Under Kentucky law, when must a licensee first disclose their agency relationship to a prospective buyer or seller?
Correct Answer
A) At the first substantive contact with the prospective client or customer
Under KRS 324.360 and 201 KAR 11:121, Kentucky licensees are required to disclose their agency relationship at the time of first substantive contact with any party to a transaction. This ensures all parties understand who the licensee represents before any meaningful discussions occur.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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.
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