Thompson. A buyer named Marcus contacts Sarah's office looking for a home. Sarah meets with Marcus and begins discussing his housing needs and budget in detail. Under Kentucky law, at what point must Sarah disclose her agency relationship to Marcus?
Correct Answer
A) At first substantive contact with Marcus
Under 201 KAR 11:121, Kentucky licensees are required to disclose their agency relationship to all parties at first substantive contact. First substantive contact occurs when meaningful discussion about a specific property or the buyer's needs begins, which in this scenario happens when Sarah starts discussing Marcus's housing needs and budget.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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.
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